Part 1: Agreement for an Energy Performance Certificate (EPC)
In accordance with the Energy Performance of buildings Regulations 2010, an EPC must be in place before any property can be rented out. Please highlight the most appropriate option for the property highlighted in this agreement:
- Upfront payment of £60 for an EPC to be carried out by an engineer appointed by Polecat Properties Ltd. (payment to be made by Cheque, cash or BACS)
- Property is currently exempt from an EPC
- An EPC already exists and is being supplied
Part 2: Sole Agency Agreement
For the first 12 weeks from the later of the date of the agent signing this agreement or the date which the property becomes available it is agreed the agent alone will be instructed to find a tenant i.e. sole agency. You will agree to have your property advertised with us for rental for a period of no less than 12 weeks. After this initial period has passed the notice period required to terminate the contract will be 28 days.
Part 3: Proof of Ownership
You must declare that you are the rightful owners of the above property. You declare that you are the only parties holding any ownership of the above property. You must give the agent the right to check the ownership of the property via the land registry.
Part 4: Mortgage Consent
You must declare that letting the property falls within the conditions stipulated by our mortgage provider. You must also agree to provide a letter exhibiting mortgage consent from the mortgage provider.
Part 5: Lease holder consent (only applicable if the tenure is leasehold)
You must declare that letting the property has been permitted by the owner of the freehold. You must also agree to provide a letter exhibiting lease consent from the freeholder.
In consideration of the agent agreeing to manage the property the agent shall provide the following services:-
- Rental advice and rental valuation of the property
- Advertising of the property of rental by whatever means the agent deems suitable and effective
- Assessing prospective tenants and arrange accompanied viewing of the property
- Arranging an inventory and schedule of condition of the property and those contents that are to be included within any tenancy
- Preparing tenancy document for signature by all relevant parties
- Execution of the legal documents including signing tenancy agreements on the landlord’s behalf as his dully authorised agent.
- Upon receipt of instructions from the landlord the agent might instruct a professional credit referencing company who will obtain references upon prospective tenants, the cost of which is borne by the landlord. If it is felt that the landlord would be better protected by the six months rent being paid initially in a lump sum by the tenant then the landlord will be advised. However because it will remain a monthly tenancy the rent will still be released on a normal monthly basis as and when due to the landlord.
- If the landlord terminates this agreement prior to the commencement of a tenancy but after Polecat Properties has secured a tenant then the landlord shall pay the agent a fee depending on the amount of work undertaken by the agent prior to such termination, subject always to a minimum charge of £95.00
- If the property is leasehold the landlord shall obtain consent of any superior landlord for freeholder for the letting of the property prior to the commencement of a tenancy. If there are clauses in any such superior lease which place obligations on any sub-tenant then the landlord undertakes to advice the agent so these may be drawn to the attention of any tenant. The landlord agrees to do this by drawing to the agent’s attention any such provisions contained in any superior lease.
- If the property is subject to mortgage the landlord shall obtain the consent of all mortgagees to let the property.
Tenant finding fee
Upon the commencement of this agreement for the letting of the property, the agent undertakes to market the property, find a suitable tenant and complete all necessary paperwork and in consideration thereof the landlord shall pay to the agent a one off fee of £240 including VAT. On terminating the agreement if the property has not been let then there are no fees to be paid. If Polecat Properties finds a tenant, takes a holding deposit for the landlord to then decide to not proceed with the rental agreement they will then be liable to pay Polecat Properties a cancellation fee of £95. The tenant finding fees and the management fees are mutually exclusive.
Upon the commencement of a tenancy of the property the agent undertakes to manage the property on the landlord’s behalf and in consideration thereof the landlord shall pay to the agent 8% of the gross rent collected for as long as any tenant or other occupier introduced to the landlord and/or the property by the agent at any earlier date has a legal obligation to pay rent under a tenancy agreement whether concluded by Polecat Properties or any other party. If at any time during such occupancy by such tenants the landlord wishes to transfer the management of the property to themselves or any other party this shall be on the basis of a fee being payable to Polecat Properties equivalent to six months management fees.
In exchange for the management fees the agent shall:-
- Check the tenants into the property at the beginning of the tenancy.
- Collect the rent and forward statement regularly with the release of rents collected to the landlord as and when they fall due.
- Inspect the property every six months or more frequently if required by mutual agreement.
- Handle tenant’s enquiries.
