T & C

Terms & Conditions

Mayfair Estate Agent Limited is hereinafter referred to as “we”, “us” or “our”. Payment by you for any of the services offered by Landlord us is deemed acceptance by you that you have read and understood our terms and conditions and that you fully understand and accept them.

PRIOR TO LETTING

– You must ensure that the Premises are fit to be let. Appliances should comply with the safety regulations detailed later in the General Terms & Conditions of this Agreement.

All machines, gas appliances and electrical goods should be in full working order, should have been recently serviced, checked for safety and have clear instructions for use. Properties should be thoroughly cleaned and gardens, if applicable, should be in good seasonal condition, details of which should be shown on the check-in report of the Inventory and Schedule of Condition.

MARKETING

– We will market your Premises to inform suitable applicants of the availability of your Premises by erecting a To-Let board at the Premises and by advertising in leading websites and associated property portals as we see fit. Please notify us in writing if you have previously agreed not to erect a To-Let Board with the Freeholder or other interested party, or local bye-laws or conservation area restrictions prevent the erection of a Board.

VIEWINGS

– As and when we have applicants interested in viewing your Premises, we will either accompany these people to your Premises with keys provided by you, or arrange a mutually convenient appointment for them and us to meet you at the Premises.

TENANT REFERENCES

– When an applicant shows an interest in your Premises, we will:

(a) Provide them with a draft sample Tenancy Agreement (see clause 7 below); and then

(b) Take up references upon each applicant whenever possible.

Wherever possible we will obtain a credit reference report via a professional referencing company checking their financial standing, including income, contact the previous landlord (if appropriate). A copy of this report is available if requested by the landlord. Unless the Landlord makes a specific request to make his or her own decision on whether the references are acceptable the agent will make a decision on the Landlords behalf as to whether the references will be acceptable. We will proceed with the letting, provided that we have received a signed copy of this Agreement and the necessary funds. When we proceed we will be doing so without any responsibility for the accuracy of those references or the information contained in them, unless it is due to our negligence or breach of contract. We will not be warranting the Tenant as suitable. We are not liable for any references or lack of references from the credit reference agency unless it is due to our negligence or breach of contract.

INVENTORIES

– An Inventory and Schedule of Condition is essential for the proper management of your Premises, whether they are let furnished or unfurnished, to reduce the risk of a dispute arising in respect of the security Deposit (“Deposit”). Inventories should, where applicable, show that furnishings and electrical equipment comply with current legislation. If you do not have an Inventory and Schedule of Condition you will not be able to prove the condition of the Premises at the start of the tenancy and may not be able to obtain compensation from the Tenant either through any Tenancy Deposit Protection Scheme or through the County Court. We have no liability for any loss suffered if you do not have a fully comprehensive inventory.

We do not employ inventory clerks. We can however, upon request, supply you with a list of established firms for you to instruct or we can instruct an inventory clerk on your behalf. There will be a charge depending on the size of your Premises in addition to the cost of the Check-in Inventory and Schedule of Condition if we arrange for an inventory clerk on your behalf. You will be responsible for payment of their fee. Charges made by the inventory clerk will be based upon the time taken to prepare the Inventory and Schedule of Condition and the time taken to check the Tenant into the Premises. We cannot accept any liability for errors or omissions on their part unless it is due to our negligence or breach of contract.

If you are preparing the inventory we must receive it from you at least 7 days prior to commencement of the Tenancy. Otherwise we will instruct an inventory clerk to compile a check-in Inventory and Schedule of Condition on your behalf and at your expense. A check-out report of the Inventory and Schedule of Condition will be carried out at the end of the Tenancy. Our tenancy agreement makes it clear that the Tenant will pay for the cost of compiling the check-out report.

Our standard Tenancy Agreement provides that the Tenant will pay for an independent inventory clerk to determine whether or not there is any damage, or compensation for breach of the tenancy, or cleaning needed taking into account the check-in report of the Inventory and Schedule of Condition. A copy of the check-out report will be sent to both you and the Tenant where necessary or requested.

If you do not have an Inventory and Schedule of Condition or have an inadequate document then you may not have proof of any damage caused by the Tenant and may not receive any compensation. We have no liability for any loss suffered if you fail to take our advice.

TENANCY AGREEMENT

– You will need a comprehensive Tenancy Agreement setting out the rights and obligations of both parties. Where the Tenant is an individual you will also need to take into account the Unfair Terms in Consumer Contract Regulations 1999 and guidelines prepared by the Office of Fair Trading which states that any clause in a contract which is unfair to the Tenant could be void and therefore unenforceable.

