Landlord and Agent Agreement: Part A

Transcription

1 Granger & Oaks Landlord and Agent Agreement: Part A Today s Date: THE PROPERTY Full Address: Property available from: Property advertised price: Is the property: Furnished Unfurnished Part-Furnished Flexible Would you consider: Children Smokers Pets DSS THE LANDLORD(S) Landlord s Name(s): Landlord s Address: Home: Mobile: Work: Tick here if you ll be residing overseas whilst the property is let SERVICE OPTIONS (please tick to indicate which service you require) MANAGED SERVICES: OPTION 1 GO Comprehensive Property Management Plus OPTION 2. GO Comprehensive Property Management (most popular) OPTION 3. GO Essential Property Management TENANT PLACEMENT ONLY SERVICES: OPTION 4. GO Comprehensive Tenant Placement OPTION 5. GO Tenant Introduction RENT AND LEGAL EXPENSES INSURANCE (please tick to indicate which service you require) STANDARD 6 STANDARD 12 COMPREHENSIVE COVER

2 AGREEMENT This Agreement is made between the landlord(s) of the property and Granger & Oaks who agree to act as Agent for the landlord and are hereinafter referred to as the Agent. By signing this agreement, the landlord agrees to be bound by them in respect of all properties managed by the Agent. The terms set out in parts A and B of the Agreement will constitute a binding legal contract. If you are unsure of your obligations under this Agreement, then you are advised to take independent legal advice before signing. This agreement is set out to comply with the Provision of Services Regulations May we start providing our service within the 14 day cancellation period allowed by the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013? If you agree we can, then you will be liable for our costs incurred if you decide to cancel. Please initial to indicate agreement Signed by the Landlord(s) if the property is jointly owned, all parties should sign Signature(s) Date I have attached proof of identity (e.g. copy of my/our passports) In order to comply with Money Laundering legislation we are unable to transfer rents without proof of identity and ownership. Yes No I have attached proof of ownership (copy of my/our title deeds or mortgage statement) Yes No Signed on behalf of the Agent Signature Date OTHER SERVICES TO LET BOARD: for all service options, the Agent provides a free company TO LET board, which will be erected at the property (where permitted) once instructions to let have been received. This will be replaced with a LET BY board when the property has been let. (Subject to the Town and Country Planning (control of Advertisements) Regulations 1992) Please tick here if you DO NOT require a TO LET board KEY CUTTING: the Landlord should provide the Agent with as many full sets of keys as required for a tenancy (to include one set for the Agent for management purposes plus additional sets as required by likely number of tenants at the property) Please tick here if you DO NOT require any keys cutting BANK DETAILS (for rent payments): Bank: Name on account: Sort code: Account number:

3 GENERAL PROPERTY INFORMATION Gas Safety Regulations: Does the property have a gas supply? Yes No Fire and Furnishing Regulations: Are you leaving any soft furnishings in the property Yes No Do they comply with Furniture and Furnishings (Fire and Safety) Regulations? Yes No Mortgage Is the property mortgaged? Yes No If yes, have you obtained permission to let? Yes No Alarm Location of alarm: Alarm code: Location of utilities Main water stop cock: (if applicable) Water meter: Gas shut off valve: Gas meter: Electric meter: For apartments Management Company: Telephone number: Block entry code (if applicable): Parking space number / letter / location: REPAIRS The Consumer Protection Act 1987 and The Electrical Equipment (Safety Regulations 1994) state that safe use of an appliance requires the relevant instruction manual. Please provide instruction manuals for all your appliances at the property if missing, these can often be found on manufacturers websites. Do you have any preferred contractors for repairs or service contracts or guarantees? Yes No If so, please provide details below (e.g. names, phone numbers, items under warranty and relevant reference numbers)