- Arrange for any repair work on behalf of the landlord when authorised by the landlord to do so or on using the discretion granted to the agent by the landlord in this contract in pursuance of protecting the property and landlord’s interest. Please note that where the cost of works exceed £500 there will be a 5% administration fee applied. See clause 12 below regarding provision of float for repairs.
- Have the discretion to carry out any emergency or urgent repair works up to maximum cost of £50 without prior reference to the landlord.
- Check the tenants out at the termination of the tenancy.
- Advise gas, electric and water board and council tax office as appropriate of any changes of tenants.
- Handle general accounts enquiries.
- Negotiate rent increases and tenancy extension / renewal with the same tenants.
- Locate new tenants if required in which case the property will be advertised as being available by whatever means the agent deems suitable and effective.
- Hold a property deposit insured by the mydeposits scheme. All terms and conditions can be found at www.mydeposits.co.uk
The landlord hereby certifies that the property, furniture, fixtures and effects to be included within the property during the tenancy comply with all of the following regulations and shall produce such documentation as might be necessary to prove same as and when requested to do so by the agent.
- General product safety regulations 1994
- Electrical equipment (Safety) Regulations 1994.
- Plugs and sockets etc (Safety) Regulations 1994.
- The furniture & Furnishings (Fire) (Safety) Regulations. 1988.
- The furniture & Furnishings (Amendment) Regulations 1993.
- The Gas safety (Installation and Use) Regulations 1998.
If any such documentation as required as mentioned above is not available, the landlord hereby authorises and requests the agent to take all necessary steps to obtain any such documentation in order to fulfil the landlord’s statutory obligations (including and amendment or addition thereto) and the landlord thereby agrees to protect and hold harmless the agent in respect of all expenses and charges incurred as a result of action taken in accordance with this clause.
Maintenance and Repairs
The landlord is under statutory obligations to maintain the fabric and structure of the building including the provision for the supply of all services, and space and water heating throughout the period of this agreement and the landlord hereby authorises and requests the agent to take all the necessary steps to fulfil the landlord’s statutory obligations (including any amendment or addition thereto) and the landlord hereby agrees to protect and hold harmless the agent is respect of all expenses and charges incurred as a result of action taken in accordance with this clause.
Polecat Properties will retain the first month’s rent, after the deductions for the management fee have been issued and this money shall remain in a float in order to cover the costs of repairs. Any money remaining in the float at the end of the tenancy will be returned to the landlord.
The landlord further agrees to protect and hold harmless the agent in respect of any monies the agent shall be required to return to a local authority in respect of Housing Benefit. It is also mutually agreed that in addition thereto the agent shall be entitled to such monies from the landlord following proof of payment being requested by the local authority. The landlord shall also be liable for any additional expenses the agent shall incur in respect of any failure or delay in payment of such monies by the landlord.
It is mutually agreed that each party shall have the right to terminate this agreement upon giving to the order 28 days notice in writing.
The agreement and any commission payments due under its item shall continue until the end of any tenancy, whether verbal or written and whether contractual, periodic or statutory periodic in nature, it will also continue where a tenant or any one of joint tenant or other parties occupying the property was introduced to the landlord and/or the property at any earlier date by the agent has a legal obligation to pay rent under a tenancy agreement whether concluded by Polecat properties or any other party. If at any time during such occupancy by such tenants the landlord wishes to transfer the management of the property to themselves or any other party this shall be on the basis of a fee being payable to Polecat properties equivalent to six months management fees.
Please note that there is a ‘cooling’ off period. Each party will be able to terminate this agreement up to 14 days after signing without incurring any liabilities.
In the event of the tenants falling into arrears with the rent or causing dilapidation or a nuisance of any kind, or being in breach of any other covenants contained in the tenancy agreement, there is no liability on the part of the agent to meet the cost of any damage, arrears or expenses that may occur including loss of rent for any period when the property may be empty for whatever reason.
In the event of the tenant becoming more than 32 days in arrears with the payment of rent or being in breach of any of the covenants contained within the tenancy agreement the agent may instruct specialist solicitor to serve the appropriate notice(s) upon the tenant at the cost applying at the time and the landlord hereby agrees to protect and hold harmless the agent in respect of those costs.
No interest shall be payable to the landlord in respect of any monies held by the agent of the landlord no matter what the source of such monies might or how long such monies are held.
