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Question Title: Agent's authority
| Question: 53 |
| We have tenants in a property who had a 12 months fixed term contract. When it was due for renewal the tenants were offered a new fixed term for a further 12 months. They duly signed the agreement and returned it together with a renewal fee. We suspect that the agreement was then forwarded to the landlord for signature and was never returned. The tenants are now five months into their tenancy and the landlord wants us to serve a notice for possession claiming they are in a statutory periodic tenancy and not a fixed term. Unfortunately the only record we have is an account of the renewal fee. We would welcome your opinion.
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| Answer: |
| There is no doubt that you as the agent, on behalf of your landlord offered a further term of 12 months, which was accepted by the tenant. The tenant signed the agreement and returned it to you with the renewal fee. The question is, did you, as agent, have actual or ostensible authority to give the tenant a further fixed term for 12 months. As far as the tenant is concerned, it does not matter. He accepted the offer which was, from the tenants' view, within the your mandate. If you did not have authority, express or implied, then the landlord has a right of action against you as the agent but not against the tenant. The renewal of the fixed term stands. The fact that the tenancy agreement has gone astray is only relevant to the question of proof. Parol (verbal) evidence is sufficient. You and the tenant both agree that a fixed term tenancy was offered and accepted and have confirmed this with the receipt, a renewal fee. Although the landlord claims that a statutory periodic tenancy has arisen, all the evidence conclusively points the other way. If you have exceeded your authority, remedy for the landlord arises against you as the agent. However we do not believe that any such action would succeed. The landlord would have to prove patrimonial loss. What loss has he suffered? This may also serve as a timely reminder to ensure that the procedures you have in place to monitor the return of tenancy agreements is being adhered to.
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References:
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Hyperlinks:
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Letting Handbook |
Chapter 17 |
letting-handbook-and-factsheets.html
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