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@dachairmann Buying property thats got tenants in. Have seen copy of AST Landlord taken deposit but not in Dep Scheme. Is that a problem?

Published: 22nd February, 2017

The fact the deposit isn’t registered wouldn’t actually affect the sale of the property, but on completion, you would become liable for the tenancy deposit registration.
We would advise the existing owners register the deposit with an approve scheme (DPS Custodial would be easiest) and on completion, transfer this to your landlord DPS account.
It wouldn’t be wise to purchase the property without either a) the deposit being registered or b) having had payment to you by the existing owners for the deposit amount so that you can register it.
One thing to be mindful of is that if a Section 21 Notice has been served for possession either before or after completion; this will be invalid due to the deposit not being registered.

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