By Steve Roulstone
One of the basic but most important principles behind what we do as Letting Agents is the ‘Law of Agency’ which covers our responsibility to our Landlords. I have referred to this in my blogs before, but it is not something that is heavily reported on and a principle which I believe a large amount of Letting Agents do not understand. The basis behind the principle, is that Law of Agency describes our relationship with the Landlord, who, of course first and foremost are our customer, but it is the greater level of responsibility that Agent of the Landlord brings with it that is not understood.
The Landlord says so.
Under the Law of Agency, as long as what we are asked to do on behalf of the Landlord is legal, we must follow the instruction, in exactly the manner in which the Landlord asks us so to do. It is not that difficult to understand and if you look up the meaning of the word Agency in Wikipedia and you will understand that this is not just a wording that describes a Supplier and Customer relationship, rather one that carries a very specific requirement on behalf of the Agent, in the eyes of the law.
So often comes to mind.
It is not difficult therefore to imagine scenarios in our industry where problems can occur and because it is something that I repeatedly quote when discussing cases with our own office in Stafford, it is never far from my mind. The latest scenario surrounds two Landlords who have changed their mind over what they expected from their Tenants when they were vacating property at the end of Tenancies and whilst it would be wrong to go into any detail at all, both surrounded a change of mind in what they expected the Tenants to do.
Tenants are correct!
The problem being that it falls upon us to carry out the Landlords wishes, providing they do not break any law, to the full. So even though we know what we are requesting is incorrect, we must still carry this through. Of course should the Tenant then come back to us and state that we know the opposite to what we are asking, it is still our role to confirm the Landlords wishes and at no point should we show any indication or make any statement that the Tenant is correct in what they say.
Deposit system.
Of course the problem becomes a little more relevant when the request surrounds the Deposit and what the Landlord is requesting has financial implications, but no matter! Under such circumstances it is a very small leap to a disputed Deposit and all the work encompassed within the system for the Agent. So here we are, knowing that the decisions made by the Landlord are probably going to lead to his losing his case (or of course it could and so often is the other way round!) but we still have to go through the process and present the case in the best interest of the Landlord and that is what the Law of Agency is all about! But should we openly tell the Tenant the Landlord is wrong, or ever be seen to place the interest of the Tenant above the interest of the Landlord then we place ourselves in a position where we can be pursued legally, for breaking our role as agent of the Landlord! This is what is not understood, in my belief by so many Letting Agencies in this Country.
Purjery!
Of course, even though we may disagree and know that the claim is not correct in its substance, we do not have to perjure ourselves, because should the matter become legal or even subject of a counter claim by the Tenant, when asked what happened behind the situation, we do then have the opportunity to tell it as it is. I have known a situation where legal representation on behalf of a Tenant asked for a written statement from the Agent and of course in sending the statement (which confirmed the Landlord had changed his mind over approval of decoration) the Tenant’s case was proven.
Principle holds.
The point is that in asking for the money from the Tenant we are following the Landlords wishes, and that is what we must do, when asked to confirm what we knew of the situation (by somebody such as a TDS adjudicator) we of course tell the truth as I for one would never perjure myself, but with an eye to the Law of agency, I will advise the Landlord of my feelings and point out that should I be asked what I knew of the circumstances, I would only tell it as it is!
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