Foxtons’ terms “unfair”
The Office of Fair Trading (OFT) brought proceedings against Foxtons under the Unfair Terms in Consumer Contracts Regulations 1999. The Court looked at Foxtons letting contracts which typically applied a 11% renewal commission where a tenant stayed at the property beyond the initial period, and a 2.5% commission payment in the event that a tenant, occupant or licensee of the property entered into an agreement with the owner to buy the property. In both cases, the fees were payable even where Foxtons played no part.
Mr Justice Mann said that the charging of repeat renewal commissions by Foxtons was a “trap” or “time bomb” for consumers and he ruled that the terms were unfair.
If you think that you may be affected by similar terms in your Letting Agreement then please contact Margaret Stevenson or Cristiane Taylor for further advice.
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