What happens if the property is sold mid-tenancy?

In the Insured scheme, if you remain the managing agent and the deposit stays in your client account, contact TDS and we will update the protection with details of the new landlord. There is no additional cost or break in protection. The Agent should end the tenancy & re-register under new Landlord.  This means there is still a certificate, for the original Landlord, on file.  If TDS changes the Landlord, the original Landlord is over-written.

If you hold the deposit and it’s protected on a ‘let only’ basis you must protect the deposit as new, under the new landlord.

In the Custodial scheme, you can initiate a ‘deposit transfer’ into the new landlord’s TDS Custodial account or update the landlord’s details through your account.

In both situations you must serve new prescribed information and the scheme leaflet within 30 days of the change of landlord.

If you need to release the deposit to be protected elsewhere, act with caution. You are responsible to both parties for its safety. So some key advice:

  • Get written confirmation from the new landlord/agent of how the new deposit will be protected
  • If it’s going to be protected in a custodial scheme, only pay direct to the scheme
  • If it’s going to be protected in an insured scheme, only release it with confirmation it has been re-protected.
  • Inform all parties of what you have done and where the deposit is.