In the world of real estate, the role of the managing agent is
growing. As investment in various types of property increases, so
does the need for property management. The type of properties that
are managed might range from buy-to-let bedsits, to agricultural or
industrial estates. The aim of this article is to focus on a few
areas where claims may be brought against managing agents, and
identify how such claims might be avoided.
In this article we focus on claims against managing agents where
there is a contractual nexus between the parties, but agents should
be aware that the Courts are willing to find that duties are owed
to third parties in the absence of a contractual relationship.
Hines v King Sturge (2010) is a case in point, where the
Scottish Courts allowed a claim against managing agents to proceed
to proof on the merits despite there being no contractual
relationship between the claimant tenant and the agents. Agents
should not, therefore, assume that