Terms of Business, Landlord Insurances & Property Information (v2.0)

Terms of Business, Landlord Insurances & Property Information (v2.0) 1 General Agreements 1.1 By signing this document, The Landlord is appointing Belvoir! as The Agent. The Landlord confirms that he has the authority to do this and has obtained all necessary consents. The Landlord gives authority to Belvoir to act, and to sign tenancy documentation, on his behalf. The Landlord will approve everything Belvoir does in good faith. 1.2 Belvoir has the right to carry out what ever acts are necessary to ensure The Landlord complies with statutory obligations, to prevent further deterioration of the property, and to limit damage in an emergency. Belvoir shall endeavour to provide competitive quotations for maintenance work through Cornerstone Housing, a related-party contractor. 1.3 The Landlord will reimburse and compensate The Agent against all expenses claims liabilities and losses incurred by or imposed on them in the performance of their obligations under this Agreement, unless the loss or liability arises through negligence or breach of contract. 1.4 The Landlord confirms that The Property is fit to be let and that all appliances comply with current, and will be kept compliant with future, safety regulations. When signing this Agreement, The Landlord confirms that all machinery, gas appliances and electrical goods will be in full working order, have been recently serviced and have clear instructions for use. There is a duty on landlords to ensure that all electrical equipment and appliances supplied by them, either new or second hand, is safe for use by their tenants. Two primary Acts of Parliament impose a statutory duty on landlords with respect to the safety of electrical equipment: The Consumer Protection Act 1987 The Health and Safety at Work etc. Act 1974 The Consumer Protection Act affects all persons who let property in the course of their business because it defines them as "suppliers", i.e. they are supplying goods to the tenant. There are several items of secondary legislation covered by the Consumer protection Act which are directly relevant to the supply of electrical goods, including: The Electrical Equipment (Safety) Regulations 1994 relating to fixed electrical installations The Plugs and Sockets etc. (Safety) Regulations 1994 relating to electrical appliances The Consumer Protection Act provides a defence of 'due diligence', i.e. a landlord can defend a contravention of the Act if he can demonstrate that he took reasonable steps to avoid committing the offence. This is why a planned programme of appliance testing through Belvoir is essential. 1.5 Prior to finding a tenant acceptable to The Landlord, either party may end this Agreement, in writing, by giving two month s notice. 2 The Landlord Agrees to 2.1 Provide written instruction manuals for every electrical or gas appliance in the property including the boiler. If manuals are not provided, Belvoir may remove these items from the property at the Landlords expense. 2.2 Provide at least 1 smoke alarm per floor of the property (unless other legislation demands more). Belvoir reserves the right to add smoke alarms at the Landlords expense if this condition is not met. 2.3 Provide to Belvoir with 3 keys to every lock in the property. Belvoir will retain one set for the purposes as stated in the tenancy agreement. If insufficient keys are provided, The Landlord agrees that The Agent may have the required set/s made and all costs will be borne by The Landlord. Page 1

2.4 Maintain adequate buildings and contents insurance policies for the property. The Landlord should be aware that if the documentation is not supplied The Tenant does not have to comply with any conditions of the Landlord s insurer and in particular any requirements if The Property is left vacant for a period of time. 2.5 In the event of a Landlord continuously failing to undertake necessary maintenance work, Belvoir shall either re-house the tenant(s); and terminate our agreement, where this is not feasible, Belvoir shall obtain three quotations and have the works undertaken on the Landlords behalf and the appropriate cost deducted from the rent, upon giving the Landlord reasonable notice. 