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What is let, or let agreed?
Let agreed is the term used when a tenant and landlord are proceeding with the process of checks, referencing and paperwork that takes place before progressing to the signing of the tenancy agreement. Here at Howsy, we aim to turn this information round in between three to five working days, so it isn’t too long to wait.
During this period both parties have committed to proceeding with the agreement, but no legal documents have been signed, so there is no legal come back if it doesn’t go ahead for any reason.
However, it is generally agreed that neither party will be exploring other options (landlords usually won’t be showing the property to other prospective tenants, and tenants are usually committed to this property) whilst this stage moves on.
Can let agreed fall through?
Let agreed can fall though, and there may be a couple of reasons that this could happen.
From a tenant’s point of view, they may decide that the property is not for them, or they may not pass referencing checks. The landlord may choose to explore options with another potential tenant, or to hold off letting the property immediately. Whilst frustrating, until a tenancy agreement has been signed, neither party has any legal recourse if this happens.
Is a tenancy application form legally binding?
No, a tenancy application form is simply a method of supplying data to an agent or landlord to process an application. All data will be held in the correct way as per GDPR, but supplying it does not give any rights to the property.
When does a tenancy agreement become legally binding?
A tenancy agreement becomes legally binding as soon as it is signed by all relevant parties – the landlord/s, and all tenants. There are certain elements that it is vital that a tenancy agreement should include, such as:
- The names of the tenant/s
- The names and contact details of the landlord/s (or UK representative)
- Full address of the property being let
- The start date of the tenancy
- The length of the tenancy
- The rent payable
- The date rent is due
- Details of the deposit protection scheme
Unlike some contracts, there is no cooling off period with tenancy agreements. As soon as all parties have signed the document, it is legally binding and all parties have agreed to comply with the contents.
Your tenancy agreement is the legal document that keeps you and your tenants safe as you enter into the tenancy. Make sure you are using a document that is watertight.
Can a tenant or landlord change their mind before signing a tenancy agreement?
Yes, until all signatures are on the tenancy agreement, there is no legal binding contract.
However, when a tenant has undergone referencing and details have been finalised, it is not great practice to pull out of an agreement, so it is best to voice any concerns early if you have any doubts.
Is an unwritten tenancy agreement enforceable in court?
It is possible to enter into a tenancy agreement without a written contract, but this is a VERY BAD IDEA!
A verbal agreement is a form of contract, however if the agreement hasn’t been written down in any way, there is no evidence from either party of the terms which were agreed on. This leaves both landlord and tenant in a very vulnerable position should the tenancy ever need to be ended, or the tenancy ends up in court.
It will be nigh on impossible to prove what was agreed, so a judge will have to draw conclusions on any disagreements based on evidence available. It is unlikely that you will have gathered evidence over the course of a tenancy, so any case is likely to be fairly weak.
Does let agreed mean a property is no longer available?
A let agreed property is still theoretically be available, but it does usually mean that there is a tenant undergoing checks with a view to take on the property.
If you are a tenant looking to find your perfect property, and you fall in love with a ‘let agreed’ home, don’t stop your search on the off chance – there may be a slim hope that the property will become available, however you don’t want to hang your hopes on this!