Cancelling a contract and CPA

[stixx]

Hi all,

I am in the process of cancelling my contract with an estate agent (I am the owner of the property and they manage it for me). I am doing this as I find their service to be really pathetic to the point where it will be more beneficial that I manage the property myself.

They want to charge me the total outstanding commission as the penalty fee, which I dont believe is fair. The agreement ends in April next year.

Is there a cap on the penalty fee that can be charged? Is charging the the whole outstanding amount fair? Thanks for the input.

 

[rrh]

What does the contract say ?

Unless there is a material breach of the contract's terms you cannot simply cancel a legal contract 'cos you are unhappy.

 

[Drunkard #1]

Hi all,

I am in the process of cancelling my contract with an estate agent (I am the owner of the property and they manage it for me). I am doing this as I find their service to be really pathetic to the point where it will be more beneficial that I manage the property myself.

They want to charge me the total outstanding commission as the penalty fee, which I dont believe is fair. The agreement ends in April next year.

Is there a cap on the penalty fee that can be charged? Is charging the the whole outstanding amount fair? Thanks for the input.

You can legally cancel at any point as per the requirements of the CPA. They cannot charge you the total commission as a penalty fee, however the penalty fees regulations are vague. Offer them 10% and tell them to take you to court if they think they can do better. Include a copy of the regulations and a threat to report them to the NCC for breaching them.