Letting Agent's Conflict of Interest

[avp]

I placed my property with a franchised letting agent and then found out (when I couldn't contact the Letting Manager) that the owner of the franchise was setting up his own letting agency and dropping the franchise.

His letting manager is now acting as director for the franchise owner's new private letting agency, while still acting officially as the franchise's letting manager.

I have pointed out that this is a conflict of interest as, even with the best of intentions, they cannot be fully committed to me as a client when they are setting up in competition against the franchise I placed my property with and which is a franchise they still control.

They say I owe them money for marketing which I dispute on the above grounds and they refuse to return the 3 sets of keys to my new letting agent. Whilst I would not have an issue paying the marketing fee (even though they did not find me a tenant) if I was just changing agency, I would not have moved if it wasn't for their running two different letting agencies at the same time.

Finally to the point (but background was important): Are they legally entitled to hold keys to a property worth £170,000 as 'collateral' for a £117 'debt' and, in theory, delay my new agency from populating my empty property?

As a footnote: I have put the issue in the hands of the franchise headquarters but do not want to wait for the process to drag its way through to conclusion on the key issue.

Many thanks

Ian

[odecar]

If you have keys to the premises then go and change the locks.

If they want to sue then counter sue for loss of rent in small claims court.

Keep the locks you take out as may be able to use in another property.

[avp]

I like the idea of counter-suing should it get that silly.

Property is in Edinburgh and we are in Milton Keynes but just remembered developer still has a key so can arrange for that to be picked up.

Would still be good to find out if they can legally withold the keys as ammo for later.

Many thanks

[GPEL]

Make sure you terminate your contract iaw your terms of business. Then explain that if keys aren't returned in 7 days you will have to change the locks for security reasons and hold them responsible for unlawful retainment of your property. Advise them that you will issue a claim for costs and if they think they have a case should defend the claim with their defence. Send post via recorded delivery.