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The OFT has secured a final High Court order against Foxtons barring it from using certain terms concerning sales and commissions in its letting agreements with consumer landlords.

Foxton’s terms which required landlords to pay renewal commission after the sale of their property to a third party because the original tenant remains in occupation and also obliged landlords to pay a sales commission if the property is sold to the tenant.

This order against Foxtons follows a landmark judgment in the High Court in July 2009 in proceedings brought by the OFT under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs). By its judgment the court accepted that all the terms the OFT complained of were unfair. Foxtons had until 29 January 2010 to lodge an appeal but never acted.

The High Court ruled that Foxtons' renewal commission terms were not transparent to consumers, represented a trap and were therefore unfair.The Order also declared that the following terms are unfair, not binding, and may not be used or relied upon in contracts with consumer landlords.

Jason Freeman, Legal director of the OFT's Consumer Group said: "We welcome the finality brought by this order, and the court's declaration that the terms we challenged are indeed unfair.

"This case, and the changes Foxtons has now made, sends a wider message to letting agents and businesses in general that important terms, particularly those which may disadvantage consumers, must be clear, prominent and actively brought to people's attention. Consumers should not be presented with a surprise bill for services they have not consciously agreed to.”

David Salusbury, Chairman, NLA, said: “The message to all letting agents is now clear: do not try and mislead your clients. Our advice to landlords remains the same. Always check the small print before signing on the dotted line.”

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