This agreement sets out the terms under which the Agent will market the Landlord’s property and find a tenant for them. It defines the services the Agent will provide as part of their full-management service.
- 1. law and Regulations for residential Letting in england and wales
- 1.1 Various Acts of Parliament cover letting property. There must be adherence to such Acts by both the Landlord and Agent before the Property can be let. Specifically, the Landlord and Agent agree and acknowledge that:
- 1.1.1 The Agent has a duty to any potential tenant(s) (the ‘Tenant’) to make sure that both the Agent and Landlord are legally entitled to offer them a tenancy. If the Landlord has a mortgage there may be a requirement for them to obtain the lender’s permission before letting the Property. The Agent may assist and offer advice on how to do this. If there are joint owners, the Landlord must inform the Agent of who they are, and their permission will be needed in writing before the Agent is authorised to act for the Landlord.
- 1.1.2 Under the Consumer Protection Acts, the Property must be fit for someone to live in at the point of letting. The Agent will inspect the Property and inform the Landlord of anything it is felt that may not meet those laws. Any repairs that are deemed necessary must be completed before the Agent allows the Property to be let.
- 1.1.3 All furniture and soft furnishings supplied by the Landlord as part of the tenancy must meet the Fire and Furnishing Regulations 1988.
- 1.1.4 The Landlord must have a valid Gas Safety Certificate (CP12) for the Property before the start of the tenancy. This is a requirement under the Gas Safety Installation and Use Regulations 1994. If a valid certificate is not provided to the Agent before the start of the tenancy then the Landlord agrees that this will be arranged to be completed by the Agent and chargeable to the Landlord.
- 1.1.5 The Low Voltage Electrical Equipment (Safety) Regulations 1989 and Electrical Equipment (Safety) Regulations 1994 deal with the safety of electrical appliances and wiring. Although these regulations are not a legal requirement, the Agent reserves the right to instruct the Landlord to have this completed.
- 1.1.6 The Landlord must inform their insurers once the Property is let. The Landlord should seek specific advice from an Insurance professional about insurance cover that makes sure that there is no liability in the event of the Tenant or any visitors being injured in the Property. The Agent cannot provide advice on insurance matters and it is the Landlord’s obligation to make sure that there is adequate cover.
- 1.1.7 If there is a garden, the Landlord needs to indicate to the Agent how they expect the Tenant to maintain it. This will need to become a condition of the tenancy. The Landlord should elect from the following options:
- The garden must be maintained according to the time of year.
Recommended if there is not much garden and it just needs to look tidy.
- The tenant must mow the lawn, trim the hedges & weed the garden regularly.
Recommended if there is a lawn and some hedges. The Landlord must provide the garden tools the Tenant will need for this, and have an RCD protected electrical supply (an electrical supply with a circuit breaker to prevent electrocution), and provide safety gloves.
- The Landlord will provide a gardener and pay 75% of the cost of this, and the tenant must pay 25% of the cost.
Recommended if the gardens are landscaped. As the Office of Fair Trading state that tenants do not have a long-term benefit from the garden, the Landlord should pay the greater share of the cost, as they receive the long-term benefit.
- The garden must be maintained according to the time of year.
- 1.1.8 The Landlord must notify the Agent of any restrictions in the lease or freehold documents pertaining to the Property. For example, clauses preventing you from parking caravans or commercial vehicles on the drive. The Agent will not be liable for the departure of a Tenant caused by a restriction that the Agent was not made aware of. Additionally the Landlord will still remain liable for any Agent fees and may be liable to the Tenant for damages.
- 2. Initial obligations of the agent
- 2.1 The Agent agrees that:
- 2.1.1 When marketing the property, will use their database of possible tenants, advertise the property in newspapers and/or on the internet, and put the details in their window. The Agent reserves the right to do only those things listed above deemed appropriate in the current market conditions.
- 2.1.2 They will provide advice about the rent likely to be received for the Property, and agree a rental figure at which the Property will be advertised.
- 2.1.3 They will show possible Tenants around the Property. Accordingly, the Landlord must provide the Agent with keys to all parts of the Property
- 2.1.4 When a suitable Tenant is found, the Agent will contact a Credit Reference Agency to make checks about them (and any potential guarantor). Specifically, the Agent will:
- 220.127.116.11 Search to see if the Tenant has any County Court Judgments against them
- 18.104.22.168 Confirm that they are on the electoral roll at the address they have provided.
- 22.214.171.124 Obtain proof of the Tenant’s current earnings
- 126.96.36.199 Ask the Tenant’s employer to confirm that their employer to confirm that their employment is likely to continue for the term of the tenancy
- 188.8.131.52 Obtain a reference from the Tenant’s current or previous landlord is applicableHowever, the Landlord acknowledges that references give details of a Tenant’s past behaviour and do not guarantee that they will pay their rent in the future. Accordingly, no future liability attaches to the Agent in respect of Tenant references, provided the Agent has acted with reasonable care and skill in performing their contractual obligations.
