make your free rent deposit deed

rent deposit deed

date

between

1.   
     (the landlord)
2.   
     (the tenant)

1. in this deed, the following definitions are used

   bank account	an interest earning uk deposit account in the name of the landlord
   default	any failure by the tenant to pay the whole or any part of the rents due under the lease; or    any failure by the tenant to observe and perform the tenant's covenants and obligations and the conditions contained in the lease; or    any loss or expense incurred by the landlord arising from the ending of the lease before the end of the term by forfeiture, the disclaimer of any liquidator or trustee in bankruptcy of the estate of the tenant, or otherwise than by agreement;    whether or not any formal demand has been made;
   lease	the  sublease  made between the landlord and the tenant dated
   property	the property known as ,      demised by the lease
   rent deposit	the sum of £
   term	the term of years granted by the lease

2. in this deed, unless the context requires a different interpretation:
   1. words importing one gender include all other genders and words importing the singular include the plural and vice versa.
   2. if two or more persons are together the tenant, their obligations to the landlord shall be joint and several.
   3. any obligation on the tenant to do or not to do something includes an obligation on the tenant to use their reasonable endeavours to ensure that no other person does or fails to do that same thing.
   4. a reference to a person includes firms, companies, government entities, trusts and partnerships.
   5. the headings and sub-headings do not form part of this deed.

rent deposit

1. the landlord acknowledges the payment of the rent deposit and undertakes to place the rent deposit in the bank account.
2. the landlord agrees to act in connection with the rent deposit in accordance with the terms of this deed.
3. the landlord agrees that the monies comprised in the bank account shall at all times be and remain the property of the tenant but subject to the terms of this deed as security for any default.

tenant responsibilities

1. the tenant:
   1. authorises the landlord to act in connection with the rent deposit in accordance with the terms of this deed;
   2. acknowledges that the landlord's right of re-entry contained in the lease is to be exercisable on breach of any covenant or obligation contained in this deed as well as covenants in the lease;
   3. irrevocably and by way of security appoints the landlord and any person nominated in writing by the landlord as the tenant's attorney in its name and on its behalf and as its act and deed to do execute sign seal deliver or otherwise perfect any deed assurance agreement instrument demand notice receipt or thing which may be required by the landlord for the purpose of perfecting or enforcing this security;
   4. with full title guarantee, charges by way of fixed charge its right, title and interest, present and future, in the bank account and all money from time to time deposited in or standing to the credit of the bank account in accordance with this deed, as continuing security for all sums payable to the landlord in the event of any default.

landlord responsibilities

1. the landlord:
   1. shall place the rent deposit in the bank account;
   2. agrees to act in connection with the rent deposit in accordance with the terms of this deed;
   3. agrees to pay on demand (but not more than once in every six months) to the tenant all interest earned on the rent deposit (subject to deduction of such tax as may be required by law). no such payment will be made if there is any default, or if the payment would reduce the balance in the bank account to be less than the rent deposit.

withdrawals and maintenance of the bank account

1. the landlord may at any time draw on the bank account to pay to the landlord an amount equal to the sum due to the landlord arising out of default and the landlord will within 14 days of making any withdrawal notify the tenant in writing of the amount and date of such withdrawal.
2. if the landlord withdraws monies from the bank account in accordance with clause 8 then the tenant covenants that it will pay to the landlord without any deduction or set-off whatsoever within 14 days of the landlord notifying the tenant of the withdrawal, the sum necessary to increase the balance of the bank account to the rent deposit and when received the landlord will pay the monies into the bank account.
3. if at any time the balance in the bank account is less than the rent deposit, then the tenant covenants that it will within 14 days pay to the landlord the difference and when received the landlord will pay the money into the bank account.
4. the interest accruing on the rent deposit is to be left in the bank account and is to form part of the bank account.

return of the rent deposit

1. the bank account must be kept open until the earlier of the following:
   1. the date on which all of the following circumstances have occurred:
      1. 3 months after the end of the term;
      2. the landlord has been given vacant possession of the property; and
      3. the landlord has confirmed in writing (such confirmation not to be unreasonably withheld), that the landlord has no claim for breach of any of the terms of the lease.
   2. the date when the tenant assigns the lease with the consent of the landlord in accordance with the terms of the lease.
2. when the bank account is closed the rent deposit will be used to satisfy any claims of the landlord against the tenant arising out of any default and any balance with any accrued interest shall be paid to the tenant.

general

1. this charge shall be in addition and without prejudice to any and every other remedy guarantee lien or security which the landlord may have for the recovery of the sums due.
2. the provisions of the lease as to service of notices shall apply to this deed.
3. each provision contained in this deed shall be construed as a separate provision and if part or the entirety of any provision contained in this deed is held by any court of competent jurisdiction to be illegal invalid or unenforceable such illegality invalidity or unenforceability shall have no effect upon and shall not impair the legality validity or enforceability of the remaining part of such provision or any other provision contained in this deed
4. if the landlord sells the property the rent deposit shall be paid to its successor to place in a new bank deposit account in accordance with the terms of this deed.
5. a person who is not a party to this deed has no rights under the contracts (rights of third parties) act 1999 in relation to it.
6. this deed shall be governed by and construed in all respects in accordance with the laws of england and wales.

this document has been executed as a deed and takes effect on the date at the beginning of it.