We can provide you with a comprehensive Tenancy Agreement. If you wish to use a tenancy agreement drafted by your own solicitor, please supply us with a draft at least two weeks before the tenancy is due to commence. There will be an additional administration fee of £75 plus VAT for reviewing and making ourselves familiar with your Tenancy Agreement. If extensive amendments are made by you or your solicitor to our standard tenancy agreement there will be a charge of £75 for making the alterations.

Assured Shorthold If the applicant is an individual and the net rent is £100,000 per year or less we will use an Assured Shorthold Tenancy Agreement. There is no longer a minimum period for such lettings. However, if the Tenant fails to surrender possession at the expiry of the term (and in accordance with a statutory Notice under Section 21 of the Housing Act 1988) you will need a possession order from the County Court. No such order can expire within the first 6 months of a Tenancy commencing unless the Tenant is in breach of the tenancy.

Non Housing Act tenancy If the net rent payable is more than £100,000 per year or at a proportionate level for a shorter tenancy, The Tenancy Agreement cannot be an Assured Shorthold Tenancy. You will need to use a Common Law Agreement outside the protection of the Housing Act 1988. Although this is not governed by the Housing Act 1988 it is nevertheless subject to other statutory regulation (e.g. Protection from Eviction Act 1977) which means you must obtain a possession order from the County Court before a Tenant can be evicted.

“Company” Lets This is a tenancy outside the protection of the Housing Act 1988 and is subject to common law. Generally speaking these involve more pre-contractual negotiation. There are no rent restrictions. Many corporate Tenants request an option to renew. You should be aware that if this is granted the Tenant will have the legal right to renew if they are not breach of The Tenancy Agreement. You will not be able to give notice or have a break clause that can be used any earlier than the final year of the tenancy.

Tenancy Renewal Towards the end of the initial fixed term we will contact you to find out if the tenancy should be renewed and to agree any renewal instructions. We will review the rent and advise you if a rent increase is possible or desirable depending upon current market conditions. You must confirm to us in writing if you wish the tenancy to be renewed or notice served. We do not serve notice on the Tenant unless you instruct us to do so in writing. Once written confirmation has been received from you requesting the tenancy to be renewed, we will write to the Tenant asking if they wish to renew the tenancy and advising of any proposed rent increase. We will then negotiate between the two parties if requested. We will prepare the extension document or a new tenancy agreement for both parties where requested including drafting any clauses agreed between the parties varying the terms of the original tenancy. The extension documents will be sent to both parties for signature. We will try to ensure both parties sign the documentation by the start date of the new period of the tenancy. However, if the Tenant fails to return the extension documents the tenancy will continue as a periodic tenancy until either party gives notice in writing. Our commission will be payable whether the tenancy continues as a fixed term or a periodic tenancy where we are instructed to act on your behalf. While we will make every effort to obtain the signed extension documents we have no liability if the Tenant fails to return them. Once the signed documents are received we will date them to complete the contract and send the documents received to the relevant party. You will receive the copy signed by the Tenant and the Tenant receives the copy signed by you.

If you would like us to offer the Tenant a new fixed term contract we can provide you with any of the following upon payment of the appropriate fee plus VAT:

An Addendum (extending the term of
the tenancy only); or £75
A Memorandum of Renewal (which may
change some of the terms e.g. rent); or £75
A Replacement Tenancy Agreement. £75

If the Tenant has an Assured Shorthold Tenancy and continues to roll-on on a month to month basis (i.e. a periodic tenancy) then the rent can only be lawfully increased on an annual basis if we serve the Tenant with a valid Notice under Section 13(2) of the Housing Act 1988. This notice advises the Tenant that they have a right to challenge the increase by serving you with a counter notice and ultimately referring the increase to the Rent Assessment Committee. This could result in a hearing. If the Tenant makes a counter proposal we will ask you whether you wish to accept it or whether you wish to pursue the issue to a hearing. If you want to do the latter we can arrange for solicitors to act on your behalf. You will be responsible for their charges.

UTILITIES AND COUNCIL TAX It is the Landlords responsibility to notify the electricity, gas, water and telephone companies and the local authority when the Tenant occupies your Premises and ask them to send a credit agreement and supply contract to the Tenant. You will need to pay any outstanding utility charges up to and including the date upon which the Tenant occupies the Premises and for any void period between tenancies. You will also need to provide the above suppliers with your new address and the meter readings at the commencement of the Tenancy to ensure that there are no discrepancies with the change over.
RENT COLLECTION If we are instructed to collect the rent or manage the Premises we will use our best efforts to arrange for a standing order to be set up so that the Tenant can send future rent payments direct to us. Monthly statements of account will be sent to you within 7 days after receipt of cleared funds, less our agreed fees (please see the last page of this Agreement) and expenses into your nominated bank or building society account.

