Agent’s Cancellation Charge even though contract has expired?

Agent’s Cancellation Charge even though contract has expired?

8:51 AM, 27th December 2023, About 11 months ago 19

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Hi all, My contract with both Agent and tenant has expired and has been running on a monthly rolling basis for several years now.

However, the Agent still trying to charge me £1000 due to the existing tenant still living in it if I try to leave the current Agent. I don’t think this is fair and any advice will be greatly appreciated.

Cancellation Charge

In the event that this agreement is cancelled by you during a period of tenancy, we reserve the right to charge you that sum which we would have received by way of commission up to and including the final day of the period of tenancy plus £1000.00. Such sum shall be payable as liquidated damages and not by way of penalty, it being agreed by you that the sum payable is an accurate estimate of the loss we will suffer as a result of the cancellation.

Regards,
Kin

 


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Southern Boyuk

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10:39 AM, 27th December 2023, About 11 months ago

If your Tenant is going to stay, see if they will agree to giving you a notice letter for leaving the end of January give that to the agent.

Other than that, you’re locked into the contract that you’ve signed, the contract. If they are the words you’ve used to say May not Will.

Start a new tenancy agreement from the National Landlords Association with your tenants from the beginning of February

MasterG

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10:48 AM, 27th December 2023, About 11 months ago

If that's what you agreed to, you don't really have an argument against. My agent wanted such a clause until I told them "I don't mind paying you to manage my property, I'm not going to pay you not to manage it".

Neilt

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11:08 AM, 27th December 2023, About 11 months ago

For future reference, read the agreement carefully and then cross out the clauses that you don't like; they'll never turn you away and if they do, you're with the wrong agent, which sounds like the case here

Adrian Jones

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12:14 PM, 27th December 2023, About 11 months ago

Sounds like you have a very shrewd agent Kin.

Particularly interesting he states the sum will be paid as liquidated damages and not by way of penalty which I believe cannot be enforced under English law.

However, if I have read your message correctly, your agreement with you agent expired rather than you cancelling it so I'm not sure it is relevant. If it is why isn't charging you on-going commission?

Michael Booth

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13:26 PM, 27th December 2023, About 11 months ago

Take it to a solicitor simple .

Julie Ford

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14:51 PM, 27th December 2023, About 11 months ago

Hi
Clauses like this in terms of business are something that we all need to look out for

You maybe interested in 2009 High court ruling

Office of Fair Trading v Foxtons Ltd 2009

This looked at unfair clauses in terms of business and found in favour of the landlord
Many agents are not aware that they are governed by the OFTs unfair terms or consumer protection regulations

Kizzie

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15:08 PM, 27th December 2023, About 11 months ago

Reply to the comment left by Michael Booth at 27/12/2023 - 13:26
OP said contract ‘expired’….. ‘several years ago’.
How did the contract’ expire’? Was there a letter? If you stopped paying for the agents services several years ago and they stopped providing a service then the question is why are they are now claiming payment for a service under a lapsed contract.
I think the agent is trying it on and having a laugh.
Also this cancellation clause is IMO an unfair term especially in the way they are trying to enforce it.
I would research unfair terms in contracts and write to these agents disputing their claim and collect evidence of agents failure to provide any service for several years. Also take the matter to their trade body.
If they take matter to Small Claims court then they will need to provide proof of debt ie invoices for services actually provided and dates and reason why lack of payment not taken up within reasonable time

Cider Drinker

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18:58 PM, 27th December 2023, About 11 months ago

Of the agent can prove that you signed the contract, you could be held to it.

I’d let them sue me and I’d fight it on the grounds that the term is unfair.

Kin Wang

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20:19 PM, 27th December 2023, About 11 months ago

Reply to the comment left by Southern Boyuk at 27/12/2023 - 10:39
Thanks Southern Boyuk for your good advice.
I can start a new tenancy agreement with the tenant but I'm worry that the agent may not return tenant's deposit unless tenant move out totally which is unlikely and will be a big inconvenience for tenant to do this. Any advice will be greatly appreciated!

Thanks,
Kin

Kin Wang

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20:22 PM, 27th December 2023, About 11 months ago

Reply to the comment left by Adrian Jones at 27/12/2023 - 12:14
Thanks Adrian and you are so right that this Agent is a shrewed one and failing to do so many things as agreed in the AST e.g that not charging tenant 3% late payement fees on arreas as stated in AST is just one of this.

Thanks for pointing out that my agreement with the agent expired rather than I cancelling it so I agreed with you that it is irrelevant.

Thanks,
Kin

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