Lease states we would be liable for all Adjudication Charges??

mlaf

Hi, I'm just reading through the lease we are to sign tomorrow as tenants. I came across the following paragraph:

ADJUDICATION CHARGES
Should there be any dispute at the termination of the tenancy agreement with regards the return of the deposit to the tenant from the relevant operating scheme, the tenant will under all circumstances bear the costs of any and all adjudication, deductible from deposit.


Seems unfair. Unless I'm misunderstanding, it seems if we disagree with a security deposit deduction, we must pay for 100% of the mediation..? Feels like a trap. Is this normal?

G_M

None of the the schemes' adjudication procedses have any costs as far as I know.

The court do of course, but this clause seems to only apply to the schemes.

And a court could order costs awarded against the losing party, which would over-rule this clause.

mlaf

thanks for your reply.

The agency confirmed there's no charge for dispute resolving from the deposit schemes, it's a clause to protect them if it goes beyond that, which I suppose is rather unlikely as it's not a large deposit.

rpc

So what do they think it covers them for? I agree with G_M's interpretation, but the agent may not...

Small claims court fees?
Legal fees?
"I'm a letting agent and would like to rip you off some more" fees?

mlaf

well, it states "the cost of any and all adjudication", so yeah probably both you mentioned.

I questioned it and she called it a "belt and braces" clause should there be any financial implications to adjudication. She said "we have to have this clause there to protect us as a company."

Doesn't sound right does it. Certainly discourages pursuing further action if we're not happy with the deposit scheme's ruling.

Hopefully it doesn't get to that point.. :undecided

sandsni

I would be very suspicious of the "in all circumstances" part. LAs are quiet good at making it sound (to you and the LL) like everything in the garden will be rosy. "Don't worry, it's just a standard clause, it won't come to that" But you never know how things will turn out as time goes on. If they want to indemnify themselves, why don't they just say "the agency will not be liable for any financial costs of adjudication" and leave you and the LL to figure out who is? Why are they making the T solely liable?