You will compensate us within 7 days of a statement of account from us for payment of all claims costs and expenses incurred as a result of repayments made by us for any overpaid housing benefit.

We cannot be held responsible if the Tenant fails to pay the contractual rent unless it is due to our negligence or breach of contract. We will however take action in your name to recover rent arrears by serving the appropriate letter requesting payment to their home address. If this does not have the desired effect we will advise you to instruct specialist solicitors to take further action (please see clause M of the General Terms & Conditions). You will be responsible for the legal charges and expenses.

MAINTENANCE OF THE PREMISES Sections 11 to 16 of the Landlord and Tenant Act 1985 state that you must:

keep the structure (including the drains, gutters and down pipes) and the exterior of the Premises in good order and repair);

keep the appliances for supply of gas, electricity and water in good repair;
keep the appliances for supply of space heating and water heating in repair; and keep the sanitary appliances in repair;

and carry out all repairs within a reasonable time of being notified.

It is your responsibility to comply with the above legislation or the Tenant may be able to arrange repairs and deduct the cost from the rent.

11 and 12 apply to our full management service only

MAINTENANCE OF THE PREMISES By signing and returning this Agreement you give us authority to organise and where necessary supervise minor repairs and routine works to comply with the above, up to a value of £300 plus VAT.

If repairs or replacements are likely to exceed £300 plus VAT we will, except in situations we view as emergencies, try to contact you to obtain your specific written or verbal authority to incur that expense. If we do not receive contrary instructions from you in writing within 3 working days we will proceed with your full authority to act as we deem appropriate having regard to your contractual and statutory obligations. We cannot arrange for any works without first holding cleared funds sufficient to meet the liability. We have no liability for any loss or damage suffered if we do not hold funds and is unable to arrange any necessary work unless the loss or damage is due to our negligence or breach of contract.

PREMISES VISITS We do not carry out property inspections during the normal course of our day to day management of your Premises, should you require visits during the tenancy it is your responsibility to request that we will carry these out. The first visit will be included in the management service thereafter, if you require more than one visit per annum or on a more frequent basis you must notify us in writing as and when you wish these to be carried out during the course of the tenancy. Additional visits will incur a charge of £75 plus VAT per visit.

Any visit can only pin point obvious visual defects and will not be an expert investigation or structural survey of the Premises. We cannot accept responsibility for hidden or latent defects.

TERMINATION OF TENANCY All tenancies must be terminated by serving the Tenant with a valid notice whether the initial term is fixed or otherwise. This is because at the expiry of the initial term the Tenancy will automatically roll on from month to month generally upon the same Terms & Conditions (including rent) unless and until you serve the Tenant with a valid notice or the Tenant voluntarily surrenders possession, unless the Tenant voluntarily surrenders possession of the Premises. The precise form of notice, length of notice and expiry date depends upon what type of tenancy has been granted.

If we are not managing your Premises we do not serve notice on your behalf. If you wish us to serve notice including Notice under section 21 of the Housing Act 1988 which is required to gain possession of a property let on an Assured Shorthold Tenancy and if the Tenant is not in breach we can do so upon written request and payment of our administration fee £75 Plus VAT. You must ask us to serve notice at least 10 weeks before you wish possession. We cannot be held responsible for any delay in regaining possession if you fail to give us sufficient written notice of your instruction to serve the Tenant with the required notice. From time to time we may recommend that you instruct solicitors to serve the notice for you. Sometimes a Tenant will fail to comply with a notice and you will need to commence County Court proceedings to obtain a possession order. We can put you in touch with solicitors who are specialists in this field.

VACANT PERIODS This Management Service does not include supervision of your Premises when it is vacant (e.g. waiting to be let) unless our lettings staff visit the Premises to show applicants around.

Upon receipt of your written instructions we can arrange for scheduled visits (“Caretaking Service”). Visits are once a week during office hours which are Monday to Friday between 9.00am and 5.00pm. Additional visits will incur extra charges. There will be an additional charge of £50 plus VAT per visit. Any visit can only pin point obvious visual defects and will not be an expert investigation or structural survey of the Premises. We cannot accept responsibility for hidden or latent defects.

WAITING AT PROPERTIES We will try to arrange a mutually convenient time for contractors attending the Premises to undertake work on your behalf to meet the Tenant at the Premises. Where this is not possible we may be able to arrange to meet the contractor at the Premises. We will charge waiting time at the Premises at the rate of £40 plus VAT per hour. This service is only available if we manage the property.

TERMINATION AND ASSIGNMENT OF LETTING/LETTING AND RENT COLLECTION Either party has the right to terminate this Agreement in writing:
upon the Tenant’s vacation;
Or if the other party breaks any important term or condition of this Agreement during a Tenancy where written notice has been given, the party fails to remedy the breach within thirty days and monetary compensation is wholly inadequate.

