Letting Agent has not put bond in Deposit scheme and has gone into administration

[Ihatebeingfrugal]

Looking for any help with this.

We are landlords of a property. Letting agent found tenants and drew up a tenancy agreement.Tenants gave cash to agents and received a receipt.

Tenancy agreement says bond will be put into scheme within 14 days (and gives all the info regarding disputes etc on this )First time we had ever done this and we were paying the agents to do the legal side for us ....

Tenants were asked to leave and I contacted agent to find details of bond. Week later no contact, so rang again and found they were in the hands of the administrator!
Administrator says agents have not put any bonds into the scheme and have been using this to prop up the business!!

Tenants now want the bond back (there will be a dispute as damage has been done to the property but we need somebody to arbitrate etc)

Where do we legally stand ? Do I have to find a replacement bond to put into the scheme? Even though I never saw the money and it was given to the agent , am I responsible ?Really panicking as I have no idea where we stand

(Administrators have told us that we will not get a penny back (police involved))

Hoping that someone can advise..

[Collaborate]

Don't you have a personal right of action against the owner of the business? It's theft. Try the small claims court.

[Ihatebeingfrugal]

Thanks, will look into that tomorrow

[feetheart]

Don't think you can go through Small Claims Court if company is in administration.

Try Residential Landlords Association. Not sure if you need to join to use their Helpdesk but it would be worth it (£75 I think) as they are fantastic for all sorts of things to do with letting properties and VERY approachable.

Good luck

[Ihatebeingfrugal]

Thanks for your reply.

Looks like I will be busy tomorrow, but need to sort out as soon as possible!

[Collaborate]

Feetheart - I had in mind the fact that employees who steal from others can still be personally responsible for their actions.