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New Laws On Tenants' Deposits
By David Carter
New laws come into effect from April 2007 with effect to tenants’ cash deposits in England that are held against new AST’s, Assured Shorthold Tenancies.
Any new Assured Shorthold Tenancy commencing after April 2007 must now be covered by the Tenancy Deposit Protection scheme, TDP, of which there will be two kinds. It will be mandatory for all landlords and letting agents to be a member of one scheme or the other.
The British government has awarded contracts to three organisations to operate these schemes. Computershare Investor Services PLC will run the single custodial deposit scheme, while the Chartered Institute of Arbitrators will provide the Alternative Dispute Resolution (ADR) service.
This will be a free service for landlords and tenants alike and the whole operation will be paid for by the surplus cash accrued on the pool of deposits held. It is also likely that interest will be paid to the tenants, something that has never happened in the past.
The Dispute Service Limited will offer an insurance-based service aimed primarily at letting agencies. It is being backed by the professional bodies, ARLA, NAEA, and RICS, all of whom will provide further information about these new services.
The holding of cash deposits by agents and landlords has long been a source of difficulty between tenants and their landlords. The majority of landlords have been fair and reasonable when it came to returning deposits at the end of tenancies, but some looked on the deposits as an easy source of additional income and always made claims, no matter how outlandish, against this security money.
As far as letting agents are concerned, although they will miss the interest gained on these monies, in the past they always kept that for themselves, they certainly will not miss the inevitable disputes that all too often arose between the two parties. For the letting agents it was a lose/lose situation.
No tenant was ever happy having money stopped to put dilapidation claims right, no matter how justified it was, while some landlords would put pressure on the agents to make claims and deductions, and ultimately make additional payments to landlords. Often the agent would end up with two very unhappy clients through none of his or her doing.
No doubt the new schemes will have teething problems, no doubt it will take time to settle down, they do seem quite complicated and one wonders why a single overall scheme could not have been agreed upon, but in the longer term, it is likely the new arrangements will be welcomed by tenants, rental agents and landlords alike, because it will for the first time introduce laid down procedures for settling disputes.
For more information check out the website: www.depositprotection.co.uk
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Buying a New Home: Ten Point Checklist
By David Carter
When buying a new home (not newbuild) for peace of mind remember to check out these points.
Has any building work been carried out on the property since the current owners moved in, and if so, who was it done by, and is it still under warranty? Warranties are usually transferable and you may as well grab them if you can.
What is the average cost of the utility bills, the gas, electricity, heating, water, and local government taxes? These can vary hugely from place to place, and could make a big difference to your total outgoings. You need to know.
Does the garden or yard get sunshine, and if so at what time of the day, or is the area prone to flooding at certain times of the year? Take particular interest in this point if the property is located close to a river or the coast. Placid rivers in the summer can be torrential beasts in winter. Lapping waves can soon become giants. Imagine that, as you stare out across the shimmering blue sea.
Are there any trees planted close to the property? These can undermine foundations and cause serious damage. Never buy a thatched cottage situated below large trees. The constant dripping will quickly damage and rot the roof, and if there are trees overhanging the house, check out if there are any restrictions in pruning or removing them. A leafless tree in winter can go unnoticed, but that same tree in full leaf in high summer may make the property oppressively dark inside.
What are the neighbours like? This is not always an easy question to answer, but we have all seen programmes about impossibly awful neighbours, and believe me, you wouldn't want to pitch up next to the neighbours from hell. A little research will give you some peace of mind, and remember this is definitely not a point your legal eagles will always answer satisfactorily. It is certainly something you are best doing yourself
Is vehicle parking in the area easily and freely available for you and your visitors? If it isn't, you might find your visitors visit less, though only would know if that was a good thing.
Has the property you are buying, or indeed any of the neighbouring houses ever been robbed. Is it located in an area known for house breaking and burglaries? If the owner seems strangely reluctant to answer that, you might wonder why, and you could ask your local police sergeant.
How quickly do the owners want you to move? This might suit you, but equally it might not. Check it out for peace of mind.
How long has the property been up for sale? If it has been on the market for many months, or even years, that's a sure sign that something may not be right. Perhaps the price is too dear, perhaps the house is falling down, perhaps the neighbours are appalling. Whatever the reason, you need to know. Delve deeper.
If you have children, are there good schools close by? You don't want a twenty mile drive across the busy city, or difficult terrain every morning and afternoon. Good local schools are one of the first things families look for when buying a home.
Some people leave everything to be checked by their legal team, and are then surprised when they run into problems. Fact is, legal teams don't check all these items, so it is up to you to do so. Remember, for greater peace of mind, you can't check too many points, too thoroughly, when buying a new home.
Radon Alert When Buying A House
By David Carter
If there isn’t enough to think of already when buying a new home, I don’t expect that you have considered the danger of Radon. Neither had I, until my solicitor brought it to my attention and I began to look into the matter in some detail.
So what is Radon, and where is it prevalent? Radon is a radio active gas that does occur naturally and is surprisingly the second biggest cause of lung cancer deaths in Great Britain, after cigarettes.
Large areas of the south-west of England are based on rock formations that contain and generate unusually large amounts of Radon. This can mean that the gas poses a potential hazard for property owners in many areas of Somerset, Devon and Cornwall. So it makes sense if you are buying a house in these areas that you take precautions and consequently the problem can be eliminated.
Radon occurs naturally and it derives from decaying radium, which is itself a product of decaying uranium in the rocks and soil itself. In the south-west of England there is a band of rock that runs from near Taunton in Somerset, right down to Penzance in the west and beyond, but there are also many other areas at high risk in the south-west of England.
The gas can build up in houses to amounts in excess of what is called the “action level”, namely 200 Becquerels per cubic metre.
The good news is that there are ways to eliminate the Radon problem in domestic properties and it doesn’t cost a fortune to do so. These include inserting an underfloor sump from which the gas is then pumped away from the house. The average cost of this is around £1,000, or $1,750, and also by improving the ventilation under the floors, usual costs around £500 or $875. A simple Radon test pack costs around fifty quid. If you are considering buying a new house, or indeed an older property in the south-west of England it is a good idea to check whether these anti Radon measures are already built in. They often are in these areas, though you should still check to be safe.
And if you are selling a property in these areas it is as well to have checks carried out too, because high levels can hold up house sales, or you may be faced with a proportion of the sales total deducted and held in trust, until a result is known, and the problem rectified.
In Great Britain you can find further information of the Radon problem from the Health Protection Agency who publish a booklet entitled “Radon, a guide for homebuyers and sellers”, and you can obtain further information of this booklet at their website which is www. hpa.org.uk/radiation
This problem occurs in many parts of the world of course, and in many areas it is little thought of, never mind investigated and dealt with, so if you are buying a second property in an unusual area or country, it might be a good idea to ask your legal team to investigate the problem thoroughly before contracts are signed.
All articles and information Copyright 2007 David Carter & TrackerDog Media
