L's Letting Agent in liquidation- is my deposit safe?

[vicky123]

Hi everyone, I would really appreciate some advice with this problem. :)

Basically we received a letter from the TDS saying as of 3/9 our deposit will no longer be protected. I called the agent to find out why and was told they were in liquidation! I have called the TDS a few times and been given contradictory information, but the latest is I need to renew my contract/start a new one with the new company and send a copy of the new and old agreement with the TDS2 form to the TDS before the 3/9 and they will try and get the deposit back through insurance. Firstly, does anyone think it will be returned? It is registered with them and I thought it would be simple, why would they not return it?

Secondly, if for some reason (e.g. time or the insurance saying no) would the LL be responsible then? Even after the 3rd? I know its not his fault either but it is a lot of money we cannot afford to loose. My only other option is to end the contract and move out, but again this does not guarantee my deposit will be returned either! I have to make the decision within the next few days in order to hand in my notice or renew a contract, and I dont know who to trust!

Thanks in advance .

[Snorkerz]

Ultimately, the deposit is the landlords responsibility. All you really need to do is to write to him to verify who will now be protecting your deposit.

He may insist that you paid the money to the agent, not him, but they accepted it on his behalf.

Try to approach him first - if he tries to escape responsibility, then come back here for more advice.

[vicky123]

I have asked the LL if we can stay in the property and start a new contract, just pay the deposit later, when we have managed to claim it back from the TDS. He seemed OK with this but nothing has been signed yet. NO one seems to want to help or take responsibility. This moning we got a long document from the liquidators outlining what the owner of the company owes to various people and saynig we have to claim our own deposits back from the TDS.

We need to decide by tomorrorw and even though I want to say I am perhaps going to hand in my notice so that if I dont get the deposit money back at least I wont be stuck paying money to people who have lied to me.

I am still worried, what if the TDS dont pay out because they can no longer claim the money back from the company? Or, if they loose the paperwork and then the 3/9 deadline passes and they say its not their responsibility, will it be the LLs? Even if we have moved out?

[Snorkerz]

Not the 'right' thing to do, but if your deposit is one months rent, you could hand in your notice and not pay the last months rent.

I suspect the administrators would have more to worry about than chasing you for a months rent.

You should also send a letter like this to the LANDLORD (not the agent)


letter before action

Dear Mr XXXXXXXX

RE: 123 High Street, Anytown, AT1 2AA

On the XXX of XXX 20XX I/We paid your agent a tenancy deposit of £XXX in respect of the above property.

The Housing Act 2004 introduced the concept of "Tenancy Deposit Protection" and obliges private landlords to protect/register all tenancy deposits with one of 3 approved schemes.

I/We have verified with all three schemes that the deposit you hold is NOT protected by any scheme. This is unlawful.

You must refund the outstanding balance of my/our deposit IN FULL within 14 days. If you fail to do so, I/we shall sue you for the balance due PLUS the statutory penalty for non-protection of deposits, which is three times the value of the deposit.

Yours sincerely
This letter makes reference to a penalty of 3x the value of the deposit. This is specified in the 2004 Act, but is not a simple claim, and you should take legal advice before contemplating it.

However, if you haven't been repaid within 14 days, you can commence a claim for the deposit only at http://www.moneyclaim.gov.uk (http://www.moneyclaim.gov.uk). There are fees (http://www.hmcourts-service.gov.uk/courtfinder/forms/ex50_web_0610.pdf), but if you are on a low income, you may be able to reclaim (http://www.hmcourts-service.gov.uk/HMCSCourtFinder/GetLeaflet.do?court_leaflets_id=172) them. If you do have to pay, presuming you win your case, the landlord will be ordered to refund any fees you have paid.

The small claims process is quite simple and doesn't require the services of a solicitor. However, you might find it useful to obtain a book on the process - a number are available from your local library or Amazon (http://www.amazon.co.uk/gp/redirect.html?ie=UTF8&location=https%3A%2F%2Fwww.amazon.co.uk%2Fs%3Fie%3 DUTF8%26ref_%3Dnb%5Fsb%5Fss%5Fi%5F1%5F12%26fsc%3D-1%26ih%3D8%5F3%5F1%5F1%5F0%5F0%5F0%5F0%5F0%5F1.141 %5F286%26field-keywords%3Dsmall%2520claims%2520court%26url%3Dsear ch-alias%253Dstripbooks%26sprefix%3DSmall%2520Claims&tag=snorkerz-21&linkCode=ur2&camp=1634&creative=19450).

If the landlord doesn't pay, you may have to take enforcement action (http://www.hmcourts-service.gov.uk/infoabout/enforcement/index.htm) which could include freezing his bank account, having his current tenants ordered to pay their rent to you, or having a charge put on the rental property.

[LENWELL]

I have asked the LL if we can stay in the property and start a new contract, just pay the deposit later, when we have managed to claim it back from the TDS. He seemed OK with this but nothing has been signed yet. NO one seems to want to help or take responsibility. This moning we got a long document from the liquidators outlining what the owner of the company owes to various people and saynig we have to claim our own deposits back from the TDS.

We need to decide by tomorrorw and even though I want to say I am perhaps going to hand in my notice so that if I dont get the deposit money back at least I wont be stuck paying money to people who have lied to me.

I am still worried, what if the TDS dont pay out because they can no longer claim the money back from the company? Or, if they loose the paperwork and then the 3/9 deadline passes and they say its not their responsibility, will it be the LLs? Even if we have moved out?

If the agent is a member of a trade association (such as NALS or ARLA or NAEA) you should be able to make a claim on the companies 'Client Money Protection Insurance'.

Check your tenancy agreement states that the deposit was held by the agent 'as stakeholder' if not the deposit was held 'as agent' and is the liability of the landlord to refund to you.

If the tenancy agreement states the deposit is held 'as stakeholder' i can't see how you would have a claim against the landlord. The TDS are busy therefore, i would be quite formal with how you pursue them!!