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Legal status of Agent when Landlord Changes
anselld
Posts: 8,735 Forumite
I understand that if someone buys a tenanted property then the tenancy continues on the same terms and the new owner inherits all LL obligations under the contract.
However, what about any contract between the previous LL and an Agent. For example if the tenancy was "fully managed" and if there were cancellation terms/ charges, etc, what obligation does the new LL have under the Agency contract (if any)?
However, what about any contract between the previous LL and an Agent. For example if the tenancy was "fully managed" and if there were cancellation terms/ charges, etc, what obligation does the new LL have under the Agency contract (if any)?
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Comments
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None. The contract was between party A (LL) and Party B (LA).
Party C (New LL) is exempt from this contract.
Party B should seek payment from A, as they have ended the contract early.0 -
The contract was between party A (LL) and Party B (LA).
The same could be said of the tenancy, i.e. Contract between LL and T, yet the new L inherits obligations under that contract.
I expect you are correct, but I just can't quite understand (contractually) how one type of contract lives on and the other does not.0 -
anselld... I think the tenant has a contract on the property and the LL, the agency only has a contract on the LL...
Mind you, what I know about the law could be written on a gnat's testicle - without the gnat cooperating!0 -
The same could be said of the tenancy, i.e. Contract between LL and T, yet the new L inherits obligations under that contract.
I expect you are correct, but I just can't quite understand (contractually) how one type of contract lives on and the other does not.
The new L won't inherit all the obligations and failings of the old landlord. What happens if the old landlord had been harassing the tenant, I doubt the tenant could sue the new landlord.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
It's a good question - I too am not 100% sure of the legal basis for this, however guest101 is correct.The same could be said of the tenancy, i.e. Contract between LL and T, yet the new L inherits obligations under that contract.
I expect you are correct, but I just can't quite understand (contractually) how one type of contract lives on and the other does not.
When the property is sold, it sold with all it's incumbrances. If there is an undischarged Charge on the property, the new owner inherits it (hence the importance of getting mortgages paid off!). If there is a covenant associated with the property, the new owner is bound by it; if there is a tenancy, the new owner becomes parrty to it.0 -
The new owner would be bound by the tenancy (and tenancy law) not to harass, but if it was the old LL who had harassed, then that is who breached the law and could be pursued.The new L [STRIKE]won't [/STRIKE]inherits all the obligations [STRIKE]and failings[/STRIKE] of the [STRIKE]old landlord[/STRIKE]tenancy. What happens if the old landlord had been harassing the tenant, I doubt the tenant could sue the new landlord.0 -
The same could be said of the tenancy, i.e. Contract between LL and T, yet the new L inherits obligations under that contract.
I expect you are correct, but I just can't quite understand (contractually) how one type of contract lives on and the other does not.
It's not the same at all.
When the property is sold, essentially the interest of the previous owner in the property is assigned to the new owner. As such the tenancy is assigned to the new owner.
The management contract is between one person and the agent quite independently of any property ownership and thus it is unaffected by the sale (in addition there is a difference between a simple contract and a lease).
So, both the management contract and the tenancy "live on" but only the tenancy is assigned to the new owner of the property by the sale.
Otherwise, why would only the management contract be also assigned? Why not the insurance, utilities, etc.?0 -
Thanks all.
So...
The agent is not in a position do demand anything from either the L or the T after the sale of the property.
And the new L doesn't even need to sack the Agent since there is no contract between them.
Yes?0 -
jjlandlord wrote: »why would only the management contract be also assigned? Why not the insurance, utilities, etc.?
In some countries (France that I know of) the insurance is assigned to the new owner.0 -
Yeah - but if we start explaining legal principles, property regulations etc on the basis of every country in Europe (or would you prefer the world?) this forum will rapidly become unreadable!
It's bad enough having to differentiate between England & Scotland - let's keep the French out of it!0
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