Refusing a tenancy on the day of move in - help needed!

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    #16
    You have made a contract to create a tenancy. If you now refuse to do so then your potential tenants can sue you for any losses they suffer, including the costs of finding alternative accommodation. They havent paid the full amount you require so it's debatable who is at fault but if one can prove they were in hospital I wouldnt gamble on the courts finding in your favour. At best you have to give them back their money and hope they accept that.

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      #17
      Originally posted by buzzard1994 View Post
      You have made a contract to create a tenancy. If you now refuse to do so then your potential tenants can sue you for any losses they suffer, including the costs of finding alternative accommodation. They havent paid the full amount you require so it's debatable who is at fault but if one can prove they were in hospital I wouldnt gamble on the courts finding in your favour. At best you have to give them back their money and hope they accept that.
      Thanks for your advice

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        #18
        First, Lawcruncher's words on holding deposits.

        If there is no contract, i.e. everything was clearly done subject to contract, just refund the money and move on.

        Now, if there were a contract at some point, both the landlord (through its agent) and the tenant have probably both breach it to some extend at some point. On the plus side for the landlord, it was one of the perspective joint tenant that first raised the issue of not going ahead because they couldn't get hold of one of the other perspective joint tenant. However, words of only one of the perspective joint tenant is I don't think enough to void the contract with the agreement of the landlord. Since they never took possession (assuming you haven't signed a tenancy by deed), there's no tenancy, any claim would merely be for breach of contract. I would say any potential damages you may be liable to would given the circumstances probably be less than loss from potential problems if a tenancy is granted now. So, probably worth the risk to just refund the money and see what happens, but it's the landlord's call at the end of the day.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

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          #19
          imo No Ast yet exits but LL/occupants had a sep verbal Contract to supply/occupy on /near appointed date.
          I might allow un concontactable joint T ro occupy and establish original agreed AST.

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            #20
            The facts of this case as reported are similar to those made up by those setting exam questions and an easy answer does not present itself. Only someone knowing the full history can give an opinion on whether a contract to grant a tenancy arose and, if it did, whether the conduct of the parties ended it.

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              #21
              imo No Ast yet exits but LL/occupants had a sep verbal Contract to supply/occupy on /near appointed date.
              I might allow the un concontactable joint T to occupy and establish original agreed AST.

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                #22
                We can certainly agree that no tenancy exists, but whether a contract exists is impossible to say without knowing who said what and in what order.

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                  #23
                  Originally posted by Lawcruncher View Post
                  The facts of this case as reported are similar to those made up by those setting exam questions.
                  That was my thought - new term just begun.

                  I can't imagine any agent who has ever dealt with students being unfamiliar with this kind of situation.

                  The idea that someone would call in on move in day and decline the tenancy on the crounds they can't afford it isn't particularly credible. They would be homeless that night, and they would have a lot of possessions to lug round.

                  And where are the angry parents who would, inevitably, be involved in this?
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                    #24
                    Whatever one thinks of the present system, a different system is needed for student tenancies.

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                      #25
                      Originally posted by Lawcruncher View Post
                      Whatever one thinks of the present system, a different system is needed for student tenancies.
                      Having responded to quite a lot of queries over time, there needs to be some review of how joint and several agreements are used for tenancies, as they're not really appropriate and have implicit implications that no consumer can be expected to be aware of.

                      A nice court case that voided one for lack of certainty would be helpful. Or a change to council tax to exclude joint agreements from liability.
                      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                        #26
                        My guess is that the cancelling students have either found another Property or do not want to share with the flat mate so I would hold them to the TA that they agree to for rent.
                        Never accept students without a G.

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                          #27
                          Originally posted by Lawcruncher View Post
                          Whatever one thinks of the present system, a different system is needed for student tenancies.
                          I agree, and said so in my response to the "3-year tenancy" consultation.

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                            #28
                            FTA:

                            Unless someone was unconcious, would they really be uncontactable in hospital on the morning they were due to move into a new flat?

                            If they were unconcious at 10am, would they really be discharged by 12pm?

                            I think the hospital story is a porkie.

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                              #29
                              Relying on the prospective tenant A saying they would not be moving in due to loss of contact with prospective tenant B will probably be enough to terminate any verbal agreement to rent. Once terminated there is no facility for reinstating that contract unless both contracting parties were to agree, I.e. A, B, and the landlord. And he doesn't. Regarding the deposit, I believe you can keep your losses. So costs of advertising and referencing new tenants plus loss of rent until you find new tenants. The key to this is that the prospective tenant terminated the contract by phone. I suppose the question is whether that is enough to terminate it as the other party hadn't. I think it would be enough possibly taking into account that one party can terminate the tenancy for all tenants. Although there was no tenancy, I think there's a strong argument. It comes down to basic contract law.

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                                #30
                                *JPKeates* Yes but you would think that people signing legal agreements might avail themselves of a little knowledge first. There are free services that will explain tenancy agreements and rights and responsibilities and we are rather stuck with this system at the mo. A 10 minute session a landlord spends with a tenant at the beginning explaining the key points and responsibilities is a good thing. A bit of personal responsibility goes a long way.

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