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Foxtons slapped with OFT order

Foxtons has been banned from using certain commission terms within its lettings agreements as a result of a final High Court order secured by the Office of Fair Trading.

The order, revealed today [February 22], prevents the London agency from using terms, which require landlords to pay renewal commission to Foxtons after the sale of their property to a third party because the original tenant remains in occupation, and those which require landlords to pay a sales commission to Foxtons in the event they sell the property to their tenant.

It follows a landmark judgment in the High Court last July in proceedings brought by the OFT under the Unfair Terms in Consumer Contracts Regulations 1999. By its judgment the court accepted that all the terms the OFT complained of were unfair. Foxtons had until 29 January 2010 to lodge an appeal but did not do so.

Foxtons initiated an appeal in December, but aborted it last week, though it has overhauled its standard lettings contract terms, limiting renewal fees to two renewals. Commission is also now only payable where the original tenant remains in occupation, and the landlord will get a pro rata refund where the tenant leaves the property before the date set out in his lease.

 

 

 

 

 

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