Either party may withdraw your instructions to manage the Premises upon giving three months’ written notice. We may terminate our retainer immediately if you are in major breach of any of the terms contained in this Agreement or if you do or do not do something which makes it impossible, impracticable or illegal to continue providing these services.

We reserve the right to assign our rights and or obligations under this Agreement upon giving you 3 months written notice.

GENERAL TERMS & CONDITIONS

COMMISSIONS The following commission is payable by the Landlord to us following the introduction of a Tenant who enters into a Tenancy either directly, indirectly or by way of an introduction from an existing Tenant found by us for as long as we are instructed to act on your behalf.

Value Added Tax will be chargeable on all commission at the prevailing rate currently 20%. This rate may change from time to time and the total cost will change accordingly. All fees apart from commission contained within this Agreement are shown inclusive of VAT.

Letting Only Service Our commission is calculated at the agreed rate + VAT of the gross rent, premium or other money payable throughout the initial fixed term and any extension of it whether fixed term or periodic if we are instructed to act on your behalf. Payment is due in full at the start of the tenancy. Fees will be deducted from the initial rent received from the Tenant at the commencement of the tenancy. If the letting fee is more than the initial rent the balance must be paid to us at the commencement of the tenancy. The Tenancy Agreement will be retained until any outstanding fees and expenses have been paid to us.

Rental Collection Service Our commission is calculated at the agreed rate + VAT of the gross rent premium or other money payable throughout the term and any extension of it whether fixed term or periodic if we are instructed to act on your behalf.

Management Service Our commission is calculated at the agreed rate + VAT for management, subject to a minimum management fee of £450 per annum plus VAT. If our fees are not paid within 30 days of the commencement of the tenancy, interest shall accrue on a day to day basis on the sum due at the rate of 4% above the base rate of the Bank of England.

Where Lettings are for periods of less than 6 months, the fee will be by separate negotiation.

Additional Fees Additional fees will be payable for dealing with referrals to the rent assessment committees or any other Court or Tribunal proceedings or for protracted correspondence on your behalf. You will be charged at an hourly rate of £80 plus VAT. If you decide that specialist lawyers should be instructed you will also be responsible for their fees and any other expenses incurred in dealing with such matters.

Minimum Fee If a tenancy is arranged with a break clause our minimum fee is the commission that would have accrued based on 8 months of the tenancy being fulfilled or £450 plus VAT whichever is the greater. If a tenancy is arranged without a break clause over a 12-month period there is no refund of commission.

If a tenancy is arranged with a break clause our minimum fee is the commission that would have accrued based on the minimum term of the tenancy being fulfilled or £450 plus VAT whichever is the greater. As an example, if a tenancy is arranged over a 12-month period with a standard break clause at 6 months with 2-months notice the minimum term would be 8 months; in that case we would refund a maximum commission earned on 4 months of the tenancy. If a tenancy is arranged without a break clause over a 12-month period there is no refund of commission.

Sale commission In the event that a sale of the property should be agreed with the tenant or any associated party after the commencement of the tenancy leading to exchange of contracts Letting Expert UK will be entitled to a commission of 2% + VAT of the sale price, payable to the agent upon completion of the sale.

EARLY DEPARTURE OF TENANT Should the Tenant leave the Premises of their own accord prior to the expiration of the tenancy it is your responsibility to take the appropriate action to recover any outstanding rent from the former Tenant.

OTHER CHARGES If we collect the rent or manage the Premises we will deduct the reasonable expenses and costs incurred from acting on your behalf during the tenancy from the rent. This would include the costs of overseas and long distance telephone calls and faxes which will be charged at the current British Telecom rates plus VAT.

DUPLICATE STATEMENTS Duplicate statements of account can be supplied at a cost of £2.50 plus VAT per statement subject to a minimum charge of £25 plus VAT.

CONSENT FOR LETTING You must provide us with sufficient documentary evidence to satisfy us that you are legally entitled to grant a tenancy of the Premises. If the Premises are registered with the Land Registry we reserve the right to obtain office copy entries. If the Premises are unregistered we reserve the right to carry out such investigations that we consider necessary. The cost of these searches will be charged to you in addition to our commission.

By signing these Terms & Conditions you warrant to us that you are the owner of the Premises, or otherwise lawfully entitled to enter into The Tenancy Agreement.

MORTGAGES Where the Premises are subject to a mortgage, it is the landlord’s responsibility to gain his mortgagee’s written consent to the proposed letting as soon as possible. The mortgagee may to see a copy of the draft Tenancy Agreement which can be supplied upon their written request. The mortgagee may charge you a fee for giving their permission.

