Advice on rental contract

[Mrsmancmonkey]

Hi

 

Just after some quick advice please for my friend. She has a agreed to renew her tenancy contract over the phone for another 6 months, the contracts come out in the post however she has decided that she is moving area. The letting agents are saying as she agreed verbally and they've drawn up contracts and sent them out (no contract was signed and return at her end) she will need to pay the letting fees of £300.

 

Can they do this?

[MrShed]

Were the letting fees mentioned or agreed prior to this?

[jackieandwayne]

Don;t stand for this! Ask them to break down how they arrive at £300 for simply updating an existing document on their computer, changing the dates, and putting it in the post for your signature! For me to do this I estimate it takes me 5 minutes to make the alterations, 1 minute to print it, 16 sheets of paper and then a first class stamp and an envelope, oh yes, I'd also enclose a pre-paid envelope for you to return it. Work out the times by assuming the person gets paid £10 - £11 an hour! Don't pay them this of course, but write and point this out andkeep a copy. If they want to take you to Court that would be very interesting!

[Steve__M]

For breaching of a contract, verbal or written, the remedy is nearly always the cost required to return the parties to where they were if the contract had not been breached. So in this case it is highly unlikely that they can justify £300.

 

Now would be a good time for your friend to check that the deposit has been protected.

[Mrsmancmonkey]

The deposit is DWP so its protected we think.

 

They're saying that it costs £300 to relet/re list it not the time to create a new contract. I think from their point of view they're saying that everything was agreed in principle, but they've also said that she can talk to whoever she needs to as they have double checked and they are well within their rights to charge this?

[Steve__M]

On the face of it, the chances are they are talking rubbish. But it's worth answering Mr Shed's question - what does it say in the current contract about reletting fees for example.

 

Also, what is the actual circumstance? For example, have they advertised it, showed people around, found a tenant, taken it off the market, and then rejected the tenant because your friend said they'd like to extend their contract? And then after a lot of time your friend has changed their mind.

 

Or was it much simpler than this.

 

When people say things like "we have double-checked to ensure we are within our rights" or "we have taken legal advice to confirm their position" it usually means "we are trying it on because we've no idea whether what we are doing is lawful".

 

What does "The deposit is DWP" mean?

[MrShed]

If you have agreed to sign a new contract, AND these fees were agreed over the phone, then the charges are fully enforceable, as this forms a contract for a service.

 

Reletting fees are only your responsibility if you leave during a fixed term contract.

[Mrsmancmonkey]

The flat is paid by the council as they're on benefits and Council paid the deposit too. The flat is a private letting through an estate agents.

 

There were definately no fees agreed over the phone just a 'yes Im renewing it for another 6 months, and then the agent saying well is it ok to send the contract and my friend saying yes'.

 

They've then got the contract had a change of heart as they want to move area, but the letting agents are saying well thats not a problem as am sure they can find someone else, however because my mate agreed in principal, she will have to pay the £299 for the landlords fees for reletting.

 

The contract is for a 6 month period only and ran out Sept 2008 if that helps

[MrShed]

No fee is payable. Your friend is entitled to give relevant notice without charge. Bear in mind that she WILL have to give at least one months notice to expire at the end of a rental period. Other than that, inform them that it is her statutory right to give notice without charge. Inform them that no fees were agreed during the dicussion regarding potentially renewing, and no contract has been signed, as such she is liable for no such costs. Whateever they then say, stick to this.

[Mrsmancmonkey]

Thank you for that I'll let her know

[Mrsmancmonkey]

Hi sorry

 

Just relayed this to my mate and she said that the letting agent has said that he would be confirming by letter their conversation yesterday.

 

In the letter would be confirmation that she would be handing in her notice on the 14th Nov and that the £299 fee would be payable once they'd consulted the landlord and told her she is paying it and would put that in too.

 

Is that going to make any difference?

[MrShed]

They can send whatever they want, it doesnt make it binding.

 

However, I would be inclined to ring them and state that you expect the letter, if they must send it in this fashion, does NOT state that she has in any way agreed to the fee - this would be a false comment.

 

Also, I would remind them that as she is not currently in a fixed term contract, no such fee is payable.

[Mrsmancmonkey]

Thank you Mr Shed

[Zamzara]

Unfortunately, they'll presumably just steal it from the deposit and tie your friend up in the charade of the DPS process for about 6 months.

[Just4Let]

If the friend 'verbally' agreed to a new contract then there is the argument that it does infact exist, thus they ARE actually in a fixed contract and the Agent could charge for readvertising etc etc.

 

NOT saying this is right or wrong but how this could be argued if one wanted!

[MrShed]

I was starting to think that J4L, I must admit. However, I still feel the best option is as above, as it will probably work and I suspect that a court will have some issues with this considering that a written contract WAS sent and never signed.

[Lula]

indeed, should it come to court, whether or not an extention of the let was agreed to, is only hearsay.

[Mrsmancmonkey]

Hello guys,

 

Well after reading these threads some more and going back to the agents my mates now spoken to CAB and Shelter and both are saying that yes they can charge the amount

 

Reason they are stating is because

 

(a) she hadnt given a months notice in August for the end of Sept 08 that they can assume the right to do another rolling 6 month contract.

 

(b) and that they have called up to confirm that it was acceptable to sign her up for another 6 months and she has said yes (verbal)

 

© and that she is still living there in October which is now into the next period of the rental so in theory its a rolling month.

 

Anymore thoughts?

[MrShed]

CAB and shelter are WRONG on point a. Period.

 

Point b is what me and J4L think is possibly the case.

 

Point c is correct, but only for ONE month, and notice can be given during this period to end at the end of the next month without penalty.

 

The key question really is what EXACTLY (basically word for word) was the telephone conversation.

[Mrsmancmonkey]

the conversation Im told went along the lines of;-

 

'Do you want to renew your contract for another 6 months?'

'Yes most probably'

'Is it ok for us to send out the contract for you to sign then?'

'Yes no problem'

[MrShed]

That is the answer to the first question, word for word?

[Mrsmancmonkey]

Yes thats what she said happened as at the time she was genuinely going to stay there.

[MrShed]

Well I would personally love to see the agents constituting that as a binding 6 month contract!!!! They will get laughed out of court!

[Steve__M]

I agree with Mr Shed (on all points). While it is possible that a contract can theoretically be agreed on the phone, proving that it was *actually* agreed would be hard.

[MrShed]

Yep - and the contract agreed in such a way is only as good as the conversation that took place. That conversation does not outline rent, fixed period, etc etc.