Estate agents are increasingly looking to the fine print of contracts to get their money from property owners, and have drawn first blood in their High Court battle with the Office of Fair Trading (OFT) over the extent of these commission agreements.

The battle centres on terms and conditions used by Foxtons estate agents for rental properties. Foxtons charges landlords a fee where it finds a tenant for a landlord in the usual way, but it also receives extra commission at the end of the tenancy if the landlord grants a new tenancy to the same tenant. Landlords complained, and in February the OFT issued a claim alleging that the terms were contrary to the Unfair Terms in Consumer Contracts Regulations 1999. However, at a recent preliminary hearing, Mr Justice Morgan refused a temporary injunction to stop the agent from using the disputed agreements for the time being; the full trial will take place next year.

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