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LondonlawyerJ
LondonlawyerJ, Solicitor
Category: Property Law
Satisfied Customers: 814
Experience:  Experienced solicitor
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Hello I am a Landlord of a flat. I signed a contract in November

Resolved Question:

Hello
I am a Landlord of a flat. I signed a contract in November with a letting agent for 6 months and they have been managing the property. After 8 weeks into the contract, I gave them notice that I will not be renewing it. I am moving to a different letting agent. The tenant is not moving out and is signing a contract with the new letting agent. The existing agent says that I cannot do that??? They say there is a clause in my contract that says whilst the tenant is in situ then my contract with them still exists - despite me giving them notice. I have asked them what clause that is, but they will not respond to me. Is it normal to have a restrictive contract like this that would prevent me going to a new letting agent and my current tenant signing with a new agent?

Thank you.
Submitted: 3 years ago.
Category: Property Law
Expert:  LondonlawyerJ replied 3 years ago.

LondonlawyerJ :

Hello. I am a solicitor with over 15 years experience. I will try to help you with this.

LondonlawyerJ :

Letting agents often have a lot of restrictive covenants in their contracts. It sounds like you do not have a copy of your agreement with the letting agent. I would suggest you contact them and say you do not want to breach the contract and want to see a copy of the agreement so that you can make an informed decision about whether to stay with this agent or not.

LondonlawyerJ :

Are you dissatisfied with the service provided by the agents, If so you may be bale to argue that they are in breach of the agreement and you consider the agreement to be void. However you need to get a copy of the agreement first.

Customer:

Hi I have a copy of the contract and I cannot see from the contract that there is a restrictive clause but i am not a solicitor! Can I send you the contract for you to check?

LondonlawyerJ :

How long is the contract?

Customer:

It is this paragraph that they refer to:

Customer:

Fees & Commissions.


I/We agree to pay Baildon Village Estates Ltd an arrangement fee as follows


Managed Property :


A fee of



£235.00 OR 50% OF THE FIRST MONTHS RENT WHICHEVER IS THE


GREATER





for tenant finding including charges covering advertising, To Let Board,


administration and associated costs, and a Management fee of




8% of each month


s


rent for as long as the tenant remains in the property.



This is what they are saying prevents me from going to a new letting agent and that tenant signing a new contract with them.

LondonlawyerJ :

That would appear to do what they say it does. Under this agreement for as long as the tenant stays in the property you will be liable to be charged. The key phrase here is the underlined one "for as long as the tenant remains in the property". You can go to a new agent but you would have to continue to pay the old agent as well as the new one. The only way to be rid of the old agent's fees is to get a new tenant.

Customer:

Ok that helps. Thank you.

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