Usual Authority

What is Usual Authority?

Common law recognition that where a letting agent is appointed, people who deal with the agency will be able to rely on the agent having a certain amount of authority given by the landlord client

What is considered usual for letting and estate agents on behalf of their clients to do?

Describe properties on which they have received instructions to sell or let

Market the property to try and find a buyer or tenant

Receive offers to buy or rent property the agent is offering on behalf of the client

Pass the offers on to their client

Take their clients instructions about whether or not to accept the offer

What is not covered under usual authority under recognised under common law?

Clear that estate agents do not go beyond receiving offers and agreeing terms for a sale which is then reported to the buyers and sellers legal representative.

It is the legal representatives who conclude the contract between the parties

Does not go as far as signing the tenancy agreement on behalf of the landlord

What do professional bodies advise in regard to the signing of the tenancy agreement?

That letting agents ensure their landlord clients sign tenancy agreements

However it is not uncommon for letting agents to not only negotiate the tenancy agreement but to also sign the tenancy agreement on behalf of their client landlord

What is recommended to agents about the signing of tenancy agreements due to what is recognised as usual authority under common law?

That if they letting agent is signing a tenancy agreement on behalf of their landlord client that this is covered in the agents terms of business with the landlord

If an agent is signing on behalf of the landlord client what is it recommended they sign as ?

“Agent for the landlord” and that they make it clear that they are signing in the capacity of the agent or they may have personal liability

When will an agent be deemed to have authority as an agent of necessity?

When emergency situations arise where the landlords property is in danger and rapid decisions have to be made whether or not you have specific authority to act