Court Case re-Limited Company landlord/Agent

[Grampa]

There has been a new court case that may impact on Ltd Co landlords and Ltd Co agents who manage their properties.

 A tenant was taken to court for rent arrears via a section 8 and the agent was a Ltd Co which signed (an employee not a director) all the tenancy documentation and notices on the landlord's behalf which is fairly normal practice for agents to sign for a landlord.

Well the tenant appealed on the basis of Section 44 Companies Act 2006 which states a document is only valid if stamped with the company’s seal or signed on behalf of the company by 2 authorised signatories (director or company secretary) or a director with a witness.

Though the High Court ruled the section 8 was valid (section 21 are also valid) the deposit documentation ie: Prescribed Information which also has to be signed wasnt. Which as you may know means if the deposit and PI are not protected correctly it makes any S21 invalid and possibility any S8 for rent arrears because the tenant could counterclaim for upto x3 the value of the deposit which potential brings the arrears below 2 months owing and invaliding the Section 8, ground 8 (which is a mandatory ground for eviction) and leaving the landlord with grounds 10 & 11 which are discretionary at the whim of the judge. 

So if your agent is a Ltd Co it maybe worthwhile asking them the question who signs the documentation and if they are a authorised signatory to comply with Section 44 Companies Act 2006.

https://www.bailii.org/ew/cases/EWHC/QB/2020/3538.html

 

 

 

 

[Richlist]

Thanks for sharing the details.

I rather suspect there are lots of these docs around that have not been completed correctly. It seems like a very easy error/ mistake to make in a busy office. 

* If I were a Ltd Company Lettings Agent I might be inclined to check the docs of every property on file for the same errors......

* If I were a tenant I'd check my copies to see if I'd won the lottery !