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County Court orders letting agent to return administration fee to tenant

On 21st December 2017 Belfast County Court ordered a letting agent to return an administration fee to a tenant under the provisions within The Commission on Disposals of Land (Northern Ireland) Order 1986. 

Housing Rights acted for a tenant who entered into a private tenancy agreement with a landlord which contained a clause to pay a one-off administration fee to the landlord’s letting agent.  This was paid by the tenant who subsequently sought the return of the fee, arguing that he was entitled to recover the monies under Article 3 of The Commission on Disposals of Land (NI) Order 1986, which states

“Where, on a disposal of land, an agent acting for the person making the disposal is entitled to be paid a commission, any stipulation made on the disposal to the effect that the person acquiring the land shall pay the whole or any part of the commission shall be void.”

The County Court concluded that the payment of the administration fee was void under the provisions of the 1986 Order and the tenant was entitled to have the monies returned to him. 

To read more about the case please read the article on our website here.  The summary of the judgment can be read here.

Housing Law, Local Developments