Return of bond by sacked agent?

Return of bond by sacked agent?

13:51 PM, 15th May 2017, About 4 years ago 5

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My wife and I put some of our properties with an agent, but have since taken them back due to abysmal service. 

The tenants have received the bond back.

Is that normal practice and if so what next?

Many thanks

Peter



Comments

by Neil Patterson

13:52 PM, 15th May 2017, About 4 years ago

Hi Peter,

The deposit was placed with the Deposit protection service by the agent, which they have I assume now paid back to the tenant.

You need to get confirmed with the agent and the tenant that this is what has indeed happened.

If this is the case there is no deposit for you to rely upon at the end of the tenancy, so you would need to negotiate with the tenant if they want to hand over another deposit in which case you would need to protect it and give them the prescribed information.

by David Price

15:13 PM, 15th May 2017, About 4 years ago

You will need to get written confirmation from the tenant that the deposit has been returned in full (you prepare a statement for the tenant to sign) and hope that your letting agent properly protected the deposit. If the deposit prescribed information was not correctly served by the agent prepare yourself for a big legal bill and fine.
I would recommend that you do not take another deposit, the penalties for making a very minor clerical error are draconian

by Gary Nock

18:41 PM, 15th May 2017, About 4 years ago

This is strange. What should have happened is you should have opened an account in your own name with the DPS and then asked the existing agent to transfer the deposits over. Very easy process but the agent "holding" the deposit is in control of it.

What they have done is "thrown their teddy out of the pram" and without telling you they have returned the deposits. This may have placed you at a financial disadvantage particularly if there are dilapidations at the end of the tenancy. And if you have rent insurance guarantee then there is normally a clause that you should have taken or be holding a deposit of at least one month. I would be checking their DPS paperwork like a hawk to see if they had done it right. As David says above a minor error can render prescribed information invalid. I would place them on notice and advise them in writing that they have released the deposits without your consent, and that any loss suffered as a result will result in a claim against their professional indemnity insurance ( if they have any!) and a complaint against their professional body.

by pimmie

21:02 PM, 15th May 2017, About 4 years ago

thanks Neil and to the other replies ,much appreciated and very helpful advice ,well worth my contribution every month
i do recommend your p118 to all my associates and friends (hopefully they have joined -up)
peter

by Neil Patterson

22:04 PM, 15th May 2017, About 4 years ago

Thank you very much for your kind words and support Peter 🙂


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