termination of letting agent contract

[Jennifer Hinds]

Can you advise. I have been with a letting agent for 3 months. I asked whether he could find a tenant and carry out full management of the property for me. It was a cost of 3 weeks rental management fee and the usual setting up fee. Mind you he is not rigistered with the ARLA.

The first months rent was paid, he has now missed a month. After approximately 10 days I contacted him explaining that not monies were placed in my account. He explained that he did not have a cheque book. On our next contact, he explained that he was out of the country, 2 more contacts and excuses later he finally gave a cheque for the rent.

I would now like to terminate this arrangement. I contacted the tenants and asked them to place the money in my account in stead for this month and the next following months.

I mentioned this to the agent who indicated that I cannot give this instruction as he is managing the property and only he should have contact with the tenants he also said that he would evict the tenants if they refuse to put the monies into his account.

There is no break clause/termination clause in the terms and conditions but he said he would need the year's management fee as I had broken the 12 months contract that I have signed.

I explained that he was in breach of contract by not paying me the rent considering that I had a mortgage to pay.

Please advise. Can I cancel and will I incur fees and breach of terms and conditions that were signed.

[Paul_f]

As there is no cancellation clause in your terms of business with the agent then you can cancel without notice, as the OFT says it's unfair. You have to be able to cancel any agreement at some stage.

If your agent is not a member of ARLA/NAEA/RICS (all give the same protection) then you are unfortunately on your own. Any agent worth his salt will normally try any show "profesisonalism" by being a member.

The agent cannot evict the tenants as he well knows and is just trying to frighten you into submission. You could take this up with your local Trading Standards Officer. if he continues to be troublesome.

The agent would only be in breach of contract if he doesn't pay you at intervals stated within the TOB. I've known agents make quarterly payments to the landlord on monthly payment by the tenant, but this shouldn't be so. Delaying rental payments is not on!

Instruct your tenant to pay you be standing order into your own account, and it would be a good idea to get the tenant to instruct the agent to pass on the deposit to you if you terminate your agreement with him.

[Jennifer Hinds]

:mad:
Can you advise. I have been with a letting agent for 3 months. I asked whether he could find a tenant and carry out full management of the property for me. It was a cost of 3 weeks rental management fee and the usual setting up fee. Mind you he is not rigistered with the ARLA.

The first months rent was paid, he has now missed a month. After approximately 10 days I contacted him explaining that not monies were placed in my account. He explained that he did not have a cheque book. On our next contact, he explained that he was out of the country, 2 more contacts and excuses later he finally gave a cheque for the rent.

I would now like to terminate this arrangement. I contacted the tenants and asked them to place the money in my account in stead for this month and the next following months.

I mentioned this to the agent who indicated that I cannot give this instruction as he is managing the property and only he should have contact with the tenants he also said that he would evict the tenants if they refuse to put the monies into his account.

There is no break clause/termination clause in the terms and conditions but he said he would need the year's management fee as I had broken the 12 months contract that I have signed.

I explained that he was in breach of contract by not paying me the rent considering that I had a mortgage to pay.

Please advise. Can I cancel and will I incur fees and breach of terms and conditions that were signed.

added information to previous problem: [COLOR=Red][COLOR=Red]The landlord has advised me that he has a termination clause which binds us for 12 months .......It reads "This agreement may be terminated by either party by way of three month's written notice, at the end of the tenancy. The minimum fee applies if on termination the total fees due are less than the minimum fee. A placement fee equivalent to 50% of one month's rent will be payable where the landlord intents to continue letting ot tenants introduced by the Agent after the termination of this agreement. Where cancellation of this agreement is unavoidable due to circumstances beyond the control of either party, the minimum fee will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of cancellation. The landlord shall provide the agent with any requirements for return and repossession of the property at the earliest opportunity. Landlords should be aware that any tenance agreement entered into on the landlord's behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated to the Landlord as soon as possible. Landlords should be aare that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire". [/COLOR

I contacted the citizen advice bureau, law centre they are not sure on what this means and what I should do - they explained that I have the right to ask the tenants to pay money into my account. They are not sure if I am in breach of the terms and conditions. The OFT is unable to help, they explained this is a business and. The landlord has now offered to pay and gave us a cheque but suggested that he will cancel the cheque if we dont continue with him - he has also offered the tenants a new property.

Please advise can I terminate with immediate effect.

[Project 2005]

Appreciate your situation. I have similar with what should have been a professional letting agent. I have removed their income already, told the tenants to stop paying them, am moving the business to another management company, and am firing them tomorrow. As far as I am concerned THEY are in breach of contract. They take the tenant's money, deduct their service charge, then pay you what is left don't they? Check your agreement. It should say somewhere the process that is supposed to happen each and every month. If they are not following it, then they are in the wrong. You employed them to do a job. They have not done it, and have apparently repeatedly demonstrated this to you. I have been told that the most you would ever be liable for is 3 months management fees, but as you have not been paid the rent anyway, what more have you got to lose? Talk to a few other professional management agents and the National Association for advise. Do it quick, as the longer you wait, the more cash goes into this agents pockets, money it looks like you will never see. Don't just take my word for it, get on the phone or the internet and find out. It's your money

[Jennifer Hinds]

As there is no cancellation clause in your terms of business with the agent then you can cancel without notice, as the OFT says it's unfair. You have to be able to cancel any agreement at some stage.

If your agent is not a member of ARLA/NAEA/RICS (all give the same protection) then you are unfortunately on your own. Any agent worth his salt will normally try any show "profesisonalism" by being a member.