4 SAFETY (AND OTHER) REGULATIONS You should read and understand these obligations before signing this agreement. The letting of property is closely regulated with respect to consumer safety and makes particular demands regarding the safety, servicing and inspection of the gas and electrical appliances and installations within a property, and with respect to the safety of furniture and soft furnishings provided. The following regulations apply: Energy Performance of Buildings (Certificates and Inspections) Regulations 2007 Gas Safety (Installation and Use) Regulations 1998 Electrical Equipment (Safety) Regulations 1994 Plugs and Sockets (Safety) Regulations 1994 General Product Safety Regulations 1994 Furniture and Furnishing (Fire) (Safety) Regulations 1998 Health and Safety Executive (HSE) Approved Codes of Practice It is agreed that the landlord shall ensure that the property is safe and where possible is in compliance with the above obligations at all times. The landlord confirms that the Agent has provided sufficient information to assist with compliance and agrees to fully indemnify the Agent should they elect not to carry out any of the recommended safety checks listed below and to repay the Agent s cost in incurring any reasonable expenses or penalties that may be suffered as a result of non compliance of the Property to fire, gas, electrical, appliance and health and safety standards. The safest way to achieve full compliance is to authorise the Agent to carry out the following checks: MANDATORY CHECKS: Energy Performance Certificate (EPC) must be obtained on all properties before a property is let. If you already have a certificate please tick here, otherwise we will obtain one on your behalf Gas Safety Certificate (CP12) must be obtained before a tenant moves into property where a gas supply to the property exists and must be renewed every 12 months. If you already have a certificate please tick here, otherwise we will obtain one on your behalf Landlords use of own Gas Engineer or Boiler Service Policy Where a landlord employs their own gas engineer, or has a British Gas (or similar) boiler policy, to produce the annual Gas Safety Certificate, the landlord accepts all responsibility for compliance with the Gas Safety (Installation and Use) Regulations 1998 and will make all arrangements for access and issue of the certificate to the tenant. RECOMMENDED CHECKS: Electrical Installation Condition Report (EICR) should be obtained if the property is a HMO (House of Multiple Occupation) or you cannot be sure the electrical wiring, consumer unit and sockets and switches etc in your property is safe. Please tick here if you DO require an Electrical Installation Condition report Portable Appliance Test (PAT) should be obtained if the property is a HMO (House of Multiple Occupation) or you cannot be sure the electrical equipment in your property is safe. Please tick here if you DO require a PAT test Legionella Testing should be done if you cannot be sure the water system and related equipment (such as storage tanks, pipe work, shower heads and taps) in your property are not contaminated with Legionella. Please tick here if you DO require Legionnaires Testing

5 Granger & Oaks Landlord and Agent Agreement: Part B The purpose of this document is to set out clearly and concisely the extent of the service options offered and the scale of fees charged. TENANT PLACEMENT ONLY SERVICES: Option 5: GO Tenant Introduction This service includes: Provide advice on the rent you can expect to achieve on your property. Advertising and marketing of your property. A free To Let board (where permitted). Advice on presentation and the furnishing of your property. Advice on your responsibilities as a landlord. Accompanied viewings (including evening and weekend viewings) to ensure your property is viewed and let at the earliest opportunity. A No Let No Fee service. Consider applications from prospective tenants. Taking up references on tenants and guarantors including employers, current landlords, and credit reference searches where applicable. We endeavour to ensure that a tenant is suitable for a tenancy, but cannot guarantee this. Preparation and sending of financial statements detailing income and expenditure. Checking the immigration status of all applicants, as appropriate, under the Immigration Act before the initial move in. For Tenant Placement Only services (options 4 and 5) the Landlord will be responsible for any further checks or work needed under the Immigration Act. For Managed services, (options 1, 2 and 3) the Agent accepts responsibility for any ongoing Immigration Act checks. Option 4: GO Comprehensive Tenant Introduction This service includes: Everything as per Option 5 with the added benefit of: Preparing and arranging the signing of appropriate tenancy agreements (unless otherwise agreed, the Agent will sign such agreements on behalf of the landlord). Where requested to do so, preparing and arranging the signing of an appropriate tenancy agreement renewal. Towards the end of tenancy, we will write to you with our recommendation for extending the tenancy. If we do not receive correspondence to the contrary within 10 working days, we will assume you wish the Agent to offer your tenants a renewal of the tenancy based on our recommendation. A full property inventory report and schedule of condition. Collecting the first months rent and deposit from your tenant. Registering the deposit in the Tenancy Deposit Scheme *. Notifying the relevant council tax, water authority of the change of occupier and obtain the relevant meter readings at the commencement of the tenancy where possible. Negotiate and arrange a renewal of tenancy in agreement with the landlord *.

