Landlord refuses to sign at the last minute

Samsung7

I was going to rent a house through Gordon & Co. We visited it, we liked it, the agency confirmed the landlord was ok with us, I paid a deposit of 425 £ to secure the property, we filled the online reference, we agreed to sign the contract the 1st of december, we booked our flights (we are actually outside UK), our train tickets, and we arranged the moving of our things.

And this morning the letting agency rings me saying: the landlord was going to buy a house, there has been a problem with that (I dont know which), and they need the house to live so they don't want to sign.

So I'am here, with everything booked, (we were going to entry to the house the same day, so without anywhere to sleep if we go), and without a flat. The letting agency has offered me another property, but it is a flat in the 9th floor without garden which we do not like.

What are our rights? can we do something to claim, or we are absolutely defenseless and we can only get the 425 £ back?

angrypirate

Absolutely defenseless and can only get the £425. Dont take anything for granted unless its on paper and signed.

rpc

Promissary estoppel could apply here. Consideration was given in exchange for a promise to enter into a tenancy contract. Enforcing that would probably be expensive.

Try to find somewhere else first.

If a significant amount of money is involved and you incur additonal costs I would try it on with the estate agent and send a letter for action across their bows. If you find somewhere else suitable, then you haven't lost anything.

martinsurrey

rpc wrote: »

Promissary estoppel could apply here. Consideration was given in exchange for a promise to enter into a tenancy contract. Enforcing that would probably be expensive.

Try to find somewhere else first.

If a significant amount of money is involved and you incur additonal costs I would try it on with the estate agent and send a letter for action across their bows. If you find somewhere else suitable, then you haven't lost anything.

apart from the fact that the reservation fee is not a promise to sign a contract, it is to not rent the house to someone else if you meet all the criteria for the rental contract.

The EA's didn’t rent it to someone else, so they have kept their side of the bargain...

no chance of getting anywhere, but get every penny back!

rpc

martinsurrey wrote: »

apart from the fact that the reservation fee is not a promise to sign a contract, it is to not rent the house to someone else if you meet all the criteria for the rental contract.

The EA's didn’t rent it to someone else, so they have kept their side of the bargain...

OP says that they agreed to sign the contract. Hopefully, that is in writing somewhere and even better if OP has a copy of the contract that was to be signed. It seems to me that there was agreement, intent and consideration. Even absent any estoppel, there is an argument that all the requirements of a contract are present and therefore a contract exists.

I am not suggesting that it is clear cut, but I think that there is enough there to give OP an argument. Given the money that has been spent (i.e. losses that will be incurred by OP), I think it is worth a go. The most that OP could lose would be the small claims fee and they might recover all of their losses.

Samsung7

As a update, the letting agency didn't want even to return my full deposit of 425. They stated that as the reference costed each one 75 £ (and we were two persons, although we didn't state we were going to sign both of us, neither we asked for the reference nor we were informed of the cost) they will not refund the full deposit.

They said as an "act of good gesture" they would reduce the 75 £ to 50 £ each, so I have been just refunded 325 £. I don't know if this is legal and probably not, as I said I will had paid everything in advance and they didnt inform me, but probably not worth the hassle of claiming it back. But at least some person will read me and avoid Gordon & Co if they don't want to be ripped off.

pinkshoes

Samsung7 wrote: »

As a update, the letting agency didn't want even to return my full deposit of 425. They stated that as the reference costed each one 75 £ (and we were two persons, although we didn't state we were going to sign both of us, neither we asked for the reference nor we were informed of the cost) they will not refund the full deposit.

They said as an "act of good gesture" they would reduce the 75 £ to 50 £ each, so I have been just refunded 325 £. I don't know if this is legal and probably not, as I said I will had paid everything in advance and they didnt inform me, but probably not worth the hassle of claiming it back. But at least some person will read me and avoid Gordon & Co if they don't want to be ripped off.

SO send them a "letter before action" demanding the full amount back, and give them 14 days to pay it before you take them to court.

It certainly IS worth the hassle.

ValHaller

Samsung7 wrote: »

As a update, the letting agency didn't want even to return my full deposit of 425. They stated that as the reference costed each one 75 £ (and we were two persons, although we didn't state we were going to sign both of us, neither we asked for the reference nor we were informed of the cost) they will not refund the full deposit.

They said as an "act of good gesture" they would reduce the 75 £ to 50 £ each, so I have been just refunded 325 £. I don't know if this is legal and probably not, as I said I will had paid everything in advance and they didnt inform me, but probably not worth the hassle of claiming it back. But at least some person will read me and avoid Gordon & Co if they don't want to be ripped off.

You have acted entirely with good faith. You have not withdrawn. So you should get your money back promptly and in full.

Letting Agent should take up abortive credit checking fees with the Landlord or bear the loss themselves. It is not your problem.

Do send a letter before action and go straight to court to recover your money if that letter does not produce a result.