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Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7677
Experience:  UK solicitor holding an England and Wales practising Certificate.
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I recently put in an offer on a rental property through one

Customer Question

I recently put in an offer on a rental property through one agency and the offer was rejected due to the offer being to low. A second agency then showed me the same property and when i placed the same offer through the second agency, the landlord tentatively accepted the offer. However the landlord has now rejected the offer as he is nervous that the first agency will want a finders fee. Since the first agency was unable to complete the deal, surely if the second agency is able to complete it this should not penalize the landlord?
Submitted: 5 years ago.
Category: Property Law
Expert:  Thomas replied 5 years ago.



What type of agreement does the landlord have with the first agency?




Customer: replied 5 years ago.

Hi Tom,


Unfortunately I do not have access to that information, all i have been told is that there is concern over a finder's fee.



Expert:  Thomas replied 5 years ago.
Hi Jo
Thanks for your patience.

You’re going to have to see if the landlord is willing to let you have a look at the agreement he has with the first agency. Whether or not they would be able to sue him for their commission if you were accepted as a tenant depends entirely on what is drafted in the agency agreement.

I would think that if the agreement is drafted competently then it would certainly done so as to cover a situation like this. It will likely state that they are to receive commission on any tenant introduced by them to the landlord irrespective of whether contracts are concluded immediately as a result of the introduction.

BY offering a lower fee through another agency you are not a “new tenant” for the purpose of most agency agreements and so I understand where the landlord is coming from. Additionally, the landlord is the one that is taking all the risk here because they are personally liable and no one else. It may be that the prospect of having a dispute over a contractual clause with him being exposed to liability is enough to scare him off.

I am sorry.

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Kind regards,

Expert:  Thomas replied 5 years ago.

Is there any further information you require?

I just want to ensure that you are satisfied, so please let me know if you have any further queries on your position. Please remember to rate my answer, if you are satisfied.

Kind regards,