If your mortgagee has any special conditions relating to the tenancy or type of Tenant, you must provide them to us prior to the start of the tenancy to be included within The Tenancy Agreement. Conditions cannot be imposed upon a Tenant at a later date.

SUBLETTING If you are yourself a leaseholder, you will normally require the consent from your superior landlord, freeholder or their managing agent before you can sublet the Premises to an applicant. In giving consent the superior landlord or their managing agent may require you to provide references for your Tenant and for you and your Tenant to enter into an agreement to observe the covenants contained in your head lease. A fee may be charged for granting consent to sublet which is your liability. We will need a copy of the head lease together with any schedules referred to therein so that we can attach a copy of this to our draft Tenancy Agreement. If the Tenant is not given a copy of the relevant section of the head lease you cannot impose any obligations contained in it upon the Tenant. This could lead you to breach the terms of your lease.

INSURANCE It is essential that the Premises and contents included in the Inventory and Schedule of Condition are adequately insured and that your insurers are aware that the Premises are let. Failure to do so may invalidate your insurance. You must inform your insurers whenever the Premises remain vacant for a period greater than specified in your insurance policy. You should also check that your insurance policies include third party liability to protect you and the Tenant or a visitor to the Premises sues for personal injury.

We cannot be responsible for the renewal of your insurance cover. We strongly recommend you arrange for an insurance policy which covers loss of rent and contents, and legal expenses.

TAXATION You will be liable for tax on rental income and you must inform the Inland Revenue that you are letting the Premises. There are a number of allowances that you can claim against this rental income. You should seek advice on these allowances from your accountant or from the Inland Revenue website which can be accessed on www.hmrc.gov.uk. You must also keep all your invoices for six years for tax purposes. You should also be aware that we forward a form to the Inland Revenue annually detailing all landlords whose property we have let regardless of the country of residence of that landlord.

The Inland Revenue has special rules regarding the collection of tax on rental income if you are a landlord who is resident overseas, or you subsequently move abroad. If you fall into this category it is your responsibility to obtain a tax approval number from the Inland Revenue. The relevant form and guidance notes can be down loaded from the above website. Until that approval number is given to us by the Inland Revenue we are legally obliged to deduct tax from your rental income at the prevailing rate which is currently 20%. This money is forwarded to the Inland Revenue on a quarterly basis. If you are not accepted into the Non Resident Landlord Scheme and we deduct tax from your lettings income we shall make an administration charge of £250 plus VAT per quarter for preparing the quarterly return, your certificate of tax deducted and forwarding monies to the Inland Revenue. If the Tenant pays you direct and he has not received approval from the Inland Revenue to pay the rent gross, he must deduct tax and forward that to the Inland Revenue on your behalf. No person is exempt from this scheme.

THE FURNITURE AND FURNISHINGS (FIRE SAFETY) REGULATIONS 1988/
THE FURNITURE AND FURNISHINGS (FIRE SAFETY) (AMENDMENT) REGULATIONS 1993

It is a criminal offence, punishable by a fine and/or a prison term, to let Premises with furniture or soft furnishings which cannot be proven to comply with the above Fire Safety regulations. By signing this Agreement you must remove any item that does not have a fire label attached to it. The Regulations apply to the following which must be match resistant, cigarette resistant and carry a permanent label:

1.all upholstered furniture 2. three piece suites; 3. beds and divans including the upholstered bases 4. padded headboards; 5. sofa-beds 6. furniture with loose or fitted covers 7. children’s furniture 8. cots and other items used by a baby or small child 9. cushions; 10. high-chairs mattresses of any size 11. pillows 12. Garden furniture which may be used indoors.

ELECTRICAL EQUIPMENT (SAFETY) REGULATIONS 1994 You are responsible for providing instruction books for all items of electrical equipment and for ensuring that all electrical appliances within the Premises comply with the above Regulations. You should also ensure that all electrical installations are safe and have them checked regularly.

If we need to arrange for a safety check under these Regulations there will be an administration charge in addition to the cost of the safety check itself.

GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1998 it is a criminal offence to let Premises with gas appliances, installations and pipe-work that have not been checked by a CORGI Registered Engineer. You will need to provide us with a copy of a Gas Safety Certificate (GSC) carried out no more than 12 months previously. If this GSC is not sent to us when you return this Agreement you give us authority to arrange for a gas safety check. The GSC will need to be renewed at 12 monthly intervals. If we manage your premises we will deal with the renewal of the certificate. For Rent Collect and Let Only services you will have to arrange a new inspection each year; when the certificate is produced this needs to be forwarded to us and copied to your Tenants. If you ask us to arrange a gas safety check there will be an administration charge on top of the cost of the CORGI gas safety check itself. We need to give your Tenant documentary evidence of your compliance with these Regulations at the commencement of the tenancy and within 28 days of the GSC being renewed. If you use your own contractor we will need proof of their CORGI registration.

