Is my estate agent pulling a fast one?

fusar

Hi,

Just wanted some advice on whether my estate agent is operating in the correct manner or not. In short, I have a shop that has been up for sale/rent for quite a long time with an estate agent. We have now found someone to rent it with the option to purchase for set price in a years time. The new tenant is getting a four month free period (as there is some work to be done to adapt the building to recent planning permission that I gained). The estate agents fees are either one months rent or £500 whichever is the highter. The rent is £458 per month, so I will be paying the £500 commission on them finding a tenant. They have sent me an exmaple lease for me to check over, on which it states very clearly that it is the tenants responsability to pay a £250 fee to the estate agent for drawing up the lease. There was no mention to me that there would be a charge to us (landlords) for the lease and nothing indicating this on the lease itself. However, now that I have ameneded the lease slightly, the estate agent has sent me an e-mail stating that the cost of their services will be the £500 commission (which I agree with), plus £250 for drawing up a lease. I questioned the fee for the lease, and he said that they are in every right to charge for the lease as it would cost in excess of £400 with a solicitor. It may well cost this with a solicitor, but I feel slightly cheated as we never knew there would be a charge, plus in the lease it states that it is the tenants responsability to pay for it. Is the estate agent acting correctly in charging me the landlord for the lease, is it normal practice, or is he just trying to get a few more quid out of me?

Your thoughts would be greatly appreciated - many thanks

missile

Did you have a written contract? If not they can pretty much charge whatever they like.

AFAIK, most agents will charge tennant lease and vetting fees.

googler

Check your contract. Or did you just agree everything with your agent over a handshake?

fusar

well. I do have a contract, but it is two years old, as it has taken that amount of time to find someone that actually goes through with the rental (three sales have fallen through already). However, it doesn't say anything about the lease in the contract.....

princeofpounds

You are bound by two things. One is the agreement you signed with the agency. Another is terms and conditions presented to you prior to initiating that business relationship.

You have to read both. If there is no mention of a charge in either of these then you are not bound to pay such a charge unless you have subsequently agreed to do so.

However, the agent can always withdraw from the contract in the correct manner and you have the same right.

It might be a good idea to get in touch with the tenant directly if you can. At least make sure they aren't double-charging. Then if they do kick up a fuss, you can arrange directly with the tenant and pay the agent what they are due (and not pay them what they are not due).

But if it's been standing empty for so long, you might just want to not risk any strife.