Tenancy agreement not signed, is it valid??

[13foxxy]

Hi everyone, hope to get some advice regarding the problems faced by us. We had spoke to our letting agent to rent out our house for 6 months and maybe extend the tenancy if we do not move in ourselves later. They told us it was possible to rent it for 6 months and we just have to give two months notice before hand. Hence we decided to go ahead with it and was sent the tenancy agreement and asked to sign it and return back asap if not it would delay the tenancy. However, later we decided not to go ahead and called in to inform we changed our minds, but were told that the tenancy has already started. So we thought ok no problem we'll just give a 2 months notice later if we decide to move in. Now when we told our agent to give the notice, they told us its not possible as the tenancy is a 1 year agreement and we can only move in when it ends. The question is we have not signed the tenancy agreement so will that tenancy be valid? How and what can i do to complain as we are totally stressed as we might be homeless in about 2 months time as we have been informed we cannot get a council house and housing benefit as we own a property. We have 2 small kids and OH has been made redundant so with no job and no housing benefit too, we can't seem to find a property to rent.

 

The other thing is we have not received our rents for the past 2 months and when inquired, was told housing benefit paid into the wrong account and they are still waiting for remittances sent out by post to be received before they can release us the money. They tell us that they are on constant chase with them and still waiting but how long does a post takes to reach them. Its been almost a month. However, we did receive first 2 rent payments so can't figure out why suddenly money was sent in the wrong account. Do you think I should ask them to forward the emails they communicated with the housing benefit people or a copy of the housing council mentioning it has been paid in the wrong account?

 

??

[mariner51]

The Tenancy is valid, ASTs of less than 3 yrs do not need to be in writing or signed, strengthened by written LL unsigned AST and acceptance of rent.

Your mistake for not checking AST first.

I guess the T will have a written AST, signed by LA, acting as your instructed Agent.

If the LA is a member of a rel Trade Body eg ARLA, you could try complaining to them. You could contact Council HB dept as LL and ask about HB payment 'confusion' and when/where paid.

 

Now the bad news

End of the stated period (fixed term) does not end the Tenancy and if the T does not leave voluntarily at end of fixed term a statutory periodic tenancy will be created automatically on the day after fixed term ends. Then you will have to rely on s21 notice for Court repo order. This can be served at any time (but different forms for service during fixed term or SPT) These Notices require 2 months notice to expire. Court will not consider repo order before end of fixed term so add 1-2 months to get Court hearing an poss additional 1-2 months for Bailiffs to evict Ts unwilling to vacate.

Also you cannot use s21 if any deposit was not protected within 30 days of receipt AND prescribed info provided to Ts. unless you first return deposit in full. You are ultimately resp for deposit, not LA.

Deposit non-protection could cost you deposit and 1-3x deposit as compensation to T.

Then there are questions about EPC, annual Gas Safety Certs, LL insurance, repair costs and Income Tax returns etc

 

Still think being a LL is a risk free option? Renting is a business, not a hobby! Sorry to be harsh.

[raydetinu]

Have you got anything in writing from agent about tenancy terms etc. how long the let would be.

Normally LL does have to sign AST, LA usually asks LL to do that as LA is not letting it.

If LL has had no communication with tenant he cant create a verbal contract!

I think you should consider legal action against LA for your loses and expenses, which unfortunately you cannot do until you have actually suffered them, later down the line.

However suggest you put them on notice that this will be your intention.

Is there a break clause in the agreement at six months? usually is somewhere so you or tenant can end early, if not crap LA.

Good point about the EPC cert, you could be fined by trading standards if tenant was not advised of this.

Was any deposit protected, you or LA should arrange, but you are responsible.

Edited July 24, 2013 by raydetinu

[13foxxy]

The Tenancy is valid, ASTs of less than 3 yrs do not need to be in writing or signed, strengthened by written LL unsigned AST and acceptance of rent.

Your mistake for not checking AST first.

I guess the T will have a written AST, signed by LA, acting as your instructed Agent.

If the LA is a member of a rel Trade Body eg ARLA, you could try complaining to them. You could contact Council HB dept as LL and ask about HB payment 'confusion' and when/where paid.

 

Now the bad news

End of the stated period (fixed term) does not end the Tenancy and if the T does not leave voluntarily at end of fixed term a statutory periodic tenancy will be created automatically on the day after fixed term ends. Then you will have to rely on s21 notice for Court repo order. This can be served at any time (but different forms for service during fixed term or SPT) These Notices require 2 months notice to expire. Court will not consider repo order before end of fixed term so add 1-2 months to get Court hearing an poss additional 1-2 months for Bailiffs to evict Ts unwilling to vacate.

Also you cannot use s21 if any deposit was not protected within 30 days of receipt AND prescribed info provided to Ts. unless you first return deposit in full. You are ultimately resp for deposit, not LA.

Deposit non-protection could cost you deposit and 1-3x deposit as compensation to T.

Then there are questions about EPC, annual Gas Safety Certs, LL insurance, repair costs and Income Tax returns etc

 

Still think being a LL is a risk free option? Renting is a business, not a hobby! Sorry to be harsh.

 

Hi thank u for making it so much clearer. We did check the AST, but as mentioned we had decided not to go ahead and when we informed the agent they mentioned tenancy has already went ahead without any confirmation from us. I'm not too sure if deposit is protected as such thing was not mentioned at all by the agent will have to confirm with the agent on it and could explain a bit more on why that would cost us?

 

and the other thing is we did not rent it out to make profits, we bought the house for us to move in afte rwe will be leaving army quarter in few mths time. But if we had known abt all this troublesome things, would have let the house sit empty till we moved in ..anyway thank u

[13foxxy]

Hi Raydetinu,

yap the agent sent us the tenancy agreement via email and asked us to sign it and sent it before the tenancy start date, saying that failing so would delay the tenancy. However, when we got back to inform that after the mentioned date, they mentioned tenancy has already went ahead.

 

Have asked them about their complaints procedure so will be putting in a complaint.

[raydetinu]

I think it is more than a compliant, you want compensation.

If they let it without your permission! This could turn out very expensive for them.

Suggest you post this on the Landlordzone site for additional advice.

How long was it between you getting contract to sign and you telling them you did not want to proceed. I presume it said 12 months on the contract and you only advised them for it to be six.

[13foxxy]

The thing is they are trying to look out for another property for the tenant and if they do manage to empty the house by september, we have no problem but beyond that, we would surely ask for compensation. Thank you for your suggestion will post this in landlord site too.

[raydetinu]

Interesting, I expect the tenant would be looking for compensation to.

Check the deposit situation, as that could rebound on you as well!