Letting agent going into liquidation

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    Letting agent going into liquidation

    I hope someone will be able to help.

    When my girlfriend and I moved into our flat we paid a deposit and two months rent so we would always be ahead by two months. This was because (at the time) I was a student and my girlfriend was waiting to start work. We recently found out that our landlord has changed letting agent and so we were asked to request our deposit and to change from the old agency to the new one.

    When we did this we were informed that the agency is going though liquidation and we may not get our money. Luckily our deposit is protected and the new agency confirmed that they will be able to get it transferred.

    As for the two months rent we paid, what will happen to it and who will be liable? The landlord has not had it. In addition we were sent a letter to "all known creditors". The new letting agent said that as we are owed the money we are the creditors but may have to pay the money again if we cant get it back. From what I understand shouldn't the landlord be owed the money?

    We only have until the 20th of July to send this form which I assume is to apply to be a creditor so any help before then would be greatly appreciated.

    I apologise if any of my terminology has been incorrect but this is my first experience renting though a letting agency.

    #2
    Your only contract is with L. L's agent is in danger of liquidisation- so it shouldn't really affect you at all.
    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 have paid rent in advance to your landlord's agent then the landlord is deemed to have received it.

      Comment


        #4
        Thanks for the replies.

        So in regards to the letter to creditors I have been sent, what should I do with it? I dont want to just ignore it but I dont want to make myself liable for anything I shouldnt be.

        Comment


          #5
          You have paid rent. Even if L did not receive it, your payment to L's then appointed agent is deemed a payment to L.
          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


            #6
            Thank you very much.

            I think i'll go and speak to the letting agency tomorrow and get them to inform my landlord.

            Comment


              #7
              Do you know who your landlord is? Might be better getting this clarified with him. Jeffrey and Lawcruncher both know their stuff and I agree that this is your landlords problem, not yours.

              Comment


                #8
                Originally posted by Snorkerz View Post
                Do you know who your landlord is? Might be better getting this clarified with him. Jeffrey and Lawcruncher both know their stuff and I agree that this is your landlords problem, not yours.
                Yea I do. Even have their phone number. I went and spoke to the letting agency (the new one) earlier and told them that a solicitor friend of the family informed me the landlord was responsible. They seemed happy and told me they would let the landlord know. It seems a bit strange that they would have no idea how to deal with the situation.

                On a related note is their anything I should be aware of in the process of changing letting agency? They want me to take my old tenancy agreement to them so they can draw up a new one. Is that standard procedure?

                Comment


                  #9
                  You have a contract with the Landlord, not the Letting Agent. The existing contract is still good and there should not be any need to sign a new one.

                  Ask the Landlord if he is aware that the new Agent wants you to sign a new contract. They may be up to some tricks.

                  Originally posted by johnnyBgoode View Post
                  It seems a bit strange that they would have no idea how to deal with the situation.
                  It's not strange at all. Letting Agents, as you may find on this forum, do not have a reputation for exemplary professional knowledge.

                  Comment


                    #10
                    It not strange for a new agreement to be signed, but it's not needed,
                    as long as they served you with a s48(Notification of change of address of service) and other forms ie. to change the deposit holder.
                    I guess the agent just want to draw a line in the sand and a new contract is the easiest way to do it. And that they know extractly what in their standard AST contract.
                    I would sign it, if I didn't mind having another fixed term, But don't let them charge you for it.
                    Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

                    Comment


                      #11
                      You may find going to staffordforum.com and looking in the stafford chat section at the thread marked gdh poperty management very useful (apologies I'm unable to post links at this time due to being a new member - perhaps someone else would be able to if they feel it is a useful link!) there is the exact same situation currently going on, and being discussed, on there and a lot of your questions may have already been answered.

                      As said before you do not need to worry about your deposit (you may be classed as a creditor for your deposit as it is technically still your money rather than the agent or landlord's). And you do not need to pay your rent again as it has been pad by yourself as per your tenancy agreement. It is now up to the landlord to claim the missing rent from the agent. As MJBfire has said a new contract may be a good idea for tidying up the current contract if you are happy to go into another fixed term but you should not have to pay for it.

                      Comment


                        #12
                        Originally posted by mjbfire View Post
                        It not strange for a new agreement to be signed, but it's not needed.
                        Not strange no, because what the agent is attempting to do (it seems) is the make work for himself by then being able to charge the LL a fee for drawing up a new agreement.

                        Be aware that a new agreement may lessen your rights (it might be on more LL friendly terms).

                        You do not have to sign a new one, unless you felt you could use the request as leverage to improve the terms of you tenancy, such as a lower rent?

                        Comment


                          #13
                          Thanks for all the help guys. Im going in today to talk about the new contract. I'll read it over the weekend and come to a decision on monday.

                          Comment


                            #14
                            You could take dominic's suggestion and request a lower rent before you sign the new contract.

                            Unless the terms of the new one are significantly better for you, you shouldn't sign it.

                            Comment


                              #15
                              Originally posted by roryl View Post
                              You could take dominic's suggestion and request a lower rent before you sign the new contract.

                              Unless the terms of the new one are significantly better for you, you shouldn't sign it.
                              I'll give it a shot and let you guys know how it goes.

                              @Vault_girl
                              What makes you think i'm from Stafford? I dont recall giving a place.

                              Comment

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