The challenge to Foxtons, the London agents, by the Office of Fair Trading over the charging of renewal fees is continuing to have repercussions – which could prove costly – for agents all over the UK.
Estate Agent Today – 21 August 2008
The OFT announced its HIgh Court action earlier this year and immediately agents found that until the case is resolved, courts would not hear their own actions when trying to chase landlords for renewal fees.
One of the first to discover this was Fisks, of Essex and London, founded by John Pring.
Pring said that a landlord had been charged a renewal fee, as per the contract. “He put up what we felt was a rubbish defence, which he changed a few days before we went to court,” says Pring.
“His defence was that he had had an email from one of our members of staff saying that we would not be charging him a renewal fee. However, the email did not exist as the member of staff had already left our employment as we would have been able to prove. Full Article
I’m at a loss to understand the OFTs motivation on this. Whilst most people appear to think the ruling will go against the OFT. What’s next? Are they suggesting that actors and musicians should not get renewal /repeat fees? If a client wants a long tenant to stay a long time in a property should he /she be expected to pay the same as one who leaves after 6 months? In any event it will simply mean that TAs will be for 5 years with release clauses.
Comment by barry — 30/8/2008 #
Renewal fees are nonsense – i understand that a fee should be levied for the admin/time of renewing (contracts, negotiations etc) but the “introduction” fee is no longer valid as that was made and paid for at the beginning of the let.
Comment by new landlord — 8/7/2009 #