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Deed of Covenant

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655 views 1 replies latest reply: 25 April 2014
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Tenant

Good afternoon!
My husband and I rented a flat in November 2013 and we have been living here since then.
Now, almost 5 months later, we are been asked to sign a deed of covenant. (?)
I never heard about it…
We have the agreement for an asssured shorthold tenancy with TDS signed already and we have provided all documents required by the estates agency.
Could someone please advise what is this document about and if we should or should not sign it?
Thank you in advance,
Raquel

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Administrator

Hi Raquel, thanks for your question.

A deed of covenant has to do with the buying and selling of a residential property. It is a legal agreement where the buyer of a property agrees to comply with the rules and conditions affecting the property as set out in the Lease.

Often if the landlord’s consent to the assignment is required they will make it a condition of their consent that the current/new tenant signs a deed of covenant, which binds them in the same way to the new owner. In most cases the document you are being asked to sign is no different to your tenancy agreement.

However, they cannot always insist that a tenant sign this, nor can you be forced to sign a deed of covenant.

Usually this is done at the start of the tenancy; the fact that you are being asked to sign one 5 months into your tenancy could imply that the property was recently sold.

Do not sign anything until you have read the document and understood it thoroughly. Also refer to you tenancy agreement as there should be a clause relating to this.

Your letting agent should be able to explain to you why you are being asked to do this 5 months into the AST, and should also be happy to explain the DoC as well. Don’t be afraid to ask them, it’s what they are there for.

All the best; let us know how you get on.

Disclaimer:

The above represents my own opinion, derived from personal knowledge and should not be relied upon as definitive or accurate advice. It is offered free of charge and may contain errors or omissions or be an inaccurate opinion of the law. I accept no liability for any loss or damage suffered as a result of relying on the above.

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