No tenancy can commence until we are in receipt of a valid GSC.

PART “P” BUILDING REGULATIONS (ELECTRICAL SAFETY IN DWELLINGS) From 1st January 2005 the above Regulations came into force requiring qualified personnel to carry out certain electrical work at premises. To ensure compliance with the Regulations we will only use a competent person to carry out any electrical work at a property. If the Landlord wishes to use his own contractor we will need written proof that he is currently registered with an approved self-certification scheme before issuing instructions. In the absence of such proof we will instruct our own contractor if managing the Premises.

SMOKE ALARMS AND CARBON MONOXIDE ALARMS Under current legislation, being the Building Regulations 1991 it is the law that all newly built premises from June 1992 must have mains fitted smoke alarms with battery backup. Legislation insists that the same criteria apply to a House in Multiple Occupation. Other properties do not require smoke alarms by law. However if battery operated smoke alarms are fitted to the Premises the Landlord must ensure that the alarms are in working order at the start of a Tenancy.

It is not the law that carbon monoxide alarms are fitted to premises. However we advise all landlords to consider the installation of alarms to protect the Tenant and help prevent any legal action being taken against a landlord if a tragedy occurs. If you wish us to arrange the fitting of alarms at your expense you must advise us in writing. The cost will be deducted from the rent.

CLEANING If you ask us to arrange for the cleaning of Premises where we are instructed there will be an administration charge in addition to the cleaning charge.

RENT ARREARS/BREACHES OF COVENANT It is your responsibility to take all necessary steps to ensure that actions are taken to protect your interests, including instructing solicitors and commencing legal proceedings to preserve your rights and recover arrears of rent and to defend all actions or other legal proceedings and arbitrations that may be brought against you in connection with the Premises. All costs and disbursements incurred including legal costs and disbursements will be payable by you.

REIMBURSEMENT OF AGENT You will keep us reimbursed in respect of any claim damage or liability whether criminal or civil suffered from and during the time that we are or were acting on your behalf unless it is due to our negligence or breach of contract. For the avoidance of any doubt we reserve the right to have work carried out on your behalf and to charge you for that work to ensure that you fulfil your contractual and statutory obligations as landlord.

MAIL It is not part of our normal function to forward the Landlord’s mail. Therefore no responsibility can be taken for mail sent to you at the Premises. We recommended that you arrange for it to be redirected by the Post Office.

DEPOSITS As from April 2007 no landlord will be able to hold a deposit for an AST unless he or his agent is a member of an approved scheme.

There are two types of scheme, the Tenancy Deposit Scheme and the Deposit Protection Scheme, below are the addresses of the scheme administrators:

Tenancy Deposit Solutions (TDS)
3rd Floor, Kingsmaker House
Station Road
New Barnet
Hertfordshire EN5 1NZ

Deposit Protection Service
The Scheme Administrator
The Deposit Protection Service
The Pavillions
Bridgewater Road
Bristol BS99 6AA

If you instructed us to “Manage” or “Rent Collect” on your Premises we shall insure the Deposit under the terms of the Tenancy Deposit Scheme. If you are an overseas landlord or you request otherwise we are able to transfer deposits to the Deposit Protection Scheme. In normal circumstances for “Let Only” properties we would not offer either service to you expect by special arrangement and by prior arrangement with a branch manager.

At the end of the tenancy if the Deposit is covered by the Tenancy Deposit Scheme;

If there is no dispute we will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole of the balance of the Deposit according to the conditions of The Tenancy Agreement between the Landlord and the Tenant. Payment of the Deposit will be made within 28 working days of written consent from both parties.

If, after 28 working days following notification of a dispute to the Agent and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will (subject to the paragraph below be submitted to the Independent Case Examiner (“ICE”) for adjudication. All parties agree to co-operate with any adjudication.

When the amount in dispute is over £5,000 the Landlord and the Tenant will agree by signing The Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.

The statutory rights of either you or the Tenant to take legal action against the other party remain unaffected.

It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so seek the decision of the Court. However, this process may take longer and may incur further costs. Judges may, because it is a condition of The Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding. If there is a dispute we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to one of them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline us.

By signing this agreement you agree that you will co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.

