Warning To Letting Agents
The Office of Fair Trading issued a warning yesterday to letting agents to check that their terms and conditions are fair and transparent. It published an evaluation of the enforcement action taken against Foxtons for breach of the Unfair Terms in Consumer Contract Regulations 1999.
The long-running proceedings between OFT and Foxtons came to a final conclusion in February last year following a judgment handed down by the High Court. The court had found that Foxton’s renewal terms were not transparent. It also held other terms to be unfair and not binding including: terms requiring landlords to pay renewal commissions to Foxtons after the sale of their property whilst the original tenant remained in occupation; and terms requiring landlords to pay Foxtons sales commission if they sold the property to the tenant.