Dodgy Real Estate Agent won't hand over the ledger

[Dan_p]

We have heard strong rumors that an agent we have been using is going bankrupt and up to no good. The agents doors have been closed for weeks, and only open sporadically. We handed the agent with 60 days notice to hand over to another agent, we met in person and it was a bit uncomfortable and he said take the file now and it was unclear about the ledger. Since then we have emailed twice asking for clarification about the ledger and offer to pay for the 60 days commission without doing the work and all he has to do is hand the ledger over to the new agent.

We have heard nothing.

I have since given a deadline about handing the ledger over and if we do not hear back then we assume that the 60 days has been waived.

I have a feeling that the agent is going to try and make us suffer, possibly collect the rent and not pass it on.

Have I acted correctly and can someone offer advice on how to handle this?

FI the agent has opened a new real estate in a near by suburb under the same name but brothers name.

The new agent we have transferred this rental to has another one of our properties and has advised that a few landlords have also moved their business to him.

One interesting point, when we asked for the file there was a gentleman there and he saw us go in and could see what was going on. Afterwards he saw us down the road and offered to buy us a coffee. He was there to buy all of the rentals. Talk about awkward.

 

[Joe D]

I have a feeling that the agent is going to try and make us suffer, possibly collect the rent and not pass it on.

Have I acted correctly and can someone offer advice on how to handle this?

Simple. Contact the tenant in your house and advise them that the PM has been changed and that any future rent should not be paid to previous account.

You will need to prove to the tenant that you are the Owner.

Then have the new Agent sort out the backlog.

 

[Scott No Mates]

You just have the new agent contact the tenant, provide the letter of appointment (so that they can check against the names of the landlord on the lease). You don't need to be involved.

Just make sure any transfers of funds from the previous managing agent match what they have paid you/transferred and what is on the ledger.

 

[Dan_p]

Just make sure any transfers of funds from the previous managing agent match what they have paid you/transferred and what is on the ledger.

The ledger is what I dont have though, isn't it needed for the new agent to take over? not only the file.

 

[Scott No Mates]

The ledger is what I dont have though, isn't it needed for the new agent to take over? not only the file.

Just provide the agent with a copy of your monthly statements for them to recreate the last year's payments/receipts.

 

[baby blue eyes]

Let the agent sort it out. I had issues with an old agent and my new agent discovered the bond had never been lodged. I inherited the tenant when I purchased. New agent took over immediately and waived fees until the old agents notice was done. Also scratch the 60 days notice on your new agreement. I only give them 30 days.

Changing agents was a good move.

 

[WattleIdo]

I only give 7 days. Some people give 3 days and some give 0.

 

[Dan_p]

Let the agent sort it out. I had issues with an old agent and my new agent discovered the bond had never been lodged. I inherited the tenant when I purchased. New agent took over immediately and waived fees until the old agents notice was done. Also scratch the 60 days notice on your new agreement. I only give them 30 days.

Changing agents was a good move.

My agent also is waiving the first two months fees.

He is going to talk to the tenant and tell them he is taking over. I believe a good move as well.

Thats what they say, you need to manage your agents.

 

[jim1964]

you need to manage your agents.

Thats the only way.Micro manage the manager and keep a arms length from it.

 

[Dan_p]

One thing we still haven't got is the keys, which are not only for the unit, they are also the spares for the electronic gate, squash courts etc.

This guy is very hard to get hold of, he has literally shut his doors and won't answer his phone. Any ideas on what we should do about this?

His brother has opened up an identical office in Camden.

 

[Perp]

One thing we still haven't got is the keys, which are not only for the unit, they are also the spares for the electronic gate, squash courts etc.

Is the business in receivership? Send a certified letter demanding return, copy to the receiver. At least then if they're not returned, you have registered the debt and may get something out of the winding-up.

I'd be seeking legal advice. Not paying big $ for advice on starting litigation, but at least finding out exactly what our legal position is and where you go from here. You may be able to find out what you need to know from the RTA, free legal advice hotline, etc., but you need to establish precisely what's going on with the agent's business and how you protect your position (as far as possible), ASAP.

