common law duties and agents authority

what do common law duties relate to?

The normal good relation that would be expected between a landlord and the agent (as someone working on behalf of the landlord)

What confidences does a client have to have in their agent?

About ability to secure a satisfactory tenant

About your honesty

That you will act in their best interests at all times

Common law duties owed to a landlord client

To act honestly on the interests of their client

Not to allow a conflict of interest to arise

To carry out all lawful instructions.

To exercise reasonable skill and care

Not to make a secret profit

To observe confidentiality

Not to delegate the instructions

To account in full to your client

Who is common law interested in protecting?§

Protecting the client so duties relate to the landlord

Common law is generally silent about any duties owed to tenants or applicants

What are some assumptions about authority of the agent?

Letting agent can only act within the authority given by the landlord within the instructions at the time of appointment as letting agent

Authority will only be there if the landlord has specifically given instructions to the agent

What are the 4 ways in which the letting agency relationship can come into existence (including the express appointment)?

Ratification

Implication of law

Estoppel

Express appointment/ express authority

Ratification

Where the letting agent without any authority from the landlord enters into negotiation and contractual arrangements with a tenant

Later the landlord with full knowledge of the agents actions adopts the contract entered into with the tenant

Landlord is said to ratify the agreement reached by the agent

Implication of law

Obscure, but in some instances the law can impose an agency relationship on the landlord without their agreement (e.g. where the agent acts as an agent of necessity)

Estoppel

If a landlord was to act as if a letting agent had authority to act on their behalf

It would be unfair to allow the landlord to later deny that the agent was their agent

Against a tenant who entered into a contract believing the agent was the landlords agent

Express appointment

Most common way in which a letting agency relationship arises

It will normally be when the landlord gives the letting agent authority to act through a contract between them

In common law this contract can be oral or it can new written

The authority of the letting agent will come to an end when the contract between the agent and the landlord comes to an end.

Like any other contract it can be brought to an end

How are most express appointment letting agency contracts ended?

Either by agreement or by performance

What are some examples of how an express appointment contract may be ended?

The landlord and agent agreeing to end the relationship usually in writing with either party giving notice to the other

Alternatively once a tenant has been found and the tenancy agreement finalised, the contract between the agent and the landlord to find a tenant will end