2.6 The Landlord agrees that The Agent may conduct the following actions at The Landlords expense, if no supporting evidence has been produced to The Agent by the following deadline: 2.6.1 Gas Safety Certificate at least 48 hours before tenancy commencement; 2.6.2 Portable Appliance Testing Certificate at least 48 hours before tenancy commencement; 2.6.3 Electrical Safety Certificate (with rectification of Code 1 and 2 items) at least 48 hours before tenancy commencement; 2.6.4 Energy Performance Certificate at least 48 hours before tenancy commencement; and 2.6.5 Inventory/Schedule of Condition Report, with photographs and written description and meter readings at least 48 hours before tenancy commencement. This is compulsory to avoid disputes relating to damage to a property by a tenant (see Clause 4.4) or disputes relating to tenants unpaid utility bills. 3 Fees and Services 3.1 The Landlord agrees to pay the appropriate fees for the level of service engaged as listed in the Declaration of Fees sheet appended to this Agreement and any subsequent revision of those, notified according to this Agreement. This agreement may be terminated by either party by way of three months written notice. The minimum fee applies if on termination the total fees due are less than the minimum fee. A placement fee equivalent to one months rent will be payable where the Landlord intends to continue letting to tenant(s) introduced by the Agent after the termination of this agreement. 3.2 The Agent shall be entitled to retain any interest on any monies collected while held in their account; and any commission earned while acting on behalf of The Landlord. 3.3 Where The Tenant is entitled to housing benefit contributions, The Landlord agrees to compensate and reimburse The Agent with any amount received by The Landlord which is deemed by the Local Authority to be overpaid benefit. 3.4 Where The Agent has found a Tenant that subsequently purchases the Property, the Agent shall be eligible for 1% fee of the purchase price. 3.5 Without prejudice to the obligations of The Landlord to pay any sums due within fourteen days of written demand, The Agent shall be entitled to deduct any amount due to them from any monies due to The Landlord, unless payment has been withheld because of negligence or breach of contract. 3.6 SERVICES 3.7.1 SILVER SERVICE 3.7.1.1 Valuation: The Agent will visit The Property to view it and provide an indication of the likely rent achievable. 3.7.1.2 Advertising: The Agent will market The Property to best attract a suitable tenant. 3.7.1.3 Viewings: As and when prospective tenants are interested in viewing The Property, The Agent will either accompany these people to The Property with keys provided by The Landlord, or arrange a mutually convenient appointment for them to meet The Landlord and The Agent at The Property. 3.7.1.4 Applications: The Agent will receive written applications from prospective tenants. A deposit equal to one Page 2

months rent plus 100 will support the application. 3.7.1.5 References: The Agent will take up references appropriate to the tenant applicant. If these references are in order the details of the applicant will be forwarded to The Landlord for written approval. 3.7.1.6 Draft Agreement: When an applicant is found The Agent will provide them with a draft tenancy agreement and advise them to take independent legal advice on the contents. 3.7.1.7 Legal Tenancy Documents: The Agent will once written or verbal approval of the proposed tenancy has been received from the landlord, arrange and prepare a suitable tenancy agreement and required legal notices. 3.7.1.8 Safety Tests: The Agent will arrange, through a related-party Cornerstone Housing, all necessary safety tests, including an Energy Performance Certificate, as authorised by the Landlord or deemed necessary by the Agent if no supporting document has been provided by the Landlord in advance of the tenancy or during the tenancy. 3.7.1.9 Inventory and Condition Record: The Agent will prepare and issue a Statement of Condition which will include a visual condition record plus written inventory of the fixtures and fittings, together with safety records as appropriate and arrange for The Tenant to sign the counterpart Statement of Condition agreeing to notify the agent within 5 days of the commencement of tenancy of any faults not recorded or faults requiring a more detailed record. 3.7.1.10 Start of Tenancy: The Agent will ensure that all legal documents are duly signed; that any part of the first months rent remaining outstanding is paid in full and as cleared funds. The Agent will collect the agreed damage deposit as cleared funds unless already paid. The Agent will release keys. The Agent will then account to The Landlord and provide a statement of account showing fees deducted. The Agent will provide the tenant with the Landlords bank information to enable the tenant to establish a standing order. 