Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 4 weeks ago 47
I am working as part of a legal group to solve an issue for landlords which I hope to be able to talk about later this month.
I’m learning a lot and loving it!
The issue of contract vs Deed came up in a meeting I had yesterday. Assured Shorthold Tenancy Agreements “AST’s” can be either. I was interested to learn the difference because to the layman they look very similar.
Did you know that you have 12 years to chase a debt created as a result of a Deed but only 6 years for a contract? That could be very useful in terms of rent arrears as 12 years is a very long time and even the worst of hopeless case tenants might have had a turnaround in their finances within that period.
The only downside of an AST being a Deed instead of a contract which I could see is that each signature need to be independently witnessed by unrelated people.
The other very useful thing I learned about Deeds is that unlike contracts, which can be challenged if there is no consideration (i.e. payment), a Deed can not. Therefore, that’s why a Deed of Assurance is a Deed and not a contract as tenants don’t pay for the assurance.
Clever stuff hey?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More