Terms of Business - Clair James Property Group

LETTINGS & MANAGEMENT
TERMS OF BUSINESS
Address of property to be let:
Rent pcm:
Deposit required:
Landlord Address:
Telephone:
email:
SERVICES
MARKETING
For landlords preferring to rent the property without the involvement of an agent this
is the option for you.
• You send us the photograph's and details of the property.
• You agree for Clair James Property Group to then prepare the details, within 24
hours of instruction your property will be marketed on the UK's leading property
websites.
• We will forward to you all details of prospective tenant enquiries for you to
contact and arrange viewings. You can choose how you receive notifications.
• Once you have agreed a suitable tenant, it is the landlord’s responsibility to
ensure that the deposit is registered with an approved Government Tenancy
Deposit Scheme and all legal requirements are adhered to.
On signing this agreement you agree for Clair James to use internal and external
photography of the property and to use such photographs on internet sites and in
paper publications of property nature.
This service can be adapted to suit your needs should you wish for Clair James to
include a tenancy agreement, credit check or inventory.
TENANT FIND
•
Clair James will carry out a pre-letting visit of the property to determine
appropriate market rental.
•
Once the Let is verbally agreed with Clair James you agree to withdraw the
property from the market with all agents involved and will allow the Tenant a
period of 14 days in which to provide suitable references.
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•
Clair James shall market the property on behalf of the landlord. On signing this
agreement you agree for Clair James to take internal and external photography
of the property and to use such photographs on internet sites and in paper
publications of property nature.
•
Clair James will carry out stringent references of prospective tenants and carry
out a financial credit check using an independent referencing agency.
•
Clair James will negotiate the terms of the Agreement on your behalf and draw
up the tenancy agreement in accordance with current Housing Act legislation
and insert any applicable extra clauses as necessary.
•
Clair James will arrange a professional inventory and schedule of condition of
the property at an additional cost to the Landlord.
•
Clair James will charge commission at an agreed percentage of the gross
monthly rental income stated in the Tenancy Agreement and will be payable on
commencement of the Tenancy from the first months rental collected by the
agent. Should the amount be greater than once months rental the balance will
become immediately payable by you.
•
Clair James will collect the first months rental and tenants security deposit at
the commencement of the tenancy. The landlord is responsible to ensure the
deposit is placed within an approved government deposit protection scheme. A
statement of account will be forwarded to you.
•
In the event of Clair James introducing a Tenant to the Landlord who
subsequently enters into an agreement with the Tenant to rent the property,
the commission will become due to the Agent for the entire duration of the Let.
The commission is payable to Clair James for this introduction whether or not
the Tenancy is duly finalised by Clair James.
FULLY MANAGED
•
Clair James will carry out all the obligation details in the Tenant Find Service.
•
Clair James will be the tenants direct point of contact, also providing the tenant
with a 24 hour emergency out of hours service for property related issues.
•
Clair James will, under the Fully Managed Service, notify utility suppliers of the
Tenancy which will include the tenants details and tenancy commencement date
if we are provided with details of whom the utility accounts are held with. Clair
James will notify the Local Authority of the changeover of residents for Council
Tax purposes.
•
Clair James will administer and register the deposit with the Deposit Protection
Service and issue the tenants with the prescribed information and deposit terms
& conditions as required by law. Any interest accrued will belong to Clair James.
•
Clair James will arrange for the annual Gas Safety Certificate to be carried out
in timely manor the cost of which to be deducted from you rental account
unless otherwise instructed by you.
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•
Clair James will arrange for your tenants to pay the monthly rental by Standing
Order/Bank Transfer to the Clair James client account on a monthly basis and,
after the deduction of fees the balance will be transferred to your nominated
bank account. Clair James will arrange for a statement of account to be sent to
you monthly.
•
Clair James will conduct a property inspection on Fully Managed properties on a
regular quarterly basis where possible in order to provide you with a written
inspection report. The first inspection will take place on month two of the
tenancy commencement. This is a visual walk through of the property to detail
the property condition and make any recommendations for routine work to be
carried out. Whilst every attempt will be made to draw your attention to any
defects in the property this in not a structural survey and Clair James do not
accept liability for any hidden defects. Should you wish a more detailed survey
to be carried out following any obvious defects. Clair James will undertake
instructing this on your behalf at a cost to you.
