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Question Title: Disappearing landlord
| Question: 299 |
| I find myself in a most unusual position. I am the letting agent for a landlord who only has one property. He has disappeared without trace. I have checked at his home address, that now has new owners and they do not have a forwarding address. The tenant of the property that we manage has given notice. Can we find a replacement tenant? What should we do?
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| Answer: |
| Fortunately, one would hope that this is not a common problem as the consequences for the agent could be quite complicated. If the property is owned outright by the landlord then, subject to a termination of the management agreement by the landlord, his estate or trustee, the agent should carry on as normal, as far as it is possible to do so. The authority contained in the agency agreement and any associated power of attorney will protect the agent until revoked. If, as seems more likely, there is a mortgage on the property the agent should contact the lender for further information. It may be that the mortgage payments are continuing to be paid by direct debit from the landlord's bank account. In which case the lender may not have any major concerns. However, if the payments are not being made, the lender will often seek to repossess the property to sell with vacant possession. Liaison with the lenders at an early stage can help to avoid some of the embarrassment and inconvenience to tenants in this situation. By obtaining a court order, lenders have rights to repossess and evict any tenants living in the property. Efforts might be made to contact the landlord through his bank or building society - although Data Protection rules prevent them disclosing private addresses, they are normally prepared to assist by forwarding a letter on to a client. The legal relationship between the landlord and the letting agent is covered by the law of agency. In consideration of the component parts of those rules, including the duty of obedience and the duty of care and skill, the agent should pursue the stated aims of the landlord as set out in the agency agreement.
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References:
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Pages:
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Hyperlinks:
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Letting Handbook |
Chapters 4 & 17 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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