Agent closed/insolvent/dissolved/in liquidation/disappeared

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    Agent closed/insolvent/dissolved/in liquidation/disappeared

    Lincolnshire Agent Eleys (Trading since 1882) has been put into liquidation owing £500,000 it is believed £150,000 was Landord/Tenants money, I did read here sometime ago that Arla audited client accounts on a monthly basis, clearly this is not the case, could ARLA just be another logo on a letterhead..
    "Better an empty property than a tenant without a guarantor"

    #2
    http://www.arla.co.uk/news/100807.htm

    Comment


      #3
      Originally posted by Sportingdad View Post
      Lincolnshire Agent Eleys (Trading since 1882) has been put into liquidation owing £500,000 it is believed £150,000 was Landord/Tenants money, I did read here sometime ago that Arla audited client accounts on a monthly basis, clearly this is not the case, could ARLA just be another logo on a letterhead..
      Clients' money should have been held in a separate ring-fenced trust account. If so, it is preserved from trade creditors for repayment to each person (L or T) entitled.

      PS: the other less-serious posts are now on a separate "Take a Break" thread; obviously they're ring-fenced too!
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


        #4
        Originally posted by Sportingdad View Post
        Lincolnshire Agent Eleys (Trading since 1882) has been put into liquidation owing £500,000 it is believed £150,000 was Landord/Tenants money, I did read here sometime ago that Arla audited client accounts on a monthly basis, clearly this is not the case, could ARLA just be another logo on a letterhead..

        At the previous company I worked for, we were only audited yearly for ARLA, not monthly.

        Comment


          #5
          Agent closed/insolvent/dissolved/in liquidation/disappeared

          Hi,

          I have just discovered that my current letting agents "Property Base" n sidcup are going into liquidation.

          I am owed 1 months rent and the tennants have been told that they will lose their deposit.

          Can anyone help me with what the process will be now this has been announced and can I just cut ties with the agents and arrange a new short term lease with the tennants privately as I am very happy with them.

          Any help or ifo will be greatly appreciated.

          Rubin

          Comment


            #6
            first of all you dont have to arrange another tenancy as agreement should be between L and T anyway but best check thats what your agreement states.

            with regards to the rent you have lost - seems unfortunate but nothing you can do about this.

            The deposit however is a diff matter, if tenancy commenced after 6th apr 2007 then it should be protected. Tenancy should have certificate stating this if so. If not im afraid as contract is between L and T then you as L are liable for its return.

            I recently took over from another agent who went into receivership too and as and when each tenant leaves I have to inform the Landlord that they are liable - not very nice -but legally they are obliged to refund the monies subject to checking the house of course.

            good luck.

            Comment


              #7
              Agent insolvent/vanished/ceased trading

              Our agent has done a runner with 3 months rent and our deposit. The owner of the house is aware that its not our fault and wont be asking us to pay again, he is sueing the agent.

              Thing is, the home owner is saying we should contact the agent (who we cant, as hes gone) to get our deposit back but ive been informed that the home owner is responsible for the deposit regardless to wheather the agent gave the landlord it or not and we can get it from him when we leave and should not worry about what the agents doing. Can anyone put me at ease if this is correct. . . . Worst case senario, when we leave, we sue home owner for deposit, he then in turn sues agent. Is this right ?

              Secondly. The home owner wants us to pay him direct, trouble is even though the agent has bunked we would still be breaking out agreement if we dont pay him so in theory he could then evict us for bypassing him and going direct to home owner.

              Our agreement never mentioned the home owners name or address and we still dont know his address.... The only reason we know who he is is through friends and this was long after we moved in we discovered this.

              This was a AST but that ran out in 2005 and no contract has been signed since.

              We have asked him to write something up if he wants paying direct but he says he wont untill after he has been to court with the agent. I have the rent and dont have a problem paying but I dont want to leave myself unprotected in the eyes of the law. The is literally nothing on paper with my name and the home owners name as an agreement. Would handing over the rent (obviously ill get a reciept) be a bad thing before getting an agreement ?

              Anyone got any comments.... Ill try and answer any questions you need to know. I know ive not been to clear but im very very stressed. Hope you understand.

              Comment


                #8
                The Agent is L's agent, not yours. A principal is liable for an agent's misdeeds, so L is as far as you're concerned.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  Originally posted by mkgal
                  Im sorry i dont understand what your saying.

                  Im not to clued up with the lingo, could you say it clearer.

                  Sorry
                  1. Landlord (L) has a contract with tenant (T), i.e. you. That is the tenancy.
                  2. L also has a contract with Agent (A). That is an agency contract.
                  3. So L is the "principal" who appoints an agent to do what L could have done personally.
                  4. T has no contract with A. Post #1 starts with "Our agent...", but he isn't!
                  5. Hence L is liable to T for any losses caused by A's actions or omissions.
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Originally posted by mkgal View Post
                    Our agent has done a runner with 3 months rent and our deposit. The owner of the house is aware that its not our fault and wont be asking us to pay again, he is sueing the agent.

