Agent did not disclose CCJ

[lynchy50]

Hello

We are currently in the process of evicting our tenants for non-payment of rent. A section 8 has been issued and we have instructed a third party to arrange a court date. However it has come to light recently that one of the tenants had a CCJ against them that was raised in the original credit check but was never disclosed to us by the agent. We were simply told that the tenants had both passed the credit check. Do we have any kind of case to claim compensation from the agent for failing to advise us? We would not have let these tenants move in had we known of the CCJ at the time.

Thanks

[Richlist]

You have just assumed that the tenants passing the credit checks meant that they were 100% clean and that the agents comments indicated there were no CCJ's. I don't think thats a reasonable assumption. You should have questioned them as to the detail.

Did the tenants qualify for rent guarantee insurance ?

[Grampa]

I guess it depends what they classed as passed and what is stated in their T&C'S you have signed with them. But saying that, even if it isnt clear the agent has a duty of care to their client (you) and if you have suffered a material loss because you wouldnt have rented to these people had you had known about the ccj you may have a valid claim against them.

Wait until you know the final figure then put in a claim via the small claims court.

We dont have a pass or fail. We have a disussion with the landlord and raise any concerns we may have and the landlord is made fully aware of the results of any checks. The final decision is with them. This works for us.

[lynchy50]

Yes I suppose we did make that assumption but we were paying the agent to advise us. We should have asked for more detail at the time I agree. The agent has stated that we do not have to pay their fees at the moment because of this, while the eviction is taking place, which I am reading as almost admitting liability.

We did not take out rent guarantee insurance but we will be as soon as we get new tenants once we have completed the eviction. 1st time accidental landlords on a steep and harsh learning curve!

[Richlist]

Yes I suppose we did make that assumption but we were paying the agent to advise us.

Were you actually paying the agent for advice or to handle the letting ? Was that a special arrangement ? Agents may offer advice but I don't think that normally forms part of the contract.

The agent has stated that we do not have to pay their fees at the moment because of this, while the eviction is taking place, which I am reading as almost admitting liability.

That is the mark of a good agent. Agents do of course make mistakes ......and some make more mistakes than they should.....but don't assume their action is them admitting liability.

We did not take out rent guarantee insurance but we will be as soon as we get new tenants once we have completed the eviction. 1st time accidental landlords on a steep and harsh learning curve!

The reason I asked about rent guarantee insurance is that usually its the rent guarantee insurers who decide on the acceptability of an applicant. The subjectivity lies with them and not you or the agent. So, if you are thinking of taking RGI next time......you don't really need to take references as the insurers do it for you AND you need to apply for the rent guarantee insurance as part of the process not after you have got new tenants.

[Melboy]

I guess it comes down to whether the LA concealed the CCJ from you in a deliberate act?

Anyway you should have been made aware of the CCJ that is a fact as far as I am concerned and we are back to the duty of care clauses in law.

With the LA not charging you no fees at the moment hardly a gesture of goodwill is it as there is no rent coming in to take their fees from?

[lynchy50]

Melboy - It's pretty hard to know if it was a deliberate act as the person who dealt with it all has since left the agency. I'm certainly going to be looking back through the T&C's anyway.

Thanks for all responses.

[Grampa]

With the LA not charging you no fees at the moment hardly a gesture of goodwill is it as there is no rent coming in to take their fees from?

I totally agree, they are blowing smoke up your backside. How can they charge if there is no rent coming in. I bet they are being as nice as pie to you at the moment cos they know they have been caught out and put the first half decent (or bad) tenant in.

[Grampa]

Melboy - It's pretty hard to know if it was a deliberate act as the person who dealt with it all has since left the agency. I'm certainly going to be looking back through the T&C's anyway.

Thanks for all responses.

It doesnt matter if it was deliberate or not they have a duty of care to get it right because that is what you paid for.

[Richlist]

I don't necessarily agree with some of the comments.

One CCJ does not in my opinion make a tenant unacceptable.....it really depends on the details. I am the most awkward & picky landlord you could possibly meet.......just look at my list of tenant criteria to see that I take virtually nobody. I have properties empty for months whilst I wait for the 'right' tenant to turn up. But, my rent guarantee people have OK'd a tenant with one CCJ and he turned out to be a good tenant. The devil is in the detail.......and as we don't know the detail, I think its a little premature to critisicize the agents unduly.

[Melboy]

I don't necessarily agree with some of the comments.

One CCJ does not in my opinion make a tenant unacceptable.....it really depends on the details.

Possibly true RL but would the final decision of tenant acceptability be made by with the Landlord?

If this had been done perhaps the Landlord, in this case, might not be facing the circumstances they find themselves in and the LA would have rested easy knowing that it was not them who made that final decision leading up to the position as it is now.

[Grampa]

I don't have a problem with ccj's as I have a number of tenants who have had them at the time of referencing. I do have an issue with an agent who has chosen not to disclose the fact and I think that is the issue.

Some landlords have very strict views regarding ccj's and will not even consider a tenant with them which is their choice after all it is their property.

This maybe just case of a lack of communication but it has consequences which the agent has to address. Maybe it would reflex on them better if they just put their hands up admit they have made a mistake (which we all do) offer to cover any loses due to their actions and offer a commission free period for the next tenant.

[Richlist]

Possibly true RL but would the final decision of tenant acceptability be made by with the Landlord?

If this had been done perhaps the Landlord, in this case, might not be facing the circumstances they find themselves in and the LA would have rested easy knowing that it was not them who made that final decision leading up to the position as it is now.

I think its true that there are some landlords who would want to make the final decision on whether a tenant is acceptable or not.....and this OP clearly expected to belong to that group. We should also recognise that there are another group of landlords who pay for full mannagement of their property and hand virtually all responsibility for day to day decisions to the lettings agent.

Irrespective of our personal opinions, likes or requirements the matter really hinges on what the contract between the agent & the OP says on these matters. Making assumptions which are based on the ways that we normally operate bare little or no relation to this situation. The fact that the tenant had one CCJ might have no bearing on the OP's need to end the tenancy.

AlI I'm suggesting is that without all the details, its premature to hang the blame for the landlords need to evict, on the agent.