Problem with a lettings agent
My sister is having a problem with a lettings agent that is renting her house for her.
The original agent went bust on 7th April this year.
She had no end of problems from them. She had to chase them up every month to get her money.
When the original agent went bust, another letting agent took over the lettings of the properties.
It transpires that the owners of the old (bust) lettings agency were “ helping to migrate the existing contracts."
The original director of the NEW lettings company is no longer a director, instead the wife of the OLD BUST lettings agency is now listed as a director.
It appears that the old lettings firm are running the new letting firm.
My sister hasn't signed a contract with the new lettings agent.
The sitting tenants have signed a contract with the new agent.
My sister doesn't want to deal with the new lettings agent anymore.
My sister has been threatened with being taken to court by the new lettings agent for loss of earnings. The new lettings agent insist they own the sitting tenants.
My sister does not have the money to pay a solicitor to go to court. I fear she may sign the contract out of fear.
The sitting tenants are on benefits.
Can anyone help?
Where does she stand? Legally?
Can she just sign up with another lettings company? Would the current lettings company have any hold on her? What happens to the existing tenants?
There is no problem with the existing tenants. The current letting agent seems to think they own them so would my sister have to try to evict them or could she just go over to another agent without any recompense?
Thank you in advance for any advice anyone can give.
When you say that the former
When you say that the former lettings agency went "bust" do you mean that they went into voluntary or compulsory administration. Was the lettings agency a limited company?
If the former lettings agency went into administration then I believe that the original contract your sister signed with them would be frustrated (i.e. no longer enforceable).
However if there was a provision in the contract stating that the contractual rights of the original lettings agent could be assigned then the new agent may have the benefit of the original contractual terms.
It is unlikely however that the original contract contained an assignement clause.
I would suggest that your sister challenges the agent and asks why they think that they have a contract with her. If the benefits of the original contract have not been assigned to the new lettings agency then your sister does not have a contract with them. She should inform them that she is instructing another agent to manage the property and she should also inform the tenants.
The tenants have a contractual relationship with your sister as the Landlord, the agent is merely acting on your sister's behalf.
I am a Legal Advisor employed by Sarginsons Law and specialise in Civil Litigation matters. I deal with disputes between individuals and businesses including Landlord and Tenant issues, debt recovery and property disputes.
Telephone 02476 553181
Thank you for the reply. The
Thank you for the reply.
The original agent was a franchise of a bigger company.
All I can find out about what happened to the original letting agency was that they "went into liquidation" and they "went bust"
Neither landlords or tenants were informed. They found out via the local newspaper.
I do believe the original lettings agent was a limited company as the other franchise's seem to be.
From what you have said I
From what you have said I think that any contract that the original lettings agent had with your sister has now been frusted through the liquidation of the original lettings agent.
Your sister should write to the new agent stating that she does not have a contract with them and that she will be appointing new agents to act on her behalf.
I am a Legal Advisor employed by Sarginsons Law and specialise in Civil Litigation matters. I deal with disputes between individuals and businesses including Landlord and Tenant issues, debt recovery and property disputes.
Telephone 02476 553181