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LondonlawyerJ
LondonlawyerJ, Solicitor
Category: Property Law
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Is a 12 month tenancy agreement with a break clause of 6 months,

Resolved Question:

Is a 12 month tenancy agreement with a break clause of 6 months, deemed a 6 month agreement or a 12 month?
Regards
Cheryl Fox
Submitted: 2 years ago.
Category: Property Law
Expert:  Remus2004 replied 2 years ago.
Thank you for your question. My name is ***** ***** I will try to help with this.

-Could you explain your situation a little more?

Customer: replied 2 years ago.

My client signed our terms and conditions instructing us to let his flat, which we did to applicants who were refurbishing their own place. They didnt know how long this would take, so they got a 12 month tenancy with a 6 month break.


Our terms state: "The agent shall give no refund to the Landlord in the event that either the landlord or the tenant terminates the term of the tenancy agreement for any reason, however if the tenant terminates in accordance with the contract, we will a allow a pro-rata refund against the commission charged on finding a subsequent tenant"


The Landlord let it through the another agent and wants a commission refund.

Expert:  LondonlawyerJ replied 2 years ago.
If your client wanted a 12 month agreement and you got tenants for him with a break clause after 6 months it is certainly arguable that you obtained a 6 month agreement and not a 12 month one.

But if the landlord had let the property again, this time through another agent he seems not to have suffered loss, except for the fees of the new agent. Why did he do it with a different agent rather than with you? You need to have a look at your terms of business with this client as it seems he may have a valid argument that you did not follow his instructions an may be able to ask for at least some of the commission back.

I am going out now but will check on this site later this evening.
Customer: replied 2 years ago.

We did find a subsequent tenant but as they had a pet, Landlord wished for a Landlord only break clause but the applicant wanted a mutual break clause. Even though we reminded him of should he market the property via another agent we wouldn't return any commission, he accepted a tenant via another agent. As a gesture of good will, I did offer him a six month open commission credit on any further let we do for him in the future, as to keep a good relationship open.


This he has declined.

Expert:  LondonlawyerJ replied 2 years ago.
I am at court at the moment but will reply this afternoon.
Expert:  LondonlawyerJ replied 2 years ago.
I would have thought that the second tenant having a 6 month break clause would have taken the total time of the let up to 12 months and he would not have been disadvantaged by it. I think if he pursues for the return of the commission he would have some difficulties as he could have accepted the second tenant and been in the same position as if everything had been done as he wanted at the outset. It is hard to see what his justification for not taking him is. However I think there is a fair amount of uncertainty over this. It seems you have a reasonable good defendable position though.

LondonlawyerJ, Solicitor
Category: Property Law
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