Relocation company requesting signed AST

by Readers Question

16:06 PM, 17th December 2014
About 4 years ago

Relocation company requesting signed AST

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Relocation company requesting signed AST

A Canadian relocation company has contacted me and want to rent one of my properties. They have asked for a signed AST before forwarding any payment. Relocation company requesting signed AST

I am a bit wary as I never usually sign anything until I have the cash in the bank.

I’ve never dealt with relocation companies before.

Can anyone give me some advice please?

Thanks

David Atkins



Comments

Mark Alexander

16:09 PM, 17th December 2014
About 4 years ago

Hi David

Given the distances involved I can understand the caution on both sides, and hence the catch 22 situation that you find yourselves in.

Have you considered Escrow as a potential solution - see http://en.wikipedia.org/wiki/Escrow
.

David Atkins

20:42 PM, 17th December 2014
About 4 years ago

Thank you for the quick response Mark. I will check out Escrow and see if it will fit the bill.

Thank you

Shakeel Ahmad

11:52 AM, 18th December 2014
About 4 years ago

I have a feeling that a company cannot sign a AST. An AST can be only signed by a non limited liability Company. I will be delighted to be corrected if I am wrong.

David Atkins

12:20 PM, 18th December 2014
About 4 years ago

Shakeel you may be right. I was wondering if a letting "on licence" would be more appropriate but I have only dealt with individuals up until now.

Shakeel Ahmad

12:24 PM, 18th December 2014
About 4 years ago

Letting on "Licence" maybe breach of mortgage conditions. Further one would not be able to register a deposit if the tenant is a ltd.

Mark Alexander

12:25 PM, 18th December 2014
About 4 years ago

Reply to the comment left by "David Atkins" at "18/12/2014 - 12:20":

Hi David

I have invited Tessa Shepperson from Landlord Law to comment because I think a corporate letting agreement or a licence may well be more appropriate and she may also be able to advise further in respect of Escrow.
.

Michael Barnes

12:33 PM, 18th December 2014
About 4 years ago

I would suggest including a clause in the contract to the effect that access to the property (including keys) will not be granted until you are in posession of cleared funds for deposit and first months rent. BUT sign as a contract. not as a deed.

An AST may be appropriate if the company is acting on behalf of an individual who will be named as tenant on the agreement, but if it is a contract for the company to sub-let, then a different contract will be needed.

Renovate To let

15:25 PM, 18th December 2014
About 4 years ago

An AST requires the tenant to be a human being, not a company and to live in the property.

If a company wants to lease the property to place its employees in then they need to sign a company let agreement (and you need to do careful due diligence on them, possibly including taking personal guarantees from one or more directors).

In addition, your lender's terms may not allow such an arrangement.....

David Atkins

15:42 PM, 18th December 2014
About 4 years ago

The Property is a HMO with a HMO Mortgage. I cannot see anything barring Company Licence to Let in the mortgage paperwork

Romain Garcin

15:47 PM, 18th December 2014
About 4 years ago

I agree with others that if the company is the tenant then the tenancy cannot be an AST (even if the agreement says it is).

I would also agree with the company: the normal procedure is to sign the contract then to pay.
While a contract or a tenancy (for no more than 3 years) do not require anything in writing, clearly no-one wise would send money until everything is properly documented in writing.

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