Experienced landlords like to put some degree of certainty into their lettings by having renewal agreements signed weeks or months in advance, thereby guaranteeing the continuance of rental income beyond the current tenancy expiry date.
Tenancy Agreements
This article explores the legalities of this practice and considers whether either the landlord or tenant is able to back out of an onward signed tenancy if their needs or circumstances change. Portico estate agents actually have a good tenancy agreement template which you can purchase for £20. It allows for some customisation and can be signed electronically. Worth checking out if you don’t use a letting agent.
Signing tenancy agreements in advance has become standard custom and practice by most letting agents. Despite the fact that some landlords fear it may not be entirely legitimate and often express concern over this course of action – it is actually perfectly legal and acceptable, providing it is done carefully following the correct procedure and by applying a number of safeguards. Signing in advance provides both landlord and tenant with a number of advantages:
The landlord benefits by:
- Being certain of a new tenancy fixed period starting with pre-referenced tenants or, in the case of existing tenants, those that have already proved themselves reliable and trustworthy.
- Being confident of rental income continuing without interruption (no voids) – or in the case of new tenants, of rental income starting on a predefined future date.
- Maintaining full control over whether to enact the tenancy up to the tenancy start date (but see ‘Landlord signature’ below).
Tenants also gain because:
- Any negotiations over the rent amount for the fixed period are undertaken in advance, thus avoiding any discord at the penultimate moment of tenancy commencement.
- Other negotiations over the terms of tenancy can also be undertaken in advance, such as a change to the number or people involved in a group of joint tenants, thus settling what may otherwise become a last minute problem.
- They can be reassured that their tenancy is likely to begin (or continue in the case of existing tenants) as outlined in the tenancy agreement on a set date and at a predefined rent. With all other matters accomplished, the only remaining factor left unfinished is the concluding endorsement (signature) of the tenancy by the landlord.
Landlord signature
A tenancy is not legally binding on either the landlord or the tenant(s) unless all parties have signed the tenancy agreement and possession has been granted. Therefore, it is crucial the landlord withholds signing the agreement until the day tenancy is expected to start. This in effect allows the landlord to back-out of the tenancy up to the start date, but commits the tenants to the tenancy agreement – providing the landlord has obtained their signatures on the agreement in advance.
There are a number of actions that landlords should avoid, as these might infer a tenancy has begun and make backing-out of a forward agreement uncertain, even though the agreement itself may be incomplete and unsigned by the landlord. Landlords should not:
- Accept rent in advance of the tenancy start date.
- Hand over keys to the tenants in advance of the tenancy start date.
- Guarantee a tenancy by letter or through written statements, emails or in telephone conversations.
- Provide tenants with an option to back-out of the forward tenancy by obtaining signatures via the post, by email or any other medium that invites compliance with the Distance Selling Regulations (see below). Signatures should always be obtained in person and be verified by at least two documents to prove identity.
- Securing the responsibility of maintenance and tenancy cleaning at the end of lease is up to the tenant
In short, landlords should acquire the signatures of the tenant(s) on both the original and the counterpart tenancy agreement, which will commit them to the tenancy start date.
The tenancy will not be legally binding until the landlord signs the original, which should only be undertaken on the day tenancy is due to start and assuming the landlord is happy about proceeding. Once the landlord has signed the original, it should be handed to the tenants – along with keys for the property – in return for rent.
It is worth pointing out that although arranging to have someone witnesses the landlord and tenant(s) signatures is not a formal requirement, it is often advised as best practice, because it avoids uncertainty over who signed what and when should it ever be raised as a matter of contention in a court of law.
Distance selling
The Distance Selling Regulations 2000 (DSR) form a part of the mass amount of consumer protection law in the UK and are backed up by primary legislation under the European Communities Act of 1985.
Various early test cases have already confirmed the selling regulations apply to tenancy agreements and, in fact, the regulations themselves mention residential lettings – so landlords and letting agents that don’t undertake face-to-face tenancy agreement completion with their prospective tenants cannot avoid any repercussions.
