The OFT is seeking both a declaration on the application of the Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs) over certain terms in the Estate Agency's lettings agreements, as well as an injunction to prevent it from using said terms.
Currently Foxtons can demand substantial sums in commission from a landlord if a tenant continues to occupy the landlord's property after the initial fixed period of the tenancy has expired - even if the agency has had no hand in persuading the tenant to stay, and no longer collects the rent or manages the property.
The terms also demand commission where the landlord sells the property to the tenant, even where Foxtons has played no part in negotiating that sale.
If it wins the case, brought against Foxtons following consumer complaints, the OFT plans to enforce these changes throughout the wider lettings industry.