- 2.1.5 When a suitable Tenant is found, the Agent will:
- 184.108.40.206 Ask the Landlord for instructions on the length of tenancy to offer them and the date the tenancy should start. The Agent will prepare an Assured Shorthold Tenancy in line with these instructions, and get the Tenant to sign it.
- 220.127.116.11 Prepare details of the condition of the property and a list of its contents. This list will be agreed with the Landlord and the Tenant. Alternatively, the Agent reserves the right to have this function performed by an independent third party which specializes in Inventory preparation.
- 2.1.6 They will take the first month’s rent in advance, and one month’s rent as a deposit. The tenancy will not be permitted to proceed until this is in cleared funds. If applicable, the deposit will held in a Tenancy Deposit Scheme and the Agent will provide you with details of that scheme.
- 2.1.7 Once the tenancy starts, the Agent will arrange to read any gas and electric meters and give the utility companies and the Council Tax department the new Tenant’s details.
- 3. obligations of the landlord
- 3.1 The Landlord agrees to:
- 3.1.1 Pay the Agents fees as outlined in Page 1 of this Agreement. Such fee will be deducted from the money received from the Tenant and the balance will be sent to the Landlord within seven days of the start of the Tenancy. VAT will be added at the prevailing rate.
- 3.1.2 Pay any other fees or expenses in full within seven days of receiving a demand for payment. This includes repayment to the Agent if the Agent received Housing Benefit payments for the Tenant but then the Local Authority decides those payments have been overpaid and the Agent has to repay them to the Local Authority. The Landlord also agrees to pay the Agent’s reasonable costs and fines if the Agent is prosecuted for managing a House in Multiple Occupation because the Landlord failed to get a Licence where one is needed.
- 3.1.3 Authorize the Agent to sign all legal documents in connection with matters arising from the Tenancy Agreement on the Landlord’s behalf except Court Applications.
- 3.1.4 Provide contact details for themselves at all times.
- 3.1.5 Inform the Agent of any items that are currently in the Property but which will not be included in the new tenancy.
- 3.1.6 Pay the Agent any legal costs and damages suffered as a result of the Landlord breaking any of their legal responsibilities.
- 3.1.7 Inform the Agent beforehand about any tenants the Landlord may not want. For example, smokers, people with pets, people on Housing Benefit and so on.
- 3.1.8 Give the Agent two months notice so that they can arrange all matters in connection with ending their management of the Property in the event that the Property is going to be sold.
- 3.1.9 Be responsible for inspections during ‘voids’ (when the Property is empty).
- 4. managing and ending the tenancy
- 4.1 Rent Collection: The Agent will collect the rent from the Tenant as per the Tenancy Agreement. The Agent agrees to pass the rent to the Landlord within 7 days of it clearing in the Agent’s account. This will be paid by cheque or direct to the Landlord’s elected bank account. If the Landlord is not a domiciled in the United Kingdom, the Agent must deduct Income Tax at the basic rate, unless the Landlord has registered with the Inland Revenue’s Non Resident Landlord Scheme.
- 4.2 Inspections/Repairs: Every three months the Agent will inspect the Property and report to the Landlord on its general condition. If the Agent cannot get into the Property to carry out the inspection, they will notify the Landlord. If the inspection reveals that repairs need to be carried out, the Agent will arrange for these to be done and the Landlord agrees to allow the Agent to spend up to £200 without having to consult Landlord. The Agent must provide full details of any spending made on the Landlord’s behalf. If the Agent does not have authority to carry out the repair because it exceeds the agreed limit then the Agent will contact the Landlord. If the Landlord cannot be contacted the Agent will may spend more than the agreed limit so long as it was reasonable to do so and they were acting in the Landlord’s best interests. In such a case the Landlord agrees to reimburse the Agent. If the Agent has to wait in the Property to deal with any repair issues because the Landlord cannot attend then the Agent will make a charge.
- 4.3 Notices: If the tenant breaks any of the terms of their Tenancy Agreement, the Agent will prepare a Section 8 Housing Act 1988 notice. However, the Landlord will have to take any further legal action. If the Tenant is late paying the rent, the Agent will write to them once the rent is seven days late. If a satisfactory response to that letter is not received, the Agent will issue a Section 8 notice. If the Landlord wants the Tenant to leave the Property at the end of the Tenancy Agreement, the Agent will prepare a Section 21 Housing Act 1988 notice and give it to the Tenant. However, the Landlord will have to take any further legal action.
- 4.4 Renewals: Two months before the end of the Tenancy, the Agent will find out whether the Landlord and the Tenant want the tenancy to continue. If the tenancy is to be renewed, the Agent will prepare a new Assured Shorthold Tenancy Agreement in line with the Landlord’s instructions. The Agent’s charges for this are £ plus VAT.
- 4.5 Tenancy End: At the end of the tenancy, the Agent will check the condition of the property and the list of items included with the tenancy, making allowance for fair wear and tear. If any items have been damaged, we will negotiate with you and the tenant an appropriate figure to compensate you for your loss. If there is a dispute this must be dealt with in accordance with the rules of the Tenancy Deposit Scheme. At the end of the tenancy the Agent will read the gas and electricity meters, tell the utility companies and the Council Tax Department that the Tenant has moved out. When the Tenant leaves the Agent will secure the property and will either turn off the water supply or leave the central heating on a low setting to prevent damage by frost during the winter.
