Charge Girlfriend Lost Agents Commission Fees

arambol

As per my last post I'm reading through a Common Law tenancy agreement for my girlfriends private flat rental.

She's utilising the 6 month break clause in a 12 month tenancy.

I see however that there is a clause that states:

"the landlord may deduct from the deposit any commission fees lost by the Agent or any reasonable costs incurred by the Agent or Landlord through the early termination on the tenancy by the tenant".

Does this mean the Landlord can charge her for the remaining 6 month of the Agents commission which the Landlord has probably already paid the Agent?

Surely the "break clause" would release her from this potential charge back.

Thanks again.

guppy

Not sure what you mean by a "common law" tenancy agreement. I assume its an assured shorthold tenancy.

I agree with your interpretation, that the break clause isn't early termination. Its just a termination in line with the terms agreed, so the tenant shouldn't be held responsible for any fees.

Make sure she serves notice exactly as specified in the lease.

arambol

I didn't know myself but since being on this site I have found out that apparently if the rent is greater than £25,000 p.a (which it is at £2200 per month) then it can't be a assured tenancy.... it become a Common Law Tenancy which isn't as protected (ie no deposit protection or security of tenure as they can pretty much kick you out without notice).

arambol

Crazy really.... because I would have thought that if you paid more you should get more security but the law is old and hasn't been updated in line with modern day pricing.

This means that more and more people are finding that they aren't covered by an Assured Shorthold Tenancy, especially in London with the London prices.

tbs624

guppy wrote: »

Not sure what you mean by a "common law" tenancy agreement. I assume its an assured shorthold tenancy.

I agree with your interpretation, that the break clause isn't early termination. Its just a termination in line with the terms agreed, so the tenant shouldn't be held responsible for any fees.

Make sure she serves notice exactly as specified in the lease.

Have a look at the Housing Act 1988 S1, and Schedule 1: some types of tenancy *cannot *be ASTs . This would include tenancies where either very low rent or very high rents are charged ( over £25,000 pa is the upper limit) and tenancies where there is a resident LL. The resident LL doesn’t share parts of the property with the Tenant - usually a separate self-contained floor is let out.Also includes Uni lets to students.

Under this type of tenancy - the contract is very definitely what counts. IMO those charges *may* be capable of being enforced. Clearly if the LL has already paid the full year’s commission then the LA cannot ask you for that amount again - however, it may be pointed out to the LL that he can recoup the costs from you. Your gf needs to clarify under what circumstances these costs may apply in writing and perhaps make sure that they are getting on with finding a new tenant: she may have to pay for advertising costs etc depending on date of notice etc. Whether you can argue that there an Unfair Contract Term is perhaps worth looking at - I doubt that there is an equal clause that says that in the event of the LL using the break clause, the LL/LA must pay the Ts costs arising from having to find somewhere else.

You may like to speak to Shelter 0808 800 4444 (7 days 8-8) for clarification, alternatively you can get a fixed fee appt(40-50 quid) with a local solicitor to go through the contract terms with you both, but make sure you specify that it must be someone who is proficient in LL&T law.

On a slight digression, some LLs are using the fact that if the rents for their shared houses can be bumped just past £25K pa they can very effectively avoid having ASTs, with their attendant requirement to register tenants' deposits.

Others think that the upper rent limit should, accordingly, be set at around the 50K mark to more accurately reflct current rentals.

Maybe this is an another area in which tenants would like to bring pressure on MPs and the Housing Minister - why should tenancy deposit regs only apply to one specific type of tenancy?

Premier_2

arambol wrote: »

As per my last post I'm reading through a Common Law tenancy agreement for my girlfriends private flat rental.

She's utilising the 6 month break clause in a 12 month tenancy.

I see however that there is a clause that states:

"the landlord may deduct from the deposit any commission fees lost by the Agent or any reasonable costs incurred by the Agent or Landlord through the early termination on the tenancy by the tenant".

Does this mean the Landlord can charge her for the remaining 6 month of the Agents commission which the Landlord has probably already paid the Agent?

Surely the "break clause" would release her from this potential charge back.

Thanks again.

Yes, I think so.

The costs relates to breaking the terms of the tenancy agreement. By using the break clause she won't be breaking those terms.

tbs624

arambol wrote: »

I(...they can pretty much kick you out without notice).

AFIAA you still have to be given specific Notice to Quit and in any event, there should be a clause on notice periods within the contract itself.