6 MANAGED SERVICES: Option 3: GO Essential Property Management This service includes: Everything as per Option 4 and 5 with the added benefit of: Collection of the monthly rents with payments made to you by bank transfer no more than 10 days of receipt less any fees or expenses due or incurred for the period. The issuing of rent arrears letters and the making of telephone calls, where permitted, for late rent payments from tenants and notifying you as appropriate. Arrangement of Annual Gas Safety Certificates, Electrical Installation Condition Report, Energy Performance Certificate, PAT testing and Legionella Testing as agreed in Part A of this agreement *. For Tenant Placement Only services (options 4 and 5) the Landlord will be responsible for any additional checks that might be required e.g. renewing the Gas Safety Certificate every 12 months. By pre-arrangement, conducting regular property inspections and providing you with a report. Unless requested otherwise, the first property inspection is conducted after approximately six weeks from the commencement of the tenancy and then approximately every three months thereafter. The purpose of the inspection is to check that the tenants are fulfilling their obligations under the terms of the tenancy (it does not represent a survey or inventory check). Responsibility for day to day management of your property which may involve arranging for general repairs and maintenance to be carried out subject to a 300 limit. In an emergency, or in order to keep the property compliant with the law, we reserve the right to carry out repairs, even if the costs exceed this limit. The cost of repair is normally deducted from the rental income. Checking the inventory at the end of the tenancy and compile a check-out report in order to assess whether any differences, are due to tenant damage, fair wear and tear or otherwise. Where appropriate we will negotiate any necessary deductions from the deposit *. Arranging the return of the deposit to the tenant and updating the Tenancy Deposit Scheme Serving of specific legal notices as required and with the landlords authority *. Option 2: GO Comprehensive Property Management This service includes: Everything as per Options 3-5 with the added benefit of: Discounted Start Up and Re-Let charges. Payment of any bills in relation to utilities and service charges when the property is vacant. By pre-arrangement, conducting property inspections on a pay as you go basis and providing you with a written report. Unless requested otherwise, the first property inspection is conducted after approximately six weeks from the commencement of the tenancy and then usually every three months thereafter. The purpose of the inspection is to check that the tenants are fulfilling their obligations under the terms of the tenancy (it does not represent a survey or inventory check) *. Production of annual rent and expenses statement for your accountant or self-assessment tax return. Option 1: GO Comprehensive Property Management Plus This service includes: Everything as per Options 2-5 with the added benefit of: Serving of specific legal notices as required and with the landlord s authority at no additional charge. A 12 Month Comprehensive Landlord Rent and Legal Expenses Cover. The insurer, Let Insurance Services (LIS), will pay the rent you are expecting from a defaulting tenant until vacant possession has been obtained up to 12 months and excluding the first months lost rent. Legal fees to obtain vacant possession are also covered. After vacant possession has been obtained, the policy also provides 75% of the monthly rent for up to 2 months whilst you are advertising the property for a new tenant. Premiums are subject to Insurance Premium Tax & 1 month policy excess. * For details of charges relating to these items, please see the Summary & Scale of Charges on the final page of this agreement

