The Implication of OFT V Foxtons
Submitted by visitor on Wed, 05/08/2009 - 10:17.
I have looked at some of the comments made by the great and good in the legal field concerning the outcome of the latest case involving Foxtons and the OFT.
A clear consensus has emerged. Lord Justice Mann, presiding, has indicated that Foxtons terms and conditions were not clearly flagged up and therefore the imposition of continued commission on rented property should not be allowed - IF YOU ALREADY HAD A RENTAL CONTRACT WITH FOXTONS AT THE TIME OF THE LEGAL DECISION. If so and they now send a letter requesting a commission of 7% you are almost certainly within your rights to reject it as the original terms did not make it clear that you would be further charged for the tenancy after the original term expired. If the tenant is carrying over there are no fees to pay Foxtons.
They have now amended their terms and conditions to make it clearer but they will lose commisssion on exiting tenancies where tenants hold over. Chek out legalbeagles for further info.
Renewal commission
Foxtons are continuing to demand renewal commission from us under the (legally) unfair Ts and Cs but at a lower rate of 7%. They have threatened court action where the commission is not paid. Has anyone out there taken Foxtons on successfully in being able to refuse to pay renewal commission charges since the July 2009 ruling?
If so, any advice would be appreciated as there must be hundreds of us in the same boat.
Yes, in fact many Landlords
Yes, in fact many Landlords have avoided paying renewal fees or were in fact refunded part of it.
In order for Foxtons to charge you the 7% commision after the OFT decision, somebody from the renewals department needs to call you and have at least written confirmation (email, fax) to go ahead with the charge or needs to send the new T&C's for you to agree signing them, otherwise they are not supposed to charge you. If they do contact the renewal department straight away and claim your refund.
It also depends on how your property is let, if it is non managed and non rent collect, they will try to contact you to charge you the renewal commision but they know its barely imposible to happen. When they rent collect, they try to convince you that their finance dept is soo good that they will get your money every month hasle free. If you decline to sign the renewal, there is nothing they can do, the only thing they will do is to convert your tenancy as non rent collection, basically they turn their backs at you without letting you or your tenant know.
If your property is managed, they'll chat you up of the pros and cons of management and even will promise to chase your rent on bare foot if necesary. If you don't want to continue, make sure you wish to terminate your management and that you are willing to rent collect cause that is what it will happen.
For those who signed a renewal agreement before the OFT decision, and their term is not over yet, contact your property manager or the non managed department and request a full refund of the excess 4% commisions charged to you. Unfortunately this works backdating one year only, any further backdated refund I'm afraid it will have to be through a solicitor. And no, it doesn't happen that a landlord manages to get back their full 11% commision backdated refund.
One other thing, before Foxtons use to charge a renewal fee of 60+VAT to Landlords and 80+VAT to tenants, if you renew now as a LL they won't charge you this fee, but if they managed to con your tenant due to the old T&C's they will charge it and turn their eyes blind on this. Please do contact your tenant/s to notify them about this, it is their right to get this money back from Foxtons.
Hope this helps...
OFT Foxtons
I have just been taken to court by Hurford Salvi Carr for extension fees which I refused to pay. The judge came down on my side so the extension clause in my case was unfair and I don't have to pay.
I would advise you to not pay. I doubt that they will take you to court but if they do and you prepare well you should win unless they have evidence that you individually negotiated the extension clause or the contract is a lot different to the one in OFT vs Foxtons.
Is there a link or reference
Renewal commission
No I don't think so at
No I don't think so at all. In fact, you probably have a strong case for taking Foxtons to court to get the commission that you paid back.
OFT v Foxtons
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