Issued a section 21 but have a Prescribed Information problem?

Issued a section 21 but have a Prescribed Information problem?

9:57 AM, 7th February 2024, About 3 months ago 21

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Hi, I’m quite new to buy to lets and have educated myself as I go along. I have now learnt the hard way of the importance of being extra careful to issue the correct information in the right time.

I have a tenant who has fallen behind on their rent and caused some damage. I used a specialist to issue a section 21.

Unfortunately, the specialist did not pick up that I had not issued the Prescribed Information.

Everything else appears in order.

The tenancy deposit information was given to the tenant via a pdf on WhatsApp. Not the best I know but is allowed.

However, with no way of showing that the prescribed information was given, my solicitor has said this will get thrown out of court with me having to pay 1 to 3 times the deposit back to the tenant.

Does anyone have any advice on how I can move forward with this?

The tenants are refusing any person to enter the property.

Thank you,

Elias


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Comments

Jonathan Willis

12:56 PM, 8th February 2024, About 3 months ago

Reply to the comment left by Landlord Solicitor @ RSPLegal at 07/02/2024 - 10:24
Under Deregulation Act 2015, the tenancy deposit breach only occurs once, so even if you renew or lapse into a periodic tenancy, only a single claim can now be made by the tenant against the landlord.

https://www.legislation.gov.uk/ukpga/2015/20/notes/division/5/33

David

16:46 PM, 8th February 2024, About 3 months ago

Reply to the comment left by Jonathan Willis at 08/02/2024 - 12:56
Actually, case law suggests that the courts disagree with that interpretation.

Landlord Solicitor @ RSPLegal.com

17:06 PM, 8th February 2024, About 3 months ago

Reply to the comment left by Jonathan Willis at 08/02/2024 - 12:56
Sorry to disagree but the effect of the Deregulation Act 2015 was to ensure that where a deposit had been registered and prescribed information provided under the first tenancy then the subsequent occurrence of a periodic tenancy did not trigger those obligations again, where the requirements have not been complied with under the first tenancy then there is the potential for the liability to be triggered again on the creation of a new (albeit periodic) tenancy - There are multiple conflicting County Court decisions but no determinative authority

Reluctant Landlord

11:41 AM, 9th February 2024, About 3 months ago

Reply to the comment left by Landlord Solicitor @ RSPLegal at 08/02/2024 - 17:06
....so if anything went to court it would be up to that judge on the day to decide if it should be applied or not across the subsequent periodic tenancy.

Given that there is no clear answer/case law, then the judges ruling could be openly challenged itself I presume as a result?

So to get round all this - how do you pay back a tenants deposit if it is held in a scheme if the tenant does not engage to be able for it to be released back to them?

Is that taken into account? At what point is the deposit deemed 'returned'. Could it be at the point action is actively taken by the LL to trigger the deposit holding company to progress this. At this point the process is out of the LL hands so effectively he cannot be said to be holding anything at all? The money is never held by the LL , so it actually the action of who 'holds' the deposit on behalf of the tenant at this point that is key to determining this?

Landlord Solicitor @ RSPLegal.com

12:02 PM, 9th February 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 09/02/2024 - 11:41
It could go either way in Court but deposit claims are cost bearing regardless of the small claims limit so it would be extremely economically risky to run one to assessment unless you had an actual defence rather than just arguing about the appropriate level to pay, the costs of appealing a county court decision would be even more severe which is probably why there are no higher level authorities, you would ideally settle a deposit claim quickly pre issue where costs are not payable and take a pragmatic/ commercial view. Handled badly deposit claims can cost a lot more than they should.

An indirect effect of the RRA when implemented will mean that new tenancies start periodic so there will be no second tenancy occurrence to trigger a second liability.

Methods of repaying a deposit including refunds via DPS, cheques etc are also arguable either way with mixed caselaw Your only sure fire method is bank transfer.

Reluctant Landlord

14:10 PM, 9th February 2024, About 3 months ago

Reply to the comment left by Landlord Solicitor @ RSPLegal.com at 09/02/2024 - 12:02
...but you ned the tenant banking details for this and if they are savvy they wont agree so you can pay it back....

Steve Daniels

9:25 AM, 10th February 2024, About 3 months ago

For Prescribed Information, do you not have to get it signed before its recognised as accepted?

David Houghton

14:35 PM, 10th February 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 09/02/2024 - 14:10
Yes this is true, but the courts are savvy too. If you can demonstrate an honest mistake and efforts to repay it then the court uses it's discretion. If you are owed rent perhaps you could claim equitable offset? Best way is to follow the rule to the letter, if not mitigate it with an offer. Part 36 is there to protect you from costs as well.

David Houghton

15:29 PM, 10th February 2024, About 3 months ago

Reply to the comment left by Steve Daniels at 10/02/2024 - 09:25
That's one way, but that's evidence not law. The best way is to contract out of the law of property act 1926 with a contractual method of service. So any post tenancy document is deemed served two days after posting first class. Obviously this doesn't work for the first gsc

David

9:02 AM, 11th February 2024, About 3 months ago

Reply to the comment left by Steve Daniels at 10/02/2024 - 09:25
You cant force a tenant to sign the PI, but they must be offered the opportunity to do so. You, however, must sign it to be valid. I wouldnt personally hand over the keys until theyve signed everything, but if you didnt do that, you could use witnesses or a process server. Even if you posted a couple of copies with a request to sign and return one a court might accept this if you had some evidence. It only has to satisfy 'balance of probabilities', not 'beyond reasonable doubt'.

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