Many landlords assume that they have a license agreement in place just because they have had tenets sign a contract that they have created. These contracts typically would not hold up in court due to them not being legally legitimate. Being able to serve a Section 21 depends on a lot more specific details such as if you have previously accepted a deposit from the tenants that was not considered protected under a legally-binding license agreement.
Key Takeaways:
- Just because tenants sign a contract does not mean that it is a legally-binding agreement.
- Your ability to subject tenants to a section 21 can depend on whether you received a protected deposit.
- The Deregulation Act of 2015 has several rules you must follow when utilizing a section 21.
“In fact, landlords (and agents) need to be VERY careful about giving ?sham licenses? as you can be prosecuted for this.”
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