Help!! is this LA contract dodgy?

owitemisermusa

Bungarm2001 wrote: »

I'm really interested to see the outcome of this. We have an agreement with a LA who we are reasonably happy with, but can't see the point in employing them since all they really do for us are the interim inspections for their 12.5%

We have a clause in our agreement that states we can terminate with 3 months written notice, but cannot continue to let to a tenant put in place by the agent unless under a separate agreement and payment of 2 months rent. When the property is empty however, either party can terminate without notice.

Not as harsh a clause as the OP's, far from it, but it does grate a bit to know the agent can do this. (charge 2 months rent I mean just to terminate)

We have in the past managed to end a similar agreement (different property) with the tenants help by her giving us a months notice (she was on a periodic tenancy) and signing a new AST the day after the notice ran out. It was enough to 'sack' the agent even tho it was a bit of a grey area legally.

I think you got off lightly, the terms i received state that if the tenant is secured by the LA, they have a right to charges for 6 months after you terminate the aggreement. I think what's needed is for a judge to look into these unfair (IMHO) terms.

>...rushes off to check details of terms signed with own agent...<

Bungarm2001

I've just checked a few of our ancient agreements with LA's. None now are in force, I'm just one of those boring people that keeps hold of old documents for years..;) and now that I've compared these with todays 'standard' contracts it seems that these types of T&C's have been a fairly recent invention by the LA's.

Before that, it was a simple matter to end a contract with the LA by a months notice after the intital AST with the tenant expired if thats what the LL wanted. The difference in the T&C's over the space of 5 years for one particular LA we used is incredible. Seems like they are desparate to grab as much from everyone and for as long as possible (good business sense then??) They managed to sneak in several very dodgy contract termination penalties increasing in size at each contract renewal.

Personally, I think the whole thing stinks and it is well and truly time these things were regulated. When you add up the charges to both the LL and the tenant for just arranging a contract, checking and getting the tenant in, plus all these other little additions that they seem to come up with ad hoc, then it isn't hard to see that some, if not all of 'em are royally taking the pi$$ :mad:

I've said it before and will keep on saying it; there has to be an industry-wide standardisation of all these charges to stop these b0ggers making it up as they go along.

Martin, where are you?? Isn't it about time to put this lot under the spotlight??

olly300

Bungarm2001 wrote: »

Martin, where are you?? Isn't it about time to put this lot under the spotlight??

The OFT are already contesting them.