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Question Title: Letting to Diplomat
| Question: 242 |
| We are in the process of letting a house. An application has been received from a diplomat with the Colombian High Commission. We are aware that precautions are necessary when letting to foreign diplomats - what do you suggest ?
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| Contrary to popular myth, diplomats cannot claim blanket diplomatic immunity to all legal proceedings. In fact The State Immunity Act 1978 says that diplomats will not be immune from proceedings in an action relating to private immovable property situated in the territory of the receiving state (i.e. the UK) or in an action relating to any professional or commercial activity outside of her or his official functions. Therefore, a person in violation of any tenancy agreement can be proceeded against provided they do not hold the property on behalf of the mission (embassy) of their own state. Embassies are also likewise open to actions on the same basis as diplomats Problems do arise, however, where a diplomat has to terminate the contract early due to having to move at short notice. This eventuality has to be allowed for by charging a higher rent so as to cover for when a property may be empty or by leasing the property to the embassy directly so that the embassy is responsible for the rent for a period of time whether or not the premises are occupied. Alternatively, a penalty may be imposed in the letting agreement, from early termination at short notice. Further or alternatively, insurance can be obtained to cover early termination. If the lessor is not entirely sure of the permanency of the embassy itself in the UK, a high rent, a penalty clause together with appropriate insurance should cover any eventuality. The cost of the insurance will undoubtedly depend on the perceived risk of the embassy's permanence but these costs can be deferred by a rent increase, in necessary. It is worth noting that it is not just diplomats that may terminate their contract early, this is a risk that is run no matter who you are renting to and insuring against this is always an option.
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References:
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Pages:
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Hyperlinks:
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Letting Handbook |
Chapter 6 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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