THE Residential Tenancy (Deposit Scheme) (Jersey) Regulations
2014 are intended to come into force in the near future. The main
aim of these regulations is to introduce rental deposit protection
for all residential tenancies in Jersey. The regulations will
remove the risk of tenants' rental deposits being unfairly
withheld by landlords and managing agents when tenancy agreements
come to an end and will provide a simple framework to assist
landlords and tenants in the management of deposits. In essence,
deposits will be held by a third party and will not be released
until the same party is content that both landlord and tenant are
How does the scheme work?
The regulations provide for the formation of an independent
body, known as the Deposit Scheme, which will hold property
deposits. The scheme will be managed by a scheme administrator who
will report to the Minister for Housing. The role of scheme
administrator is currently out for tender.
Paying in a deposit
Every landlord who takes a deposit in respect of a new, varied
or renewed tenancy agreement from a tenant after the regulations
come into force will be required to pay the deposit into the scheme
account within 14 days. It will also be permissible, although not
obligatory, for any existing deposit held by a landlord to be
applied into the scheme account after the enforcement date and for
the scheme to be adopted by those with existing tenancies.
When a landlord transfers deposit monies into the scheme, the
payment must be accompanied by the following information:
The address of the residential unit.
The commencement date of the residential tenancy.
The date on which the residential tenancy ends.
The type of property that is the subject of the tenancy.
The amount of the deposit payable in respect of the residential
The date on which the deposit was paid.
The name, address and contact information of the landlord.
The name and contact information of each tenant.
The name and business address of any managing agent.
The signature of the landlord, or any managing agent, and each
Any other information required by the scheme
Following receipt of this information, the scheme administrator
will forward a copy of the notice to each tenant affected. There
are provisions under the regulations which allow the minister to
impose fees on both the landlord and tenant, associated with the
process of crediting the scheme account and the registration of any
deposit on the scheme.
Such fees have not yet been discussed or disclosed, although it
has been estimated that a single deposit will incur a service
charge of £10 to £20. Interest earned against the
scheme account will be used to provide tenants with interest
against their deposits, but may also be used to meet the costs of
the scheme administration where appropriate.
Paying out a deposit
There are two circumstances which may result in the release of
deposit monies, following the termination of a tenancy.
The first is when a landlord and tenant come to an amicable
agreement as to how the monies should be treated and the second
follows any contention between the parties.
In the event that both the landlord and tenant are in agreement,
and have each notified the scheme administrator that a given
tenancy has come to an end and a set amount will be paid either
wholly to one of them, or partly to one and partly to the other,
then the scheme administrator will release the deposit in the
agreed fashion within five days of receipt of the notices.
The second method aims to resolve any dispute as to the
apportionment between the parties. Essentially, for a contested
claim to be made by one party against the other, the residential
tenancy must have come to an end, deposit monies must be held in
the deposit scheme, 14 days must have elapsed since the tenancy
ended and the relevant parties must have failed to agree on their
The regulations provide that a dispute resolution service must
be provided and will be available where both parties cannot agree
on the treatment of deposit monies. The dispute resolution service
may be free, or subject to payment by one or more of the parties to
a dispute. This service, along with the relating costs, is yet to
The service will be available for any disputes in relation to
deposits and will be considered in conjunction with the Residential
Tenancy (Condition Reports) (Jersey) Order 2014.
At the time of writing there has been a delay in the formation
timetable. It is anticipated that the scheme will go live towards
the end of spring/early summer and expected that the role of scheme
administrator will be appointed towards the end of February 2015.
Further information will follow once an accurate timeframe and an
estimation of fees has been confirmed.
Originally published in Homelife.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The process for obtaining planning permission for development of property in the Cayman Islands has been updated as a result of the latest revision of the Development and Planning Law and accompanying regulations (July 2015).
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).