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propertylawyer
propertylawyer, Solicitor
Category: Law
Satisfied Customers: 280
Experience:  Property Solicitor with expertise in commercial and residential property transactions.
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A tenant entered into a lease on a commercial property and

Customer Question

A tenant entered into a lease on a commercial property and as an act of good faith and reassurance of his financial worthiness entered into a separate Deed of Trust for £10,000.
The landlord became bankrupt and the tenant is unable to retrieve his £10,000.
The tenant argues that notwithstanding the bankruptcy of his landlord, the landlord has a separate personal obligation to hand over the money she was holding on trust. If she does not agree to pass over this some now or at some future date it must be considered as theft.
If this is so what course of action can the tenant take in order to keep his costs to a minimum
Submitted: 10 months ago.
Category: Law
Expert:  propertylawyer replied 10 months ago.

Hi

Was the deposit covered by a rent deposit deed, signed and completed by both the landlord and tenant? Did the deed specifically state the funds were held on trust for the tenant?

Assuming so the tenant will need to inform the landlord's trustee in bankruptcy. The £10k should not form part of the bankrupt's estate.

Expert:  propertylawyer replied 10 months ago.

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Customer: replied 10 months ago.
Hi,
Thank you for your reply.
sorry for the Delaying
yes
We have the Deposit deed documents and I attached them with this Message.
Expert:  propertylawyer replied 10 months ago.

The rent deposit deed needs to be sent to the trustee in bankruptcy immediately.

The deposit is the tenant's money and cannot be appropriated by trustee in bankruptcy as part of the bankrupt's estate.

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