- 4.6 Termination: This Agreement will end immediately if the Landlord withdraws their instruction before the Agent finds a Tenant. Once the Agent finds a tenant who meets the criteria agreed which was agreed with the Landlord, the Landlord must pay the Agent the agreed commission. Once the Tenancy Agreement has ended either party to the Agreement may give 2 months written notice, sent by first class recorded delivery to the address for the parties as contained in this agreement (or such subsequent address as has been notified in writing by either party). In the event of a significant breach by either party which cannot be remedied then either party is entitled to terminate forthwith. “Significant Breach” would include the landlord failing to carry out repairs within a reasonable time or otherwise exposing the agent to financial or other risks, and would include the agent not passing on sums he has received to the landlord.
In the event of this Agreement ending, the Landlord will be entitled to such copies of all documents the Agent has on file so long as the Landlord has paid the Agents agreed fees in full.
- 4.7 Fees: The Landlord will have to pay the Agent’s reasonable expenses if the Landlord does not deal with the issues raised in Section 1 of this Agreement, or if the Landlord lets the Property through another agent without telling the Agent when they have also found a tenant. The Landlord will also have to pay the Agent’s fees if the Landlord offers a tenancy to anyone the Agent has introduced to the Property. If the Landlord withdraws this instruction, and the Agent had to return an administration charge to a possible tenant as a result, the Landlord agrees to repay the Agent that administration charge.
- 5. Other Conditions
- 5.1 No one else will benefit from this Agreement as permitted by the Contracts (Rights of Third Parties) Act 1999 and the Consumer Protection (Distance Selling) Regulations 2000 are excluded from this Agreement.
- 5.2 If any term of this Agreement cannot be enforced or is found to be unfair, it does not affect the other terms of the Agreement.
- 5.3 The Agent shall have the right to assign this Agreement as long as the rights of the Landlord are not materially affected.
- 5.4 The Agent retains the right to change the terms of this Agreement by giving you two months’ written notice of the change and the date the change will become effective.
- 5.5 This Agreement is governed by and should be read in accordance with the Law of England and Wales.
Under Part 1 of the Housing Act 1988 as amended under Part 3 of the Housing Act 1996
This Agreement contains the terms and obligations of the tenancy. You should read it carefully to ensure that it contains everything you want to form part of the Agreement and nothing that you are not prepared to agree to. If you do not understand this Agreement or anything in it, it is strongly suggested you ask for it to be explained to you before you sign it or consult a solicitor, Citizens Advice or Housing Advice Centre.
- 1. Rent and other charges
Following the Commencement of this Agreement, and until it is legally ended in accordance with the rules stipulated below, the Tenant is obliged to pay the Rent in full and on the dates agreed as well as other applicable charges including Council Tax.
- 1.1. The Rent must be paid in advance on the Rent Payment Day specified in this Agreement. If the Rent is late, the Landlord can charge interest at 3% above the Bank of England base rate and interest will be charged until the date full payment is received.
- 1.2. Obligations/liabilities of more than one person shall be “joint and several” (which means that, for example, they will each be liable for all sums due under this Agreement and not just for proportion of them).
- 1.3. If Rent is received from a third party that will be accepted from them as the Tenant’s agent. The Landlord will not intend to create a tenancy with any person who pays Rent on the Tenant’s behalf.
- 1.4. Unless otherwise agreed in writing by the Landlord, the Tenant must arrange to be billed, and pay the water sewerage and environmental charges for the property, and to pay for utility supplies consumed and the television licence fee for the property. The Tenant agrees to remain liable for these items after the Expiry of this Agreement until the tenancy has legally ended. Where the Tenant allows, either by default of payment or specific instruction, the utility or other services to be cut off, whether during or at the end of the tenancy, the Tenant is to pay, or be liable to pay, the costs associated with reconnecting or resuming those services.
- 1.5. The Tenant will be liable for Council Tax unless the property is a HMO. Only then will the Landlord be liable.
- 1.6. Rent Increase – The Landlord may increase the Rent after the Expiry of the fixed term of the Agreement, by giving the Tenant at least one months’ notice in writing prior to a Rent Payment Day specifying the amount of the new rent. The Landlord will not increase the Rent during the fixed term of the tenancy.
- 1.7. The Tenant does not need to pay Rent for any day during which the Property is uninhabitable. This does not apply if the Property is uninhabitable because the Tenant or their guests or family did something (or failed to do something) which invalidated the Landlord’s insurance policy in respect of the Property.