The regulations only apply where the ‘contract’ or tenancy agreement has been totally undertaken and concluded ‘at a distance’, that is, by any means other than face-to-face.
Although meeting with the tenant(s) to conclude a tenancy agreement might avoid any interference by the DSR, the scenario invites uncertainty and landlords are in any event advised to verify the person(s) signing the agreement is in fact the person(s) named and referenced – and that can only be done with any assurance face-to-face.
In cases where the DSR apply, the tenants retain the right to cancel the agreement – which means landlords lose their control over the tenancy and relinquish the benefit of forward signing. It may be useful to know that the DSR can also apply to guarantors, if the landlord or letting agent never actually meet the guarantor in person.
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Daniel Peacock
Daniel,
thanks for this useful article. I am a bit puzzled by “A tenancy is not legally binding on either the landlord or the tenant(s) unless all parties have signed the tenancy agreement and possession has been granted.” and “but commits the tenants to the tenancy agreement –”.
I have signed a contract, the letting agency has asked me for the deposit and the rent and their fees. All paid.
A week after the payment, the landlord hasn’t signed the contract yet and I am a bit worry.
Am I entitled to cancel the contract and ask for the deposit and the first month of rent?
Or, because I have paid the rent on the letting agency request, the landlord is bound by the contract?
have you moved in to the property yet? Usually a landlord will only sign when the tenant moves in to the property so on the date that possession has been granted (ie you move in) the agreement then takes place (with or without signature). I wouldn’t panic unless you wanted to change your mind as whilst nothing has been ‘agreed’ in writing from both ends (although you have done your bit) you may be able to get back your deposit and rent if you do not move in to the property. I would however check your agreement with the letting agent as there may be some smallprint that is separate to the tenancy agreement that states anything you pay the agent may not be paid back if you fail to continue with your progression on the property? If you want to stay their shouldn’t be anything to worry about and you will get your money back if the worst happens, if you want to go then always check what you have agreed to in writing before you make your decision as it may cost you if you don’t pursue with the new rental.
Not moved in yet, accordint to a layer, despite what they say a tenancy agreement that hasn’t been signed can be valid, in fact a person can still have a legally binding tenancy, even if there’s nothing in writing. What’s important are the intentions and conduct of both parties.
If the landlord/agent has offered me a property and I have agreed a date for when the tenancy starts and how much rent I would be paying (which I have paid already), this would create a legally binding agreement
I’m afraid if terms have been agreed then it would create a legally binding agreement even if this has not been agreed. As mentioned above, in housing law there isn’t a legal requirement for renters to have an agreement in writing because a tenancy is defined by it’s actions and intentions rather than what is written on paper.
The Agency provided me with incorrect and false information during the negotiation of the rent. So should not be diffciult to have a full refund of any Agency fee and claim some compensation.
Cheers
How can one give a month’s notice on a current flat if a contract on a new flat can’t be signed until the day of the new tenancy? That is very insecure should the new landlord change hi so mins. What is the legal position please?
I swap my housing association to a council house. I signed the contract 3 days before the start of the tenancy agreement. On the day that i signed the contract i moved some of my things to the house that i swap same as the person who will move in my house. This is a mutual arrangement to make our move more convenient. But on the day i moved some of my things i discovered some issues that during my viewing the lady who i swap with did not tell me or show me this problem. So i decided to cancel my contract. Do i have the right to cancel the contract? Please help me solve my problem. I dont want to move anymore to the council house and i want to keep my housing association flat.
