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Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I leased my flat, for 5 years, to a property management company.

Resolved Question:

I leased my flat, for 5 years, to a property management company. They placed various tenants into the property. On their rental agreements with various tenants they are named as the landlord and no mention is made of my name. They have subsequently gone into administration and not complied with the correct procedures regarding the deposit. Am I now liable as the owner of the property? What am I liable for?
Submitted: 2 years ago.
Category: Property Law
Expert:  Ash replied 2 years ago.
Alex Watts : Hello my name is ***** ***** I will help you with this.
Alex Watts : How much is owing? Have you ever signed any agreement with the tenants please?
Customer:

The deposit was owing and I signed a new rental agreement with the tenant stating that the deposit was not received by me. She is a housing benefit tenant and the council say I am liable for the deposit.

Alex Watts : So you had a contract direct with the tenant who was living there, have I understood correctly?
Customer:

I got the tenant to sign a new rental agreement after I terminated my contract with the property management company. I noted on the rental agreement that I hadn't received any deposit.

Alex Watts :

But their agreement with the management company was the one with the deposit?

Customer:

Yes

Alex Watts :

Ok - then you do not need to worry.

Alex Watts :

You had a separate agreement. Therefore you are not liable.

Alex Watts :

There is no contract with you. The only contract with you is with no deposit.

Alex Watts :

Therefore you can not be held liable for contracts entered into by other people.

Alex Watts :

You are not bound

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

The council said that I was liable. So I returned the money to them. Were they incorrect.

Alex Watts :

Yes they are wrong. You can not be bound by a contract to which you were not a party.

Alex Watts :

Does that help?

Customer:

Can I get my money back?

Alex Watts :

From the management company? If they have not protected the deposit and have gone into Administration then the tenants will only be unsecured creditors - nothing else

Alex Watts :

In reality it is unlikely they would get anything

Customer:

The council lead me to believe that I was liable so I gave them the amount they were owing. Can I request the amount back? If I can is there a legal term I can use?

Alex Watts :

Yes you can request it back or sue them using the small claims procedure.

Alex Watts :

Does this help?

Customer:

Thank you

Alex Watts : Can I help with anything else today?
Customer:

You have been very helpful. Thank you

Ash and other Property Law Specialists are ready to help you

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