New CMA Guidance for Lettings Professionals

The Competition and Markets Authority (CMA) which replaced the OFT earlier this year issued on the 13th June 2014 “Guidance for lettings professionals on consumer protection law”. Plainly for anyone involved in the Lettings Industry a must read document!

Much of what is included within the guidance is not new. It helpfully pulls together various guidance which has been issued and incorporates it in one document. The underlying principle throughout is that letting professionals must act fairly with all they come into contact with. This is a positive obligation which you must actively set out to achieve. This objective mirrors the Consumer Protection Rules and also the CAP Guidance on advertising issued last year.

We will be studying the guidance carefully and watching how over the ensuing months this is applied by both CMA and Trading Standards officers in their dealings with agents.

Filed under: England & Wales, consumer protection, guidance, OFT, regulations, tenancy agreements, Unfair Terms, Utilities and Services

Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013

As many of you are aware the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 came into force on 13 June 2014 (the Regulations).

Rental agreements are specifically excluded so the Regulations do not apply to tenancy agreements but all other contracts are potentially caught. Particularly, the Regulations do apply to lettings and sales terms of business with landlords/sellers that are individuals acting outside their business.

To comply with the Regulations, you are required to give certain information to the consumer. What is required depends on where the contract is concluded. A notice of right to cancel may also have to be given.

If you are required to give notice of the right to cancel, you are advised not to undergo any work during the cancellation period (14 days) unless and until the client requests you to do so in writing otherwise you will not be entitled to charge for the work undertaken.

In light of the Regulations, we have updated our template lettings and sales terms and these are available for purchase from our online shop. Alternatively, if you want to keep your standard form, we have produced a stand-alone template of clauses to be inserted to help you when you are amending it (please note though that this is a template and may need to be adapted to fit your own documents). All versions come with guidance as to when and how the Regulations apply.

If you would like assistance in tailoring to your terms please contact us and ask for a quote.

Prices at going to press:
£150.00+VAT Sales Terms
£150.00+VAT Lettings Terms
£75.00 Guidance and clauses

Filed under: England & Wales, consumer protection, contracts, OFT, Unfair Terms