Deed of assignment of rent deposit(s)

by Practical Law Property

Maintained | England, Wales

A standard document for the assignment of a landlord's interest in one or more rent deposit deeds upon the sale of a property's reversionary interest. This deed facilitates the transfer of all rights and benefits held by the seller under the rent deposit deeds to the buyer, including the benefit of any security. This standard document provides for the transfer of the deposit balances to the buyer's new accounts and contains key covenants, including an indemnity from the buyer to protect the seller against future liabilities arising from the landlord's obligations. It addresses the complexities of assigning rent deposits, considering factors such as whether leases are governed by the Landlord and Tenant (Covenants) Act 1995 (LTCA 1995) and how the deposit monies are held. The deed also includes provisions for the buyer to covenant directly with the tenants and for notifying tenants of the assignment, offering a structured approach to managing rent deposits during a commercial property transaction.

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