Deposit Not Protected by agent and possession case invalid – help?

by Readers Question

14:37 PM, 20th June 2016
About 3 years ago

Deposit Not Protected by agent and possession case invalid – help?

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Deposit Not Protected by agent and possession case invalid – help?

I let my property through letting agent in July 2007. Jan 2008 he disappeared from the market and did not protected the deposit.bandit

I carried on with the tenancy and now want my property back for 30th June 2016(Notice section 21 served).

The tenant is refusing to leave and I have to go to court for ‘possession’ but I am warned that my case is invalid and will be thrown out of court, because I failed to protect the deposit.

What is the solution?

Any comment will be useful thank you.

Jim



Comments

Neil Patterson

14:40 PM, 20th June 2016
About 3 years ago

Hi Jim,

First off under our legal tab it would be worth checking out our:

Private Prosecutions page >> http://www.property118.com/private-prosecutions/

and our Tenant Evictions page >> http://www.property118.com/tenant-eviction-2/

Ian Narbeth

15:14 PM, 20th June 2016
About 3 years ago

I recommend you take legal advice. You could be liable for serious penalties for not having protected the deposit. Without the full facts it is impossible to advise but you will not get the tenant out by 30th June and any notice you have served is almost certainly a nullity. You could try handling things yourself but unless you are an experienced property investor and have gone to court before to get tenants out you are likely to get into worse difficulties.

Paul Franklin

15:29 PM, 20th June 2016
About 3 years ago

It may be a case of simply returning the deposit to the tenant and then serve the s.21 again. I know your ex-agent may have run off with the money but that doesn't really come into it. You are best of obtaining legal advice/assistance.

Luke P

16:17 PM, 20th June 2016
About 3 years ago

I'd be more hopeful if you wanted the property back by the end of the year, but 30th June is not going to happen.

Offer them a cash sum to pack up, clean up and leave...? Painful, but it will be a quicker, cheaper, easier option. Even getting a Court date, had your paperwork been in order, would likely take a month or three.

Sam Addison

17:33 PM, 20th June 2016
About 3 years ago

You have had your tenant for 9 years, presumably with little trouble, so looks like a good tenant. You don't say why you want the property back. If it is to sell the property you might consider selling with this good tenant in place.

Simon Hall

21:25 PM, 20th June 2016
About 3 years ago

Jim,

The best solution in your case would be either to negotiate the monetary terms with your tenants i.e a offering him a settlement such as 2 X deposits and leave voluntarily. The other option would be that, you hand deposit back to him via cheque if he refuses to accept bank transfer.

The cheque must be sent by recorded delivery by an independent person. The date the person has received the cheque (not the day cashed) the deposit is deemed to be returned.(As per deregulation bill 2015) You can then issue a fresh Section 21 Notice validly and regain possession of property. I am afraid, you will not still not get away from Statutory Penalty of between 1-3 times of deposit amount, should your tenant wishes to issue separate proceedings.

The fact, Estate agent has ceased trading, does not release you from your obligations to protect the tenant's deposit as Estate agents were appointed by you therefore any negligence committed by them ultimately falls on you.


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