8:51 AM, 27th December 2023, About 2 years ago 19
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Hi all, My contract with both Agent and tenant has expired and has been running on a monthly rolling basis for several years now.
However, the Agent still trying to charge me £1000 due to the existing tenant still living in it if I try to leave the current Agent. I don’t think this is fair and any advice will be greatly appreciated.
Cancellation Charge
In the event that this agreement is cancelled by you during a period of tenancy, we reserve the right to charge you that sum which we would have received by way of commission up to and including the final day of the period of tenancy plus £1000.00. Such sum shall be payable as liquidated damages and not by way of penalty, it being agreed by you that the sum payable is an accurate estimate of the loss we will suffer as a result of the cancellation.
Regards,
Kin
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Southern Boyuk
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Member Since August 2023 - Comments: 94
10:39 AM, 27th December 2023, About 2 years ago
If your Tenant is going to stay, see if they will agree to giving you a notice letter for leaving the end of January give that to the agent.
Other than that, you’re locked into the contract that you’ve signed, the contract. If they are the words you’ve used to say May not Will.
Start a new tenancy agreement from the National Landlords Association with your tenants from the beginning of February
MasterG
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Member Since May 2018 - Comments: 45
10:48 AM, 27th December 2023, About 2 years ago
If that’s what you agreed to, you don’t really have an argument against. My agent wanted such a clause until I told them “I don’t mind paying you to manage my property, I’m not going to pay you not to manage it”.
Neilt
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Member Since May 2014 - Comments: 195
11:08 AM, 27th December 2023, About 2 years ago
For future reference, read the agreement carefully and then cross out the clauses that you don’t like; they’ll never turn you away and if they do, you’re with the wrong agent, which sounds like the case here
Adrian Jones
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Member Since July 2013 - Comments: 303
12:14 PM, 27th December 2023, About 2 years ago
Sounds like you have a very shrewd agent Kin.
Particularly interesting he states the sum will be paid as liquidated damages and not by way of penalty which I believe cannot be enforced under English law.
However, if I have read your message correctly, your agreement with you agent expired rather than you cancelling it so I’m not sure it is relevant. If it is why isn’t charging you on-going commission?
Michael Booth
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Member Since September 2023 - Comments: 335
13:26 PM, 27th December 2023, About 2 years ago
Take it to a solicitor simple .
Julie Ford
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Member Since September 2019 - Comments: 25
14:51 PM, 27th December 2023, About 2 years ago
Hi
Clauses like this in terms of business are something that we all need to look out for
You maybe interested in 2009 High court ruling
Office of Fair Trading v Foxtons Ltd 2009
This looked at unfair clauses in terms of business and found in favour of the landlord
Many agents are not aware that they are governed by the OFTs unfair terms or consumer protection regulations
Kizzie
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Member Since October 2022 - Comments: 402
15:08 PM, 27th December 2023, About 2 years ago
Reply to the comment left by Michael Booth at 27/12/2023 – 13:26
OP said contract ‘expired’….. ‘several years ago’.
How did the contract’ expire’? Was there a letter? If you stopped paying for the agents services several years ago and they stopped providing a service then the question is why are they are now claiming payment for a service under a lapsed contract.
I think the agent is trying it on and having a laugh.
Also this cancellation clause is IMO an unfair term especially in the way they are trying to enforce it.
I would research unfair terms in contracts and write to these agents disputing their claim and collect evidence of agents failure to provide any service for several years. Also take the matter to their trade body.
If they take matter to Small Claims court then they will need to provide proof of debt ie invoices for services actually provided and dates and reason why lack of payment not taken up within reasonable time
Cider Drinker
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Member Since December 2023 - Comments: 1539
18:58 PM, 27th December 2023, About 2 years ago
Of the agent can prove that you signed the contract, you could be held to it.
I’d let them sue me and I’d fight it on the grounds that the term is unfair.
Kin Wang
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Member Since December 2023 - Comments: 12
20:19 PM, 27th December 2023, About 2 years ago
Reply to the comment left by Southern Boyuk at 27/12/2023 – 10:39
Thanks Southern Boyuk for your good advice.
I can start a new tenancy agreement with the tenant but I’m worry that the agent may not return tenant’s deposit unless tenant move out totally which is unlikely and will be a big inconvenience for tenant to do this. Any advice will be greatly appreciated!
Thanks,
Kin
Kin Wang
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Member Since December 2023 - Comments: 12
20:22 PM, 27th December 2023, About 2 years ago
Reply to the comment left by Adrian Jones at 27/12/2023 – 12:14
Thanks Adrian and you are so right that this Agent is a shrewed one and failing to do so many things as agreed in the AST e.g that not charging tenant 3% late payement fees on arreas as stated in AST is just one of this.
Thanks for pointing out that my agreement with the agent expired rather than I cancelling it so I agreed with you that it is irrelevant.
Thanks,
Kin