Paid holding fee, found out the flat is for sale

Leyla2

Hi all,

me and my partner were searching to rent a new flat. We found one we really liked and we paid the holding fee. After 2 days we (by chance, on the internet) found out that this flat is for sale. We did not know that before and the agency did not tell us that.

I mentioned to the agent that we are looking for a long term rental while he was explaining us the contract. The contract (which we did not get or signed yet) is for a period of 6 months, and then it will be automatically extended every month. The agent specifically said that if they don't hear back from us (1 month notice) they presume we want to stay in. He did not mention that there is a chance we will have to move out in case the flat is sold.

We are due to move in in less than 3 weeks and we do not know what to do.

We really like the flat but we do not want to risk being "kicked out" after a few months as the removal process is not cheap and we will have to pay another holding fee if we find a new place. I guess potential buyers would also want to view the flat... which adds another negative point.

Any suggestions or options (what can we do, is our holding fee lost?) will be very appreciated.

Thank you in advance.

ConfusedofYorkshire

You could push for a longer fixed term. Personally I wouldnt move into a house that's for sale unless I was looking for a short term rental, or if they guaranteed a long enough fixed term with a very good arrangement about allowing people in to view.

I hate the last couple of months of a tenancy when you have people looking around, imagine if you live there a couple of years with people popping round every week. I'd feel intruded on.

ConfusedofYorkshire

Maybe the agent would let you take a different house. They aren't under any obligation to tell house it's for sale, but it seems dumb to rent it out to someone who wants it long term. I guess they get their fee either way but it doesn't make sense for the landlord as you could make their lives difficult if they get buyer.

How long has It been on the market

Leyla2

ConfusedofYorkshire wrote: »

How long has It been on the market

It has been on the market for almost a month.


I forgot to mention that the flat is for sale from the same agency we want to rent from (so there is no chance "they are not aware of landlord selling").

Leyla2

ConfusedofYorkshire wrote: »

Maybe the agent would let you take a different house. They aren't under any obligation to tell house it's for sale, but it seems dumb to rent it out to someone who wants it long term. I guess they get their fee either way but it doesn't make sense for the landlord as you could make their lives difficult if they get buyer.

How long has It been on the market

I read something different here (it does not allow me to post a link) - it is an article wit a title "Early warning? When do you tell the tenant that the landlord is selling the property? Chris Hamer, the Property Ombudsman, advises" on a webpage called typos:

"If faced with such a situation, an agent will appreciate that they need to ensure that they comply with the Consumer Protection from Unfair Trading Regulations 2008, which places an obligation on them to disclose any material information to a consumer. If a landlord client tells an agent that they will be placing the property on the rental market but are also intending to sell, it would be sensible to advise them that a potential tenant must be told of the situation to allow the tenant to make an informed choice as to whether to proceed with a tenancy. Furthermore, the TPO Code of Practice obliges agents to ensure that, while their duty and obligations are to their client landlord, applicants and tenants are regarded as consumers and customers and are treated appropriately, which I consider encompasses an obligation to be treated fairly and in accordance with best practice, with the disclosure of all relevant information."


Do I have any rights at all at the moment?

pmlindyloo

Leyla2 wrote: »

I read something different here (it does not allow me to post a link) - it is an article wit a title "Early warning? When do you tell the tenant that the landlord is selling the property? Chris Hamer, the Property Ombudsman, advises" on a webpage called typos:

"If faced with such a situation, an agent will appreciate that they need to ensure that they comply with the Consumer Protection from Unfair Trading Regulations 2008, which places an obligation on them to disclose any material information to a consumer. If a landlord client tells an agent that they will be placing the property on the rental market but are also intending to sell, it would be sensible to advise them that a potential tenant must be told of the situation to allow the tenant to make an informed choice as to whether to proceed with a tenancy. Furthermore, the TPO Code of Practice obliges agents to ensure that, while their duty and obligations are to their client landlord, applicants and tenants are regarded as consumers and customers and are treated appropriately, which I consider encompasses an obligation to be treated fairly and in accordance with best practice, with the disclosure of all relevant information."


Do I have any rights at all at the moment?

Was just going to post the same

This is from Adviceguide (CAB)

Unfair trading regulations
Letting agencies have to follow the Consumer Protection from Unfair Trading
Regulations 2008.

Generally, this means that an agency must let you know what they know about a
property and what they should reasonably be expected to know. They should also
tell you what they become aware of when marketing a property, and which could
affect your decision to rent a property.

