Letting agent closing down - about to pay lots of cash - should I run for the hills?

ArchThorpe

Hi,
I recently created a thread about paying a deposit (not allowed to post a link to it as a new user) but after a bit of research, I find that there is something quite troubling.

Basically, the LA has been trading since 2008, but the company's status is currently dormant and it seems that they have recently applied to have the company struck off.

I am supposed to be paying them a £200 holding deposit today, and a £3,000 deposit tomorrow (with the tenancy starting on January 4th).

My concern is, what happens if I pay the deposit to the LA, and then he decides not to pay it to the LL, and instead just shuts down the company. Also, what if he does pay the deposit, but then at some point shuts down and doesn't pass on a rental payment?

Would I be liable, or would I be OK because I have paid the LL's designated agent?

The LL does seem to be on the level. We have been to the house 3 times, and he has been there on one occasion. Also, he is having a lot of work done to the house and the builder doing it lives next door, so I think that the guy must at least own the house.

So the LL smells OK, by the LA is giving me great concerns - especially because he wanted me to bring in the maximum amount of cash that I could today, even though the LL won't be there to sign the AST until tomorrow.

I'm quite worried and on the verge of pulling out, if I can't be sure that it will be OK, so any help would be greatly appreciated.

Mexas

Sounds fishy to me. I'd hold off if possible.

sonastin

Have you got any means to contact the LL to discuss your concerns with him? Or can you delay going in to pay your deposit until the LL is there to sign so that you can give it to him personally?

BitterAndTwisted

It sounds dodgy to me but most of the risk will be borne by the landlord: he's the one who has a contract with the agent, not you. Why not approach the landlord direct with your concerns?

ArchThorpe

Thanks. I don't have contact details for the LL, and I am not sure the LA would give them to me, but I think that I might be able to get in touch with him. The builder should be at the property today, and he is the next door neighbour and has met me a couple of times, so might be prepared to at least call the LL on my behalf.

I could just address this with the LA, I suppose, but I fear that, if there is anything dodgy, he would rather ditch me than lose the LA. Also, he might just spin me a line, so speaking with the LL probably is the best way to go.

adg1

I would not give this agent any money.

Though the costs would be bourne by the landlord with regards to the deposit, you are at their mercy to pass on the first months rent.

You could pay £4 to the landregistry and find out the owners details, or put the full postcode into rightmove and see if its being marketed by another, more secure, agent.

tyllwyd

How can a dormant company be trading as a letting agent??

When you say 'they' have applied to have the company struck off, do you mean the Registrar of Companies or the director of the company?

It sounds dodgy to say the least - I don't think I would hand over £3K in those circumstances.

RAS

Go to the Land Registry and pay £4 to find out who owns the house.

princeofpounds

As I posted in the other thread, what is critical is knowing that the landlord really is the owner of the property in question and the agent really is their representative.

If they are a real representative then when you hand money to the LA you would be handing it to the LL legally speaking, but if they have no contract you might as well be handing it to Mr Random on the street.

Companies house data can sometimes be misleading, but as I posted on the other thread there are more than enough red flags here to worry. I would cross reference landlord with land registry, get ID from landlord, and also written confirmation of instruction at a minimum.

tbs624

https://forums.moneysavingexpert.com/discussion/2909858


Not sure that it needs two separate threads but hey ho......

ArchThorpe

I downloaded the title from the land registry and the name matches that which the LL has given (would need to check his ID of course).

The concern remains the LA really. I am meant to pay the holding deposit today, although I am not really sure why if I am supposed to be meeting with the LL tomorrow at 11, and paying the full deposit and signing the tenancy agreement.

I do want to meet the LA today, so that I can have a look around the house and check for any work that needs to be completed. But I also don't really want to get into the holding deposit with him.