                    Thing is, the home owner is saying we should contact the agent (who we cant, as hes gone) to get our deposit back but ive been informed that the home owner is responsible for the deposit regardless to wheather the agent gave the landlord it or not and we can get it from him when we leave and should not worry about what the agents doing. Can anyone put me at ease if this is correct. . . . Worst case senario, when we leave, we sue home owner for deposit, he then in turn sues agent. Is this right ?
                    no the landlord is responsible for returning your deposit to you regardless as contract is between landlord and tenant.

                    Originally posted by mkgal View Post
                    Secondly. The home owner wants us to pay him direct, trouble is even though the agent has bunked we would still be breaking out agreement if we dont pay him so in theory he could then evict us for bypassing him and going direct to home owner.
                    no your contract is to pay the rent and therefore by paying the landlord direct you are doing right

                    Originally posted by mkgal View Post
                    Our agreement never mentioned the home owners name or address and we still dont know his address.... The only reason we know who he is is through friends and this was long after we moved in we discovered this.
                    speak to him and get this.

                    Originally posted by mkgal View Post
                    This was a AST but that ran out in 2005 and no contract has been signed since.
                    an AST continues as a periodic tenancy so dont worry about this you still have a contract

                    Originally posted by mkgal View Post
                    We have asked him to write something up if he wants paying direct but he says he wont untill after he has been to court with the agent. I have the rent and dont have a problem paying but I dont want to leave myself unprotected in the eyes of the law. The is literally nothing on paper with my name and the home owners name as an agreement. Would handing over the rent (obviously ill get a reciept) be a bad thing before getting an agreement ?
                    no just keep proof of payment or pay him by standing order

                    Originally posted by mkgal View Post
                    Anyone got any comments.... Ill try and answer any questions you need to know. I know ive not been to clear but im very very stressed. Hope you understand.
                    hope this helps.
                    Last edited by Editor; 30-07-2008, 09:46 AM.

                    Comment


                      #11
                      Agent ceased trading and breached contract

                      Hi, new to the forum, just after a bit of advice.

                      Our first BTL experience, we employed a letting agent and they found us tenants for 6 months.

                      3 months into this, we had a letter saying they were ceasing trading with immediate effect. In the intial contract it stated that either party needed to give 3 months notice.

                      Also they suggested that we went to another letting agent, one that their daughter had become a partner in! All our details including bank details and tenant details were passed to this company and we received correspondence from the new company with all these details on their headed paper.

                      We decided not to go with the other company as it was not local, and well outside the area that we were in.

                      Our tenants move out shortly and the original letting agents are refusing to carry out the checkout process, despite us requesting this.

                      So we are left to carry out this checkout procedure ourselves.

                      Was the letting agent legally allowed to end the contract early?
                      Have we got a leg to stand on?

                      We feel like they have just had an arrogant disregard for us as landlords and we want to make life as difficult for them as we can, because we feel they should have some responsibility. Afterall, if we broke the contract as landlords then i think they would have something to say about it!

                      Any advice is welcome.

                      Leffeman

                      Comment


                        #12
                        The contract is binding on firm 1, whether they like it or not. Was firm 1 a sole trader, partnership, or limited company?

                        The contract cannot be transferred by firm 1 to firm 2, unless:
                        a. firm 1 is merged into firm 2; or
                        b. you consent.
                        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                        4. *- Contact info: click on my name (blue-highlight link).

                        Comment


                          #13
                          Firm 1 was a franchise, run by a family based at their home, so not sure what they would be classified as. They basically said in the cancellation letter that they were unable to negotiate satisfactory terms and that was the reason for ceasing trade.

                          A quote from them in a recent email was- "You will be aware that any contract can be varied when both parties agree".

                          My point is to them, that we didn't have any choice. They are saying they offered same terms with firm 2, but that firm was not in the local area and when it would have come to the end of the lease we'd have had to find local agents at that point to market the property anyway. So i think that offer was unreasonable.

                          Just don't know where to go next!??

                          Comment


                            #14
                            "Franchise" does not really answer question of firm 1's status. If it was a sole trader or partnership, the person/s concerned will remain inescapably bound until the Agreement expires or otherwise ends (e.g. in accordance with its contents, or if the person/s died). If it was a limited company, that remains true- but a second company acquiring it might liquidate it (thereby ending its existence).
                            JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                            1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                            2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                            3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                            4. *- Contact info: click on my name (blue-highlight link).

                            Comment


                              #15
                              It would appear the husband and wife are in Partnership together.

                              Comment

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