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

            • Inventory documents
              by Timonthy
              I hired a letting agent to manage my apartment recently.
              The letting agent help me to find a new tenant and just setup the tenancy.
              Since I was abroad, I asked the agent to send me the softcopy of the tenancy and related documents.
              I received a copy of reference check report of the...
              06-05-2021, 07:56 AM
            • Reply to Inventory documents
              by jpkeates
              Chances are they haven't got either document?
              06-05-2021, 08:27 AM
            • Reply to Negligent Lettings Agents
              by Piffy
              Why dont you go and see another letting agent and discuss why you are thinking of moving, you may find they would suggest a course of action you have not considered Good Luck.
              04-05-2021, 12:08 PM
            • Negligent Lettings Agents
              by Ccaurnlnia
              I have been with my letting agency for 3 years now, they have caused me issues from day one. From signing the tenants partner onto tenancy agreement when specifically asked not too. Not carrying out maintenance previously agreed by myself resulting in tenant withholding rent and also not handing tenants...
              20-04-2021, 23:27 PM
            • Company Tenant
              by Aramis
              I am letting my property to a company (letting agent) under a guaranteed rent scheme for housing social/council tenants. The lease expired in November 2020. I gave then notice in June 2020 that I would like the property handed back at the end of the lease as it was being sold. To date, the company has...
              28-04-2021, 15:03 PM
            • Reply to Company Tenant
              by jpkeates
              Check what the contract says about how it can be terminated and what happens when the end date is reached.
              Commercial leases are not covered by the same regulations as residential leases which can cause problems for the agent, as they, generally have fewer rights than their tenants.
              So,...
              29-04-2021, 12:36 PM
            • Reply to Company Tenant
              by Aramis
              Thanks you for your response. Yes, the tenancy agreement was supplied by the company.
              29-04-2021, 09:28 AM
            • Reply to Company Tenant
              by theartfullodger
              Take them to court - but first check all paperwork, tenancy, NTQ etc is correct. Unlikely to happen fast, the sale might fall through. Sorry

              Was tenancy agreement supplied by company/agent?

              Don't wish to be gloomy but there seem to be way to many similar posts of such rent-2-rent...
              28-04-2021, 18:12 PM
            • Estate Agents fees
              by Benners
              My tenants gave one months notice last year and then refused to move out. I've now received an invoice from the Estate Agent for the full amount of I guess finders fee. I've been using the estate agents for 15 years and am surprised to receive a letter requesting the full amount. I am obliged to...
              25-04-2021, 12:17 PM
            • Reply to Estate Agents fees
              by theartfullodger
              With agent or did you mean the AST? If contract bwith agent, what did it say about fees ongoing please...
              25-04-2021, 14:15 PM
            Working...
            X