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Knowledge Base arrow Tenancy Agreements arrow Rent & deposits arrow Landlord's responsibility for tenant's deposit

Question Title: Landlord's responsibility for tenant's deposit

Question:
381
I have just taken over a tenancy from another agent who has gone into liquidation. The deposit no longer exists, according to the other agent, and the last month's rent that was paid to the agent has not been paid to the landlord. What is the position with regard to these monies? Does the tenant have to pay last month's rent again and will the landlord have to return the deposit money to the tenant at the end of the tenancy?
Answer:
The deposit money belongs to the tenant and as the defaulting agent was acting as an agent for the landlord in holding this money, it remains the responsibility of the landlord to return it to the tenant at the end of the tenancy. The landlord would have a right to sue the defaulting agent to recover this amount. Similarly, with regard to the rent that the tenant has paid, it was paid to the agent as agent for the landlord and despite the fact that the landlord did not receive the money, the rent has been paid.
References: Pages: Hyperlinks:
Letting Update Journal April 2002 page 18 letting-update-journal.html
Letting Handbook Chapter 10 letting-handbook-and-factsheets.html

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