How did you get on I’m in the same situation would really appreciate any feed back thanks
Didn’t quite understand the above statement. I’m just wondering if my tenancy agreement is void? If only one copy of the contract has been signed by the landlord and the other two tenants? But the other copy has only been signed by the landlord and not the tenants? So is the contract void if both have not been signed by all three parties? Thank you
I had attempted to get a signed Assured shorthold tenancy with my current occupant which has still not been done. He moved in in November and and is now short of £100 in arrears. He also did not complete paying his deposit until the 1st of Feb – should I claim that they are not binding and evict him without raising a Section 21 and by the 1st of March Section 8
Me and my sons signed a tenancy agreement at the letting agents who had already signed the contract as the flat was going to be Managed by the Agent. We signed the contracts on Friday and the move in date was the nezt day Saturday 12noon. Agent had done all checks, IDs and all deposits and rents had been paid. That afternoon we got a call from Agent saying Landlord had had some financial issues and need to sell the property and was unable to rent to us! Our Van was ready and we were packed. Now Homeless. Agent done NOTHING to assist us with any kind of accommodation. On the Monday after the weekend we were to move to house i drove past and saw new Agents had put up letting and Sale boards. One year later the property is NOT sold and is rented to someone else. Can i sue the letting Agents for leaving me and my son’s homeless? The agent said the Tenancy Agreement was not legal as not executed yet all parties had signed it my son forgot to take a copy as he was last to sign after work.
I’ve just moved into a room in a shared house today. I signed the contract and when my housemates came in i found out they’re breaking the contract by doing drugs in the living room. I really dislike it and would like to withdraw the contract. The landlord hasn’t signed it yet. Do you think it will be possible for me to leave and get my money back? I’ve only been here a few hours.
Advise please, student let tenancy agreed in Feb, took an age for all parties to sign including guarantors & witnesses as it was electronic and only went to the next person once signed by the previous person. Each of the 5 tenants needed witnesses and each guarantors needed witnesses. It was noted that the wrong tenancy agreement was being signed half way through & letting agent agreed to send another, no bills included as apposed to bills inc, but needed this signing to appease the owner or lose house. The other tenants then changed their minds and this has now snowballed to the point i dont want to move in due to abusive communications. The agent has repeatedly washed his hands of the situation and ignores requests to send a fully signed agreement, no doubt as the landlord hasnt signed yet? Due to move next week, any advise greatly appreciated.
Advice please, I’ve not signed a tenacy agreement yet, (due to on tuesday) but I’ve paid 5 weeks deposit & £300 deposit, all on Friday if I pull out will.i get my money back?
I’ve signed a tenancy agreement and moved in today
We viewed the house when the old tenant was still in it
Although we haven’t found anything that would be classed as dangerous as yet we feel it is substandard and a lot of faults
Can we leave and claim our bond back, we also paid a month in advance
My son rented apartment near UC Berkeley. His current lease doesn’t end till May. He is planning to continue the rental for next year as well. His landlord requires him to sign the agreement now (in March), paying the security deposit again and first month rent in cashier’s check or money order even though the new rental doesn’t start until June 1. Is that legal?
Hi,
We have got a tenant agreed on our property from January. The tenant was made aware that the property will not be available till 17th March due to the works the tenant wanted us to carry out.
Tenant paid rent in advance and Deposit and hadn’t signed online Tenancy agreement till they came to pick the keys on the 17th of March at which point other family members registered displeasure at the distance to their current home (And look for all other faults with the property which were all addressed as well as a rent free period granted) Where does the landlord stand in relation to the tenancy and monies paid?
Hi my daughter and 5 friends paid a holding deposit and signed a tenancy agreement for a house in Ealing 17th June 2020 and were planning to move in on 28th August.
The letting agent now says that the Landlord has changed their mind and wishes to sell the property. Is he allowed to do this?
Hi I signed a tenancy agreement online electronically and the land lord signed it aswell then to be told I haven’t got the property after I payed the fees do I have any rights to the property still as we both signed it electronically because obviously with the COVID your not aloud a face to face
Hi Daniel,
Thanks for your report.
I am currently in a situation with my my landlord that has been – to put in nicest terms – hell!
Both my partner and myself signed the tenancy agreement on the day of moving into the property, collected the keys, all was well we thought!
As soon as we arrived at the property to start unloading, it was evident from the start, personal belongings were still very obvious in the house – beds, towels, clothing and even tooth brushes!
In addition to this, so many faults with the house in terms of maintenance, I cannot go into.
