Rental Agreement Renewal Fee

In this case, the tenant now buys the apartment – the result of a private agreement between the landlord and the tenant. However, when the landlord informed the real estate agent, she referred to a clause in the tenancy agreement which states: « In the event that a tenant or a third party linked to the tenant, linked to the tenant, later acquires the property, we are entitled to a tax of 1.5% of the purchase price plus VAT. » The owner wanted to know if there was a way to pay this tax or at least part of it. She was shocked that there was so much to do if they did nothing but secure the tenant four years ago. LITIGATION – The Foxton case The answer lies in the ongoing litigation. In the case of Foxtons Ltd v. Pelkey Bicknell this year, the Court of Appeal stated that it was not enough for an agent to introduce a buyer to merit a sales commission. The agent must be the effective cause of the sale. The Office of Fair Trading (OFT) also returns to the High Court against the Agency, Foxton`s standard terms and conditions for the rental of real estate. The OFT considers that the unfair clauses contained in the 1999 consumer contractual clauses mean that certain royalties collected by the agent are in fact illegal. The case essentially concerns the broker`s right to charge an annual fee from the lessor if a tenant extends at the end of the initial tenancy period. The challenge also concerns the commissions to be paid when a tenant buys the property. The landlord uses a landlord to manage the property, so that for the continuation of the tenancy, the real estate agent wanted a new lease designed and signed, for a juicy fee (i.e. rent renewal fees).

Many brokers charge both landlords and tenants 120 $US for this privilege. It`s a joke. The legislation came into force on 1 June 2019 for new leases, but will affect existing leases from 1 June 2020 when it removes existing rights, as provided for in an existing lease. Under the government`s rent guidelines, the problem with rental fees is that there is no uniform pricing or pricing structure for much of the rental agent world. This means that homeowners can recharge what the market reveals. On the one hand, it just seems in the sense that it is a free market and there is a lot of competition between the owners there. The problem is that many small owners are not experienced businessmen and do not know what contract they get when they sign the agency contract. They act by mistake on the assumption that an owner has a best interest in his heart, as a doctor or lawyer should do.

Comments are closed.