Agency fee per 'term' and not 'per year'

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    Agency fee per 'term' and not 'per year'

    Hi All,

    I am using an Estate Agent to fetch tenants. Agent made me sign terms and conditions. But when I created Agreement for tenant the term of Agreements is for 24 months.
    Agent came back with a bill after letting with percentage on 'term' and not 'year'. I went back to check and can see that they mentioned the words 'percentage of initial term'.

    How can they charge such a large amount ?
    Is there any way to handle this situation ?
    When I first met agent, he only explained examples on cost on my using 12 months. My assumptions were tied up at year rent collection and charge on that amount.

    Thanks in Advance.

    #2
    If that is what it says in your agreement with the agent then I suspect you are stuck with it - be more careful with what you agree to next time.

    Comment


      #3
      They can charge you whatever you agree to. It really comes down to whether you simply signed without properly understanding the terms (your mistake so long as they are clear) or whether they actively mislead you or and, if so, whether you can prove it.

      In terms of the future - it really does come down to checking the main contract terms more carefully.

      Other things to look out for is whether there is a break clause and what happens to their fee if it is used. E.g. if they leave after 12 months can you claw back some of the agency fee.
      Assume I know nothing.

      Comment


        #4
        If this is a new tenant, a 24 month agreement is very inadvisable.
        Always use a 6 month agreement - which will also help with the agent's fees.
        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
          First thing first, I should take this as my negligence of not looking at the wording of 'term' when charging me.
          At the same time, when the contract was created for 24 months, I did ask to reduce to 18 months as I felt it is too long. But agency just ignored by saying that the tenants needs for 24 months.
          Now if I get confirmation from tenants that they really didn't ask for 24 months, and have asked for long-let only (anything more than 12 months is a long-let), can I get a refund from Letting agent for misleading me ? Can I file against Letting agent for misleading ?

          Comment


            #6
            Ypkr, please read the forum rules and post question in one area only.
            I also post as Mars_Mug when not moderating

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