the estate agent has me so confused...

[mamateur]

We are 5 months into a 12 month contract with no break clause and we need to break the contract (have acquired a new child!). LL is sympathetic and has just said we need to find new tenants and ensure he doesn't incur any extra costs. He wants us to relet for 12 months and he will pay the fraction of the estate agent's commission for the months after our contract's natural expiry. We will pay the part corresponding to the months we should have stayed.

Soo, instead of letting through the agents we got the flat through, we used a cheaper agency I've used before that charges 7% instead of 10%. LL copied in on all emails, absolutely fine.

Not many viewings, so thought we should also put it on with the 'big' agency we rented it through (they have photos). If we let through them it's much more expensive for us, 10% plus £270 fees (£0 via the other agency). I contacted the LL and he said, if we're sure we want to use them, as not the cheapest, then fine with him, he gave them an instruction.

We found tenants through the cheap agency. But then the big agency started calling us and putting us under pressure to let through them. And this is the bit I cannot for the life of me understand:

I said if we relet they should give us a discount because they have already received fees for 12 months, so if they relet the property 5 months in, for 12 months, they shouldn't charge full rate for the 7 overlap months. They said they aren't doing this, and that they are returning that commission to the LL (if we relet through them). So if they are returning that commission, then we don't need to pay it do we? But they are charging us (I think) 10% commission for each of the seven months we have broken on our contract. I just can't make sense of it.

Can anyone help? I'm going to call them tomorrow.

EAs typically take their commission up front on a contract so they will have taken it from your first two month's rent. Get them to put it in writing that they are going to return the 7 months proportion of the commission to the LL and then contact him to make sure that this is the case. As far as the LL knows, he has been charged the full year's commission, he may not be aware that they will be returning any of it (and I'm surprised that they are too). If returning it hinges upon this agency getting the instruction to relet then, go with them, otherwise choose whoever can get someone in the quickest.

Hmm, difficult one. They have presumably taken 10% commission on a year's rental from your LL (as they're returning it) so yes, I think you're liable for the 7 months commission outstanding, as per your agreement with the LL. If they don't return it to your LL, you should pay him instead. The agency has a contract that if they let the flat for a year, they're due 10% of the rent; and they did let for a year, so they're entitled to the commission whether you stay there or not. If you want to break the contract early, that's your problem.

(Technically, the landlord is entitled to the full year's rent from you, so 10% and he allows you to go is actually a good deal.)

But you don't have to pay anything else, as you've relet already through the cheaper agency. I don't see how it can be relevant whether you relet through them, or another agent.

It's incredibly complicated. We were expecting to pay 7 months commission, till the end of our date. Obviously LL has paid the full amount for a 12 month contract up front, so we said we would work out a 7 - 5 split, as it saved him the trouble of reletting sooner. He is happy wtih the cheaper agency obviously!

So the big agency contacted me to say the charge would be x per month for commission plus about 270 in charges plus a new inventory. I asked them if they were returning the 'unearned' commission to the LL and they said something very complicated which sounded like yes but I don't think it was. I said that meant they were collecting twice on the five months overlap and they said categorically they weren't. I just don't see how this is true. I'm going to call them again.

What confuses me is the big agency we rented through categorically state they are not charging twice for the overlap period. So why are they charging us the commission for the overlap months (i.e. the months remaining on our contract)? It sounds to me as if they're refunding the LL the 5 months on the proviso he relets through them for a further 12 months. In which case, no financial loss to the landlord should mean no need for us to pay the 252 per month in fees for every month we are not in the flat till the end of our contract.