Letting Agent gone bust! What should i do?

eddddy

ethank wrote: »

If they have gone bankrupt, is their an administrator or liquidator?

I'm not really sure what you mean.

Are you asking what is different if the owner is personally bankrupt, versus the company has become insolvent?

I'm not a lawyer, but if an individual goes bankrupt the Official Receiver will try to sell his/her personal assets to raise funds for creditors. So if the bankrupt person has the contract with the OP, the contract is still likely to be sold as an asset.

Lucy_Lastic

At the moment I do not know if the owner is bankrupt or if the company is insolvent. The office staff are not giving out that sort of information (if indeed they know).

I just want to extract myself from this situation asap. The office manager made no mention of any period of notice. She was very understanding.

G_M

Lucy_Lastic wrote: »

I just want to extract myself from this situation asap. The office manager made no mention of any period of notice. She was very understanding.

eddy's point above about your contract with them still being valid is a well-made.

If you can, get a written confirmation from the agent, the office manager, whoever (on headed paper) agreeing to your contract with them being terminated without further notice or penalty.

As you say, so long as you are getting cooperation, be sweet, but protect your back at the same time by getting written confirmation, and not putting yourself at risk of future legal action.

G_M

eddddy wrote: »

Hi Lucy Lastic

Check whether your agent is in ARLA's or the NAEA's Client Money Protection scheme:

A quote from ARLA's website:



And another one:

I have added these suggestions in to my post on agent selection. Thanks.

Letting Agents (Tips for selecting, and tips for sacking them)

Lucy_Lastic

The letting agent is not a member of any professional body.

I will try and get a look at any contract I may have signed 14 years ago and look for a mention of a notice period.

Something in writing from the office manager would be good, but I'm doubtful that she would want to commit herself on paper.

G_M

Lucy_Lastic wrote: »

Something in writing from the office manager would be good, but I'm doubtful that she would want to commit herself on paper.

Quite likely.

As a last resort, while still being sweet (!), whip out a home-made letter/statement to the effect that the contract is ended as of (date) and ask her to sign it "as I need to show my mortage lender/the new agent", or "so that the tenants know what's going on" or whatever other story you think might work!

Lucy_Lastic

G_M,

That's a good idea.

It seems a co-incidence that the office manager said that their system was down and they are not receiving any e mails. If she had replied to my e mail then that would be an acknowledgement in writing. Perhaps she felt that this was the best way to avoid putting anything in writing?

I think she is trying to be helpful without dropping herself in it. I believe she is owed wages and maybe carrying on in hope of getting paid. I might take her some chocolates!

CWSmith

Vitally important - check that the tenant's deposit is safe - and keep checking. I don't know if you can get hold of it and put it in your name - if it isn't already - but if you can, do so as soon as possible.

My letting agency went bust also and the owner disappeared along with the tenants' deposits. That caused me a certain amount of anguish!

Lucy_Lastic

Re the tenants deposit - I am off now to see the office manager and she has said that she will look out the paperwork and let me know which scheme it is lodged with.

I don't want it in my name, I'm going to another agent and it's for them to deal with.

Lucy_Lastic

Update: I went to the letting agent's office yesterday and the office manager gave me the letting agreement and the inventory from the file but could not find the gas safety certificate dated March this year, but will get me a copy asap. She also gave me the spare keys which I had totally forgotten to ask for!

I took a hard copy of the e mail that I had sent earlier which stated that I wished to end our agreement with immediate effect. I asked her to sign a copy to acknowledge receipt, which she did. There was no mention of any contract or period of notice.

I gave her a tub of "Hero" chocolates for the staff and she was very touched. She has been unable to contact the owner of the agency who has "gone away" for a week and is not answering his phone. She does not know if the staff will be paid at the end of the month, but they are carrying on. She noted that I was owed one month's rent.

I am going to engage another agent next week.

The tenant tells me she has paperwork that indicated her deposit is registered with Tenancy Deposit Solutions.