Estate agent not releasing the deposit to landlord

nids

Secure the Deposit yourself. Now. Right now.

It doesn't *quite* matter that you don't have the money yet.

Then take the agent to SCC.

adeelmpk

Annie1960 wrote: »

As your tenant has not had their deposit properly protected in line with the law, they can claim 3 times their deposit back from you.

Well if it comes to that situation, I'd sue the estate agent for providing everyone [tenants, landlord] an invalid MyDeposit certificate.

adeelmpk

nids wrote: »

It doesn't *quite* matter that you don't have the money yet.

Thanks for the idea but can you please solve the mystery of how can I transfer the funds to a tenancy deposit scheme when I myself DON'T have the funds yet, unless you're saying that I use my own funds whilst I fight the battle with estate agent.

Pixie5740

adeelmpk wrote: »

Thanks for the idea but can you please solve the mystery of how can I transfer the funds to a tenancy deposit scheme when I myself DON'T have the funds yet, unless you're saying that I use my own funds whilst I fight the battle with estate agent.

I think that's what nids is saying. Use your own money to set up the deposit and send the tenants the prescribed information whilst you try and get the original deposit off the LA.

nids

adeelmpk wrote: »

Thanks for the idea but can you please solve the mystery of how can I transfer the funds to a tenancy deposit scheme when I myself DON'T have the funds yet, unless you're saying that I use my own funds whilst I fight the battle with estate agent.

You can register the deposit with TDS/DPS without having to send them any money, other than a charge of ~£20.

These are 'insured' schemes where you hold onto the money.

You can protect the money by sending them the deposit money, and these are free schemes where TDS/DPS makes money off the interest earned on your cash.

adeelmpk

Thanks for all the comments - on another note is there any recommendations for choosing a insurance based deposit schemes, I understand there are only two options. i.e., TDS and MyDeposits.

Annie1960

adeelmpk wrote: »

Agree with that, it was never my choice for the estate agents to hold/secure the deposit, they did that without my permission to be honest. As such I have requested the funds to be released however not getting much luck with that. Are these estate agents regulated somehow ???

What does the contract you signed with the LA say about how the deposit will be dealt with?

adeelmpk

Annie1960 wrote: »

What does the contract you signed with the LA say about how the deposit will be dealt with?

Good point - that's the first thing I looked into since I smelled trouble.

The contract b/w me and the LA doesn't specify WHO is responsible for holding and securing the deposit which means either of us can, as such I requested to release the deposit.

Although EA have agreed [email exchange 2 weeks ago] that they're going to release the deposit as long as I'm happy to put into a scheme however I have a bad feeling that EA have gobbled up the deposit money and won't spit it out that easy. Worst case scenario I'll have to use different means to get it recovered. Ideas welcome ![/email]

Annie1960

adeelmpk wrote: »

Good point - that's the first thing I looked into since I smelled trouble.

The contract b/w me and the LA doesn't specify WHO is responsible for holding and securing the deposit which means either of us can, as such I requested to release the deposit.

Although EA have agreed [email exchange 2 weeks ago] that they're going to release the deposit as long as I'm happy to put into a scheme however I have a bad feeling that EA have gobbled up the deposit money and won't spit it out that easy. Worst case scenario I'll have to use different means to get it recovered. Ideas welcome ![/email]

If I was in your position, the first thing I would do is give Trading Standards a ring to get advice (I think this now comes under the umbrella of Citizens' Advice, but you can google it).

My guess is that, even if the LA does not belong to a trade body with a code of conduct, TS will advise you what trading laws apply - I suspect the Supply of Goods and Services Act 1982. Anyone providing goods or services as a business must use reasonable care (be aware that that also applies to you as a LL, so you really need to find one of G_Ms posts where he has links showing LLs' responsibilities). Learn what your responsibilities are!

Once you have it very clear in your head exactly what Trading Standards tell you, then I would write a letter to the LA asking them to send you the deposit within 2 weeks, as you will protect it yourself. You are the LL, the LA acts on your instructions, so (unless the contract you signed says differently, which it appears not to), they should do what you ask. You are the person with most of the power in this situation.

Send this letter by Royal Mail (NOT any of the signed-for services, as people up to no good may refuse to sign for these and it will find its way back to you). Go to the Post Office, get a normal stamp and a free Proof of Posting. Keep the latter safe.

If you want to be really sure, post two such letters, one day apart, from different Post Offices.

A letter sent with 1st class Proof of Posting is deemed to have been delivered in 2 working days.

Finally do what has been suggested above, protect the deposit (even if you have to use your own money in the meantime). The person you are forgetting in all this is the tenant, who is the person being wronged, as their legal rights have been violated.

As a last step, then, if I were you I would make sure the tenant has had all their paperwork, and I would admit to them that there has been a delay. Eat humble pie if you must, give them a £25 discount off their next month's rent, and get them to agree to accept their deposit is now correctly protected. Ultimately, if they are dissatisfied, they can take you to court for 3 times the deposit. I know you can probably sue the LA in turn, but who wants all that hassle?

Just my view, it's obviously up to you what action you choose to take, and no doubt others will be along soon with their suggestions.

Let us know how you get on.

adeelmpk

First of all, than you so much for taking time to give me some feedback and ideas.

Annie1960 wrote: »

Finally do what has been suggested above, protect the deposit (even if you have to use your own money in the meantime). The person you are forgetting in all this is the tenant, who is the person being wronged, as their legal rights have been violated.

I have already [this afternoon] used TDP to secure the tenancy deposit and will be providing tenants with the VALID deposit bond certificate shortly.

Annie1960 wrote: »

As a last step, then, if I were you I would make sure the tenant has had all their paperwork, and I would admit to them that there has been a delay. Eat humble pie if you must, give them a £25 discount off their next month's rent, and get them to agree to accept their deposit is now correctly protected. Ultimately, if they are dissatisfied, they can take you to court for 3 times the deposit. I know you can probably sue the LA in turn, but who wants all that hassle?

I'm not sure if I explained earlier on, at this point tenants are holding on to the MyDeposit certificate issued by the LA, which they [tenants] still think is a valid certificate. I'm not sure what the their reaction will be when I tell them the certificate they have been holding on to was an invalid one and here is their spanking new and VALID deposit certificate.

I rung up MyDeposit to find out a bit more why they didn't pick up this error. Due to the lack of screening in their process/system they have no way of knowing who is landlord and who is EA. Any tom, !!!!!! and harry can come and join the scheme and use any name and designation. They don't verify anyone and any property.

It's only when I escalated this matter to myDeposits they checked the land registry documents and verified I was indeed the landlord and LA have incorrectly registered themselves as LL. At that point they mentioned that the existing tenancy certificate is invalid and I could get in legal trouble. It was a mere coincidence picking up this error only when I rung to check status of the deposit.

On another note. I know my tenants are a nice family and very unlikely they will take a legal action out of this mistake and the LA I am dealing with is also a local agency [although internet based] so in case of further issues I guess I may have a door to knock on

Any other ideas welcome.