who does money belong to...

[Wickerman]

Who does the money in an agents clent account belong between hitting the account and being paid to the landlord?

Does it belong to the tenant, or the landlord.


I have a fairly long story, which in its short form is:

group of tenants find house in Feb 09, for tenancy to start on 1st July 09.

Rent for first two months is half rent, with no right to stay in house.

Tenants paid rent for first two months.

This has been paid to the landlord.

Tenants paid rent for September and is sitting in our client account.

Tenants turned up at house to find landlord had not got house 100% ready. Defects include a long standing leak in non usable basement (not detected as landlord left it until the 29th Aug to clear the basement out, furniture still old (eg not replaced, broken mattresses, etc) and house in generally dirty state.

Tenants refuse to move in or to stay in the house claiming breach of contract on behalf of the landlord.

Landlord says ok as long as I have rent for sept.

We are sat there with the money wondering what to do.

[jeffrey]

Rent belongs only to L. It's L who owns; it's L who lets (even if using Agents). L has breached contractual obligations, because the house is not yet ready as at commencement of T's occupation period; T could sue for damages (or even Specific Performance).

[jeffrey]

Surely, as soon as T pays it- i.e. once it is no longer within T's reach.

[jeffrey]

BUT your duty, as Agent, is solely to L (your Principal). Why do you think that T has any say in that? After all, even you categorised the money- correctly- as client money; L is that very client.

[Paul_W]

Wait 7 days then tell the LL that the rent cheque bounced.

Not one I personally advocate