G123456 Posted May 17, 2014 Report Share Posted May 17, 2014 Hi I recently ended a contract with the letting agent after 7 months of having a fully managed service. The reason I ended the contract was because I sold the property to another investor who wanted to keep the tenants on and were happy to manage them themselves. After many 3 weeks of trying to get hold of the LA, phone call after phone call being told that our final months rent was being Processed and this takes time, I received said payment less of £395 termination fee. I was outraged and have read through my contract again to find a very vague part which says Where you continue to letting to a tenant or occupier we introduced then you will be liable to pay us a tenant finding fee (which we paid at the beginning) calculated on a notional 6 month tenancy term starting on the date that our agency ends with the fee becoming payable on that day. If the tenancy terminates sooner than 6 months after our agency ends then we will make a pro rata refund of the fee. Then it goes on to say You may terminate Our Agency immediately subject to paying our reasonable expenses for administration and marketing the property and not being less than 1 weeks rent. We paid a finders fee of £295 which surely covers marketing. I feel that the termination fee is totally unreasonable as they were fully aware of the situation several months back. Can anyone help as the contract doesn't make it clear how much I should pay should I ever terminate the contract. Link to comment Share on other sites More sharing options...
Melboy Posted May 17, 2014 Report Share Posted May 17, 2014 Popular question on this forum. The bottom line is always read thorougly the small print of any contract before signing and accepting T&C's. If negotiations with your LA are getting you nowhere then, if you really feel agrieved and mislead by your contract and you think you have a winnable case then go to the online small claims court to reclaim money for what you consider to be unfair LA contract terms and deductions of your rental money. Link to comment Share on other sites More sharing options...
Mortitia Posted May 17, 2014 Report Share Posted May 17, 2014 G123456 - I think you got off lightly. Hindsight and reading the contract (if all be it lately) should teach you something. Link to comment Share on other sites More sharing options...
Chestnut Posted May 17, 2014 Report Share Posted May 17, 2014 I have no experience of this situation, but, I wonder, since the new buyer/investor wants benefit of tenancy, couldn't this charge be negotiated pro rata 5/6ths with buyer? They haven't had cost of finding a tenant. Link to comment Share on other sites More sharing options...
Richlist Posted May 18, 2014 Report Share Posted May 18, 2014 I agree, that would be have been the fairest solution and could easily have been included as part of the sale contract. But, the post says the property is sold.....past tense......so its unlikely that the buyer will agree to pick up any costs now. The OP will just have to pay up or fight it as they think best. Link to comment Share on other sites More sharing options...
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