The agent cannot evict the tenants as he well knows and is just trying to frighten you into submission. You could take this up with your local Trading Standards Officer. if he continues to be troublesome.

The agent would only be in breach of contract if he doesn't pay you at intervals stated within the TOB. I've known agents make quarterly payments to the landlord on monthly payment by the tenant, but this shouldn't be so. Delaying rental payments is not on!

Instruct your tenant to pay you be standing order into your own account, and it would be a good idea to get the tenant to instruct the agent to pass on the deposit to you if you terminate your agreement with him.

Thank you very much for this info. I will instruct the tenants. Please also see attach.

added information to previous problem: [COLOR=Red][COLOR=Red]The ESTATE AGENT has advised me that he has a termination clause which binds us for 12 months .......It reads "This agreement may be terminated by either party by way of three month's written notice, at the end of the tenancy. The minimum fee applies if on termination the total fees due are less than the minimum fee. A placement fee equivalent to 50% of one month's rent will be payable where the landlord intents to continue letting ot tenants introduced by the Agent after the termination of this agreement. Where cancellation of this agreement is unavoidable due to circumstances beyond the control of either party, the minimum fee will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of cancellation. The landlord shall provide the agent with any requirements for return and repossession of the property at the earliest opportunity. Landlords should be aware that any tenance agreement entered into on the landlord's behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated to the Landlord as soon as possible. Landlords should be aare that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire". [/COLOR

I contacted the citizen advice bureau, law centre they are not sure on what this means and what I should do - they explained that I have the right to ask the tenants to pay money into my account. They are not sure if I am in breach of the terms and conditions. The OFT is unable to help, they explained this is a business and. The landlord has now offered to pay and gave us a cheque but suggested that he will cancel the cheque if we dont continue with him - he has also offered the tenants a new property.

Please advise can I terminate with immediate effect or do I have to give notice.

JH

[Jennifer Hinds]

Appreciate your situation. I have similar with what should have been a professional letting agent. I have removed their income already, told the tenants to stop paying them, am moving the business to another management company, and am firing them tomorrow. As far as I am concerned THEY are in breach of contract. They take the tenant's money, deduct their service charge, then pay you what is left don't they? Check your agreement. It should say somewhere the process that is supposed to happen each and every month. If they are not following it, then they are in the wrong. You employed them to do a job. They have not done it, and have apparently repeatedly demonstrated this to you. I have been told that the most you would ever be liable for is 3 months management fees, but as you have not been paid the rent anyway, what more have you got to lose? Talk to a few other professional management agents and the National Association for advise. Do it quick, as the longer you wait, the more cash goes into this agents pockets, money it looks like you will never see. Don't just take my word for it, get on the phone or the internet and find out. It's your money

Thank you for this info: I am new to this web site and I am unsure whether I am using it correct but please read the T&C termination clause:
added information to previous problem: The estate agent has advised me that he has a termination clause which binds us for 12 months .......It reads "This agreement may be terminated by either party by way of three month's written notice, at the end of the tenancy. The minimum fee applies if on termination the total fees due are less than the minimum fee. A placement fee equivalent to 50% of one month's rent will be payable where the landlord intents to continue letting ot tenants introduced by the Agent after the termination of this agreement. Where cancellation of this agreement is unavoidable due to circumstances beyond the control of either party, the minimum fee will not apply and any pre-payments will be returned to the person entitled to them, less any expenses reasonably incurred to the date of cancellation. The landlord shall provide the agent with any requirements for return and repossession of the property at the earliest opportunity. Landlords should be aware that any tenance agreement entered into on the landlord's behalf is a binding legal agreement for the term agreed. Details of any tenancy agreement being entered into will be communicated to the Landlord as soon as possible. Landlords should be aare that the legal minimum notice period to tenants under assured tenancies is generally two months (should the contract allow for early termination) and this needs to be given even in the case of a fixed term tenancy which is due to expire". [/COLOR

I contacted the citizen advice bureau, law centre they are not sure on what this means and what I should do - they explained that I have the right to ask the tenants to pay money into my account. They are not sure if I am in breach of the terms and conditions. The OFT is unable to help, they explained this is a business and. The landlord has now offered to pay and gave us a cheque but suggested that he will cancel the cheque if we dont continue with him - he has also offered the tenants a new property.

Please advise can I terminate with immediate effect. I need to reply to him by Friday.

[mjpl]

This is a long and complex problem and there is no definitive answer. I would say that in answer to your first query you cannot immediately terminate your agreement. Equally this agent sounds like a bit of a uisance so you need to proceed with consideration as to how he may act.

There are many posts on this forum about the new unfair terms in contracts legislation. One part of this legislation is the requirement for clauses to be in clear, understandable plain english. I have never read a clause that is more confusing.

I suggest that you contact your tenants directly and explain that the agent is causing difficulties with regards to rental payments. You could let them know that you are happy for them to stay and that they should ignore any correspondence from the Landlord. Equally you can tell them to cancel the existing standing order and set one up into your bank account.

If you are concerned about your agent or legal action you could offer to pay his fees monthly. This means you get your rent on time and he has no reason to become even more unprofessional.

I'm afraid there are too many variables in this post for me to be able to provide you with a definate way forward. By all means post your ongoing experiences for more advice

[myjamfactory]

I understood that the rent money collected by an agent therotically is owned entirely by the landlord (because the contract is twixt only two parties, not the agent) and the L/L then pays - via his management agreement - the agent commission for collecting it.

This is the convolutated Law of Agency.

In practise the agent collects direct and accounts to the L/L.

It is legal for a landlord to ask for all rent monies to be paid direct even if he has an agent.