Welcome for ruling on estate agents (From Swindon Advertiser)

Welcome for ruling on estate agents

9:20pm Wednesday 10th March 2010 in

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A ruling against an estate agent which charged landlords fees that were “hidden” in the small print of their contracts has been welcomed by a Swindon letting agency.

The High Court said that prominent London agents Foxtons unfairly charged landlords commission every time their tenants renewed their contracts.

This meant that landlords were hit with a surprise bill which they hadn’t knowingly agreed to.

The Office of Fair Trading brought the case on the grounds that charging repeat renewal commission fees represented a “trap” or a “time bomb” for landlords because the charges were buried in the small print of contracts.

The court was told that landlords were further expected to pay commission to Foxtons if they eventually sold their property to their tenants.

As a result of the case the estate agent has changed its contracts with landlords.

Sue Gidney of Swindon Home Finders in Commercial Road said: “I think this decision is absolutely right.

“Everything in a contract should be stated in a clear and obvious manner so that all parties are aware of the charges involved. Inserting little add-ons for further payments into the small print of contracts is unfair.

“Not everyone reads the small print and it’s quite a nasty shock for landlords to suddenly find themselves facing extra charges which they knew nothing about.”

She said the Foxtons case had been ongoing for sometime and hoped the High Court ruling would now put to an end to the practice.

When Sue, a former RAF survival equipment fitter, first started her letting business by acquiring a franchise 13 years ago she realised that additional fees were inserted into the company’s contracts.

She said: “But I removed them after a couple of months. I didn’t like them.

“We firmly believe that the only way to succeed is to deliver a personal, quality, ethical and professional service – and that means no hidden or unfair charges.”

Swindon Home Finders – formerly Swindon Lettings – charges a monthly percentage for managing a landlord’s property, plus a flat administration fee which includes all administration to set up the tenancy, including raising agreements and a detailed Inventory and Schedule of Condition, as well as registering tenancy deposits.

The company also finds tenants for landlords, and vice versa, on a one-off basis.

Sue described the current letting scene in Swindon as a tenant’s market.

“There’s a wide choice of homes available, but if marketed at the right price, they can let quite quickly avoiding costly void periods,” she said.