- 1.8. If the Tenant is in breach, then they may be liable to pay the Landlord’s reasonable costs that include VAT: If the Landlord has to send a letter because the Tenant has broken the Agreement (including owing rent) then a cost not exceeding £25; costs for any payment that does not clear, is recalled or fails, a cost not exceeding £30; for a Section 8 Housing Act 1988 notice because of a breach of this Agreement, a cost not exceeding £50 if the Tenant does not respond to the notice, and as a result the Landlord has to visit the Tenant at the Property, a cost not exceeding £50; if the Landlord has genuine reasons for believing that the Tenant has abandoned the Property and has to visit the Property and make enquiries of neighbours and authorities, a cost not exceeding £50.
- 1.9. Any other reasonable costs or losses suffered by the Landlord resulting from conduct of or damage caused by the Tenant (or any person they have invited into the Property or who is permitted to live there) the Tenant agrees to pay up-front or from their deposit.
- 2. Only Where a Deposit is received
It will be registered with one of the Government authorised Tenancy Deposit Schemes and held in accordance with the rules of that scheme (the “TDS Rules”). Full details of the Deposit Scheme will be notified to the Tenant as an addendum to this Agreement.
- 2.1. The Tenant is not entitled to any interest in respect of the Deposit unless the Deposit Scheme rules so provide.
- 2.2. Subject to the Deposit Scheme rules, the Deposit is held to pay for any financial loss suffered by the Landlord because of the breach of any Tenant obligation outlined under this Agreement, including non-payment of Rent or utility/Council Tax bills, damage to the Property or any of the items listed on the Inventory.
- 2.3. Subject to the TDS Rules, the Landlord will return the Deposit within 10 days. Before the Deposit is refunded, the Tenant must be able to demonstrate that bills for charges for which they were liable for the duration of the tenancy, have been paid. If there is a disagreement and we cannot agree any of these amounts, the matter will be decided by the county court or dealt with in accordance with the TDS Rules.
- 2.4. The Lead Tenant – Where there are multiple Tenants the first named shall be the representative to act on behalf of you all, jointly and individually, when dealing with the Deposit. Another of you can replace the Lead Tenant, so long as we are notified in writing by a majority of you. If no Lead Tenant is specified then the first or only named Tenant shall be the Lead Tenant.
- 2.5. The Tenant should provide the Landlord with a forwarding address at the end of the tenancy to enable the return of the Deposit, by cheque, to the Lead Tenant. Where the Deposit is paid by a third party their address must be provided, so the Deposit may be returned to them.
- 3. GENERAL Control of the Property
The Tenant cannot use the premises (including common parts) or allow others to use the premises in a way which causes a nuisance, annoyance or damage to neighbouring, adjoining or adjacent property; or to the owners or occupiers of them, or is in any way illegal, immoral or damaging to the Property.
- 3.1. This includes any nuisance caused by noise including loud music or other noise which can be heard outside the Property between 11pm and 7.30am, or which will cause annoyance or annoy anyone at any other time.
- 3.2. The Tenant must: not allow children to live in the property; not allow animals in the property; not allow smoking in the Property, unless the Landlord consents in writing. Then such permission will not be unreasonably withheld.
- 3.3. The Tenant is responsible for the conduct of, and for damage caused, by any person they have invited into the Property or who is permitted to live there. The Tenant must not assign underlet or part with or share possession of the whole or any part of the property unless the Landlord consents in writing. The Tenant must not allow overcrowding or allow the number of occupiers to be such that, if the Property were not a licensed House in Multiple Occupation, such numbers would cause the Property to require such a licence. If, because of breaching this term, the Landlord is fined the Tenant agrees to pay the Landlord the amount of those fines and any reasonable legal costs they have incurred as a consequence.
- 3.4. The Landlord will have either a freehold interest or a long lease on the Property and will be required to perform certain legally enforceable obligations, and in turn so will the Tenant. The Tenant must not breach any restrictive covenants or any other obligations. These will be notified to the Tenant as an addendum at the end of this Agreement.
- 3.5. The Tenant must not use the Property as anything other than a private home, or allow anyone else to conduct any profession, trade or business or promote by way of poster or signage on or in the property.
- 3.6. The Tenant acknowledges responsibility for the security of the Property subject to the Tenant doing the following: Using all locks that are fitted to the Property and set the burglar alarm (if there is one) when going out; telling the Landlord if they change the burglar alarm code (in case the Landlord needs to enter in an emergency); not giving a key to anyone other than a person named as a Tenant under this Agreement, a member of your family living at the Property, or a permitted lodger (if at the end of the tenancy there is reasonable cause to believe that the Landlord has not had returned to him all keys to the Property, the Tenant agrees to pay the Landlord’s reasonable costs for fitting replacement locks as there is a duty to make sure that future Tenants are protected); not alter locks on doors or windows to the Property without giving the Landlord spare keys (these locks will become the Landlord’s property at the end of this Agreement).
- 3.7. The Tenant must forward to the Landlord all correspondence delivered to the property that is addressed to the Landlord or is intended for the Landlord or the Property owner.
- 3.8. The Landlord’s insurance policy may become invalidated if the Property is left unattended for more than 7 consecutive days. If the Tenant is going to leave the Property for longer, then they agree to make the Landlord aware of this in advance in writing.
