Whether you’re a tenant or a landlord, if you’ve been daft enough to enter into a situation where a property is being rented out without a written tenancy arrangement specifying the terms and conditions of the tenancy, you’ve ultimately created a verbal/oral tenancy agreement.
While a verbal tenancy agreement isn’t particularly safe or smart for either landlord or tenant, it’s important to understand that it is still a legally binding contract, and both tenant and landlord still have statutory rights protecting them.
Earlier today I received a phone call from a disgruntled friend; her landlord has requested for her to vacate the property by Saturday (4 days away), due to a disagreement with the rent (I’ll spare you from the dreary details, because it’s not the point of this blog post). Bear in mind, there are several months left of the tenancy, so the landlord is trying to terminate the tenancy during the fixed-term.
She was in a panic because finding a reasonably priced property to rent in the current climate, in London, within 4 days is a tall order to say the least. She then explained how she didn’t have a written tenancy contract. Naturally, her fear was that the lack of paperwork left her with very little rights, if any at all.
I was pleased to tell her… WRONG!!!
Table of contents
- What happens if I don’t have a tenancy agreement?
- What are my legal rights without a written tenancy agreement?
- How/when Is a verbal tenancy agreement created?
- Can my landlord evict me without written contract/tenancy agreement?
- Why verbal tenancy agreements are not advised
- How to create a written tenancy agreement contract
What happens if I don’t have a tenancy agreement? (i.e. is a ‘verbal contract’ binding by law?)
Simply, a verbal agreement is as legally binding as a written Tenancy Agreement (however, I would never advise to enter any agreement without a written contract).
As soon as a landlord allows a tenant access into the property and accepts rental payment, a verbal contract is formed. So this whole, “get out of my property within 3 days” crap won’t fly, or at least, it’s not legally enforceable.
What are my legal rights without a written tenancy agreement?
The fact a landlord and tenant does not have a written tenancy agreement does not affect either of their statutory legal rights. Both parties are still protected by statutory/common law.
A tenant without a written contract is still entitled to all the statutory rights a regular tenant with a contract is, including water, heating, a safe environment etc. In a similar vein, the tenant is still obligated to pay rent on time and take reasonable care of the property.
How/when is a verbal tenancy agreement created?
A verbal tenancy agreement is created when the following three actions take place:
- An offer
- An acceptance of offer
- Payment (known as the legal term ‘consideration’)
If the above has happened, then with or without a written tenancy agreement, a legally binding tenancy agreement has been created.
There are other elements to consider:
- Both parties must agree to be legally tied to the agreement
- Both parties are capable of making an agreement i.e. not under the age of 18, drunk or insane.
- Both parties must be acting freely and not under duress
- The contract being made cannot be contrary to law
In short, yes. Since a verbal contract is legally binding and creates a legitimate tenancy agreement, the statutory rights of both landlord and tenants as per the Housing Act apply, which includes the right for landlords to repossess their property. To terminate ANY tenancy agreement, the correct and proper legal procedures must be followed. In my friend’s case, she can’t simply be told to leave with 4 days notice in the middle of the agreed fixed term just because there is no written tenancy agreement. Although, it does make it slightly difficult to prove when the agreed end-date of the tenancy is. In any case, during the fixed-term, tenant’s are entitled to at least 2 months notice period (that’s a statutory right), which must be served with a Section 21 notice. The only way my friend, or any other tenant, can be ‘forced’ out of a tenancy agreement during the fixed-term is if the landlord has grounds for eviction (e.g. rent arrears), in which case a Section 8 notice must be served to the tenant. If you want to shuffle through all the ways a tenancy can be terminated, whether you have a written or verbal agreement, here’s a list of ways to properly terminate a tenancy agreement. If you’re a landlord wanting assistance with evicting a tenant and you don’t have a written tenancy agreement, you can hop over here to get some free landlord legal advice. No strings attached. Even though “verbal agreements” are legally binding, it is still advised to always have a written tenancy agreement. Firstly, and quite frankly, a landlord or tenant that doesn’t have a written contract is an utter shit-for-brains. Pardon my French. But I sincerely mean it. Written contracts are there to protect both landlord and tenant. I would question any tenant or landlord that proceeds with a tenancy without a written contract. In my opinion, it triggers alarm bells. Secondly, a written tenancy is created to avoid misinterpretation as well as agreeing to the key points in the tenancy. By having a well-constructed tenancy agreement, which outlines the tenant and landlords’ responsibilities, everyone knows where they stand and what is expected, and any disputes further down the line would be avoided. Putting a written tenancy agreement in place couldn’t be easier. You don’t have to draft one yourself, and you don’t need an expensive solicitor either (despite popular belief), there are already plenty of resources available at your disposal. There are hundreds of websites online that offer Tenancy Agreement templates– you just need to download one and fill it in like a regular form. However, it is important to ensure you source your Tenancy Agreement from a reputable vendor, as there are plenty out there that have either been butchered with unlawful clauses and/or are simply out-dated. There’s a range of Tenancy Agreements available to purchase from this website for £4.99, which have been created by specialist Solicitors. They can be reused as many times as you wish. However, if you wish to source your tenancy agreement from elsewhere, I recommend having a glimpse at the Good Tenancy Agreement Guide. For more details on tenancy contracts, you may want to head over to the Tenancy Agreement blog post. Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.How to end / terminate a tenancy without a written contract
Why verbal tenancy agreements are not advised
How to create a written tenancy agreement contract
I have received a section21 notice to vacate the property i have rented for 25 years because the owner wishes to sell.
My question is, in October 2015 i was charged £120 for an AST but was never sent a copy or was asked to sign it, so as i have not read the terms until Dec 2016 when i insisted the agent for the owner send me my copy.
I now have a copy that was emailed to me which, as far as i am concerned could of been drawn up just because i asked for it .
I have asked for the AST on 3 other occasions in the last year.
My question is, is the AST legal as the owner is not the same as the name on the land registry?
Thanks