We will charge an administration fee of £180 plus VAT to cover costs for holding the deposit during the tenancy and either releasing it as instructed in writing by both parties at the end of the tenancy; or passing it to the TDS at the end of the tenancy if you and the Tenant do not agree deductions. The deposit will be released when we receive written confirmation from both parties. Unless we manage the Premises we will not negotiate on your behalf unless requested by you in writing together with payment of our fees of £80 per hour plus VAT to attempt to resolve any dispute. Our fee for renewing the deposit under the existing scheme will be £100 plus VAT.

Preparation of Documents for a Dispute If we have to prepare documentation in the form of photocopies or other relevant publishing material for a dispute through the TDS or the county court we will charge an hourly fee of £80 plus VAT for this service. If we have to attend court on your behalf as a witness we will charge a fee of £80 per hour plus VAT.

Incorrect Information If the Landlord warrants that all the information he has provided to the Agent is correct to the best of his knowledge and belief. In the event that the Landlord provides incorrect information to us which causes the Agent to suffer loss or causes legal proceedings to be taken the landlord agrees to reimburse and compensate the Agent for all losses suffered.

The regulations under the Housing Act 2004 will apply to all replacement tenancies. The definition of a replacement tenancy is a new fixed term. If you currently hold the Deposit for an existing tenancy we will not be able to draw up a new fixed term agreement unless we hold the Deposit; you return it to us if you currently hold it; or you provide proof that it has been transferred to the custodial scheme run on behalf of the government.

If you decide to hold the Deposit and the Tenancy is an Assured Shorthold Tenancy you must specify to us as the agent prior to the start of the Tenancy under which other Tenancy Deposit Protection Scheme the Deposit will be covered. If the Deposit is covered by Tenancy Deposit Solutions you must provide proof of membership, together with a copy of the insurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Scheme we will forward the Deposit to the DPS and register the details of the Tenancy on your behalf.

HOUSING ACT 2004 The regulations in the above Act concerning Houses in Multiple Occupation (“HMOs”) became law on 6th April 2006 and were enforceable from July 2006. There is a general wide definition of the regulations which state that the following are HMOs:

Student accommodation during term time;
Properties inhabited by three or more people who are not a household and share kitchen and bathroom facilities. A household is defined as parents, grandparents, children, aunts, uncles and cousins.
A building converted into flats pre June 1992 which does not comply with the Building Regulations 1991, has not been subsequently up-dated to the relevant Fire Safety standard and where a third or more of the properties are rented on short term tenancies.

The landlord may not have to carry out any action to ensure compliance. The above properties like all private dwellings must comply with the Housing Health and Safety Rating System (“HHSRS”) which is the new statistical means of measuring hazards and risk of injury at a property. This system applies to all properties but those falling into the above category are subject to inspection by the environmental health officer. The responsibility for ensuring premises comply is that of the Landlord. If we accept an instruction to let premises and subsequently an order is served to comply with the HHSRS if we incur any costs for compliance due to an order being served upon us you the Landlord agree to reimburse us within 14 days of written demand or agreeing by signing this document that the costs may be deducted from the rent or other money received.

Mandatory Licensing Under the Housing Act 2004 landlords of certain properties where individuals are living as more than one household will need to be licensed by their local authority. If we believe that your property falls into this category we will inform you of this fact and of the alterations that we have been informed by the local authority may be required to allow you to gain a licence for your Premises. If your Premises potentially require a licence you will either need to obtain a license from the relevant Local Authority or we will only be able to let your Premises to a single family group.

The Premises will require a licence if it falls into the following definition. If the Premises are three storeys or more and has five or more occupiers who do not form one household and share kitchen or bathroom facilities it is subject to mandatory licensing. It is the responsibility of you the Landlord to apply and pay for the licence. We will only offer Premises for let when we are in receipt of a copy of the mandatory licence or a certificate stating that the Landlord has applied for the licence. If you refuse to supply us with a copy of your licence or refuse to obtain one we will not accept any further instruction from you and will take no further part in the letting and management of your Premises. If we are forced to disinstruct ourselves once a tenancy has commenced you will remain liable for our full fees for the initial term of the tenancy. We will inform the Tenant and the relevant Local Authority of our reasons for disinstructing ourselves in writing.

Discretionary Licensing Local authorities can enforce discretionary licensing. We will advise you of any regulations of which we have been made aware but it is the responsibility of the Landlord to check whether the Premises are subject to discretionary licensing and if so to apply and pay for the licence. We will only offer the Premises for let when we are in receipt of the licence or the certificate proving that the Landlord has applied for one.

INTEREST ON CLIENTS’ MONIES any interest accrued on clients’ money which we hold will be retained by ourselves to cover bank and administration charges etc.

WITHDRAWAL FROM AGREED OFFER If a formal offer has been made by an applicant when we receive your notification to proceed it may not be possible to withdraw the offer if it has been accepted. If an applicant agrees to accommodate your request you should expect to meet reasonable costs and expenses incurred by him or her.

