Is the following a potential ruse to circumvent the No Fees legislation

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Is the following a potential ruse to circumvent the No Fees legislation

    I met someone whilst on holiday who was intending to come and study in London , he coming from the Slovak country with fair to middling English.

    We discussed accommodation whilst he was staying in London and he said he would be doing the rounds of agents as he was to be joined at the end of September by a couple of friends. I cautioned him to beware of being taken for a ride given his innocence of what can happen with agents.

    Today he wrote asking if the attached Terms of Business were correct? The Agreement is from a "Consultancy organisation" but was according to its web site linked to a Letting Agency which also had links to other agents!!! The agreement covered the investigation of suitable accommodation , either on a house or room to let basis throughout London and included the negotiation of the rental and acceptance. All of which would require a non returnable fee of £1150. Clearly I have cautioned him against rushing into such a formal arrangement and it set me wondering if other Forum members had come across any similar situations ostensibly designed to circumvent the NO Fees legislation by Tenants.

    #2
    The "consultancy organisation" would seem to be proposing to do "things" in "the course of a business" in "response to instructions received from...a tenant who is seeking to find housing to rent."

    Which makes them a letting agent and, therefore, subject to the Tenants Fees Act.
    So I think it's a prohibited payment.

    Your friend should report the organisation to Trading Standards (and certainly not agree to it).

    If you send me a Personal Message with the name of the organisation, I'll have a bit of dig around.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thanks JP will do PM

      Comment


        #4
        I've been told it probably breaks the Accommodation Agencies Act 1953.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Looking at section 1 of the Act, I don't think there is much doubt. I was pretty sure this was illegal by old legislation yesterday, but all my Google searches were being swamped by results about the Tenant Fees Act.

          Comment


            #6
            By way of an update, the person who contacted me was guided by some excellent advice preferred by JPKeates who PM’d me and distanced himself from progressing the matter, unfortunately he now appears to have got “caught” by another such operation where one of the business owners has recently been penalised by the authorities for failing to return deposit monies in another Lettings operation located in London. The terms of the agreement are almost identical to those of the original operation and given that they are requiring the deposit monies and one months rent before “concluding negotiations” with the rental agency strikes me with fear that this is an unlawful operation. I have again advised him to NOT to do this and to make direct contact with the actual agents. So it does seem that such practices are common in certain parts of London.

            Comment

            Latest Activity

            Collapse

            • Newly refurbished house to let- fully managed or finder fee only?
              by Lots on
              I have been a landlord, initially accidental (had to manage fathers properties when he became ill) then by choice. Only 2 properties, a student flat which is fully managed and a house which I inherited with tenants in situ and no letting agents, it was quite hands off but amicable. They have moved...
              06-07-2020, 21:46 PM
            • Reply to Newly refurbished house to let- fully managed or finder fee only?
              by Fire Risk Assessor
              My first BTL I mistakenly used an agent to manage. 10% a month Plus VAT for doing nothing, when there is anything wrong they phone me to sort it out, they have lost high security keys (£40) and denied it. Tenant stayed for 4 years. Just moved out as I have sold the flat. They even changed the electricity...
              13-07-2020, 21:32 PM
            • Reply to How to choose letting agent
              by Beswick
              If I could go back in time, I'd advise 'the old me' to do swot up on all the regulatory stuff and do everything myself. These forums are a great place for info, as is the Moneysaving Expert website. Find the relevant tradesmen (personal recommendation is best) too.

              I've found that if...
              11-07-2020, 11:48 AM
            • How to choose letting agent
              by LMK
              Hi. I am just getting ready to rent my property out for the first time.
              I am planning on getting a few letting agents around, seeing what they say, what they can offer (planning on going for the full management option), their prices etc.
              But is there anything in particular that I should...
              10-07-2020, 18:36 PM
            • Letting agent cease fee = 12 months fees.
              by lamblord
              Hi All,

              I became a landlord back in January 2019 when I moved in with my partner, and we rented out my property. I used a letting agency, as I didn't really have the time to invest in learning how to manage a property myself. The letting agent got 3 tenants in on 12 month agreement, that...
              08-07-2020, 15:15 PM
            • Reply to Letting agent cease fee = 12 months fees.
              by Lawcruncher
              Refer the agent to paragraph 5 of the list of terms which may be regarded as unfair set out in Schedule 2 to the Consumer Rights Act 2015:

              A term which has the object or effect of requiring that, where the consumer decides not to conclude or perform the contract, the consumer must pay the...
              11-07-2020, 10:11 AM
            • Reply to How to choose letting agent
              by jpucng62
              I would visit them and have a chat about their approach, charges etc. The monthly charge is important, as is how they charge for deposit protection (this can vary quite a lot). Ask about their approach to repairs etc and choose one which fits with what you want AND offers good value.

              Remember...
              10-07-2020, 22:20 PM
            • Reply to How to choose letting agent
              by Mrs Mug
              See the link below on how to select a letting agent.

              https://forums.moneysavingexpert.com...mment_67759939
              10-07-2020, 19:47 PM
            • Reply to Letting agent cease fee = 12 months fees.
              by Beswick
              Tell the letting agent that you feel the charge is, given the level of service you have received, excessive. Tell them you are happy to pay 3 months' fees and no more. See how they respond.

              If you're still not happy, try approaching the redress scheme the agent is a member of. They can...
              10-07-2020, 18:09 PM
            • Reply to Letting agent cease fee = 12 months fees.
              by DPT57
              Nothing attached.

              Such termination clauses are, however, pretty stanard in agency contracts.

              Bear in mind that if these are unrelated tenants, the property will be an HMO and the full HMO Management Regulations will apply.
              10-07-2020, 17:15 PM
            Working...
            X