PurpleBricks for Landlords - Fee increases with no 'opt out'

worsec00

Just wondering if anyone can advise on whether this is worth getting a solicitor involved..!
We've been with Purplebricks for rental property management for almost 4 years; the initial agreement was for a fixed fee charge each month, much lower than average estate agent charges which is why we decided to signup! Service has been average and certainly they haven't fulfilled some parts of the contract e.g. regular property checks.

Last week we were contacted by telephone to be told that their fee structure is changing to a percentage based fee which is almost 3x the current price. Service is severely lacking and we're not keen on paying more! Do we have any option to say no to the increased fee?
PurpleBricks say only by paying £600 exit fee (from contract).
Surely as they are changing terms & conditions here with <1 month's notice we have some rights here to say we no longer want to continue with the service?
It seems that they have all the 'power' here to change the contract as they like and we have no rights to decline the changes and end the contract (without a fee)?
Any advice welcome.. considering whether to involve a solicitor but that's obviously going to cost quite a bit.

Any other landlords out there with the same quandry?

theartfullodger

Who signed the contract with purple bricks please?

dell12

Most lettings agents' contracts will have provision for serving notice - well worth reading the terms and conditions closely. My experience is that they're often c.6 months which probably wouldn't stand up in court.

I have found myself in a similar position to yourself on a couple of occasions. In the end, I simply cut the agent out where their terms were wholly unreasonable and got the tenant to pay me directly. The agent chased me for a while and then gave up.

Gycraig

What does your contract say ? It’s basically a business to business transaction isn’t it so a lot of consumer protection wouldn’t apply. 

GDB2222

Gycraig said:

What does your contract say ? It’s basically a business to business transaction isn’t it so a lot of consumer protection wouldn’t apply. 

Are you sure about this? Why should a private investor become a business because they are renting out a property? It’s not obvious to me, although you may be able to point to case law on this. 

Gycraig

GDB2222 said:

Gycraig said:

What does your contract say ? It’s basically a business to business transaction isn’t it so a lot of consumer protection wouldn’t apply. 

Are you sure about this? Why should a private investor become a business because they are renting out a property? It’s not obvious to me, although you may be able to point to case law on this. 

That’s a very polite way of saying your wrong you idiot isn’t It 

LegallyLandlord

Are you a sole trader or a company. If a sole trader, you’ll be protected by consumer protection legislation. If a company, you’re likely to be considered a business. 

Are you a member of the NRLA? They have a helpline and resources on this. 

letom

It doesn't matter whether you're a business or consumer what is important is what they say in their terms and conditions ie the contract you signed with them .

Without reading it it is hard to say, however I highly doubt their terms and conditions allow them to unilaterally change fee. The most likely event is that the terms and conditions allow you to exit the agreement but pay e.g. 2 months up front (this might be what you're being quoted) which would be correct. However the agreement must also have a mechanism for changes in price, most likely event again is if parties don't agree to price change then contract runs as is until the end or until someone serves the required notice. Ultimately to answer your question, you don't have to accept the price but this is wholly dependant on the terms of your agreement with them.

I imagine the person dealing with you is a bit clueless or is hoping enough people cave.

Alderbank

letom said:

It doesn't matter whether you're a business or consumer what is important is what they say in their terms and conditions ie the contract you signed with them .

It does matter.
Agreed, if it's B2B the contract T&Cs agreed by both parties stand. The law assumes each party has legal advice.
If it's a consumer contract the consumer has additional statutory protection. These consumer rights cannot be overridden or taken away by any contractual terms.

letom

Alderbank said:

letom said:

It doesn't matter whether you're a business or consumer what is important is what they say in their terms and conditions ie the contract you signed with them .

It does matter.
Agreed, if it's B2B the contract T&Cs agreed by both parties stand. The law assumes each party has legal advice.
If it's a consumer contract the consumer has additional statutory protection. These consumer rights cannot be overridden or taken away by any contractual terms.

That's a fair point, my starting assumption was a large organisation like purplebricks isn't going to create standard terms and conditions which seek to bypass statutory protections (a bit embarrassing if you're general counsel, but I could be wrong) if this was indeed a consumer contract, which I imagine it would be.

propertyrental

Post 9: Letting agents: how should a landlord select or sack?