- 4. Tenant and Landlords Care AND Repair Obligations of the Property
The Tenant must keep the Property and items listed in the Inventory in good condition and not remove or alter any items within the Property or any aspects of it. The Tenant will promptly notify the Landlord or Landlord’s agent of any defects to the property (whether or not caused by the act, default or neglect of the Tenant) of which they become aware, otherwise the Tenant may be liable.
- 4.1. The Tenant must comply, within a reasonable time, with any notice from the Landlord advising the Tenant of the need to make good damage or breakages or attend to any items of repair or maintenance, for which the Tenant is responsible. The Landlord is entitled to recover any reasonable costs incurred from the Tenant if it was the Tenant’s fault that the loss occurred (with the exception of fair wear and tear).
- 4.2. The Tenant Is liable for call-out and other charges incurred for the Landlord visiting the Property: If the Tenant has locked themselves out or forgot the alarm code (if applicable); the police break into the Property as a result of any criminal activity by the Tenant or any person they have invited into the Property who are permitted to live there; the Tenant causes any obstruction to the common areas of the building.
- 4.3. The Landlord undertakes to: have a Landlord Gas Safety Certificate in place at the start of this Agreement and to have it renewed annually by a Gas Safe registered engineer; ensure that there is a valid Energy Performance Certificate at the start of the Tenancy and have it renewed every 10 years thereafter.
- 4.4. Must replace consumables including tap-washers, fuses, light bulbs, fluorescent tubes and smoke-alarm batteries whenever necessary; regularly test fire alarms, smoke alarms and carbon monoxide detectors if there are any.
- 4.5. Where there is a garden the general character must not be altered and it must be kept tidy, well maintained and free from rubbish.
- 4.6. Must not put rubbish anywhere other than in the areas provided.
- 4.7. Must pay for the treatment of fleas, ants, mice, wasp’s nests and other pests, unless it can be proved that these are a result of the Landlord being in breach of his repairing obligations, or such pre-date the start of this Agreement.
- 4.8. Must keep the Property well and sufficiently aired and warmed at all times and must take all such precautions as may be reasonably necessary to prevent water pipes, sinks, WCs, cisterns, washing machines or similar from becoming damaged by frost, freezing or blockage.
- 4.9. Must not have any form of heating other than that we have provided (paraffin heaters, portable gas heaters, LPG and electric fires other than those we have provided are not allowed but electric oil-filled radiators are);
- 4.10. Must not leave the washing machine and dryers working when there is no one in the Property and at all times must ensure that all rooms are properly ventilated; not blocking any flues or ventilators to the Property.
- 4.11. Must not keep any dangerous or inflammable goods materials or substances in or on the premises apart from those required for general household use, and must not put anything into the drains or plumbing that may cause harm or blockage.
- 4.12. Must not in any way alter the Property or items within, specifically, the Tenant cannot: remove any fixtures or fittings from the Property and not hang pictures without the consent of the Landlord; bring a waterbed into the Property; redecorate without the consent of the Landlord (such consent will not be unreasonably withheld, as long as the proposed scheme is likely to be acceptable to future tenants and is undertaken by a competent person, to a professional standard, and samples of proposed wallpapers and paint must be submitted to the Landlord for consideration when subsequent approval will only be given in writing); make an improvement or alteration to the Property without the written consent of the Landlord (The Landlord has an absolute right to refuse consent for any alterations or improvements but, if accepted, any fixtures become the property of the Landlord – this includes the erection of a satellite dish or television aerial and the carrying out of external redecoration.)Sections 11-14 of the Landlord and Tenant Act 1985 (as amended) apply to the Agreement. These require the Landlord to keep in repair the structure and exterior of the property and keep in repair and proper working order the installations in the property for the supply of water, gas, electricity, sanitation and for space and water heating.
- 4.13. The Landlord’s obligations do not arise until he becomes aware that works or repairs are necessary. The Landlord complies with his obligations if he carries out the necessary works or repairs within a reasonable time after the day on which he becomes aware they are necessary.
- 4.14. The Tenant does not have authority to commission workmen on the Landlord’s behalf or spend money on repairs without the Landlord’s written permission. The Tenant will have to pay for repairs unless they were acting reasonably to effect emergency repairs for which the Landlord is liable.
- 4.15. The Tenant must allow workmen access and to use or disconnect any gas, water or electricity at the Property in order to carry out their work.
- 5. INSPECTIONS AND ACCESS TO THE PROPERTY
To permit the Landlord, and any superior Landlord, or his agent or contractors or those authorised by the Landlord, upon giving at least 24 hours notice in writing (except in an emergency) to enter the property at all reasonable times for the purpose of inspection and repair or access to view the property, accompanying a prospective Tenant or purchaser of the property.
- 5.1. If there is an emergency and the Landlord needs to enter the Property immediately he is entitled to enter, or if necessary force entry to the Property without giving the Tenant any notice. The Landlord is entitled to ask for payment from the Tenant for any damage done in the process of forcing entry to the Property if it was the Tenant’s fault that it was necessary to force entry.
