Does the agent have to hold the deposit as stakeholder?
Yes. The legislation effectively does away with the ability to hold the deposit as “Agent for the Landlord” and to use at the landlord’s discretion. It prohibits the holder of the deposit from paying out the deposit without the agreement of the landlord and tenant. A disputed deposit can only be paid out following a decision by an adjudicator or the courts. Even if a landlord wishes to insist that the agent holds the deposit as “Agent for the Landlord”, the agent would not be able to release any of the deposit to the landlord, at any point during the tenancy.
Yes. The legislation effectively does away with the ability to hold the deposit as Agent for the Landlord and to use at the landlords discretion. It prohibits the holder of the deposit from paying out the deposit without the agreement of the landlord and tenant. A disputed deposit can only be paid out following a decision by an adjudicator or the courts. Even if a landlord wishes to insist that the agent holds the deposit as Agent for the Landlord, the agent would not be able to release any of the deposit to the landlord, at any point during the tenancy.
