If you are trading as a landlord or as a letting agent through a limited company – you need to be aware of the requirements of section 44 of the Companies Act 2006.
A recent case, Northwood Solihull v. Fearn & Ors, has shown how important this is as (unless this finding of the case is overturned on appeal) all tenancy deposit prescribed information forms signed on behalf of a limited company will be invalid, unless signed in accordance with section 44.
I discussed this in my recent post here.
But invalid prescribed information forms can make you liable for the penalty of up to 3x the deposit sum, and any section 21 notices served will be unenforceable.
Solicitor David Smith, told me he has been asked by several landlords and agents if he could draft up a clause to deal with this situation. However as his firm is not really set up for selling this type of thing, it was agreed that we would offer this clause for sale on his behalf.
In fact, there are two clauses, one for landlords and one for letting agents, although if you buy the product you will be emailed details of both.
If you want to find out more please see the sales page linked below which has further details.
Landlord Law members will get a 50% discount on purchase provided they are logged in.