If the agent fails to receive renewal instructions regarding the re-letting of the property then the agent shall be entitled to deal with property as it its discretion taking into account any information and preferences previously notified to the Agent by the landlord regarding the landlord’s likely future requirements.
Sale of the Property
In the event of the landlord agreeing to sell the property to a tenant introduced to the property at any earlier date by the agent or to any other party introduced to the landlord at any time by the agent the landlord hereby agrees to pay the agent 1% + VAT of the sale price upon completion of such transaction.
I / we hereby agree and understand if an immediate marketing authority has been completed and returned the agent in anticipation of the completion and return of this full contract, then such authority will be treated as an appendix to this contract. Any provisions contained in that authority will therefore be considered as forming part of the contract and will have application accordingly.
Where there are joint landlords signing this contract it is hereby agreed and understood that instructions given to the agent by any of said joint landlords, whether verbal or written, shall be accepted and acted upon by the agent as if such instructions have been given by all of joint landlords and liability for the agents fees and expenses shall be joint and several between all of the joint landlords.
By signing this contract I / we hereby confirm that all the information and undertakings given in regard to the above mentioned property is, to the best of my / our knowledge, complete and correct and that I / we hereby protect and hold harmless the agent against any subsequent claim arising as a result of any incomplete and / or incorrect information no matter how such error or misrepresentation may have occurred.
Whilst every effort is made to ensue that the landlord does not suffer any loss arising from the letting of the property cannot accept any liability for losses the landlord may sustain as a result of any act, omission or default on the part of the tenant or any contractor or third party introduced to the landlord by the agent.
The fees referred to above are administration fees only and the agent shall not as a result be liable to the landlord for any defect in the works undertaken.
Any inspections we carry out on your property will by definition be of a brief and visual nature and only readily apparent or obvious defects will be reported on. In effect our inspections of your property cannot in any way be regarded as a structural or any other form of survey requiring the expertise necessary to undertake such a survey. Whilst we will endeavour to ensure the accuracy of any written report they would be prepared for your sole benefit and will be restricted to observations arising from a visual inspection only. They will not amount to a warranty as to the state or condition of the property, and no liability can be accepted by Polecat Properties for failing to identify any matters or anticipate their consequences.
This agreement shall be governed by the prevailing laws for England and Wales and any legal proceedings arising from the terms set out herein shall be conducted within that jurisdiction. The landlord is also advised and acknowledges that from time to time under various statues and regulations the agent may be obliged to advise certain parties of their forwarding address.
The Consumer Protection (Distance Selling) Regulations 2000
The parties hereby declare that pursuant to regulation 8 (3) of the consumer protection (Distance Selling) regulations 2000 the right to cancel this landlord contract afforded to the landlord by the above regulations does not apply and accordingly there is no right on the part of the landlord to cancel this landlord contract once this document has been exchanged and completed between the parties.
Agency agreement terms and Conditions:
About this agreements:
- All negotiations for the lease of your property will be undertaken by us
- You will be contracted to use us as your agent for the initial period of 12 weeks after which time a notice period of 28 days will be required. However please not that you will have a “cooling off” period of 14 days in which to terminate the agreement after it has been signed.
- Marketing activity- the frequency of marketing and the portals used will be at our discretion and not stipulated by the landlord.
- Data protection act 1998: we will act as a data controller and will not give out your details unless it is for a service which we believe will benefit you, if you wish to opt out of receiving any promotional material please confirm in writing to Kate Lovering (data protection officer) 22a Wilton Road, Bexhill-on-sea, East Sussex. TN40 1HX.
- Boards- regulations state that only one agency board may be displayed at any one time outside a property. If this rule is breached large fines may be incurred by both the agent and.
- We are members of the property ombudsman scheme and abide by their code of practice. Occasionally we may need to release information about you and your property to them for compliance and monitoring. For more information please visit tpos.co.uk
- If any terms are declared unfair under the unfair terms in consumer contract regulations 1999 this does not render the remainder of the contract null and void.
Terms and Conditions for vendors
Terms and Conditions of Business
(In accordance with the Estate Agents Act 1979 and The Estate Agents (provision of information) Regulations 1991)
The agreement is for a minimum period of 3 months of marketing starting from the date this agreement was signed by the client. This agreement will then continue after the minimum period until terminated by notice under the termination of agency clause below (2). This agreement appoints the agent to market the property for sale on their terms set out below agreed between the parties. There is a 14 day cooling off period after the date the contract is signed. Either party can terminate the agreement during that 14 days without notice and without reason.