3.7.1.11 Utilities: The Agent will notify the utility companies, except telephone providers who will not accept such instructions, of the responsibilities of The Tenant to pay for services to The Property as from the date of the commencement of the tenancy. The Landlord agrees to pay any outstanding utility charges up to and including the date upon which The Tenant occupies The Property and for any void period between tenancies. 3.7.1.12 Council: The Agent will notify the local authority that the tenancy has started and of the liability of The Tenant to pay Council Tax. 3.7.1.13 End of Tenancy: The Agent will carryout a final inspection of The Property and check the statement of condition and the inventory record of The Property and issue a report detailing the results initially to The Landlord. Tenancy Deposit Protection (or any replacement scheme) regulates the timescales for agreement. If an agreement is not made within 28 days of the lawful end of tenancy and the vacation of the property we must notify the Member Firm that there is a dispute with the deposit. Initially the cost of repairs and other work will be payable by The Landlord, with reimbursement of any costs that are later agreed with The Tenant as payable by The Tenant for any damage at The Property and maybe charged to the damage deposit. 3.7.1.14 The Damage Deposit & Final Inspection: At vacation of The Property, if The Agent holds the Deposit it shal liaise with the tenant to agree and effect the arrangements for hand back of The Property, advising The Landlord accordingly. The Agent will check the statement of condition and the inventory record at vacation of The Property and issue a report detailing the results initially to The Landlord. The Tenancy Deposit Protection (or any replacement scheme) regulates the timescales for conclusion. If The Property is to be relet The Agent will arrange, according to the provisions of this Agreement, any repairs or other works which are, in the opinion of The Agent, required to put The Property into a suitable condition for letting. Initially the cost of repairs and other work will be payable by The Landlord, with reimbursement of any costs that are later agreed with The Tenant as payable by The Tenant for any damage at The Property. 3.7.2 GOLD SERVICE 3.7.2.1 Valuation: The Agent will visit The Property to view it and provide an indication of the likely rent Page 3

achievable. 3.7.2.2 Advertising: The Agent will market The Property to best attract a suitable tenant. 3.7.2.3 Viewings: As and when prospective tenants are interested in viewing The Property, The Agent will either accompany these people to The Property with keys provided by The Landlord, or arrange a mutually convenient appointment for them to meet The Landlord and The Agent at The Property. 3.7.2.4 Applications: The Agent will receive written applications from prospective tenants. A deposit equal to one months rent plus 100 will support the application. 3.7.2.5 References: The Agent will take up references appropriate to the tenant applicant. If these references are in order the details of the applicant will be forwarded to The Landlord for written approval. 3.7.2.6 Draft Agreement: When an applicant is found The Agent will provide them with a draft tenancy agreement and advise them to take independent legal advice on the contents. 3.7.2.7 Legal Tenancy Documents: The Agent will once written or verbal approval of the proposed tenancy has been received from the landlord, arrange and prepare a suitable tenancy agreement and required legal notices. 3.7.2.8 Safety Tests & Ongoing Maintenance: The Agent will arrange, through a related-party Cornerstone Housing, all necessary safety tests, including an Energy Performance Certificate, as authorised by the Landlord or deemed necessary by the Agent if no supporting document has been provided by the Landlord in advance of the tenancy or during the tenancy. Any maintenance work that is deemed necessary during the tenancy shall be conducted by Cornerstone Housing, a related-party contractor. 3.7.2.9 Inventory and Condition Record: The Agent will prepare and issue a Statement of Condition which will include a visual condition record plus written inventory of the fixtures and fittings, together with safety records as appropriate and arrange for The Tenant to sign the counterpart Statement of Condition agreeing to notify the agent within 5 days of the commencement of tenancy of any faults not recorded or faults requiring a more detailed record. 