The letting agent arranged for these belongings to be removed, although all outstanding maintenance issues have not been resolved, and this is now 2 months into a 6 month agreement.
It has now become evident upon reading our version of the contract – which was photocopied and given to us – that the landord/agent has not signed the agreement.
where do we stand with having this contract terminated?
thanks in advance
Lisa
Hi Lisa, your tenancy has clearly begun as you’ve paid rent to your letting agent but the fact that it is not signed might give you some reasoning with the letting agent to cancel early, you may also be able to use some other ‘motives’ written into your contract which hasn’t been adhered to by the landlord or agent, my question is how soon can you move out? For example, If you could cancel today, could you leave tomorrow? Or would you need 30 days to find somewhere new, a further 30 days to move in etc, by which time you’re approaching five of your six months so weigh up if it’s worth it. If anything, I would depending on your personal situation, get in touch with your letting agent, let them know you are not happy with a detailed list of things you are not happy about (ie repairs) and mention anything in the contract that is not up to date. It might be that a little persuasion (try not to be nasty) will get them either working for you, or at least acknowledged that you want to leave with immediate effect by using either a contract break clause or by negotiating a surrender to your landlord. If taking the latter option it would be advisable to do so on the basis that the property is in desperate state of repair.
if you don’t like go somewhere else. also, before you buy anything you check, why is property any different. you had a chance to inspect everything before you paid and signed. so stop complaining and do you time and go somewhere else. maybe someone else may appreciate the property more then you. ungrateful. no one forced you to take it. yes I AM A LL
Hey, so here’s the situation. The tenancy agreement has been signed by 2 of the 3 tenants. The tenancy started in November and everyone has been paying rent. The tenant who hasn’t signed has decided she wants to move giving very short notice. How will this effect the remaining 2 tenants and is there anything that can protect them?
Please Help x
After recently viewing a rental property, after paying a holding deposit, I processed my tenant application via online portal for my referencing & checks. This was passed and 2 days ago I digitally signed a 6 month draft tenancy agreement via the same portal and the move in date agreed for in 10 days time. (NB I have not yet received a copy of the draft ), a link was then generated for me to pay the move in monies £1400 dep & rent. My step mum recently diagnosed with cancer has become ill very quickly and my dad wants me & the children to move in with them to help with care and support and make memories. This is out of the area and of course I’m going to go, but where does this leave me regarding the tenancy. I have not yet spoken to the agents and wanted to seek some clarity on where I legally stand before I do. I have just tried to get a copy of the digital agreement via the good lord portal but there is nothing available except a status showing as in progress ???
I would be super grateful of any advise x
I would speak with the letting agent and let them know of your situation, as you have now entered a legally binding contract you could be liable to pay the six months of your tenancy unless you liaise with them and ask for the landlord to agree and break the contract? They may or may not be forgiving, some compromise might be needed, ie you may need to be prepared to lose your deposit by failing to keep to the contract agreed, but certainly talking with the letting agent to see where they and the landlord are on the matter would be your best start. Usually if your tenancy agreement doesn’t have a break clause (you will need to check this with the letting agent), your landlord can only agree to ending your tenancy upon your request, so through the letting agent you will have to request that the landlord agrees to your reason to pulling out. For more information should your landlord refuse your request you may need to contact citizens advice https://www.citizensadvice.org.uk/housing/renting-privately/ending-your-tenancy/ending-your-tenancy/
Is it legal on a rental contract like it has 09-01-2022 to 08-31-2022?
Hi I have a friend who was made ro sign the tenancy agreement by the housing association before they were aloud to look at the premises, they ask the usual questions I.e issues with the area, any antisocial behaviour issues ect and was told No it nice and all OK.
So she signed and then upon looking at the premises found out the whole block of flats is a drug haven lots of issues with people using the flats communal areas as and when they like lots of issues with antisocial behaviour which the housing officer has the police involved. What can she do to viod this contract as she really feels she was tricked into signing it. Thanks any advice would be great