- 5.2. The Tenant will be liable for any losses caused to the Landlord where the Tenant refuses access.
- 5.3. Where the Tenant fails to keep an appointment the Tenant is liable to cover workers’ call-out charges. These charges may be avoided if the Tenant cancels the appointment at least 2 hours before the appointment, or informs the Landlord that workmen may attend without the Tenant being present.
- 6. Insurance
The Landlord will insure the Property but the Landlord’s insurance does not cover the Tenant’s possessions. The Tenant is strongly advised to insure their-own possessions with a reputable insurer.
- 6.1. Details of the Landlord’s insurance are provided with this Agreement. The Tenant shall not do or permit to be done in or about the property any act or thing, which may render void or invalidate the insurance of the property or the building against fire or otherwise increase the ordinary premium for the insurance.
- 6.2. Where a claim is made under the Landlord’s Insurance policy and the Landlord has to pay the first part (known as the “Excess”). The Tenant agrees to repay the amount of excess demanded by the Landlord’s Insurers if the claim was as a result of the failure of the Tenant, or someone the Tenant had invited into the Property to act reasonably.
- 7. Terminating this Agreement
The Tenant understands that the Landlord or their Agent can recover possession at the end of the Term (as defined) and may end the tenancy early if the Tenant fails to carry out their responsibilities. The Landlord may end this Agreement by giving the Tenant at least two calendar months written notice in accordance with Section 21 of the Housing Act 1988, requiring possession of the Property on a date specified in the notice. The Tenant may end this Agreement by giving the Landlord at least one calendar month written notice (expiring on the last day of a rental period and not before the last day of this Agreement).
- 7.1. Service of such notice will be in accordance with the provisions of S196 of the Law of Property Act 1925 either served at Commencement, sent by first class post, or hand delivered to the Property by the Landlord or his agent. If the Landlord is aware that you have moved to another address, he will also send a copy of the notice to that address by first class post. This notice can be served at any time but the Landlord cannot recover possession until the end of the fixed term or before 6 months has lapsed from the Commencement, whichever is the later. If the Tenant gives up possession of the Property before the date specified in the notice, the Agreement ends on the date specified in the notice, unless you are leaving earlier in accordance with the terms of your termination notice. Upon Expiry of the Landlords notice, he may make a claim to the court for recovery of possession of the Property.
- 7.2. The Landlord may end this Agreement if the Tenant forfeits and breaches any term of this Agreement: fails to pay us rent 14 days after it is due, (whether formally demanded or not); causes a nuisance or annoyance; the Landlord has genuine reasons for believing that the Tenant has abandoned the Property; the Tenant becomes bankrupt. If any of these things happen, the Landlord has the right to enter the Property after the bailiffs evict the Tenant following a court order for possession. The Landlord may start this process by sending you a notice in accordance with the procedure set out in Section 8 of the Housing Act 1988.
- 7.3. If applicable, the Landlord may also end this Agreement under Grounds 1 or 2 under Section 8. The Landlord (or, in the case of joint Landlords, at least one of them) has occupied the Property as his only or principal home and may require the Premises as his or his spouse’s only or principal home. The Landlord hereby gives notice that possession of the Property may be recovered on Ground 1 in Part I of Schedule 2 of the Housing Act 1988; and there is a mortgage on the Property which, if not paid, may result in repossession under Ground 2 of the Housing Act 1988. If the Landlord wants to use either Ground, he will start the procedure by serving you with a Section 8 Housing Act 1988 notice. That notice is for two months and he cannot apply for a court hearing until after the two months have passed.The Tenant is asked to keep the Landlord informed of whether they intend to leave at the end of the fixed term or renew the tenancy.
- 7.4. The Tenant may end this Agreement by giving the Landlord at least one months’ notice in writing that he will give up possession of the Property on a date specified in the notice. The notice cannot expire before the end of the Expiry of this Agreement and must expire on the last day of a rental period and must be sent by first class recorded delivery or handed to the Landlord.
- 7.5. If the Tenant stays beyond the end of the fixed term, and you have not already received from us two months’ notice to end the tenancy, it will carry on from month to month as a monthly tenancy. If you give up possession on a date earlier than the date specified in the notice, the tenancy will end on the date specified in the notice.
- 7.6. Leaving Early – Only with the Landlord’s or his agent’s prior consent and subject to certain conditions that may include paying the Landlord’s reasonable costs associated with re-letting the premises and paying the Rent until a new tenant moves in, the Tenant may be allowed to surrender or give up this tenancy before it could otherwise lawfully be ended.
- 7.7. If the Tenant is the sole Agreement holder and they die, this Agreement ends one month after his death or, if earlier, when the Landlord is given notice of the Tenant’s death by authorized persons.
- 8. When this Agreement Ends
This section describes the particulars of the procedure and obligations of the Tenant and Landlord when the tenancy ends.
