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LL not protected deposit in DPS

I'm 10 months into a 12 month contract.
LL agreed to let me leave early on finding new tenant, via an agreed letting agent to which I was to pay the fee for. I'm due to move out on 31 March and there is a new tenant approved by the LL.
I've just found out that the cash deposit I paid to the letting agent in May 2011 was deposited into LL bank account, at the request of the LL on the understanding that the LL would safeguard it in the deposit protection scheme. The tenancy contract clearly states that is where my deposit would be held. The letting agent and LL have both confirmed the deposit was instead held onto by the LL. The LL doesn't accept he has done anything wrong and says he has the cash.

My questions are -
Has the contract been breached by the LL by not safeguarding the deposit in DPS?
Is there a penalty for the LL not adhering to the DPS and contract?
Have I breached the contract by asking to terminate it early (given the above facts?)
Am I still obliged to pay the letting agent fee?


Any advice would be gratefully received.

Comments

  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    ... My questions are -
    1. Has the contract been breached by the LL by not safeguarding the deposit in DPS?
    2. Is there a penalty for the LL not adhering to the DPS and contract?
    3. Have I breached the contract by asking to terminate it early (given the above facts?)
    4. Am I still obliged to pay the letting agent fee?


    Any advice would be gratefully received.
    1. Yes, and the law has been breached too
    2. Yes, 3 times the deposit, but there are so many get outs that it is barely worth pursuing
    3. You would only breach the contract by leaving early without agreement. You would not breach a contract by asking to depart from its terms. And any contract may be set aside by mutual agreement between the parties to the contract.
    4. If the fee is part of the agreement for release from the contract, you are obliged to pay it.
    In your position, if the agent or LL have agreed to terms of the release in writing, I would tell them to take the money from the unprotected deposit and protect the rest, but offer to pay the fee in full on proof that the deposit is protected. This carries some risk.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Thank you.

    The terms of the release are only verbally agreed by the landlord and letting agent. There is an email from me to the letting agent saying I will pay the fee.

    So, how about if I pay the letting agent fee. And hopefully the LL will return all my deposit.
    Is the LL allowed to deduct anything from my deposit, seeing as he didn't protect it?

    After I have moved out, and received deposit, am I entitled to take LL to court? Or can I report him to an official body? It's not about the money, it's the principle that he has not abided by the law.

    Or should I just walk away?
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    You could take me to court for the mental distress the colour of my tie is causing you. So if you are entitled to do that, sure, you could take your Landlord to court. The more interesting question to ask is whether it is worth doing.

    The Landlord may deduct from your deposit according to any damage you have caused.

    Once the deposit is settled, what else is left to be sorted? You look to be spoiling for a fight.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • poppy10_2
    poppy10_2 Posts: 6,597 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Is the LL allowed to deduct anything from my deposit, seeing as he didn't protect it?
    No, he shouldn't make any deductions from the deposit
    After I have moved out, and received deposit, am I entitled to take LL to court?
    Originally under the tenancy deposit legislation you could, but after recent court decisions this provision has been neutered. You won't have any success in taking him to court for failing to protect the deposit after the tenancy has ended
    Or can I report him to an official body?
    Unfortunately landlords do not have to be registered with an official body, unlike in Scotland.
    poppy10
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why do I get the feeling that when the tenant moves out he/she wont see all or part of the deposit back!!
    Make sure you take photos ( date of the photos of everything)
    Did the LL/letting agent do a full inventory when you moved in Video/photos and report of any damage ?
    read up on how to take the LL through the small claims court and hope you get the whole deposit back asap.
    Just dont hold your breath
  • Yorkie1
    Yorkie1 Posts: 12,689 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You could take me to court for the mental distress the colour of my tie is causing you.

    Well, I hadn't wanted to mention it before, but seeing as how you've brought the subject up ... ;):rotfl::p
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