7 GENERAL CONDITIONS APPLYING TO OUR MANAGEMENT SERVICE OPTIONS Although we strive to take every care in managing the property, the Agent cannot take responsibility for non-payment of rent, damage or other defaults or breaches by the tenant, or any associated legal costs. An insurance policy is recommended for this eventuality. Any delays in rent payment or other defaults will be dealt with by the Agent in the first instance. Where the Agent is unsuccessful, the Landlord will be advised accordingly. The landlord will be responsible for taking any legal action, such as instructing a solicitor, which might be necessary for recovery of rent due or for example, obtaining a possession order for the property, and will be responsible for payment of all legal fees and any related costs. The Agent may charge a reasonable fee if required to attend Court. Such a fee will be agreed with the landlord in advance. If you are resident outside of the UK, the Agent is responsible for deducting income tax at the basic rate on rental income for tax purposes unless the landlord or Inland Revenue provides the Agent with an exemption certificate. If you are classed as overseas for tax purposes, we recommend you obtain an exemption certificate as early as possible. Where the tenant pays the rent in advance for more than one month, the Agent reserves the right to hold a float of up to one months rent (normally 200) to cover any expenditure that has occurred or may occur during the tenancy. The Agent reserves the right to hold back rent in circumstances where the Agent predicts there will be expenditure to pay imminently. In some circumstances this allows the Agent to comply with Tenancy Deposit Regulations where deposit funds may not be instantly available should a tenant not agree to proposed charges from their deposit. The Agent may share information with third parties connected to the Agent e.g. contractors, insurers etc unless the Agent is told otherwise. The Agent may earn commission on services provided or introductions made to third parties. The Agents strives to do its very best to query discrepancies with regard to the payment of out-going expenditure, however, it should be understood that we will pay invoices that appear to be in order. In particular, we cannot accept responsibility for any inadequacy of any insurance cover. THE TENANCY DEPOSIT The Agent is a member of The Deposit Protection Service (DPS) The Deposit Protection Service (DPS) The Pavilions Bridgwater Road Bristol BS99 6AA Phone: Web: Where the Agent collects a tenancy deposit, the Agent will process the deposit in accordance with the initial requirements of The Deposit Protection Service (DPS) under the Agent s membership unless otherwise agreed. At the end of the tenancy, deposit monies shall be paid out upon agreement between the Landlord and the Tenant, the decision of an adjudicator or an order of the court. For Managed properties, (Options 1, 2 and 3) the Agent will, if needed, try and assist in resolving any deposit disputes. For any complex tenancy deposit disputes, we reserve the right to charge 30+vat per hour. For Tenant Introduction Services (Options 4 and 5), the Landlord will be responsible for negotiating with the tenant any deductions they wish to make from the deposit and deal with any deposit disputes, though for a fee payable in advance, we offer a Deposit Dispute Guidance and Negotiation service (see summary and scale of charges).

8 USE OF LANDLORDS OWN DEPOSIT SCHEME If the Landlord decides to hold the deposit in their own scheme in relation to an Assured Shorthold Tenancy, the Landlord takes responsibility for registering the deposit within 30 days of the original receipt of funds from the tenant (which if paid by the Tenant to the Agent, means 30 days from receipt by the Agent). The Landlord must also serve the Prescribed Information from the relevant deposit scheme to the Tenant within 30 days of receipt. If the Landlord fails to do so, the Tenant can take legal action against the Landlord and an order may be made requiring the Landlord to pay compensation to the Tenant of between one and three times the amount of the Deposit. If a landlord fails to meet the initial requirements to protect the deposit, no valid Section 21 Notice may be served until either the landlord returns the deposit to the tenant in full or with such deductions as the tenant agrees; or if the tenant has taken proceedings against the landlord for non-protection and those proceedings have been concluded, withdrawn or settled (for example, by the court awarding damages being the return of the deposit or a fine not more than three times the value of the deposit). Tenants can make an application to a county court for a penalty award even where the tenancy has ended, and can do so for up to six years. The Agent has no liability for any loss suffered if the Landlord fails to comply. TERMINATING, AND MAKING CHANGES TO, THIS AGREEMENT The Consumer Contract (Information, Cancellation and Additional Charges) Regulations 2013 provide that the landlord may have a right to cancel the contract if they should wish to and that this right can be exercised by notifying the Agent in writing (including electronic mail) within 14 days of signing the agreement. Either party may terminate this agreement at the end of a tenant s occupation i.e. at the end of a tenancy when the property becomes vacant subject to one months notice. The Agent reserves the right to change prices and service levels as is deemed appropriate and will give the landlord 30 days notice in writing Should a ready and willing tenant make an application to rent your property in accordance with your instruction and you subsequently withdraw the property, a fee of 295 +vat is payable to the Agent for works undertaken, irrespective of your reasons. The Agent reserves the right to give one months notice to the landlord to terminate this agreement stating the reason for doing so. Where a landlord instructs the Agent to manage a property on a managed basis, but the Landlord later decides after the commencement of the tenancy that they no longer wish the Agent to manage the property, the landlord undertakes to give the Agent at least three clear rental months notice and agrees to pay the Agent compensation for loss of fees after the notice period has been served, according the following scale of charges: o o o o Within the fixed term of the tenancy agreement the landlord agrees to compensate the agent for the full fees normally due to the agent for the remainder of the fixed term of the tenancy agreement, or, if there is a sitting tenant on a statutory periodic tenancy agreement, the landlord agrees to compensate the agent according to the following scale of charges; Within the first 6 months of the periodic element of the tenancy, the landlord agrees to pay the agent 3 months fees. Between 6 and 12 months of the tenancy, the landlord agrees to pay the Agent the equivalent of 4 months fees. After 12 months from the commencement of the periodic element of the tenancy, the landlord agrees to pay the Agent the equivalent of 6 months fees.