- 8.1. The Tenant must give the Landlord vacant possession of the Property. The property and contents should be handed back in the same condition as they were at the beginning of the tenancy (subject to fair wear and tear). If carpets are soiled upon leaving, they must be professionally cleaned and ready for another tenant to move in. Return any furniture moved during the tenancy to its original position.
- 8.2. The Tenant must return all keys of the property (including any duplicated) on the agreed termination date or the end of the tenancy (whichever is sooner) otherwise you will be liable to pay for any reasonable charges incurred securing the property against re-entry.
- 8.3. The Tenant must allow the Landlord to put up a ‘For Sale’ or ‘To Let’ board on the Property and grant access to the Landlord or their Agent to view the property, accompanying a prospective tenant or purchaser of the property.
- 8.4. When items are left at the premises, the Tenant will be responsible for meeting all reasonable removal and/or storage charges. The Landlord will remove and store them for a maximum of one month. The Landlord will notify the Tenant at the last known address. If the items are not collected within one month, the Landlord may dispose of the items and the Tenant will be liable for the reasonable costs of disposal. The costs may be deducted from any sale proceeds or the Deposit and if there are any costs remaining, they will remain the Tenant’s liability. The Tenant agrees to pay the Landlord for any damages in having to pay a third party whose possessions he disposes of in accordance with this clause.
- 8.5. The Landlord will return any Deposit to the Tenant in accordance with section 2 of this Agreement.
- 8.6. The Tenant agrees: that the Landlord can forward details about how the Tenant has conducted this tenancy to any prospective future Landlord, and to other agents, Landlords, and bad Tenant databases if they have conducted the tenancy in an unsatisfactory manner; the Landlord can pass details he has about the Tenant to any creditor of the Tenant who may make an enquiry about him.
- 9. Guarantor Warranty
The Guarantor, if there is one, guarantees that the Tenant will meet his obligations under this Agreement. If the Tenant does not then the Guarantor will be liable to compensate the Landlord.
- 9.1. During the tenancy, the Tenant named on Page 1 of this Agreement will pay the Rent and meet the conditions of this Agreement. If the Tenant does not meet their responsibilities under this Agreement, the Guarantor will pay the losses lawfully due to the Landlord on demand.
- 9.2. The Guarantor will also pay the Landlord’s reasonable legal costs in taking anyone who is involved in this Agreement to court to get a court order for regaining possession of the Property, or compensation for losses the Landlord has suffered under this Agreement.
- 9.3. The Guarantee will stay in force for as long as the Tenant continues to live in the Property and until the tenancy has ended. ‘Ended’ here means either all the keys to the Property are returned, or County Court bailiffs repossess the Property. If the Landlord gives the Tenant any extra time to pay any money that is due, it will not affect the liability of the Guarantor in any way.
- 9.4. The Guarantor cannot cancel this Agreement, nor will it become unenforceable by the Guarantor’s death or bankruptcy.
- 9.5. If the Guarantor consists of more than one person, the Guarantors under this deed may be enforced against all such persons jointly and against each individually.
- 9.6. The Guarantor must provide positive proof of his identity. A copy of a driving licence with a photograph or a copy of his passport is acceptable.
- 9.7. It is advised the Guarantor initial all pages.
This Agreement is governed by the laws of England and wales
- A reference to the ‘Landlord’ includes the persons from time to time entitled to receive the rent; references to the ‘Tenant’ also include any persons deriving title under the Tenant.
- All references to the singular or he she shall include the plural and vice versa.
- No one else will benefit from this Agreement as permitted by the Contracts (Rights of Third Parties) Act 1999.
- If any term of this Agreement cannot be enforced or is found to be unfair, it does not affect the other terms of the Agreement.
- 1. This is an agency agreement between the above named client/s (You) and L C Freelance Ltd t/a Chiddicks Homes, (Us, we) relating to the marketing and sale of the above named property at the agreed initial asking price of £ (No survey of the property has been conducted and the agreed asking price is not necessarily a valuation).
- 1. TYPE OF AGENCY
- Sole Agency means you will be liable to pay remuneration to us 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 –
- i. Introduced by us during our period of sole agency; or
- ii. Whom we had negotiations about the property during that period; or
- iii. Introduced by another agent during that period.
Joint Sole Agency means you will be liable to pay remuneration to us in addition to any other costs or charges agreed if at any time unconditional contracts for sale of the property are exchanged: –
- i. With a purchaser introduced by us or the joint agent during the period of the agency or
- ii. With whom we or the joint agent had negotiations about the Property during that period or,
- iii. With a purchaser introduced by another third party agent during that period.
Please note if you terminate this agreement then your liability for our fees, as noted below extends for (a) 6 months from the date of termination where another agent becomes instructed or
(b) 9 months where no other agent is involved.
- 1. Termination can be effected by either party giving 14 days written notice. The 14 days’ notice may be given at any time to terminate the agency at the end of the minimum period. Any outstanding fees must be paid within the 14 day notice period. This does not apply if you have a statutory right to withdraw under this Agreement.