If you instruct us to proceed with the proposed tenancy and subsequently withdraw such instructions you agree to meet the costs of the expenses incurred by us at the rate of £80 per hour plus VAT.

ACTS OF THIRD PARTIES We will not be responsible for any loss or damage that you suffer through the act, default or negligence of any third party which may arise otherwise than through the negligence, omission or failure on our part.

MONEY LAUNDERING In order to comply with the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003 we require you to provide us with one proof of identity (List A) and one proof of residence (List B) which can be selected from the list below. You should either send us the original documents for copying and returning to you; or provide us with copies certified by a solicitor as genuine.

List A: Proof of Identity 1. Full Passport 2. National Identity Card 3. Full Driving Licence List B: Proof of Residence 1. Council Tax bill 2. Utility bill 3. Mortgage statement 4. Bank Statement 5. Credit Card Statement.

If you are a company which is quoted on the London Stock exchange we will require a certified copy of the Certificate of Incorporation. If the company is not quoted we require certified copies of two of the following documents:

1. Memorandum and Articles of Association 2. Certificate of Incorporation 3. A set of the Latest Accounts 4. The last Annual Return. 5. In addition we need proof of identity and residence of two of the directors.

DATA PROTECTION ACT In order to comply with the Data Protection Act to prevent any unauthorised access to or use of personal data we have the responsibility to keep information confidential and will only use it if fees are not paid and we wish to refer the matter to a debt collector or solicitor; or if we are specifically required do so by law or to pass it to a government agency by law; when instructing solicitors; to change account details for utility suppliers and the council tax into or out of your name; when a contractor’s invoice has not been settled by you.

SERVICE OF NOTICES The provisions for the service of notices are that if either party deliver by hand any Notices or documents which are necessary under the Agreement, or any Act of Parliament to the other party by 4pm or the last known address of the other party; the documents or Notices will be deemed delivered on the next working day, which excludes Saturdays Sundays and Bank Holidays; or if any documents or Notices are sent by registered, or recorded delivery post the documents will be deemed delivered upon proof of delivery being obtained; or if the documents or Notices are sent by ordinary first class post addressed to the other party or the last known address of the other party; the documents or Notices will be deemed delivered two working days later, which excludes Saturdays, Sundays and Bank Holidays. The address for service for the Landlord will be the contact address specified in this Agreement and the address for service for us is: Letting Expert UK Limited 9 The Courtyard, East Park, Crawley, West Sussex RH10 6AG.

DEFINITIONS In this Agreement the following Definitions apply:

Use of the singular includes the plural.
Crawley Estates Sale & Lettings Limited has the same meaning as us, we and ours.
Use of the masculine includes the feminine.
“Jointly and severally liable” means that each person will be responsible for complying with the obligations of and paying all charges and costs under this Agreement, both individually and together.
“Landlord” means anyone owning an interest in the Premises, whether freehold or leasehold, entitling them to possession of it upon the termination or expiry of the Tenancy and anyone who later owns the Premises. Landlord has the same meaning as “you”, “I” and “we”.
“Tenant” means anyone entitled to possession of the Premises under a Tenancy Agreement.
“Premises” means any part or parts of the building boundaries fences garden and outbuildings belonging to the Landlord. When the Premises are part of a larger building the Premises include the use of common access ways and facilities.
“Inventory and Schedule of Condition” means the document drawn up prior to the commencement of the Tenancy by the Landlord or the Agent, which includes the fixtures and fittings in the Premises.
“Term” or “Tenancy” means the fixed term of The Tenancy Agreement and any extension or continuation of the Tenancy whether fixed term or periodic arising after the expiry of the original Term.
“Deposit” means the money held by the Agent in a stakeholder capacity during the Tenancy in case the Tenant fails to comply with the terms of The Tenancy Agreement.
“Stakeholder” means that deductions can only be made by the Agent from the Deposit at the end of the Tenancy with the written consent of both parties.
“Tenancy Agreement” means the contract drawn up between the Landlord and the Tenant specifying the obligations of the two parties.
“TDS” means The Dispute Service whose details are shown in The Tenancy Agreement.
“ICE” means the Independent Case Examiner of the Dispute Service Limited.
“Agreement” means this Terms of Business signed between the Agent and the Landlord

LEGAL JURISDICTION This Agreement shall be governed by and construed in accordance with the law of England and Wales.letting ExpertUK Limited is hereinafter referred to as “we”, “us” or “our”. Payment by you for any of the services offered by Landlord us is deemed acceptance by you that you have read and understood our terms and conditions and that you fully understand and accept them.