There has been a recent High Court decision in the case of Northwood Solihull Ltd v Fearn which held that if landlords or their agents, who trade through a limited company, fail to comply with the provisions of section 44 of the Companies Act 2006 – the Prescribed Information notices will be invalid.
Which would mean:
Not something you will want to happen!
It says that documents ‘executed on behalf of a company’ must be signed, either by
However, this is not always convenient. And if one of your staff is unaware of this rule and just signs the form and sends it out – it will be invalid.
Do you want to risk this happening?
To help landlords and letting agents deal with this, solicitor David Smith of JMW Solicitors has drafted a special clause which you can put in:
Which should protect you from this problem. Note that the clause is drafted specifically for tenancy deposit prescribed information clauses. It will not apply to other documents.
You can buy this clause to use in your documents here.
The cost of the clause is £48 (ie £40 + VAT). To get it you need to
Q: Will this give me absolute protection?
A: No, nothing can do that, other than compliance with s44 of the Companies Act. However, we see no reason why this clause would not be accepted by the Court, if it were ever challenged.
Q; Can I have a refund if I consider the clause is not suitable for me?
A: We cannot make refunds after the email with the clause has been sent to you, as being a digital product, it cannot be returned. So refunds will only be paid at our discretion.
Q: What happens if the case is appealed and the law changes?
A: The clause may no longer be necessary but having it in your documentation will not prejudice you in any way.
Q: Can I discuss this with someone?
A: We have a (paid) telephone advice service here – if you want to discuss this issue, select JMW Solicitors when booking your call.
Q: What should I do if I don’t get the email after purchase?
A: Check your spam folder. If it is not there contact us via our green button support service.