New Tenancy Agreement - Admin Fee?

[blitz]

I am moving into a new house at the end of the month, looked at the house, paid the agreed deposit.
Now having recieved the contract, a small note at the bottom (not part of the contract), mentions that an Admin fee of £50 also needs to be paid.
This is the first time they have mentioned an admin fee, it is written no where but this note. Can they demand such a payment, or can I request a break down of costs and proof that any such agreement was made before the deposit was paid.
Just a note its a agent who deals with new tenants, showing them around, and not the landlord. Though I would expect the landlord to foot this bill.
Thanks
Blitz

[callumsgran]

Most agents have an admin fee, £50 is very reasonable, i think you will find so i'd pay up and be quiet if i were you

[blitz]

reasonable :'(
Just annoyed that they have waited till 1 week before I move in to tell me

[demon_x_slash]

Mine's £82.25 per renewal. It sucks, and I'm claiming it back as soon as I quit the tenancy, with whatever method I can...

[myvesta-sean]

I know Hutcheon Solicitors are involved in this debate about unfair tenancy fees also. I think it is more about landlords being charged renewal fees by letting agents over the last 6 years though.

Can Landlords Claim Back Renewal Fees Over Last 6 Years ?

[Filthy Monkey]

There is a case ongoing at the moment between the OFT and Foxtons, as they have a clause in their contracts, like most agencies these days, to claim commission if a tenant they originally found renews or buys the property, whether they are involved or not. Totally unfair! It will be interesting to see what the outcome is. If successful they intend to enforce compliance throughout the letting industry, wherever similar terms are being used...

[Esio Trot]

Originally Posted by Filthy Monkey

There is a case ongoing at the moment between the OFT and Foxtons, as they have a clause in their contracts, like most agencies these days, to claim commission if a tenant they originally found renews or buys the property, whether they are involved or not. Totally unfair! It will be interesting to see what the outcome is. If successful they intend to enforce compliance throughout the letting industry, wherever similar terms are being used...

I understand that the OFT have been under political pressure to take this action - and they are using the unfair terms in consumer contracts regulations for their case.

I think they will be hard pushed to win this. In almost every case I have attended in landlord and tenant hearings, the judge assumes that the landlord is a professional businessman - and so the documentation should be viewed on that basis. It follows then that the relationship between landlord and letting agent is one of business to business, not a run-of-the-mill consumer.

[JonCris]

Even though I don't like Est Agents I to am in 2 minds about this case . The clause is clearly intended to stop an abuse which was once common amongst sellers & buyers

The EA would send the buyer to view who would claim they weren't interested only to approach the seller very soon after, often by arrangement with the seller, claiming a change of mind. This meant that the buyer & the seller avoiding the fees or even got a slight price reduction.

I think it's this scenario that the court considers when making Judgment. So the OFT, not for the 1st time, could be flogging a dead horse

[Esio Trot]

Originally Posted by JonCris

The EA would send the buyer to view who would claim they weren't interested only to approach the seller very soon after, often by arrangement with the seller, claiming a change of mind. This meant that the buyer & the seller avoiding the fees or even got a slight price reduction.

Since the Land Registry data became publicly available I know of a large chain that recovers ten times the cost of researching this.

The file for every instruction that is withdrawn is sent to a particular office, and they have some back office staff that just keep an eye on the land registry for the next year. Whenever a new entry appears on the register they spend their £3 and get a copy of the title deed. If the property has been sold they then look for the buyers name on any of the viewers listed of file. The hit rate is around 18% of withdrawn instructions.

[ShortlyTdwarf]

The agent's fee is normally for the drawing up of contracts and for assessing the potential of a prospective lessee to pay the rent on time, usually done by a credit check. In many cases this can be as much as £150.00 per property. The fee is usually payable up front, so as to enable the agent to initiate the checks etc. You would normally be required to sign an agreement to have the checks etc done for the stated fee.

In this case, it seems that the fee they have now asked for is not one that was agreed to prior to you paying the deposit and entering into an agreement to take on the property. Whether they are legally allowed to ask for this fee depends on where it is written that they will be charging it. If it is a footnote to the contract, then it is deemed that the contract will only go ahead on payment of this fee. If it is not actually on the contract, and is just in a letter from them, you have the right to challenge them about it.