OFT to look at "unfair" tenancy agreements
30/04/2009 - Foxtons in the dock
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A test case began in the high court regarding the contract to landlord of tenants introduced through the estate agents Foxtons.
The case is being brought by The Office of Fair Trading (OFT) who want the terms and conditions made clearer and to alter the terms of a continuing tenancy agreement whereby Foxtons still claim commission long after there is any contact between them and the tenants.
The QC for the OFT, Nocholas Green, said that there were objections to Foxtons’ contracts because “they are not written in plain and legible English” and that some of the conditions of the contract were “plainly unfair” and that most people would be “profoundly confused” by the terms and conditions as it was completely unclear as to what they would be letting themselves in for.
Mr Green highlighted the fact that landlords were required to continue paying the commission to Foxtons for as long as the tenants remained in the property even though there no connection between them.
The Unfair Terms and Conditions Consumer Contracts Regulations 1999 stated that contracts must be clear and that some commercial agreements are fundamentally unfair and illegal, even if the consumer knows what they are getting in to upfront and does so willingly. The OFT plans to pursue other letting agents if successful.