 

[Dan_p]

Is the business in receivership? Send a certified letter demanding return, copy to the receiver. At least then if they're not returned, you have registered the debt and may get something out of the winding-up.

I'd be seeking legal advice. Not paying big $ for advice on starting litigation, but at least finding out exactly what our legal position is and where you go from here. You may be able to find out what you need to know from the RTA, free legal advice hotline, etc., but you need to establish precisely what's going on with the agent's business and how you protect your position (as far as possible), ASAP.

I have a lawyer which we have used over the years, might be worth to see him. This sort of thing is hard to deal with, I am interstate with work and my wife is currently studying. At least with our own lawyer, it might cost a few hundred dollars but at least everything will be done right.

 

[Dan_p]

The agent is still not answering emails, texts and phone calls. He still has the bond, the common keys and ledger. New real estate is not happy to chase this down.

What should we do, considering this guy is in court and hard to reach. I was thinking Fair Trading but I doubt he will care if his business is bankrupt, or on the way there?

 

[HotRod]

The agent is still not answering emails, texts and phone calls. He still has the bond, the common keys and ledger. New real estate is not happy to chase this down.

What should we do, considering this guy is in court and hard to reach. I was thinking Fair Trading but I doubt he will care if his business is bankrupt, or on the way there?

Report him to NSW's equivalent of REIWA, the real estate institute?????

 

[Dan_p]

After hearing every excuse imaginable about the delay in rent payments we finally went to fair trading late last week. I lodged it in the morning and within two hours fair trading called me to let me know it has been escalated to the highest level. I believe there are a number of landlords missing payments from this fellow.

We are owed a couple of grand in rent as well as having fix up work due to neglect.

The last excuse about the money not going into our account was, him and his brother were held up at gun point

Fair Trading have told us they haven't been able to contact the agent. I'm not sure what happens next.

 

[TMNT]

After hearing every excuse imaginable about the delay in rent payments we finally went to fair trading late last week. I lodged it in the morning and within two hours fair trading called me to let me know it has been escalated to the highest level. I believe there are a number of landlords missing payments from this fellow.

We are owed a couple of grand in rent as well as having fix up work due to neglect.

The last excuse about the money not going into our account was, him and his brother were held up at gun point

Fair Trading have told us they haven't been able to contact the agent. I'm not sure what happens next.

absolutely disgusting,

I hate people who make up these kinds of lies,

give me his number, I know somone who would be happy to make his lie come true for a bit of cash

 

[Dan_p]

Fair Trading has taken over this guys business now. Heard stories of some owners being owed $9k in rent, even our tenant couldn't stop the direct debit because of being overseas.

Its a bit of a mess

 

[Doovalacky]

He will declare bankruptcy and fair trading will give a slap on a wrist and tell him can't be director of a company for a few years. Conveniently no assets will be in his name and even when you spend a couple grand in legal fees you won't get anything back. He will operate under someones elses name for a few years then start a new company and do it again.

Been there, experienced that.

Goodluck.

 

[thatbum]

He will declare bankruptcy and fair trading will give a slap on a wrist and tell him can't be director of a company for a few years. Conveniently no assets will be in his name and even when you spend a couple grand in legal fees you won't get anything back. He will operate under someones elses name for a few years then start a new company and do it again.

Been there, experienced that.

Goodluck.

Except in WA, there is a fund available to cover liabilities owing from real estate agencies when they aren't in a position to pay. Did you look into that?

I'm pretty sure its paid for out of the interest from agent trust accounts.

I imagine there are similar schemes set up in other states too?

 

[Dan_p]

He will declare bankruptcy and fair trading will give a slap on a wrist and tell him can't be director of a company for a few years. Conveniently no assets will be in his name and even when you spend a couple grand in legal fees you won't get anything back. He will operate under someones elses name for a few years then start a new company and do it again.

Been there, experienced that.

Goodluck.

He is doing exactly that already, brother opened a new company in the same name in a different suburb. I bet the same thing happens there as well. Fair trading know about it.