Loughran v Piney Rentals Ltd & Anor [2017] NICty 1 (21 December 2017)

Loughran v Piney Rentals Ltd & Anor [2017] NICty 1 (21 December 2017)

The administration fee paid by the tenant was a stipulation imposed by the tenancy agreement requiring payment towards the letting agent's commission for services provided to the landlord in letting the property. Such a stipulation is void under Article 3(1) of the Commission on Disposal of Lands (Northern Ireland) Order 1986, and the fee is recoverable by the tenant.

Citation
[2017] NICty 1
Parties
Plaintiff: Paul Loughran; First Defendant: Piney Rentals Limited; Second Defendant: F5 Property Limited
Jurisdiction
Northern Ireland
Judgment Date
21 December 2017
Procedural Posture
Civil Bill / Judgment After Hearing; Proceedings Against F5 Property Limited Stayed by Consent
Outcome
Judgment for the plaintiff against Piney Rentals Limited; administration fee recoverable.
Legal Topics
Letting Agent Fees, Recovery of Void Payments, Interpretation of Statutory Commission, Agency Relationships
Landlord and Tenant Contract Law Agency Law Letting Agent Fees Recovery of Void Payments Interpretation of Statutory Commission Agency Relationships

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Parties

Paul Loughran

Plaintiff

Piney Rentals Limited

First Defendant

F5 Property Limited

Second Defendant

Procedural Posture

Civil Bill / Judgment After Hearing; Proceedings Against F5 Property Limited Stayed by Consent

Legal Issues

  1. 1 Whether administration fee paid by tenant to letting agent is recoverable under Article 3(1) of the Commission on Disposal of Lands (Northern Ireland) Order 1986
  2. 2 Whether clause 11 of the tenancy agreement constitutes a void stipulation under the Order
  3. 3 Whether the administration fee constitutes commission within the meaning of the Order

Ratio Decidendi

The administration fee paid by the tenant was a stipulation imposed by the tenancy agreement requiring payment towards the letting agent's commission for services provided to the landlord in letting the property. Such a stipulation is void under Article 3(1) of the Commission on Disposal of Lands (Northern Ireland) Order 1986, and the fee is recoverable by the tenant.

Court Disposition

Judgment for the plaintiff against Piney Rentals Limited; administration fee recoverable.

Orders

  • Piney Rentals Limited to return £30 administration fee to Paul Loughran