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Estate Agent Renewal after 9 years
Comments
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Out of interest, could you explain this please? Is it 8% for the first year of each new tenant and then 6% for each year that that tenant stays there? In which case, wouldn't the incentive be to find new tenants every year to keep the commission at the higher level?
You are right, the financial incentive would be, if he were unscrupulous. As it is, nearly all stay for ages, which suits everybody just fine.No reliance should be placed on the above! Absolutely none, do you hear?0 -
......There is actually nothing in the judgment to say that renewal commissions are unfair, merely that Foxtons buried the details in tiny print in their contract and that the entirety of their blurb was misleading, which made the Foxtons renewal commission unfair. You can't take that as any indication to support your case.
I think, however ,that the OP can also look to what is in 90 here"The commission amounts in question are significant, and operate adversely to the client the more time goes on. Commensurate services are not provided as time goes on. That, in my view (and coupled with the points made below) gives rise to the significant imbalance referred to in the legislation." ,"the legislation" obviously being the UTCCR0 -
No, IMO it merely gives him an incentive to carry on charging you for doing very little. A "decent" tenant may move out after the first or second fixed term for any number of reasons and an LA often has very little, if anything, to do with that decision. The fact that you personally have no problem with paying an LA for doing sod all after the expiry of the initial fixed term doesn't mean that others should view it in the same light.However, assuming that the ongoing commission is relatively modest as a percentage, I do not see what is wrong in principle with it. I should just add that I have an arrangement with the agent I use whereby I pay him 8% of the rent received in the first year and 6% thereafter. This gives him an incentive to find tenants who are decent and will stay for a number of years. I have no problem with paying him this amount...0 -
I think, however ,that the OP can also look to what is in 90 here"The commission amounts in question are significant, and operate adversely to the client the more time goes on. Commensurate services are not provided as time goes on. That, in my view (and coupled with the points made below) gives rise to the significant imbalance referred to in the legislation." ,"the legislation" obviously being the UTCCR
I suggest that you read 91 as well. This case is mostly about the wording of the contract.No reliance should be placed on the above! Absolutely none, do you hear?0 -
No, IMO it merely gives him an incentive to carry on charging you for doing very little. A "decent" tenant may move out after the first or second fixed term for any number of reasons and an LA often has very little, if anything, to do with that decision. The fact that you personally have no problem with paying an LA for doing sod all after the expiry of the initial fixed term doesn't mean that others should view it in the same light.
I guess it depends whether you wish to continue working with the LA.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Thanks for the suggestion, already have done. The case was brought by the OFT on more than just the wording of the contract and for that reason it's worth reading the whole report.I suggest that you read 91 as well. This case is mostly about the wording of the contract.
You may also want to re-read the whole thing so that you don't erroneously refer to "UCCT regs"
rather than UTCCR (Unfair Terms in Consumer Contracts Regulations);)... send all the paperwork to the OFT for a ruling whether it offends the UCCT regs....
The OP has said "However having now looked at the contract my self I find it very vague and unclear this has been seconded by the other estate agents I have shown the paperwork too." which perhaps suggests that this has much in commmon with the Foxton's case.0 -
Thanks for the suggestion, already have done. The case was brought by the OFT on more than just the wording of the contract and for that reason it's worth reading the whole report.
You may also want to re-read the whole thing so that you don't erroneously refer to "UCCT regs" rather than UTCCR (Unfair Terms in Consumer Contracts Regulations);)
First, it's pretty dull stuff to point out typos, especially typos made late at night.
Second, to suggest I don't know which regs I am talking about is a bit daft, when I correctly quoted the name in post number 18 in this thread.
Third, I have actually read the regulations - I needed to a couple of months ago to help my MIL with a complaint she had against her insurers. I take it that you have, too?
Anyway, if you are going to wind me up successfully, you are going to have to try harder.
No reliance should be placed on the above! Absolutely none, do you hear?0
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