Letting Agent gone bust! What should i do?

G_M

That's good news.

The signed email is not definative evidence of agreement to end the contract, but it will be helpful if ever needed.

Importantly, the return of the keys and documents does indicate the agency has accepted the contract is ended, which, combined with the signature, should be enough to convince any court.

Pity there was no witness- we should have suggested you take one. Sorry!

Contact TDS and see if they will transfer the deposit. I'd be tempted to put it in your own name, not the next agency. You then have control. But not if, for example, you plan on going abroad and leaving the agent in total control.

Lucy_Lastic

G_M

Thanks for the advice. There was another member of the office staff, but I guess that's not really a witness for me (unless of course she does not get paid, then she would definately be on my side!). I would not have had anyone to take with me anyway.

I will contact TDS and give some thought to having the deposit in my name. I assumed with having an agent it should be in their name. The actual sum of money however is in the frozen bank account of the bankrupt letting agent. Not sure how this affects things.

missimaxo

Do you know if the letting agent held deposits in a client account at the bank or in just their normal current account. If held in a client account, then when the liquidator/ adminstrator/ official receiver get involved those client account monies should be distributed to the owners of the money and not become part of the liquidation/ administration/ bankruptcy. If not - getting your actual physical deposit monies back will be very diificult and ultimately you have to refund them (minus allowable deductions) to the tenant at the end of the tenancy.

Lucy_Lastic

I have no idea what sort of bank account the letting agent has put the deposit money in.

TBH I don't really want to get too involved with the ins and outs of the tenant's deposit which is why I want the new letting agent to deal with it.

missimaxo

Whilst I can understand you wanted to let the new agent deal with the deposit and protecting it - they may well want you to pay them the equivalent monies of the value of the deposit to them before they will secure it. If the first agent has gone bust, I doubt the new agent will deal with gettin the money from the bust agent (if it is available) - you may end up taking a hit on those monies and/ or waiting for it to be dealt with in the insolvency.

anselld

Lucy_Lastic wrote: »

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.

Have as many agents as you like but ultimately the deposit is still your responsibility.

Lucy_Lastic

According to the regulations of TDSL, the letting agent must deposit the tenants' deposits in a dedicated bank account and provide proof of that for the money to be protected/insured by them.

I have e mailed TDSL asking how to proceed.

Lucy_Lastic

Here I am again, just when I thought I had things sorted........

My tenant produced a Deposit Protection Certificate - hurrah!

However, on contacting mydeposits.co.uk I find that the letting agent ceased to be a member in 2009! They had written to myself and the tenant at the time to advise us, but the letters were sent c/o the letting agent, who did not pass on those letters. What a surprise!

The letting agent has disappeared and all the offices are shut.

Where does this leave me regarding the tenants deposit? Is there anything I can do?

By the way, having thought about things I have decided not to engage another agent. While I have this tenant I will do it myself.

Yorkie1

You remain liable for the tenant's deposit so will, I think, need to re-protect it (from your own funds).

G_M

Yorkie1 wrote: »

You remain liable for the tenant's deposit so will, I think, need to re-protect it (from your own funds).

I agree.

Keep the mydeposits Deposit Protection Certificate as proof it was originally protected in case you ever need to serve a valid S21 Notice.

Ultimately it is your responsibility to return the deposit to the tenant when the tenancy leaves, so yes

a) you may have to use your own funds and
b) you must ensure it remains protected

But I have a niggling bad feeling about this - if you re-register it now, it could be argued in court that this constitutes late registration, with all the negative consequences that throws up. I don't know.