3.7.2.10 Start of Tenancy: The Agent will ensure that all legal documents are duly signed; that any part of the first months rent remaining outstanding is paid in full and as cleared funds. The Agent will collect the agreed damage deposit as cleared funds unless already paid. The Agent will release keys. The Agent will then account to The Landlord and provide a statement of account showing fees deducted. The Agent will provide the tenant with the Landlords bank information to enable the tenant to establish a standing order. 3.7.2.11 Utilities: The Agent will notify the utility companies, except telephone providers who will not accept such instructions, of the responsibilities of The Tenant to pay for services to The Property as from the date of the commencement of the tenancy. The Landlord agrees to pay any outstanding utility charges up to and including the date upon which The Tenant occupies The Property and for any void period between tenancies. 3.7.2.12 Council: The Agent will notify the local authority that the tenancy has started and of the liability of The Tenant to pay Council Tax. 3.7.2.13 Collection of Rent: The Agent will endeavour to collect rent and related payments due from The Tenant throughout the Term of the tenancy. The Agent cannot be held responsible if The Tenant fails to pay the contractual rent, unless it is due to negligence or breach of contract by The Agent. Appropriate action will be taken to seek to recover rent arrears from The Tenant. If this does not have the desired effect The Landlord will be advised to instruct solicitors who are specialists in Landlord and Tenant law to take further action. The Landlord will be responsible for the legal charges and expenses, unless covered by a legal expenses protection scheme. Up to 10 working days should be allowed for funds to be cleared in your account subject to payment by the tenant. The Agent shall be entitled to 65 for production of annual accounts for tax purposes. 3.7.2.14 Rent Arrears: In the event of The Tenant going into rent arrears beyond rent due date plus 4 working days The Agent will apply its own procedures and keep The Landlord informed of the situation. 7 day overdue - written reminder. 14-day overdue second stronger written reminder. 21 days overdue visit to Property by senior management and 7 day warning of legal proceedings. 28 days overdue prepare to commence Page 4

proceedings or start insurance claim. The Agent shall be entitled to 250 for any Court visit and 40 for each Legal Notice served. 3.7.2.15 Tenants Breach of Contract: If The Tenant is in breach of any condition in the tenancy, The Agent will take all reasonable steps to enforce the terms of the tenancy agreement on behalf of The Landlord. If the tenancy is covered by legal protection or rent guarantee insurance, The Agent will undertake reasonable action to resolve the situation within the provisions of the policy. Otherwise, if legal action is required The Agent will instruct a solicitor to act on behalf of The Landlord. The Landlord may nominate a solicitor for this purpose by written notice to the agent prior to the commencement of the tenancy. In the absence of such nomination The Agent is given authority by The Landlord to appoint a solicitor on the Landlord s behalf and The Landlord will be responsible for the solicitor s fees, expenses and other charges. 3.7.2.16 Property Visits: The Agent will visit The Property not less often than once every four months. Any visit is a walk through of The Property to ascertain any clearly visible repairs and maintenance and to find out from The Tenant any repairs that have come to his attention. It is not a survey or check of the inventory and statement of condition. The Agent will notify The Landlord of apparent and obvious defects but does not accept responsibility for hidden or latent defects, unless it is due to The Agent s negligence or breach of contract. If, in the opinion of The Agent, the occupants are not taking proper care of The Property The Agent will inform The Tenant, copying such information to The Landlord. 3.7.2.17 End of Tenancy: The Agent will carryout a final inspection of The Property and check the statement of condition and the inventory record of The Property and issue a report detailing the results initially to The Landlord. Tenancy Deposit Protection (or any replacement scheme) regulates the timescales for agreement. If an agreement is not made within 28 days of the lawful end of tenancy and the vacation of the property we must notify the Member Firm that there is a dispute with the deposit. Initially the cost of repairs and other work will be payable by The Landlord, with reimbursement of any costs that are later agreed with The Tenant as payable by The Tenant for any damage at The Property and maybe charged to the damage deposit. 