High Court rules against Foxtons

News Category: Legal

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Lettings agency Foxtons is to face penalties after the High Court ruled it had used unfair terms and conditions in its agreements with landlords.

The landmark ruling could have significant long-term effects on the legal relationship between landlords and letting agents, particularly as regards the wording of contracts and other sales literature.

Action against Foxtons was initiated by the Office of Fair Trading after the agency was deemed to have hidden important and unjust terms and obligations relating to commissions on tenancy renewals and property sales in the small print of its contracts.

John Fingleton, OFT chief executive, said: "Contracts need to be written in clear and straightforward language with important provisions, particularly those which may disadvantage consumers as in this case, given prominence and actively brought to people's attention."

The National Landlords Association (NLA) welcomed the ruling as "a victory for the NLA" and echoed OFT's call for greater transparency in dealings between landlords and letting agents.

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