Penanlty when terminating Landlord and Letting Agency Contract

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

    Penanlty when terminating Landlord and Letting Agency Contract

    I sold a few apartments with sitting tenants. The new owner appointed their own letting agents.

    In my agency contract there is a clause that entitles the agent to charge me fee for the duration of the tenancies when the properties are sold. This means I neither own the properties nor collect rents but had to pay agency fee on future rents that I do not get. The agent deducted the penalty (fees) from the last rental collections.

    Although it is in the contract - which I signed without realising, I feel this is unfair trading and unethical practice.
    The amount is approximately 6,000 pounds.
    What can I do?

    #2
    Google the OFT v Foxtons.

    The fee on sale is almost certainly unfair if you are trading with the agent as a consumer.
    If you are a professional / medium to large scale landlord, you won't be trading as a consumer.

    You should have known that the fees were in your agreement - they shouldn't have been a surprise, though.
    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
      You should read: Competition & Market Authority guidance for Lettings Professionals on Consumer Protection Law/ chapter Renewal Commission and Sale Commission/ Article 4.22: "....CMA considers the following terms, in particular, are likely to be found to be unfair. As such they would not bind consumers even if they had signed a contract agreeing to be bound by them, and therefore we consider they should not be used or relied upon in contracts with consumer landlords * Terms which require landlords to pay agents renewal commission after the sale of their property to a third party (‘third party renewal commission’) because the original tenant remains in occupation..."

      Comment

      Latest Activity

      Collapse

      • Reply to Landlord has changed Letting agency
        by doobrey
        'Need to' because you want to, or because they are asking you to?

        A new tenancy is different from an ID check and some data gathering (which seem fairly harmless and may be well-intentioned). A new tenancy is not necessary. Only sign a new agreement if you want one....
        08-12-2021, 10:24 AM
      • Landlord has changed Letting agency
        by Yellow40
        Hi Looking for some help as for some reason this has my Anxiety through the roof, I have lived in the same private landlord in the same property for 7 years, They have now decided to go with a lettings agency who have contacted me today as i need to sign a new lease and complete an application form...
        07-12-2021, 14:50 PM
      • Reply to Landlord has changed Letting agency
        by jpkeates
        Hi, again, welcome.

        Just tell the agency that you do not wish to sign a new lease thank you very much, nor do you wish to complete an application form for your home.

        My guess is that the application form is part of a rental guarantee insurance that the agent have offered the...
        07-12-2021, 18:02 PM
      • Reply to Landlord has changed Letting agency
        by Yellow40
        Thank you so much for your reply, It seem odd to me, Appreciate your time....
        07-12-2021, 16:31 PM
      • Reply to Landlord has changed Letting agency
        by theartfullodger
        That the agent or indeed landlord changes does not mean you need to sign or otherwise agree to a new tenancy agreement. Nor any changes to the tenancy agreement. Nor any application form, nor supply ID. (PS You might ask agent first for proof of ID: That'll surprise them, but clearly they think it's...
        07-12-2021, 16:20 PM
      • Reply to Landlord has changed Letting agency
        by doobrey
        There are plenty of valid reasons why the landlord may have changed agent. I have done it myself. The outgoing agent could be closing down, putting their charges up. Or they may just have been judged not to be very good at their job.

        The new agent is right (and obliged) to check that you...
        07-12-2021, 16:09 PM
      • Letting Agent asking for commission of I renew tenants privately
        by meyou5ick
        Dear all,

        I was letting my place to tenants that were sourced by this estate agent. The estate agent however misrepresented myself and misled the tenants about what's included in the monthly rental cost. The tenant had complained to the agent however, I had to pay for 6 months of services...
        29-11-2021, 16:04 PM
      • Reply to Letting Agent asking for commission of I renew tenants privately
        by jpkeates
        It depends on the terms of your agreement with them.
        My agreement with my letting agent wouldn't allow them to do that in anticipation of me owing them money, only if I actually owe them money.
        05-12-2021, 10:49 AM
      • Reply to Letting Agent asking for commission of I renew tenants privately
        by meyou5ick
        They have now withheld my rental payment (last one of this contract) because they think I won't pay them once I go private contract from next month. They surely cannot hold my rent just because they think I'll not pay after the end of tenancy if I plan to keep the tenants?...
        04-12-2021, 17:52 PM
      • Letting agent merged with another
        by Aly
        Hi all , I have been with my letting agent and had the same tenant for 9 years , this week I was notified that my old letting agent had merged basically sold out to a new letting agent , they gave no notice and no option to opt out from them , I said I didn't want to merge with them as we were going...
        03-12-2021, 21:02 PM
      Working...
      X