Termination of agreement with LA

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  • Termination of agreement with LA

    For the past 12 months I have been letting my property out via a management contract with an LA. As is usual, they charged me an initial set up fee as well as 10% of monthly rent. Due to personal circumstances I'm now in a position where I am able to take over the management myself. The terms and conditions of my agreement with the agency for the termination are as follows (verbatim)-

    'Under Letting and Management Service, once a tenancy has been created the Agreement between the Landlord and Agent cannot be terminated until the end of the tenancy'

    My plan is to serve 2 months notice on my tenant to end the current tenancy, and draw up a new ASTto commence the following day (tenant is more than happy with this). LA is however insisting that they would inforce their usual 'check out' procedures and that the tenant would have to physically move out at the end of the tenancy. They also tell me that I would not be able to draw up a new AST with 'their' tenant, based on the clause that I've copied above.

    As far as I can see from the wording of this clause, the tenancy is ended when the current agreement ends. There are no additional clauses which insist that any commission should be payable to the agent in the event that I set up a new AST with a tennant that they origionally introduced (although there is a 1% commision clause for sale of the property).

    what is my legal status in this situation? can I prevent the LA from evicting the tennant from my property? And will they have any realistic legal claim if I were to rent to the same tennant after this current agreement has ended?



  • #2
    Originally posted by ben76 View Post
    As far as I can see from the wording of this clause, the tenancy is ended when the current agreement ends.
    No, the tenancy is ended when the tenant moves out and returns the keys to you. It doesn't make any difference whether there are back-to-back AST agreements in place, or whether the tenant moves on to a periodic tenancy - it's still the same tenancy. So the wording is pretty clear on that point, and that's what you've agreed to.

    As to whether or how you can extricate yourself from the contract, I don't know; but if nobody else answers this topic comes up fairly regularly here if you search the archives.


    • #3
      Not only do you not need to re-write the AST but the agent can't enforce you to continue the contract with them. You must have a cancellation clause in the contract (otherwise it's not enforceable) and you are not obliged to continue with their management beyond the cancellation period (which must be reasonable) i.e. not more than 2 months notice I would say.

      Read this although it applies to "let only" contracts. http://www.landlordzone.co.uk/forums...hlight=foxtons
      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.


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