9 LANDLORD AUTHORISATION AND WARRANTY The undersigned confirms that: You are the lawful owner of the property and authorise the Agent to act in accordance with this agreement. The landlord authorises the Agent to find a suitable tenant for your property and provides the Agent with power of attorney to sign on the landlords behalf, all tenancy agreements, statutory notices, inventories and to instruct third party inventory providers (where applicable) and to sign insurance proposals. The landlord agrees to maintain the property to a good standard of repair and carry out all necessary repairs and maintenance as and when required within the terms and conditions of the tenancy agreement. Where the property is subject to a mortgage, permission to let has been obtained from the Mortgagee. Where the property is leasehold, you have obtained all necessary consent to let and will notify the Agent. The Agent cannot accept any liability for any damage or theft at the property at any time. The Agent recommends that the landlord considers all aspects of security and obtains adequate insurance cover. Where a property is a House of Multiple Occupation (HMO), the property has been registered as such with the relevant local authority where required, and will ensure the property complies with all relevant legislation. The landlord takes responsibility for keeping addresses for service details up to date with The Land Registry of any special conditions applied by the head landlord/freeholder. The landlord remains responsible for obtaining planning permission where applicable and warrants that such permission, where required, has been obtained prior to any letting of the property. The landlords agree to pay to the Agent all fees due in respect of the tenancy or related fees and to pay such fees in respect of the full period for which any tenant introduced by the agency occupies the property, subject to the maximum of 6 months after termination of this contract. The landlord understands that the fees due will be deducted from rental income paid by the tenant(s) to the Agent. The Agent is authorised to arrange and pay from income, maintenance repairs up to 300 (or more if necessary to be compliant with the law) on any one item of repair and any necessary expenditure which is considered good property management practice, particularly in circumstances where it has been unreasonable, impractical or impossible to obtain your instructions in a reasonable time. Where the Agent is required to organise repair and maintenance work on behalf of the landlord, the Agent, will not be responsible for any negligence, damage or breach of contract by any contractor employed in this way. Where the property is not managed by the Agent, but the Agent arranges and instructs contractors to make repairs or other improvements to the property, the Landlord agrees to pay a commission of 10% of the total bill +VAT (with a minimum of 30 +VAT per instruction). The Landlord agrees to pay in advance of contractors being instructed. All fees are subject to VAT at the current rate which is subject to change The landlord undertakes to indemnify the Agent within seven days of a demand for payment against all claims, cost and expenses of whatever nature made against the Agent concerning the landlord or landlord property. The landlord undertakes to indemnify the Agent within seven days for payment against all claims, costs and expenses of whatever nature made by the Department of Social Security or any other body or person for any claims arising from over-payment which may be made by the local authority in respect of Housing Benefit, or other benefit schemes, paid to or on behalf of the tenant(s) as rent. This undertaking shall remain in force during any current tenancy and for up six years thereafter whether or not the Agent continues to be involved in letting and/or management of the property under this agreement.

