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| ::Letting agents warned over landlord fees - 23rd February 2010 |
| A ruling against an estate agent on unfair landlord fees should act as a warning to other lettings agents, the Office of Fair Trading (OFT) has said. The OFT is writing to various companies in the industry highlighting the case against estate agent Foxtons. The High Court has ruled that Foxtons unfairly charged landlords commission every time their tenants renewed their contracts. Foxtons said that any refunds would be considered on a case-by-case basis. 'Timebomb' The OFT took the case to court, arguing that certain charges included in Foxtons' letting agreements were not made clear enough to landlords. Under the agreements, landlords would be required to pay Foxtons commission - typically of around 11% - when their tenants renewed their contracts, even without the involvement of the estate agent. Landlords would also be expected to pay commission to Foxtons if they eventually sold their property to their tenants. In July last year, the High Court upheld the complaint, saying that the charging of repeat renewal commission by Foxtons represented a "trap" or a "timebomb" for consumers, because details were buried in the small print of contracts. The estate agent has since changed its contracts with landlords. "This case, and the changes Foxtons has now made, sends a wider message to letting agents and businesses in general that important terms, particularly those which may disadvantage consumers, must be clear, prominent and actively brought to people's attention," said Jason Freeman, of the OFT. "Consumers should not be presented with a surprise bill for services they have not consciously agreed to." A spokeswoman for Foxtons said: "During the final stages of the renewals legal case last year, Foxtons amended its renewal terms and conditions so that they were acceptable to the OFT and the High Court judge. "The new terms are more user-friendly and provide for renewal commission to be charged at a reduced level and for a maximum of two years." The National Landlords Association said it wanted renewal fees to be scrapped. |
| Source of this article : |
| www.bbc.co.uk/news - 23rd February 2010 |
| Date of this item added : |
| 2010-02-25 |