Estate Agent Ceased Trading - Holding Tennants Deposit

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  • Estate Agent Ceased Trading - Holding Tennants Deposit


    This is the first time I have rented out a property, and sadly its not gone to well.

    Tennants moved into the property on 3rd Feb 07.

    They paid the deposit and first months rent to estate agent, the tenancy agreement states that we are to hold the deposit.

    After a week of trying to get the cash from the estate agent I have now learned that they have ceased trading.

    Any idea where I stand legally?

    Any advice or opinions would be appreciated.

  • #2
    Regrettably the agent was your agent and they took the deposit from the tenant on your behalf. Whether you like it or not, it is the tenant's money and you will have to return it at the end of the tenancy whether or not you have recovered it from the agent. You should ensure that the tenant is aware of your address and details for the payment of rent.
    You will need to consider taking legal action against the agent to recover what you are owed, or at least ensure that your claim joins those of his other creditors.

    Sorry to be the bringer of bad news.

    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.


    • #3
      This is probably the first time the poster has even visited the site, and had he done so before he let then he would have learnt the distinct advantage of using a regulated agent and what it is all about.

      Some agent on the Lettings Forum recently bemoaned the fact he had been trading for several years without a problem, but every agent starts somewhere, and for the sake of protection for consumers EVERY AGENT SHOULD BE REGULATED, and landlords should NEVER use one that isn't - 'nuff said.
      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.


      • #4
        Thanks for the reply.

        I'm usually a cautious person and am annoyed at myself for allowing this situation to arise.

        I only stumbled across this forum a couple of days ago - what a fabulous resource. Shame I hadn't found it a few weeks ago!

        It does look like the only option for me is to try and recover the monies through the courts. I did report the matter to CID yesterday, they are looking into it but if a crime hasn't been committed ....

        I might have to put this one down to experience - expensive experience!!!


        • #5
          Try posting the situation on this forum as well. Martin Lewis's Housing, Renting, Buying, Selling. Incredibly active forum with 1000's of tenants and landlords.



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