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Chartwell Residential Lost!

Chartwell Residential a Letting Agent took court action against our Landlord Clients to demand renewal fee commissions which they alleged were payable when then tenants renewed their tenancy.

In December 2010 our landlord client was taken to court for unpaid rent renewal fees. Our landlord client was surprised to find that she had been demanded commissions on the tenant’s renewal of the tenancy agreement. The renewal commission fees was tucked away in the small print and was never discussed with the Landlord when our Landlord Client signed the contract with the letting agent. The Landlord found it difficult to pay such a large rent renewal commission fee and faced with court threats payment was made causing financial difficulty. Over several years the commission fee was reduced but following the OFT v Foxtons Case they refused to pay any more commission fees to the letting agent.

The letting agent took court action in the Croydon County Court. The letting agent played “hard ball” instructing solicitors for a commission well under £5,000. They refused to let the action proceed to the small claims court as they wanted their solicitors costs if they won the action. They would not settle or compromise the action without payment of their solicitors costs which exceeded the original claim. The matter went to court and the letting agent lost their claim for rent renewals. They argued that because the letting commission was reduced the landlord had “negotiated” a main clause which ousted the Regulations. This was not accepted by the Croydon County Court Judge, he found that the Landlord did not negotiate the main clause and dismissed the letting agents claim for rent renewal commission.

Further the Judge awarded our Landlord client the commission fees going back some 3 years and solicitors costs. In the end the letting agent had to repay just under £15,000 in rent renewal fees and solicitor costs.

Landlord Hotline:

0151 431 0548 / 0800 011 2757
(9.30 am to 6.00 pm Mon - Fri)



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