|
|
Question Title: Aborted tenancy
| Question: 58 |
| It sometimes happens to us that we have to withdraw from a prospective tenancy due to the tenant's poor references. A rather unusual situation occurred to us recently of a similar nature. We agreed verbally to let a property to five students as agent on behalf of a landlord. The tenant's initial rent cheque was also accepted but not banked. Four of the five tenants signed the tenancy agreement prior to the letting but the references for the fifth party were poor and the landlord has now changed his mind and wants to withdraw from the tenancy. The tenants were due to move into the property at the end of the week (in about five days) and are upset and threatening to sue for breach of promise. What is the status of this tenancy. Can the landlord withdraw and will he be liable to pay compensation ?
|
| Answer: |
| Tenancies are often granted in a two stage process. In this case, it appears that the landlord (via the agent who is presumably authorised to agree arrangements on the landlord's behalf) may have created a verbal agreement for a tenancy (as opposed to an actual tenancy which follows later) which has been partly executed by document. In the absence of any other terms or agreement it is possible that the tenants (particularly those with satisfactory references) might have a claim against the landlord. However, if it was clearly stated that the tenant's application for a tenancy is accepted 'subject to contract' and that the tenant is required to have satisfactory references, then the contract would be voidable. It is all a question of contract and the intent of the agreement (no tenancy will pass into effect until the tenant(s) have entered into possession of the property).
|
|
References:
|
Pages:
|
Hyperlinks:
|
|
Letting Handbook |
Chapter 1 |
letting-handbook-and-factsheets.html
|
For more information, discuss on the Forum
|
|
