Rental contract - Supplemental Agreements

NHS_Chris

Hi guys

Just have a quick contract question which more knowledgeable people than myself might have the answer to.

In 2020 we signed a 1 year contract on a flat. The original terms were 2 months break clause for us.

In 2021 the agents changed that to 1 months break clause on the supplemental agreement extending another year

In 2022 I noticed that years supplemental agreement had returned to 2 months so I had it changed back to 1 month whilst renewing for 2 years.

In 2024 It didn't mention the break clause either way and didn't state it was reverting back to 2 months.

The 2024 supplemental agreement opens with the following

This Agreement is supplemental to an Agreement dated (02 March 2020) (the Original Agreement) and any subsequent agreements between the Landlord and Tenant (the Parties) 

Today they say the break clause now reverts back to the original 2020 contract terms of 2 months, but the way I read the opening statement it should surely stack. i.e. if we agreed 1 month in 2021 and 2022s supplemental agreements, why does it just simply revert back to 2 months 2024 in this years supplemental agreement?

If that's normal then fine, it just seems odd to me.
Can anyone advise me?

RHemmings

I can't answer your question, but as a clarifying question - do you think that the different length of break clause is going to make a significant difference to you? E.g. are you planning to exercise the break clause? E.g. if you buy a house? 

I'm just (genuinely) wondering as you have been living there for a number of years now and haven't moved out. 

NHS_Chris

Yes it matters. We are moving on and so served our 1 months notice, but the letting agency has come back and said we're incorrect it should be 2 months notice we give.

We can either pay for another month we won't use, or pay an early release fee which is to be honest a large chunk of a months rent anyhow.

I've never had an issue with the agency, but I want to be sure we're being treated correctly here.

BarelySentientAI

A very interesting question of wording.

Did each of the supplemental agreements have an end date?

Was the wording around the break clause in each of those closer to "the break clause in the original agreement shall be removed and replaced with ..." or simply "the break clause for this agreement is..."?

RHemmings

NHS_Chris said:

Yes it matters. We are moving on and so served our 1 months notice, but the letting agency has come back and said we're incorrect it should be 2 months notice we give.

We can either pay for another month we won't use, or pay an early release fee which is to be honest a large chunk of a months rent anyhow.

I've never had an issue with the agency, but I want to be sure we're being treated correctly here.

Thanks for the clarification. I'm not a lawyer/expert so will wait for others to chip in. (Though, to my mind it looks clear that the 1 month break clause would carry over by default.)

Note that if you can't work things out with the EA, you may be able to complain to the ombudsman scheme that the EA belongs to (after going through the EA's complaints procedure). That will be either the Property Redress Scheme or The Property Ombudsman Scheme. You should be able to find out which of these schemes the EA is signed up to by looking at the EA's website. You can then find the code of practice that the EA has signed up to, and it may be the case that the EA is outside the code (e.g. by not being clear enough). And, this may be a way of getting the EA to back down, or to complain and possibly obtain compensation of some sort should you end out of pocket. 

Can you tell us which of the schemes your EA belongs to? 

propertyrental

Exact wording of each supplemental needed please.

Out of interest, what is the exact 2024 renewal date, and have you signed /returned it?

If not, and you plan to move, why sign up for another year?

NHS_Chris

Hi guys

OK. So Everyone is clear

This is from the 2022 supplement agreement (personal bits removed)





And this is from the 2024 extension






To answer the other question, when we renewed in March 2024 we hadn't intended in moving; but in life plans sometimes change and the right property came up in the right place.

tacpot12

Legally the situation is that the contract is unclear. It could be interpretted one way or it could be interpreted another. Only a judge could decide, and to avoid the cost of going to court, it would be better to negotiate. You could try pointing out that it is unclear and offer to pay 15 days rent for the month that is in dispute. Doing so will stand you in good stead if this dod go to court. The judge is likely to regard your offer as very reasonable, and might order that you owe the landlord nothing at all for the second month. 

RHemmings

Looks pretty clear to me. 'save to the extent that the Terms of the same may have been varied by any subsequent renewal or extension Agreements'. And, the last time the agreement was modified in terms of break clause, it was to one month. 

OP, is the EA a member of TPOS, or PRS? 

NHS_Chris

RHemmings said:

Can you tell us which of the schemes your EA belongs to? 

The agent states they are members of The Property Ombudsman (TPO). 
Is that what you are referring to?

RHemmings

NHS_Chris said:

RHemmings said:

Can you tell us which of the schemes your EA belongs to? 

The agent states they are members of The Property Ombudsman (TPO). 
Is that what you are referring to?

Yes, that's good as (in my opinion) TPOS gives better consumer protection than PRS. TPOS has a code of practice. 

Read all of section 13 here: https://www.tpos.co.uk/images/documents/Codes/TPOE22-7_Code_of_Practice_for_Residential_Letting_Agents_A4_FINAL.pdf  

From what you write, the EA has not satisfied the clauses in section 13. I see nothing in what you have posted making it clear that the break clause has reverted to two months. Hence, if the EA continues to insist on two months break clause, then I think you would be justified in complaining to the EA through their formal complaints process, and then taking your complaint to TPOS if that doesn't solve the situation. 

EDIT: I think you will find this interesting reading: https://www.tpos.co.uk/news-media-and-press-releases/case-studies/item/a-high-price-for-an-early-exit   

Not 100% your case, but I think there are comments that you will find useful.