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1. The last agreement was signed and started on 20th August 2008 for a year.
2. The previous Agent, the tenant did not want to sign another agreement commencing in August 2009, approx. at the same time the previous agent was closing his mydeposit scheme/membership, so the deposit amount of £400 was transferred to me, however we were both under the impression that it did not have to be protected, as there was no new agreement.
The tenant left in May 2010, without a forwarding address and the Landlords were dissatisfied with the state of the property and demanded the deposit went to them. They did sign a declaration from me to that effect. The tenants daughter has now come back demanding the £400.
I just need to know if I should have protected the deposit and should I have returned it to the Landlords and whose fight is it now the Landlord or me.