3.7.2.18 The Damage Deposit & Final Inspection: At vacation of The Property, The Agent will liaise with the tenant to agree and effect the arrangements for hand back of The Property, advising The Landlord accordingly. The Agent will check the statement of condition and the inventory record at vacation of The Property and issue a report detailing the results initially to The Landlord. The Tenancy Deposit Protection (or any replacement scheme) regulates the timescales for conclusion. If The Property is to be re-let The Agent will arrange, according to the provisions of this Agreement, any repairs or other works which are, in the opinion of The Agent, required to put The Property into a suitable condition for letting. Initially the cost of repairs and other work will be payable by The Landlord, with reimbursement of any costs that are later agreed with The Tenant as payable by The Tenant for any damage at The Property. 3.7.3 PLATINUM SERVICE As per the Gold Service (Clauses 3.7.2.1 to 3.7.2.18) plus 3.7.4.1 Fully insured tenant against any rent default & all legal expenses covered. If a tenant has defaulted on their rent and refuses to pay any further money, we will pay you the rent a tenant owes up until the time that the property is vacant, up to a maximum of 12 months rent and 25,000 subject to a 1 months rent excess.. 3.7.4.2 Re-directing the Landlords mail to or from the property. 3.7.4.3 Managing the property whilst it is not tenanted but being advertised for re-let. 3.7.4.4 Overseeing any major repair work or refurbishment. 3.7.4.5 If the property is a flat, the Agent shall liaise with the block management company if any issue arises Page 5

4 Tenancy Deposits 4.1 The Agent is a member of the Tenancy Deposit Scheme, which is administered by: The Dispute Service Ltd, PO Box 541, Amersham, Bucks, HP6 6ZR, T: 0845 226 7837, www.thedisputeservice.co.uk, E : deposits@tds.gb.com, F: 01494 431 123 4.2 If the Agent is instructed by the Landlord to hold the Deposit, the Agent shall do so under the terms of the Tenancy Deposit Scheme. If The Landlord does not furnish to The Agent as valid registration number of an approved Tenancy Deposit Scheme then The Agent shall insure the deposit with the Scheme as per Clause 4.1 and charge The Landlord the applicable fee. 4.3 The Agent holds tenancy deposits as Stakeholder (if not already specified within the Tenancy Agreement). 4.4 If the Landlord decides to administer the deposit himself, the Agent will transfer it to the Landlord within 5 days of receiving it. The Landlord must then register it with another Tenancy Deposit Protection Scheme within a further 9 days if the Tenancy is an Assured Shorthold Tenancy. If the Landlord fails to do so the Tenant can take legal action against the Landlord in the County Court. The Court will make an order stating that the Landlord must pay the Deposit back to the Tenant or lodge it with the custodial scheme which is known as the Deposit Protection Scheme. In addition a further order will be made requiring the Landlord to pay compensation to the Tenant of an amount equal to three times the Deposit. 5 Landlords Who Reside Outside the UK 5.1 If resident outside the UK the Landlord will provide to The Agent a copy of the approval number obtained from HM Revenue and Customs for each individual making up The Landlord, thereby allowing The Agent to release rental monies to The Landlord without the obligation to retain tax reserve monies. If an approval number is not received and The Landlord resides outside the UK, The Landlord agrees that The Agent shall retain from rents a tax reserve equivalent to the basic rate of income tax on the rental income. This will be held in a client account and money due to HM Revenue and Customs will be paid on a quarterly basis. Providing this service will incur a charge at the Hourly Rate of 150+VAT. 6 Items for which the Agent is not Responsible 6.1 Re-directing the Landlords mail to or from the property (except Platinum Service) 6.2 Managing the property whilst it is not tenanted. (This can be provided for an additional charge or free for Platinum Service). 6.3 Overseeing any major repair work or refurbishment. (This can be provided for an additional charge or free for Platinum Service). 6.4 Any substandard work done by a third party contractor. (Although we only use contractors whose work is of a good standard). 6.5 Failure of the Landlord to obtain permission to let the property from his mortgage company or other interested party. Page 6