Estate Agent Renewal after 9 years

600600

An elderly relative of mine has a flat that she has been renting out to the same tenant for the past nine years.

The agent for the past seven years was taking 7% commission every year for the renewal.:mad:

After some advice she stopped issuing a new AST's and changed them to a periodic tenancy agreement and paid the agent £400 every year for nothing.

Now the tenant wants to stay but not sure for how long, the contract is just going to roll on but the estate agent has sent a bill for £400 again.

She has asked me to help her as they have sent her over 20 demands and now have threatened court action. She is in shock especially as she has known the estate agents for many years.

Should she pay the fee, seems a bit high after nine years and NO actual work being done?(I could understand if they managed the place or negotiated a rent increase etc)

I am aware of the OFT Vs Foxtons Case

I have already explained the situation with the estate agent. Shall I again write to the estate agent and explain or ignore, the estate agents is behaving in a very forward manner

googler

Does she have a contract with the agent that she will pay them £400 pa?

If so, I fail to see your point. You seem to be telling us that your elderly relative is not paying the agent what she agreed to pay them, and they're upset about it. This doesn't seem unreasonable.

ncooper1974

Doesn't matter if she agreed to pay them. If the contract term is unlawful, then she doesn't have to pay - thats the whole point of the OFT taking on Foxtons!

600600

Well there is no agreement to be found even at the estate agent regarding renewal fees, all she has is the original AST.

She has paid for many years without really questioning it(part of the problem), I understand paying for the estate agent finding a tenant but what for now, no management, no contact, no rental increase, no inventory, no new contract etc????

As I understand the Foxtons case said that there must be a reason for the renewal fee.

Not sure if to ignore or contact estate agent again, my relative is super anxious.

Thanks

littlemisslettings

Ask the estate agent to provide you with a copy of the agency agreement that your relative initially signed with them, giving them permission to let the property. CHeck the agreement for renewal fee's and how to terminate the agreement.

If there is no agency agreement, write to the agents informing them that you no longer require their services and you will not be paying renewal fee's as they have failed to supply you or the tenant with new tenancy agreements, which would validate their fee. Also inform them that if they continue to pursue the fee's that you will instruct a solicitor and inform the OFT and that you are prepared to take this matter all the way to court. If you are feeling really cheeky/confident - ask for a reimbursement of previous fee's (you can then offer to drop the re-imbursement in exchange for no further fee's as full and final settlement).

By the way, I haved worked at a few letting agents, as a lettings manager, and there is no way we would charge a client a renewal fee without actually renewing the tenancy agreement. For a let only (non managed service) we do nothing more for the client after contracts have been signed so there is no justification for an ongoing fee unless we perform further work (ie renew the tenancy agreement!)

600600

That's great information. Thanks

There is absolutely nothing for the estate agent to do.

If in the situation I ask for the agency agreement and it says that a renewal fee must be paid(even after 9 years) can I still terminate the agreement? Or is the OFT VS Foxtons case the main thing here(which makes sense).

littlemisslettings

If an agency agreement is found then it should stipulate how to end the agreement. However, the OFT Vs Foxtons case could be used to make any agreement null and void anyway due to unfair terms.

600600

Great advice, how does this sound:

I do not believe that I am liable for the renewal fee:

- There is no new contract
- You have not contact the tenant nor the Landlord in the past year
- The tenant has confirmed to me that they are not sure if they are staying the full term
- You have not negotiated an increase in rent
- You have not managed the propery
- You have not persuaded the tenant to stay

I wish to end and no longer require any of your services. I believe in the past 9 years I have been more than fair by paying the renewal fee, please stop hounding me with the renewal notices. I bring your attention to the OFT Vs Foxtons case.


Does this make sense?
(obviously I will tidy up before I send)

600600

Just received a response from the estate agent(the actual owner)

'Stating that they have not received payment for the renewal and that this payment will constitute the final payment!'

Should I now:

- Respond stating I do not feel I am liable for payment x,y,z reasons(stated above)

I would prefer not to go court, but feel it is not a fair demand for payment.

The foxtons case I imagine would imagine override any agreement(if found), however having spoken to my tenant he is now saying that whilst he has not heard anything from the agent in the past year, he may have recently signed but his wife has not & returned a slip to the agent saying that he wishes to stay another year!

Does this change my position?

Please help....

clutton_2

ask the agent for a copy of the most recent agreement they got the tenant to sign before sending any further letters

600600

Found a renewal memorandum signed by my relative agreeing to the renewal.

Both tenants have not agreed to stay but apparently this is more for the introduction.

The estate agent has agreed that this is the final payment.

(foxtons outcome today)