Agent delaying release of rent money to landlord

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    Agent delaying release of rent money to landlord

    Gd afternoon all!

    I have a problem with late rental payment, here's the info:
    - 3 bed house, tenent pays the agent
    - agent hasnt paid me for 3 months
    - tenent calls me up and wants to pay me directly at a slightly lower rate, which would suit me as i avoid the agent's commision

    Would i be in my rights to sign up the tenent? I dont have a contract signed with the agent

    Thanks

    #2
    ...but you do have at least an oral contract with the agent. What terms did you and he agree?
    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


      #3
      If you are happy with your tenant's proposals then there is nothing to stop you going ahead. Tbis is because you appear to have no contract with the agent. It would appear also that the agent has also breached any agreement that they might have had with you by delaying the payment of rent to you anyway. Once the tenant has commenced paying you as you have both agreed, I suggest you write to the agent advising him of the situation, requesting the payment of all outstanding rent by such a date and stating that small claims court action will be started if the outstanding sums are not received.

      P.P.
      Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

      Comment


        #4
        Is this quite new tenancy If so it may be worth contacting the agent if they are the ones not paying as some agents do withhold funds due to not having signed agreements between themselves and the you. So this maybe the reason why they are not paying you?
        If it's not I'd contact the agent and find out exactly what is happening.

        Comment


          #5
          Originally posted by googlegirl View Post
          Is this quite new tenancy If so it may be worth contacting the agent if they are the ones not paying as some agents do withhold funds due to not having signed agreements between themselves and the you. That with respect is the agent's problemSo this maybe the reason why they are not paying you?
          If it's not I'd contact the agent and find out exactly what is happening.
          There is really no need for the rent to be altered as it is irrelevent to whom it is paid as the contract for rent payment is between landlord and tenant, not the agent
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

          Comment


            #6
            Originally posted by Paul_f View Post
            There is really no need for the rent to be altered as it is irrelevent to whom it is paid as the contract for rent payment is between landlord and tenant, not the agent
            Thanks for the update but i have another question..

            What if the Agent has a signed contract with the tenant, but in it the agent has put their name down as the landlord? Would make our life easier in terms of going direct to the tenant?

            I was under the impression that an AST, when dealing with Agency should read as follows:

            Landlord:
            Agent:
            Tennant:

            Thanks for your help-

            Comment


              #7
              Originally posted by WarwickGrad View Post
              Thanks for the update but i have another question..

              What if the Agent has a signed contract with the tenant, but in it the agent has put their name down as the landlord? Would make our life easier in terms of going direct to the tenant?

              I was under the impression that an AST, when dealing with Agency should read as follows:

              Landlord:
              Agent:
              Tennant:

              Thanks for your help-
              NO. The Agent (A) is not party to AST and should not even be mentioned in it.
              A is merely a person/firm appointed by L to do what L should/could do in person if able and willing to.
              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


                #8
                I'm more concerned about the agent not paying...

                I would be more concerned about the agent not paying for 3 months... where is the money? where is the deposit?

                I have alarm bells ringing and you could lose a lot of money if the agent walks or goes bust. Time for a face to face visit?

                S.

                Comment


                  #9
                  thanks guys....

                  Comment


                    #10
                    From your comment it seems that the agent may have a contracual tenancy with you the landlord which allows him to sub let the property (hence why I understand he is listed as the landlord on the AST).

                    This is a perfect common thing to do and it does have the advantage that since no commission is charged (the agent makes a margin on the difference in the rents received and paid) there is no VAT to pay.

                    I would agree with schocca that you should be far more concenred with the lack of money. I accept recovery of fees in early months but not for three months. I sense a problem. Check and see if the tenant can show you that they have paid the agent as if they have not paid this MAY be why they don't pay you (it would depend on the wording of the agreements).

                    If the above is the way the deal is structured, you cannot yet agree to rent directly as the tenant has a contract with the agent and untill that is ended and you end your contract with the agent. you cannot rent directly. It will at least require the agreement of the agent in the short term to do this.

                    Comment


                      #11
                      Originally posted by David TFP View Post
                      From your comment it seems that the agent may have a contracual tenancy with you the landlord which allows him to sub let the property (hence why I understand he is listed as the landlord on the AST).
                      If so, A is not an Assured Shorthold Tenant so he has no statutory protection at all (even if his sub-tenant does).
                      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


                        #12
                        Originally posted by jeffrey View Post
                        If so, A is not an Assured Shorthold Tenant so he has no statutory protection at all (even if his sub-tenant does).
                        Agree, which is why I said it is a contractual tenancy and as Jeffery said in the early post, this may exist even if not in writing (ie you agreed it but signed nothing.

                        Comment

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