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Recovery of deposit made as security for payment of rent.
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46.—(1) Where—
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(a) the tenancy of a controlled dwelling (being a tenancy which commenced after the commencement of this Act) having terminated, possession of the dwelling is surrendered, and
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(b) a deposit made as security for payment of the rent stands not repaid, and
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(c) the person to whom the rent was last paid is not the person with whom the deposit was made,
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the deposit shall be deemed, for the purposes of the recovery thereof, to have been made with the person to whom the rent was last paid.
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(2) Where—
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(a) during the tenancy of a controlled dwelling (being a tenancy which commenced after the commencement of this Act) a deposit made as security for payment of the rent stands made, and
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(b) the deposit is not an approved deposit,
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the deposit shall be recoverable on demand and, for that purpose, shall be deemed, in a case in which the person to whom the rent was last paid is not the person with whom the deposit was made, to have been made with the person to whom the rent was last paid.
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(3) In subsection (2) of this section “approved deposit” means a deposit satisfying the following requirements:
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(a) that it does not exceed in amount a sum equivalent to three months' rent, and
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(b) that its amount, in case the agreement for the tenancy was made in writing, was set out in or endorsed on that agreement and, in any other case, was set out at the time it was made in the rent book.
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(4) There shall be implied in every contract made after the commencement of this Act for the sale of any interest in a controlled dwelling a provision (if not already expressly included) binding the vendor to give (by way of statutory declaration if so required) to the purchaser any information in the vendor's possession or procurement regarding any deposit made after such commencement by a tenant of the dwelling as security for payment of the rent.
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