Unfair terms of tenancy agreement, what can we do?

ragz_2

We recently (April) moved and found out too late that our previous tenancy was fixed term, meaning we have to pay the rent until they find someone elso or the term runs out. We would never have signed a 24 month tenancy if we had known it meant that and the paragraph in the agreement that relates to this is so long and complicated we still don't undertand it.
On the OFT website they say that consumer contracts must be written in plain and intelligible language so that people understand what they are signing, they even show examples of unfair terms and one of them is practically word-for-word what is written in our contract. As follows...

"2.24 In the event that the tenant shall unlawfully repudiate or attempt to unilaterally terminate this Agreement prior to the expiry of the Tenancy and without prejudice to all claims by the Landlord against the Tenant at common law or otherwise to pay to the Landlord's Agents the full costs of reletting the Property (including all Agents Fees and disbursements) and all and any loss of rent or other monies incurred by the landlord as a result of same."

If the OFT considers this unfair then can we just write to the letting agent telling them that and request an end to our tenancy and a refund of the rent we have been paying for an empty house for the last 2 months (not including the 1 month notice we gave originally)? Or should we take them to court?

Many thanks
RAGZ

silvercar

Have you requested an early end to the tenancy?

The landlord has a duty to mitigate losses, so if you left early and surrendered your tenancy you would be liable for the rent until a new acceptable tenant is found and that costs (advertising etc) of finding the new tenant.

The OFT may consider that term unfair, but only a court could rule that you don't have to follow its terms.

In any case there are probably other terms written clearly that you have agreed a tenancy for 24 months with rent of XX. All this cause does is explain that should you abandon the tenancy you are still liable for the rent until another tenant is found - but that info is contained in the law anyway.

ragz_2

Thankyou for your replies. So are we assuming that I should have known what the tenancy meant even though it does not clearly state anywhere in it that it means we can't leave before the end of the term? The only reason we signed a 24 month term is because the agent told us it would mean we wouldn't have to pay renewal fees every 6 months. If we had known what it really meant we would only have signed for another 6 months, we are a young family with changing needs and would not assume that the house would be suitable for the next 2 years.
Another issue we have is that they told us we could end our tenancy once new tenants were found (no mention of paying costs except rent), it has been 2 months since the end of the 28 days notice we originally gave them and although the boiler broke a week before we moved out in April, it has only just been replaced this week, showing they obviously had no intention of reletting it any time soon.

I really feel it is very unfair to trap us into a 2 year contract we don't understand. If we were to go to court would we be challenging the landlord or the agent? The landlord lives in belgium so this may be a problem!

silvercar

Agent acts for the landlord, so really you are challenging the landlord.

Negotiation is the key.

No point going to court if it says on the front of your agreement, this tenancy runs from 1/1/09 to 1/1/11 or similar.

00ec25

both statements made by the LA were factually correct:
- you would not be charged renewal fees by signing for 24 months since no renewal would take place!
- the tenancy would indeed end when new tenants were found if you left early since that is the basis of the law unless you mutually agree differently.

The fact they did not provide further information about the implications of a 24 month period and/or costs of finding new tenants does not give you a case in law for either being misled or misinformed. Sorry to say but when signing a contract (tenancy agreement) both parties are assumed to know what they are signing. The OFT guidance is trying to help the consumer but does not alter the basis of law

ragz_2

Thanks everyone for your helpful replies. Have just found out that the house is listed as NOW LET on their website so I have left a message for them and hope to hear back today. Will hopefully get most of this month's rent back and of course the deposit which means my overdraft will start looking a bit healthier. FIngers crossed!

Will definitely not be signing any more long contracts in the future! Thanks again for advice guys x

tbs624

ragz wrote: »

Thankyou for your replies. So are we assuming that I should have known what the tenancy meant even though it does not clearly state anywhere in it that it means we can't leave before the end of the term?

The clue will be in the use of the phrase a "Fixed Term"

ragz wrote: »

The only reason we signed a 24 month term is because the agent told us it would mean we wouldn't have to pay renewal fees every 6 months...

The LA does not act for you or as an independent mediator between LL and T - s/he acts for the LL.

ragz wrote: »

Another issue we have is that they told us we could end our tenancy once new tenants were found (no mention of paying costs except rent), it has been 2 months since the end of the 28 days notice we originally gave them and although the boiler broke a week before we moved out in April, it has only just been replaced this week, showing they obviously had no intention of reletting it any time soon.

Did you offer to help with the advertising/re-letting process?

ragz wrote: »

I really feel it is very unfair to trap us into a 2 year contract we don't understand. If we were to go to court would we be challenging the landlord or the agent? The landlord lives in belgium so this may be a problem!

You are an adult - *no-one* should ever sign up to a contract for anything if they do not understand its terms and/or have not sought their own advice from an independent source.

Change your stance from one of being a "wronged party" - *you* have reneged on the terms of a contract and now what you need to do is be polite but persistent with the LA,* in writing*. Put the address of the property, the original dates of the tenancy, the date on which you notified them that you wanted to move out, your actual date of moving out and then ask them to confirm in writing to you what efforts have been made so far to find a new T for the property. Contact them weekly asking for an update.

Check whether the LA is signed up to ARLA, NALS UKALA, OEA codes of conduct - there would be a logo on their windows or their letterheads and you can check at the websites of each organisation. If you still get nowhere then talk to someone with LL&T experience at the CAB, but for the future always get a contract properly checked out and if you don't understand it then don't sign it.

neas

and next time.... READ THE CONTRACT!!. something that says fixed term for 24 months... is not un-intelligible it is the person signing it and assuming its 6 months that is!.

neas

Its like i sign a cheque for 500 pounds but thought it was for 5.00 pounds... but didnt realise i had to put a . infront of the first 0.

Thats my own stupidity really, and i be lucky if i could get my money back.

Fire_Fox

If you don't understand a contract, don't sign it.

clutton_2

how would you feel if your landlord suddenly wanted you to leave after 6 months if you had thought you were staying for 24 ?

or does FAIR only apply to tenants rights ??