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Member said: Posted on: 12/04/2009 00:00

Does anyone have any examples of a letting agent taking a landlord to court over renewal fees. This is heppening to me and it'd be good to get some examples of where this is happening and what the outcomes have been.

Below is a summary of the situation.

On the 9th March 2007 I signed a tenancy agreement with the tenant running until 8th March 2008. As Chesterton introduced the tenant and negotiated the monthly rent a commission was payable and was paid. This tenancy agreement ended on 8th March 2008; a second, different tenancy agreement was signed on 9th March 2008. This agreement had no input from Chesterton’s thus ending their role in the arrangement. In addition, a third tenancy agreement was signed in March 2009.

When the first tenancy agreement was signed in 2007 the terms and conditions stated the following;

“in regard to renewed tenancies of the property or a fresh tenancy of another property owned by you granted to the tenant, commission is payable to us at a rate of 10% of the total rent reserved under the terms of that tenancy plus VAT whether negotiated by us or not.”

The tenants have been in the property for over 2 years now however after the 1st year a new tenancy agreement was signed with no input from Chesterton. In light of this and the press release from the OFT on 2nd April regarding the foxton case is anyone else in a similar situation? What were the outcomes?


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