Cancelling an AST agreegment prior to commencement. Cooling off period?

NRawhide

Hi all, I hope I can get some advice. I need to understand if there is a cooling off period for landlords with regards to tenancy agreements made with estate agents.

If for example we signed a agreement with Estate agent A, then decide to use estate agent B and their tenants are we able to use a cooling off period to cancel the contract with Agent A?

I have read the terms and conditions and cannot see any cancellation or cooling off period in the documentation. I understood that there was a statutory cooling off period for financial arrangements but I'm not sure this qualifies.

I found the following info from another site;

Change of heart

Providing all sums paid to date are refunded, can I as a landlord go back on a signed tenancy agreement before the prospective tenant has gained occupation?

For a contract to be effective there must be an offer, an acceptance and an exchange of value. So if a tenancy agreement is offered, accepted and money accepted, there is a legal liability in place on both sides – after all there is a rental liability from the date the agreement starts.

Tenants may have invested time and money in finding a suitable let. So simply saying sorry is unlikely to wash. Unless the tenant agrees for some reason (a financial incentive perhaps) to accept cancellation of the agreement than I think he or she could argue that any attempt to stop him or her moving in amounts to an illegal eviction.

We have not recieved any money from Agent A and the tenancy did not start for another few weeks. Is the contract enforcable?

N79

NRawhide wrote: »

Hi all, I hope I can get some advice. I need to understand if there is a cooling off period for landlords with regards to tenancy agreements made with estate agents.

If for example we signed a agreement with Estate agent A, then decide to use estate agent B and their tenants are we able to use a cooling off period to cancel the contract with Agent A?

I have read the terms and conditions and cannot see any cancellation or cooling off period in the documentation. I understood that there was a statutory cooling off period for financial arrangements but I'm not sure this qualifies.

I found the following info from another site;

Change of heart

Providing all sums paid to date are refunded, can I as a landlord go back on a signed tenancy agreement before the prospective tenant has gained occupation?

For a contract to be effective there must be an offer, an acceptance and an exchange of value. So if a tenancy agreement is offered, accepted and money accepted, there is a legal liability in place on both sides – after all there is a rental liability from the date the agreement starts.

Tenants may have invested time and money in finding a suitable let. So simply saying sorry is unlikely to wash. Unless the tenant agrees for some reason (a financial incentive perhaps) to accept cancellation of the agreement than I think he or she could argue that any attempt to stop him or her moving in amounts to an illegal eviction.

We have not recieved any money from Agent A and the tenancy did not start for another few weeks. Is the contract enforcable?

In a word - Yes

There is no cooling off period.

Sometimes a contract can be frustrated but this only applies in circumstance such as the house burning to the ground. Not in cases like this.

sequence

Has tenant A paid any money to you or your agent ?
Is there a signed tenancy agreement ?

If either of those, you can't change your mind.

G_M

Are you talking about your contract with an estate agency, or your contract with a tenant?

Totally different things!

NRawhide

G_M wrote: »

Are you talking about your contract with an estate agency, or your contract with a tenant?

Totally different things!

it's a signed AST and also signed terms and condition with the agency.

Fire_Fox

NRawhide wrote: »

it's a signed AST and also signed terms and condition with the agency.

If you have signed an AST with a tenant (or your agent has signed it on your behalf) then you are obliged to supply that tenant with accommodation as agreed. It does not matter whether you have received money from the agency, but whether your agent has received money on your behalf.

Frankly it's highly unprofessional to be considering doing such a thing to a tenant, how would you feel if they 'changed their mind' a week before moving and wanted their money back? Your contract with the agency is a separate matter, sounds like you have read that and there is no exit strategy. Sounds to me like you are stuck with both.

Fire_Fox

I read that as the OP is the landlord not the tenant, Pastures.

Wee_Willy_Harris

So, you've signed the agreement with agent A. They've fulfilled their part of the deal and found you a tenant. That tenant has viewed the property, liked it, paid a deposit, a month up front, an admin fee, a referencing fee, etc etc and are currently planning where to put the sofa and what colour curtains to get, oblivious to the knowledge that all their plans are crashing down and they will be left with very little time (and money) to find a new home..... All because you changed your mind or think you might save a few bob?

Do you seriously imagine that anyone will support those shameful actions?

I just wonder how you sleep at night.

PasturesNew

Not knowing what I'm talking about ..... this is the Internet, so here's my take on things:

Cooling off periods are for consumers. A LL to EA agreement is a professional contract. So I'd be surprised if an EA did allow you a cooling off period.

With consumer law, cooling off periods apply to things purchased by people in their own home. Where did you sign the agreement (at home, or in their office)? But, as I say, yours will be more contract law (professional/commercial) than consumer law (private individual)

Wee_Willy_Harris

Fire_Fox wrote: »

I read that as the OP is the landlord not the tenant, Pastures.

I believe he is. Just not a very good one!

PasturesNew

Wee_Willy_Harris wrote: »

So, you've signed the agreement with agent A. They've fulfilled their part of the deal and found you a tenant. That tenant has viewed the property, liked it, paid a deposit, a month up front, an admin fee, a referencing fee, etc etc and are currently planning where to put the sofa and what colour curtains to get, oblivious to the knowledge that all their plans are crashing down and they will be left with very little time (and money) to find a new home..... All because you changed your mind or think you might save a few bob?

Do you seriously imagine that anyone will support those shameful actions?

I just wonder how you sleep at night.

If this is the case, OP, then SHAME ON YOU! Deep, deep, shame.

You're forcing great disruption and cost on your tenant before they've even moved in. If this is the case, they've got a legally binding contract to move in - and even if you give them notice to move out at the end, that means their lives will be disrupted and they'll incur huge costs just because you've not got enough spine to make lucid decisions and stick with them.

Hell knows ... it's pricey enough as it is moving into a new place, without having flakey LLs making them waste an entire month's salary on moving out again sooner than they wanted/expected.