letting Agency agreement

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

    letting Agency agreement


    We are renting out our house. We instructed a letting agent a month ago. So far we have only had 1 viewing. We have possibly found some tenant that would like rent privately.
    There is a clause in the in contract that reads ' if you terminate this agreement, a termination fee equivalent to three months rent will be payable by you, and any outstanding element of the service charge or other monies due to us under the terms of the agreement must be paid bu you prior to the termination'
    Considering they have not even found us tenant do they think they expect us to pay £3600 just to terminate a contract.

    #2
    Yes. What does your sep Agreement with LA say about Cancellation?
    Was this for a Find Only arrangement?

    Comment


      #3
      The provision would seem to be covered by one of the terms considered unfair as set out in 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 trader a disproportionately high sum in compensation or for services which have not been supplied.

      The Act also says that: A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract to the detriment of the consumer. Does the contract provide for the agent to pay compensation if he terminates the contract?

      Whilst we wait to see what the contract says about termination, the way round the problem and avoiding a dispute may be simply to refer the applicant to the agent - assuming of course that the commission is significantly less.

      Comment


        #4
        Those clauses are usually reserved for trying to terminate your relationship with the agent once the tenant is in the property, but all agency contracts are different.

        As Lawcruncher says, it’s almost certainly unfair anyway, especially if they’ve done nothing but advertise and show one person the property.

        The easiest way out of it is probably to just tell the agent that you don’t wish to let anymore.

        Comment

        Latest Activity

        Collapse

        Working...
        X