Does he LA have a leg to stand on

[jkdoc7]

Hi

I have acommercial property which I advertised through a LA. The LA found a potential tenant,but at this stage we decided we would like to convert the premises and informed the LA,we no longer wish to market the property. Durng the sketching of conversion,we changed our minds and decided to continue marketing the premises, whilst we continue with drawings,etc for the conversion. I placed an advert on gum tree. We had a response to our advert for the shop and have since exchanged agreements ,money and keys.The people that responded to our private add and is now renting the shop, had actuall viewed it with the agent that we previously advertised with.He is now demanding that we pay him his commission, even though, we have no documents ,contract or any form of paperwork with the agent. Not even his T&C's. Where to we stand with this and do we have to pay the LA? He is threatening to take legal action, if we don't?

[jeffrey]

A contract can be oral. Whoever sues has to prove case on balance of probabilities.

[jrsteeve]

As Jeffrey says. Was a bit naughty of you to do that and as the agent made your tenant aware of the property, showed them round and handled an offer you are liable. Try to negotiate though if possible as they won't have had to draw up the paperwork or perform any checks.

[jkdoc7]

I realise a contact is oral, but the contract was terminated. The LA didn't introduce me to the tenants or gave me any of their details. They responded to an advert I placed after the contract was terminated. Do you think I shoudl just pay up or see hwere it goes, as the LA does not have any agreement thatw as made between any of us?

[jeffrey]

I realise a contact is oral, but the contract was terminated.
Next problem: as it was oral, it contained no termination procedure.

[jkdoc7]

Next problem: as it was oral, it contained no termination procedure.

In that case, it does not contain any payment agreement or any T&C'S- correct?

[jeffrey]

In that case, it does not contain any payment agreement or any T&C'S- correct?
Yes (but payment obligations would then impliedly correspond with the parties' actions) and yes, respectively.

[dominic]

But it is unlikely that the terms of the agency were that of "exclusive" agent.

i.e. the T had to be introduced by A to LL for A to receive a commission.

[mind the gap]

But it is unlikely that the terms of the agency were that of "exclusive" agent.

i.e. the T had to be introduced by A to LL for A to receive a commission.
Yes. Is it any different from a prospective T viewing a LL's property in the agency window or on their website, making casual enquiries as to where exactly it is (the ads often don't carry the full address), then finding out the LL's name and address privately and contacting him/her with a view to renting?

I would advise any T to do this, in fact. Some LLs won't be interested but many will - and it would save them both a small fortune in 'introduction fees'. For example, one of my daughter's friends and her boyfriend have just paid a £900 fee (half a month's rent) to an agent for the privilege of being offered a tenancy; the LL has also paid the agent £900.If the couple stay on beyond the 12 month fixed term, the agent will sting them and the LL for another £900 renewal/continuation fee...for doing...............? The agent does not manage the property - and the LL says that if they had contacted her privately she could have charged them less rent - a bit late now!

[Poppy35]

£900.00??? :eek: thats shocking, even for me a low life agent!!!

[jrsteeve]

Yes. Is it any different from a prospective T viewing a LL's property in the agency window or on their website, making casual enquiries as to where exactly it is (the ads often don't carry the full address), then finding out the LL's name and address privately and contacting him/her with a view to renting?

I would advise any T to do this, in fact. Some LLs won't be interested but many will - and it would save them both a small fortune in 'introduction fees'. For example, one of my daughter's friends and her boyfriend have just paid a £900 fee (half a month's rent) to an agent for the privilege of being offered a tenancy; the LL has also paid the agent £900.If the couple stay on beyond the 12 month fixed term, the agent will sting them and the LL for another £900 renewal/continuation fee...for doing...............? The agent does not manage the property - and the LL says that if they had contacted her privately she could have charged them less rent - a bit late now!

As original poster stated, their agent found the tenant so had performed their part of the contract, albeit oral.

Your daughter shouldn't have paid £900 in the first place, and i'm surprised you even allowed her to contact an agent being completely anti-agents.

[mind the gap]

As original poster stated, their agent found the tenant so had performed their part of the contract, albeit oral.

Your daughter shouldn't have paid £900 in the first place, and i'm surprised you even allowed her to contact an agent being completely anti-agents.

My daughter would not have done.

I think you will find if you check, that I said, that it was one of my daughter's friends (and her boyfriend) who paid this extortionate amount to an agent.

And I'm not entirely sure whether an agent having a prospective T walk through his door can technically be classed as 'finding' them, but no doubt agents would view that as a morning's work for themselves :rolleyes:

[jkdoc7]

is it any different if the TT had a viewing with the A and after that contacted the LL privately, by way of responding to a private advert the LL had placed.