firm news

Ally Tow
Ally Tow,
SENIOR ASSOCIATE - CHARTERED LEGAL EXECUTIVE
more
Letting Agents to publicise fees
22 May 2015

Chapter 3 of Part 3 of the Consumer Rights Act 2015 comes into force on 27 May 2015.  From that date a letting agent must display or publish details of the agent’s relevant fees (being the fees, charges or penalties payable to the agent by a landlord or tenant) by displaying a list of fees:

  • At each of the agent’s premises at which the agent deals face to face with persons using or proposing to use services to which the fees relate; and
  • At a place in each of those premises at which the list is likely to be seen by such persons; and
  • On the agent’s website if it has a website.

Relevant fees

The agent’s relevant fees are fees payable to the agent by a landlord or tenant for work:

  • In respect of letting agency work carried on by the agent;
  • In respect of property management work carried on by the agent; or
  • Otherwise in connection with:

(i)  An assured tenancy of a dwelling-house; or

(ii) A dwelling-house that is, has been or is proposed to be let under an assured tenancy.

Description of fees

The list of fees displayed or published must include:

  • A description of each fee that is sufficient to enable a person who is liable to pay it to understand the service or cost that is covered by the fee or the purpose for which it is imposed;
  • In the case of a fee which tenants are liable to pay, an indication of whether the fee relates to each dwelling-house or each tenant under a tenancy of the dwelling-house; and
  • The amount of each fee inclusive of any applicable tax or, where the amount of a fee cannot reasonably be determined in advance, a description of how that fee is calculated.

Additional duties

If the agent holds money on behalf of persons to whom the agent provides services as part of that work, the requirement includes a duty to display or publish, with the list of fees, a statement of whether the agent is a member of a client money protection scheme.

If the agent is required to be a member of a redress scheme for dealing with complaints in connection with that work, the requirement includes a duty to display or publish, with the list of fees, a statement indicating that the agent is a member of a redress scheme and giving details of the name of that scheme.

Breach of duty

A financial penalty not exceeding £5,000.00 may be imposed on any agent in the event of any breach of the duty to display or publish fees.

If you would like to discuss this further or find out more about how the Property Dispute team can help your business please contact Ally Tow on 0118 952 7247 or email [email protected].

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

award winning law firm

Boyes Turner are proud to have received the following awards and recognition.

awards