Commission of 1% (inclusive of VAT) of the selling price at which contracts are exchanged (including any part of the price attributable to contents such as curtains, carpets and any other fixtures and chattels where their sale is agreed by the agent) will be charged by the Agents. Based on the price referred to above and current level of VAT our fees will be:
£ + VAT of £ Total: £
Please note that should the final sale price be higher or lower than the asking price, our commission will be correspondingly higher or lower and is subject to a minimum fee of £750.
The Agent’s charges
The commission the client pays the agent is based on the total value of the transaction including the price of fixtures and fittings. The total value of the transaction will also include the value of any other non-cash consideration put forward by the buyer.
The amount charged will be either the percentage rate or the specified amount shown, subject to any minimum fee detailed above.
The agent may recommend additional marketing activity for the client’s property and will make a separate charge for this. The agent will not commit to any additional marketing without asking and agreeing such costs with the client first and in writing.
The client will be sent a separate invoice for any extra charges. The client must pay the invoice in full within 14 working days of the date on it. Unless stated otherwise the client must pay VAT on all charges.
Selling fees will be due upon completion of the sale. The responsibility for the payment of these fees remains with the client named herein. The agent will submit his account to the client’s solicitors/ licensed conveyancer who should settle the payment no later than 3 working days after the completion.
TYPE OF AGENCY
(a) Sole Agency
You will be liable to pay remuneration to the agent, in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the property are exchanged:
- With a purchaser introduced by the agent during the period of a sole agency, or
- With whom the agent had the negotiations about the property during that period, or
- With a purchaser introduced by another source during that period.
The sole agency agreement will continue until unconditional contracts have been exchanged for the sale of the property and completion taken place, or the expiry of 14 days written notice is given by either party to the other to terminate the agreement.
Termination of sole agency: Either party can terminate this agreement at any time after the initial 3 month period has lapsed by giving 14 days notice, which should be confirmed in writing. This agreement can be changed into a multiple agency agreement at any time from the moment of signing, including the initial 3 month period by giving 5 days notice, instruction to do so must be given in writing. Please note that the sale fee will be increased to the rate of 2% + VAT should you terminate the sole agency agreement, change to a multiple agency agreement and instruct other agents.
DOUBLE COMMISSION WARNING
If any other agent introduces a Buyer to the Seller during the period of the sole agency agreement, this will be regarded as an introduction by the Agent and the Seller will have to pay the Agent’s agreed fee, as well as the other agent.
(b) Private Buyers
There is no fee payable if the Seller finds their own Buyer. However, please note that a Buyer will be deemed as introduced by the Agent if a Buyer finds out that the property is for sale by seeing the Agent’s ‘For Sale’ board or any other form of advertising such as internet marketing or email notification that the property is for sale.
(c) Sub Agency Agreements
In circumstances where the Agents wish to enter into sub-agency agreements, the Seller must be notified in writing.
FOR SALE BOARDS
The Agents ask permission to erect display boards at the property to assist in the marketing of the property. Any such boards will comply with the Town and Country Planning (Control of Advertisements) Regulations 1987, as amended. The Seller consents that the Agents may erect a For Sale board at the property. The Agent accepts liability for any claim arising under these Regulations in connection with the board, unless the action arises as a result of a further board being put up by another agent.
No additional expenses will be charged by the Agents unless agreed with the Seller, in writing. Any agreement will include an itemised breakdown of costs.
The Agent will, promptly and accurately, forward all offers received from potential Buyers at any time up until contracts have been exchanged, unless the offer is of an amount or type which the Seller has specifically instructed the Agents, in writing, not to pass on. A written or computerised record of all offers received will be kept (including the date and time such offers were received and the client’s response). This record will be available to the Seller on request.
ACCESS TO PREMISES
If the Agent holds the keys to the property, the Agent must accompany any viewings of that property, unless the Agent and Seller agree otherwise in writing. If the Agent is arranging for someone to view an occupied property, the Agent must agree the arrangements with the occupier beforehand.
It is the agent’s usual practice to release the keys to certain professionals who require access, such as surveyors acting on behalf of purchasers. In order to avoid delaying the sale, once the agent has established their identity, they are permitted to inspect the property unaccompanied. Please advise the agent immediately if this is NOT acceptable to the client. The agent will continue to seek the client’s permission to allow unaccompanied visits by any other third parties such as trade people or representatives of any utility companies.
