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The landlord was trying to charge the tenant to register the deposit and also failed to protect the security deposit - Landlord and Tenant Law

Gladehurst V Hashemi

 

Court of appeal, 19 May 2011, [2011] EWCA Civ 604

(Ref Letting Update July 2011, Issue 2, volume 19, p29)

Case background

 

The tenancy agreement which was signed by both landlord and the tenant had implied that the deposit would be protected but, it required the tenant to request this and pay an additional administrative fee. The tenant never requested the deposit to be requested and consequently, the deposit wasn’t registered. The tenant vacated the property in 2008, and after the landlord made deductions from the deposit the tenant then claimed the return of the deducted money, plus three times the deposit amount.

 

In court

 

In the first hearing the judge through out the claim on basis that the tenancy had ended before the application was made by the tenant to claim against the landlord for not registering the deposit.

In an appeal, the second judge overturned that view and reinstated the claim against the landlord. The court of appeal decided that there cannot be a three times the deposit penalty where the tenancy has expired on the basis that the tenant should not wait until after the end of the tenancy to use this as leverage against the landlord. It was also suggested by the judge that in the case of a joint tenancy agreement all tenants must make the claim together.

The verdict

The landlord won the case and was NOT ordered to pay 3 times the deposit amount. The tenant was refunded her original deposit in full.



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