Is the tenancy set-up fee legal?

Wallflowerperks

Simonr66 wrote: »

Wallflowerperks wrote: »

As mentioned, my tenancy did not begin until after June 1st, nor did I sign a tenancy agreement nor anything else indicating an intention to enter into the tenancy until after June 1st.[/QUOTE]



But you agreed to rent the property and undergo the referencing process so by definition you entered in to an agreement prior to the 1st June.


A moot point now as the agency has refunded you the money so well done that agency.

A moot point that you wish to argue anyway. By definition, I didn’t “enter into” a tenancy agreement until I signed... a tenancy agreement. An agreement to undergo referencing is not “entering into” a tenancy agreement. I did not even sign their terms of business. I didn’t sign anything. I could have decided, in fact, to not go ahead with the tenancy and there was nothing legally binding me to it.

G_M

Wallflowerperks wrote: »

I did read the Guidance notes at the time, but my confusion was borne from the fact that both the first and the last sentence from the section you quoted (wouldn’t let me include the link) apply to me, therefore creating a contradiction.

.

I see no contradiction. Your OP stated

One of the fees to be banned is referencing fees to set up a tenancy which I already have paid at a cost of £275.

which I took to mean you paid this prior to June 1st. You agreed to pay this fee prior to June 1st so the Act did not apply to you at that time, as is clearly explained in the fnal sentence in the quote (underlainedin my quote).


Others in your position should understand this even if you have been lucky enough to have encountered an honourableleting agent in this instance.

Comms69

Wallflowerperks wrote: »

A moot point that you wish to argue anyway. By definition, I didn’t “enter into” a tenancy agreement until I signed... a tenancy agreement. An agreement to undergo referencing is not “entering into” a tenancy agreement. I did not even sign their terms of business. I didn’t sign anything. I could have decided, in fact, to not go ahead with the tenancy and there was nothing legally binding me to it.

But you paid the money. Your signature isn't necessary if your actions indicate acceptance....


Just because you got lucky with the agent, doesn't mean others will have the same good fortune

pphillips

Comms69 wrote: »

But you paid the money. Your signature isn't necessary if your actions indicate acceptance....


Just because you got lucky with the agent, doesn't mean others will have the same good fortune

However, the legislation only refers to the date when the tenancy begins. Just because you pay money to a letting agency for other services before that date this does not mean you have entered into a new tenancy. A new tenancy only begins after you sign a tenancy agreement. If the tenancy is entered into on or after the 1st of June then the legislation is clear that the fees were unlawful.

G_M

pphillips wrote: »

However, the legislation only refers to the date when the tenancy begins. Just because you pay money to a letting agency for other services before that date this does not mean you have entered into a new tenancy. A new tenancy only begins after you sign a tenancy agreement. If the tenancy is entered into on or after the 1st of June then the legislation is clear that the fees were unlawful if taken after the June 1st.

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System

pphillips wrote: »

However, the legislation only refers to the date when the tenancy begins. Just because you pay money to a letting agency for other services before that date this does not mean you have entered into a new tenancy. A new tenancy only begins after you sign a tenancy agreement. If the tenancy is entered into on or after the 1st of June then the legislation is clear that the fees were unlawful.

Taken directly from the guidance notes as published by the Government


Agents and landlords do not have to pay back any fees that they have charged you before [FONT=Arial,Arial][FONT=Arial,Arial]1 June 2019[/FONT][/FONT].

Wallflowerperks

G_M wrote: »

I see no contradiction. Your OP stated which I took to mean you paid this prior to June 1st. You agreed to pay this fee prior to June 1st so the Act did not apply to you at that time, as is clearly explained in the fnal sentence in the quote (underlainedin my quote).


Others in your position should understand this even if you have been lucky enough to have encountered an honourableleting agent in this instance.

I entered into a tenancy agreement after June 1st. And it also says;

“1. From 1 June 2019, if you enter into a tenancy agreement, student let or licence to occupy housing in the private rented sector, a landlord or agent willbe prohibited from charging you any fees or other payments that are not included in the list of permitted payments above.”

Therefore, fees, with respect to a tenancy which begins after June 1st are prohibited.

But also says, as you have noted, fees charged before June 1st don’t have to pay back.

Therefore, in my particular situation, this creates a contradiction.

If you interpret the legislation differently, that is your opinion and I do not agree.

Wallflowerperks

Comms69 wrote: »

But you paid the money. Your signature isn't necessary if your actions indicate acceptance....


Just because you got lucky with the agent, doesn't mean others will have the same good fortune

I don’t know where you’re getting that from but to enter a brand new tenancy agreement with a letting agent, (as opposed to say a rolling tenancy where an agreement has not been renewed but was originally made and the tenant continues to reside in the property and pay rent) having not paid any rent or a deposit, a signature certainly would be necessary and not just fees for referencing “indicating acceptance”. That, I am qualified enough to assure you.

pphillips

I've now located the commencement regulations (http://www.legislation.gov.uk/uksi/2019/857/made) and it is clear that the ban on fees does not start until 1st June. Therefore, anyone who paid the fees before 1st June is not entitled to a refund (although they may receive a refund ex gratia).