By law, the agent must tell the client if the Agent or any connected person intends to earn any commission from offering the client or a buyer other services. If the agent or any connected person earns money from any of these services the agent or connected person would keep this commission
The Estate Agents Act 1979 Under the Act, the Agent must disclose whether they have a personal interest in the property. To assist the agent to fulfil this obligation the client is asked to indicate any personal association with the agent of which the client is aware. If the client is, or thinks he may be, a close relative or a friend, or have any business interests with anyone involved with the agent, the client should let the agent know immediately. Does the Agent or estate agency have any personal interest in the property?
CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008
As the Property Misdescription act 1991 has been repealed as of October 2013, the agent must now adhere to the consumer protection from unfair trading regulations 2008. The Agent will take all reasonable steps to make sure that all statements, whether written or oral, about the property, are accurate and not misleading. The agent will take care not to omit any information that is important or would affect the sale or the value of the property. The written details (Sales Particulars) must be sent to the Seller for them to confirm that the details are accurate.
The client has the responsibility of ensuring all information given to the agent is factually correct and no omissions which could be relevant or impact on the sale are made. The client will promptly advise the agent in writing of any changes to the property which will affect the accuracy of any property details, plans or advertisements produced.
TOWN AND COUNTRY PLANNING
Unless specifically requested, no detailed investigations will be carried out to assess any enhanced value as a result of planning consent being granted for development or change of use in the future and therefore no responsibility will be accepted for this.
You are advised to have adequate insurance cover. The agent cannot accept any responsibility for general security, unlawful entry, vandalism, normal perils and any loss or damage to the property howsoever caused.
The Agent will not discriminate against any person under the definitions of the Sex Discrimination Act 1975 or the Race Relation Act 1976, the Equality act 2006 or the Equality act 2010.
The Agent will not discriminate, or threaten to discriminate against any prospective Buyer of the Seller’s property because that person refuses to agree that the Agent will (directly or indirectly) provide services to them.
Discrimination includes: Failing to tell the client of an offer to buy the property. Telling the client of an offer less quickly than other offers that have been received. Misrepresenting the nature of the offer or that of rival offers. Giving details of properties for sale first to those who have indicated they are prepared to let the Agent provide services to them. Making it a condition that the person wanting to buy the property must use any other service provided by the Agent or anyone else.
The agent is registered under the Data Protection act 1998
PROVISION OF AN EPC
Marketing a property cannot commence without a valid EPC. By signing this agreement the client has agreed to either order or provide a valid EPC for the property. The agent is able to organise an EPC on request by the client at an additional cost to the client of £72 (inclusive of VAT)
If the property is let to a tenant who we introduce, our letting commission will be £240 (inclusive of VAT) and payable to us on the commencement date of the lease or tenancy agreement.
Estate Agents are obliged under the Money Laundering Regulations 2003 and 2007 and the Proceeds of Crime act 2002 to confirm clients’ identity. Please provide 2 items of identification, normally passport or driving license with photograph and utility bill with your home address and postcode on it. These are required before marketing activities can commence.
Although this may involve some duplication, these regulations also apply to your solicitor who will be asking you for the same information.
CODE OF CONDUCT
The agent is a member of The Property Ombudsman Scheme (TPOS) and must follow the TPOS code of practice. The client agrees that the agent may give information about the sale of the client’s property to the Ombudsman, if the client has registered a complaint and he asks for that information. The client also agrees that the agent may give the client’s contact details to TPOS (if they ask for it) to help them monitor how the agent is following the code of practice. A copy of the code of practice and the consumer guide is available from www.tpos.co.uk. The agent confirms that it operates a complaints handling procedure, a copy of which is available on request.
THE RIGHT TO CANCEL THIS CONTRACT
You have the right to cancel this contract within 14 days of signing without giving any reason. The cancellation period will expire 14 days after the signing of this contract.
To exercise the right to cancel, you must inform us (Polecat Properties, 22a Wilton Road, Bexhill-on-sea, East Sussex. TN40 1HX, telephone: 01424217337, email firstname.lastname@example.org) of your decision to cancel this contract by clear statement, you may use the attached form but it is not mandatory.
To meet the cancellation deadline it is sufficient for you to send your communication concerning your exercise of right to cancel before the cancellation period has expired.