Ending an Agent’s Contract

There are occasions when a landlord may wish to disinstruct a letting agent. It is very important for a landlord to ensure they abide by the terms of the contract signed by both parties. There may only be a verbal contract but investigation is required to establish the terms and conditions. This could be terms displayed in the agent’s office or advertised on the web.

There are occasions when a landlord may wish to dis-instruct a letting agent. It is very important for a landlord to ensure they abide by the terms of the contract signed by both parties. There may only be a verbal contract but investigation is required to establish the terms and conditions. This could be terms displayed in the agent’s office or advertised on their website.

Dis-instructing an agent does not affect the agreement made between the landlord and the tenant which in the majority of cases will be an AST. The AST will continue on the same terms unless the landlord or the tenant gives notice, there is a mutual decision to end the contract or the tenancy is ended by a court order.

Most contracts with agents are binding while the tenant (found by the agent) remains in occupation and there may be a penalty if terminating early. If the landlord is deemed to be “acting as a consumer” he or she will have the protection of the Consumer Rights Act 2015 (CRA). This legislation gives greater protection to consumers. An unfair term may be deemed unenforceable even if the disadvantaged party signed a contract where the offending term was expressly stated. It is further worth noting that the entire contract will not be deemed invalid; only the unfair term. The exception will be the unusual circumstance where the removal of the unfair term renders the remainder of the contract incapable of performance.

If an agent is refusing to release you from the contract, or there are not clear terms on how to dis-instruct then legal advice should be sought. Dealings with the agent should be factual and it is vital that the tenant is made aware of the landlord’s intentions. Do not discuss the reasons for dis-instruction with the tenant; simply explain that future dealings and rent payment should be paid either to the landlord or to a new agent.

It is vital that the deposit is protected at all times.                                                

In the majority of cases, especially full management, the agent would have taken the deposit and registered it with one of the approved schemes in accordance with the legislation. All paperwork and anything concerning the let should be returned to the Landlord together with all rent monies (minus any unpaid commission due to the agent). The deposit is the tenant’s money and therefore cannot be returned unless:

• There is authority from the tenant that the agent may transfer the deposit to the landlord; this could be by way of a letter or going into the agent’s office

AND

• The landlord then registers the deposit with a relevant scheme and can show proof of this to the agent.

The prescribed information relating to the new deposit protection should then be sent to the tenant and appropriate proof obtained, certificate of posting or signature from tenant is best.