Jump to content
Sign in to follow this  
nerms19

Transfer of deposit from agent to landlord

Recommended Posts

Hi

We have decided to stop using our letting agent for a number of reasons. The issue I have is that the agent who had deposited two sets of deposits (with the DPS) has refused to transfer the deposits to our DPS account.

I had written to the DPS who then advised the agent of the transfer request, giving them the opportunity to object. They have now objected and so stopped the transfer.

I have agreed with the two sets of tenants what the deductions (for damages) should be and they are happy for the deposits to be transferred to our DPS accounts.

The DPS are saying their hands are tied and can do no more. Surely the fact that the tenants would like the deposits transferred to us and we want the deposits to be transferred to us should mean that the agent canot stop the transfer?

I have a couple of questions that I hope someone can help with:

1) What can I do (or what would you do) now?
2) The tenants may persue the release of the deposits due to them - who could they persue?
3) If the answer to 2) is me (the landlord), can I persue the agent (through the courts) for the transfer? Should it be for the full deposit value or only the portion that relates to damages?

Hope someone can offer their opinion?

Share this post


Link to post
Share on other sites

I am a bit confused by your post.

1. The landlord is responsible for the deposit at all times not the agent.

2. The majority of agents use the TDS. Are you sure this is the DPS that is holding the deposit?

3 Has your agent allowed you to formally cancel your contract with him or is this in dispute ?

Share this post


Link to post
Share on other sites

Hi Mortitia

1) I understand but what would you do - I have asked the agent to transfer the deposits (there are two deposits belonging to two sets of tenants) into my DPS account. The deductions (for damages) have been agreed directly with the tenants and so I was planning on paying over the balances back to the tenants. The agent has ignored my written request for the transfer and now they have blocked the DPS transfer

2) I have seen the paprework so am 100% sure that the two deposits are held by the DPS

3) Yes, they had responded (and accepted) that the contract has been cancelled.

The pre-existing dispute is that the agents owe me approx £1000 in rent that they have received from the tenants (the tenants have sent me copies of bank statements as proof that there are no arrears) and not passed on to me.

Share this post


Link to post
Share on other sites

Looks like you need to do the following.....

Unpaid Rent

1. Send the agents a letter before action for the return of your £1000 in rent payments.

2. If they don't pay up take action in the small claims court.

Deposits

1. Get written agreement from the tenants for the deductions from the deposit.

2. Provide the agents with copies and advise them in writing that if deposits are not refunded in line with agreements then legal action for recovery will be taken.

3. If the agents don't refund deposits you will need to make the refund yourself and recover the money directly from the agent.

Share this post


Link to post
Share on other sites

Looks like you need to do the following.....

Unpaid Rent

1. Send the agents a letter before action for the return of your £1000 in rent payments.

2. If they don't pay up take action in the small claims court.

Deposits

1. Get written agreement from the tenants for the deductions from the deposit.

2. Provide the agents with copies and advise them in writing that if deposits are not refunded in line with agreements then legal action for recovery will be taken.

3. If the agents don't refund deposits you will need to make the refund yourself and recover the money directly from the agent.

Superb response (and makes sense) - thank you!

Share this post


Link to post
Share on other sites

I suspect agent does not agree with nerms19 attempting to cancel her contract but it is not reason to with hold deposits. I am surprised at the DPS stance on the information we have been given.

Share this post


Link to post
Share on other sites

I suspect agent does not agree with nerms19 attempting to cancel her contract

The agent has posted the keys (of the property they were managing on our behalf) back to us.

I am surprised at the DPS stance on the information we have been given

This is the email I have had from the DPS...

We regret to inform you that the agent currently holding these deposits has contacted us confirming that the deposit transfers should not take place.

We are therefore unable to complete the transfer and advise you should contact the agent directly.

I now have no choice but to take the legal route.

Share this post


Link to post
Share on other sites

Why would the agent not transfer the deposit? There is no benefit for him unless he is just being bloody minded.

Make it clear in writing by recorded delivery that unless they do xyz you will refund the deposit of XX to the tenants and recover your loss and the rent payments of xxxxx via the court claims court. The application will be submitted to the court on xx/xx/xx

If you fill out the court papers and attach a copy to the letter it shows you are not bluffing.

Name the company and the owners of the LA as defendants.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...