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Renting Homes (Fees etc.) (Wales) Act 2019

Changes over time for: Cross Heading: Payment in the event of default

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Payment in the event of defaultE+W

6(1)A payment that is required, under a standard occupation contract, to be made in the event of a default by the contract-holder is a permitted payment, but this is subject to sub-paragraph (3).E+W

(2)In this paragraph, “default” means—

(a)a failure by the contract-holder to make a payment by the due date to the landlord, or

(b)a breach by the contract-holder of a term of the contract.

(3)In the case of a default to which sub-paragraph (4) applies, if the amount of a payment required in the event of the default exceeds the prescribed limit, the amount of the excess is a prohibited payment.

(4)This sub-paragraph applies to—

(a)a failure by the contract-holder to make a payment of rent by the due date to the landlord;

(b)any additional description of default which is specified by regulations.

(5)In sub-paragraph (3), the “prescribed limit” means a limit specified by, or determined in accordance with, regulations.

Commencement Information

I1Sch. 1 para. 6 in force at 1.9.2019 by S.I. 2019/1150, art. 2(c)

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