Rent Deposit Deed for Commercial Property
This Rent Deposit Deed should be used where the landlord receives a rent deposit from the tenant. A rent deposit may be required where the landlord is unwilling to rely solely on the tenant’s covenant to pay the rent and observe the terms of the lease; perhaps because the tenant’s financial standing does not meet the landlord’s usual criteria.
The rent deposit deed sets out how much has been paid by way of a rent deposit and the circumstances in which the landlord may use the deposit. It records (amongst other things) where the deposit will be placed, the grant by the tenant of a charge over the deposit and the procedure for the landlord to withdraw money.
Until 5 April 2013, if the tenant was a company or a limited liability partnership (LLP) a charge created by a Rent Deposit Deed had to be registered at Companies House within 21 days. This made the charge fully effective and prevented the rent deposit sum from being claimed by the tenant’s liquidator or administrator if the tenant became insolvent. For charges created from 6 April 2013 onwards, registration at Companies House is not required. The charge is fully effective without registration and the rent deposit monies cannot be claimed by a liquidator or administrator.
This deed is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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