- 1. Commission
A commission fee of ………………..% of the final selling price is agreed. Should the property sell at the asking price the total commission payable will be £ ………..………………. no VAT applicable. Should the property realise a higher or lower figure the commission payable will increase or decrease accordingly.The commission the Client pays the Agent is based on the total value of the transaction including the price of fixtures and fittings. This will also include the value of any other goods or property or other consideration put forward by the buyer to satisfy all or part of such value.
- 1. Where any change in the VAT rate occurs in the future we will amend our invoice to reflect those changes.
- 1. Our commission fee becomes due upon exchange of contracts and is payable upon completion of the sale, or 28 days after exchange should completion not take place. Where there is no contract commission is due upon completion of sale.
- 1. You hereby authorise payment to be made by your solicitor once the sale fees/commission becomes payable. (Subject to your statutory rights)
- 1. Where an account for justified commission, is not settled within 10 days of the due date, interest on the outstanding balance may be charged, at our discretion, on a daily basis, at the rate of 5% above Barclays Bank annual base rate until payment is affected.
- 1. Dual fee liability may occur where you have previously instructed another agent to sell the property, or where you instruct another agent to sell the property on sole agency or sole selling rights basis, during or after the termination of this agreement.
- 1. A valid Energy Performance Certificate (EPC) is required for all properties offered for sale. The EPC must at least be commissioned before marketing commences and should be in place within 7 days. If it is not in place within 28 days the property must be withdrawn from the market until the EPC is available.
- A valid EPC is already in place.
- EPC to be ordered (New Build)
- 1. Unless specific instructions to the contrary are provided, you hereby give us specific authority to erect a for sale board within the curtilage of the property.
- 1. Where any personal interest occurs or where you have any connection to our agency we must disclose details to any prospective buyer. Please assist us by indicating if you are aware of any business association, family relationship or other connection you might have with this agency, or any employee.
- 1. We are required by law to be able to categorically confirm the identity of each client. In order to do this, but not be intrusive, we require sight of documentary proof of address, together with acceptable photographic ID, such as a passport or photo driving licence. Copies may be taken and held on file.
- 1. Prospective purchasers may be provided with a range of services including, estate agency or letting services, mortgage facilities, life insurance, property insurance, removal services, and conveyancing services by us or third parties, for which fees or commission may be received. We will not discriminate against any prospective buyer because that person will not be, or is unlikely to be accepting services that we may (directly or indirectly) provide.
- 1. We take no responsibility for unoccupied properties, unless separately agreed, in writing.
- 1. A copy of the property details will be forwarded to you. Under the Consumer Protection from Unfair Trading Regulations and the Property Ombudsman’s Code of Practice anything we say or publish about your property must be accurate. It is therefore very important that you read the details carefully and immediately inform us if there is anything that is inaccurate. In addition, we are obliged to pass on any material information that would impact on a potential buyers transactional decision and so you must advise us of anything you feel is relevant to this.
- 1. We will not discriminate against any person under the definitions of The Equality Act 2010.
- 1. We operate a formal complaints procedure and a copy is available upon request. We are also a member of The Property Ombudsman Scheme for estate agents (TPOS) and follow the Code of Practice. By entering into this agreement you agree that if the Ombudsman asks for information about any aspect of our dealings with you we can provide the information; whether that be in relation to a complaint, or their monitoring process. A copy of their Code of Practice and the Consumer Guide is available from www.tpos.co.uk
- 1. Right to Cancel – If you are a consumer client you have the right to cancel this contract within 14 days without giving any reason. The cancellation period will expire after 14 days from the day this contract was agreed. To exercise the right to cancel, you must inform us of your decision to cancel this contract by sending us a clear statement in writing to. Sales Department, Chiddicks Homes, Unit 5, Hadleigh Business Park, Chapel Lane, Benfleet, Essex SS7 2PP. You may use the attached model cancellation form, but it is not obligatory. To meet the cancellation deadline, it is sufficient for you to send your communication concerning your exercise of the right to cancel before the cancellation period has expired.
- 1. Where you require us to begin active marketing immediately this must be specifically indicate this within the signature box below.
- 1. If you do request that we begin immediate marketing of your property during the cancellation period and you do exercise your right to cancel, you will be required to pay us an amount which is in proportion to what has been performed until you communicated your cancellation of the contract. This will include reasonable expenses incurred for advertising and preparation of property particulars, etc. Should we introduce or have negotiations with the ultimate buyer of the property before you exercise your right to cancel the contract will have been fully performed and the agreed agency fee would be due, notwithstanding that cancellation took place.
- 1. This Agreement is governed by English law and is subject to the exclusive jurisdiction of the courts of England and Wales.
- i. You should not sign this agreement unless you have read, understood and agree to these terms and conditions.
- ii. When you sign this agreement you are doing so on behalf of all owners of the property.
- iii. You hereby confirm your instructions and authorise us to act on your behalf in the marketing of the above property.
- iv. You acknowledge receipt of a copy of this agreement.
- CANCELLATION NOTICE
If you wish to cancel this contract you must do so in writing and deliver your notification personally, or send it to us by post within14 days. You may use this form if you wish, but you do not have to.