10 The landlord will notify the Agent if the landlord is presently or, at any time during this agreement becomes a non resident in the UK for Income Tax purposes. The landlord will indemnify the agent against any fines or interest charges levied by HRMC arising from the landlord s failure to obtain the non-resident landlord (NRL) certificate at the appropriate time. The Agent is responsible for deducting income tax at the basic rate on rental income for tax purposes where an exemption certificate is not provided. There is no cost associated with obtaining a certificate and so we strongly recommend that the landlord obtains one at the earliest opportunity. INCORRECT INFORMATION 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 the Agent which causes the Agent to suffer loss or causes legal proceedings to be against the Agent, the landlord agrees to compensate the Agent for all associated costs.

11 Summary and Scale of Charges Property Management Service Options OPTION 1: GO Comprehensive Property Management Plus 325 +vat * start up ( 275 +vat * for re-lets) plus 13.5% +vat of the monthly rent OPTION 2: GO Comprehensive Property Management 250 +vat * start up ( 195 +vat * for re-lets) plus 10% +vat of the monthly rent OPTION 3: GO Essential Property Management 325 +vat start up ( 325 +vat for re-lets) plus 10% +vat of the monthly rent Tenant Introduction Service Options OPTION 4: GO Tenant Comprehensive Introduction 75% of the 1 st months rent (minimum 425 +vat * ) OPTION 5: GO Tenant Introduction 50% of the 1 st months rent (minimum 325 +vat) * where the property is furnished, there is an additional charge of 30 to cover increased inventory costs Rent and Legal Expenses Insurance Standard 6: 6 months cover charged at 2% of the monthly rent plus IPT (payable upfront) Standard 12: 12 months cover charged at 2% of the monthly rent plus IPT (payable upfront) Comprehensive Cover:12 months cover charged at 2.5% of the monthly rent plus IPT (payable upfront) Other services Tenancy Renewals: 40+vat Serving Legal Notices (e.g. Section 8, 13, 21): 40+vat Property Inspections: 30+vat Property Visits (at the request of the landlord): 30+vat Tenancy Deposit Registration: 20+vat Check-Out Reports: 30+vat ( 50+vat ( 65+vat furnished) for non-managed properties - options 4 + 5) Key Cutting: cost of keys plus 10+vat Energy Performance Certificates: 65+vat Gas Safety Certificate (CP12): 75 (inc vat) up to two appliances, plus 10 (inc vat) for extra appliance Electrical Installation Condition Report (EICR): charged on a case by case basis, from 100 (inc vat) Portable Appliance Test (PAT): from 75 (inc vat) for up to 6 appliances Legionella Testing: from 85+vat Deposit Dispute Negotiation (for non-managed properties (Options 4 and 5)): 150+vat House in Multiple Occupation (HMO) Licence Application Options: A: HMO licence application consultation and guidance, floor plan and Agent accompanied Housing, Health and Safety Rating System Inspection by Local Authority: 100+vat B: As A, with licence application completed by Agent (Landlord to just confirm and sign): 150+vat C: As B, with Agent as licence holder (for instance where the Landlord resides outside the UK): 200+vat Furniture: we can furnish properties very cost effectively using local suppliers contact us for more info.

12 Cancellation Notice Name of Agent Address of Agent Granger & Oaks 2b 4b Hucknall Road, Nottingham, NG5 1AB CUSTOMER CANCELLATION RIGHTS You have the right to cancel this contract within fourteen days of the date of the contract. If you wish to cancel the contract you MUST DO SO IN WRITING and deliver personally or send (which may be by electronic mail) to the address below. You may use this form if you want to, but you do not have to. (Complete, detach and return this form ONLY IF YOU WISH TO CANCEL THE CONTRACT) CUSTOMER CANCELLATION NOTICE TO Name of Agent: Granger & Oaks, 2b 4b Hucknall Road, Nottingham, NG5 1AB I/We* hereby give notice that I/we* wish to cancel my/our* contract (*delete as appropriate) FROM CLIENT Name CLIENT Address Signature Date Your cancellation notice takes effect on the day of posting.