First of all I would check that the property is still up for sale. The landlord may be intending to take it off the market if he/she rents it out.

You cannot be asked to leave during a fixed term.

You do not have to allow any viewers to look around whilst you are in the property (landlord would have to go to court to get permission if you refused)

Basically you need to find out the exact position you would be in and then put your reasons for not wanting the property.

Personally I believe you would have a good reason to have your holding deposit returned because of their failure to follow the trading regulations.

However, hold fire until you know exactly what is happening.

If the LL wants to market it while you live there and you let them know that you do not agree to this then they may be willing to return the holding deposit.

Are the estate agents members of any landlords association? If they are then you could contact them.

Annie1960

Leyla2 wrote: »

I read something different here (it does not allow me to post a link) - it is an article wit a title "Early warning? When do you tell the tenant that the landlord is selling the property? Chris Hamer, the Property Ombudsman, advises" on a webpage called typos:

"If faced with such a situation, an agent will appreciate that they need to ensure that they comply with the Consumer Protection from Unfair Trading Regulations 2008, which places an obligation on them to disclose any material information to a consumer. If a landlord client tells an agent that they will be placing the property on the rental market but are also intending to sell, it would be sensible to advise them that a potential tenant must be told of the situation to allow the tenant to make an informed choice as to whether to proceed with a tenancy. Furthermore, the TPO Code of Practice obliges agents to ensure that, while their duty and obligations are to their client landlord, applicants and tenants are regarded as consumers and customers and are treated appropriately, which I consider encompasses an obligation to be treated fairly and in accordance with best practice, with the disclosure of all relevant information."


Do I have any rights at all at the moment?

I think you mean TPOS, not TYPOS!

Are your agents members of TPOS? If so, you could go through the complaints procedure. If they are not members of TPOS, check if they belong to ARLA or NALS.

However, think yourself lucky you found this out before you signed the contract and had moved in.

If I were in your position, I would show the LA evidence that the property is on the market, and remind them that you had specifically specified you wanted a long-term rental. They may back down at this point and give you your holding fee back.

If they are unhelpful, I would then show them the extract from the TPOS code of conduct. If they are not members of TPOS or any of the other bodies, you can go to Trading Standards.

I suspect, however, that they might back down when you confront them with evidence the property is on the market.

thequant

Leyla2 wrote: »

Hi all,

me and my partner were searching to rent a new flat. We found one we really liked and we paid the holding fee. After 2 days we (by chance, on the internet) found out that this flat is for sale. We did not know that before and the agency did not tell us that.

I mentioned to the agent that we are looking for a long term rental while he was explaining us the contract. The contract (which we did not get or signed yet) is for a period of 6 months, and then it will be automatically extended every month. The agent specifically said that if they don't hear back from us (1 month notice) they presume we want to stay in. He did not mention that there is a chance we will have to move out in case the flat is sold.

We are due to move in in less than 3 weeks and we do not know what to do.

We really like the flat but we do not want to risk being "kicked out" after a few months as the removal process is not cheap and we will have to pay another holding fee if we find a new place. I guess potential buyers would also want to view the flat... which adds another negative point.

Any suggestions or options (what can we do, is our holding fee lost?) will be very appreciated.

Thank you in advance.

I've just gone past our local EA's on the way to get my Sunday paper. About a 1/3 of the properties in the for sale windows are in the for rent section.


This is very common, the most usual reasons is someone who has either bought a new place and are not dependant on the sale of the existing property or have moved away for work.


In either case the current property is a burden. Anyone looking to either rent or sell a property at the same time has primary motive of removing the burden.


If they were looking sell, they would sell, especially in the current market which is now starting to shows signs of slowing down.


If the prospective LL is a reluctant Landlord as it appears to be, then having a hassle free tenant, who covers their mortgage and income, with a bit of income on top. Then they are very likely to keep the arrangement.


I suspect the 6 month contract is more for their concerns, especially if they have never done this before.


I think you maybe worrying more than you need to.

Leyla2

Yes Annie 1960, you are right is TPOS.


We checked and the letting agency is member of TPOS.


There are also the following logos on the document we received: The Property ombudsman, Safe agent Ł, Approved code trading standards.gov.uk, TDS member, Nals licensed.

Leyla2

To update the situation...


If we sign the 6 month contract the agency offered us to advertise the flat (for sale) only as an investment.