•
Clair James will organise any required routine maintenance on the property
subject to your prior approval where possible. Clair James have a maintenance
department including plumbers, electricians, decorators, tilers, plasterers and
general maintenance. Clair James will use your contractor at your request on
the proviso that your contractor can attend to maintenance in a timely manner
and adheres to professional conduct in corresponding with your tenants. The
instruction of you own contractor is entirely at your risk and it is your
responsibility to ensure the contractor instructed holds the correct professional
memberships and holds adequate insurance.
•
Clair James will make the necessary arrangements for the termination of the
Tenancy including a check out with an inventory clerk. The tenants will be
checked out against the original inventory document prepared at the tenancy
commencement. The cost of the check-out is usually the responsibility of the
tenant unless otherwise agreed or rent arrears exceed the amount held in the
deposit.
CLIENT RESPONSIBILITIES
You agree to comply with the Estate Agents Act 1979 which state you must disclose if
any relationships exists with any member of Clair James Personnel. This disclosure
must be in writing and presented to a Company Director. You must keep Clair James
informed at all times of your current contact details including full address and at least
one current telephone number where we may contact you in emergency. You agree to
make arrangements for postal direction prior to the commencement of the first
Tenancy as Clair James cannot be held liable for delivered mail once you vacate.
Consents
You agree to obtain written consent from your mortgage lender to let the Property.
You agree to gain written consent from the freeholder to let the property and a copy
of this notice should be made available to your tenants at tenancy commencement.
You are responsible for obtaining any license to let that is required.
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You agree to inform your Buildings and Contents insurance supplier of your intention
to let in recognition that is your liability to hold adequate Buildings and Contents
insurance, including third party and occupiers liability. Failure to inform your insurer
that you are letting may invalidate you cover.
Advertising Boards
You authorise Clair James to erect an advertising board at the property unless we are
otherwise notified in writing. By allowing a second board by another agent to be
erected you may be in contravention of the Town and Country Planning Control of
Advertising Regulation 1988.
Keys
You agree to make available a full set of keys to Clair James to commence marketing
to enable Clair James to conduct accompanied viewings. Should the set of keys be
held by an existing agent you consent to us obtaining a copy set which will be
chargeable to you.
Lettings Legislation
You agree upon signing these Terms of Business to comply at all times with the
following:
Gas Safety (installation & use) Regulations 1988 as amended. The Furniture &
Furnishing’s (fire) (safety) Regulation 1988 – as amended in 1993 and 2010. On
signing these Terms of Business you declare to Clair James that all upholstered
furniture or furnishings supplied in the property to let complies with the Furniture and
Furnishings (fire)(safety) Regulations 1988 – as amended in 1993 and 2010.
The Electrical Equipment (safety) Regulations 1994. These regulations require that all
electrical equipment supplied must be safe to use. Whilst there is no mandatory
requirement for equipment to undergo any safety testing Landlords have a duty of
care to ensure that all electrical equipment is safe. While there is no mandatory
requirement for Landlords to have the electrical or wiring checked, Clair James
recommend to all Landlords to have a periodic inspection report for an electrical
installation carried out. Landlords should be aware that whilst there is no mandatory
requirement for testing non compliance of The Electrical Equipment (safety)
Regulations 1994 carries severe penalties and the possibility of prison sentence.
Plugs and Sockets Regulations 1999. These regulation require that plugs and sockets
in the property are safe and do not cause a danger and are compliant with current
safety standards
The Sex Discrimination Act 1975
The Disability Discrimination Act 1995
The Race Relations Act 1976 – amended 2003
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Taxation
UK Resident: If you are residing in the United Kingdom during the tenancy your
income from the property is treated as unearned income and you will be taxed like
any other investments. If is your responsibility to seek advice regarding your tax
through your accountant.
Non UK Resident: Clair James are legally bound to comply with the Taxed Act 1988
section 42a The Taxation of income from Land (non-residents) Regulations 1995. If
you are residing overseas we can provide you with a NRL1 form from HM Revenue and
Customs. HM revenue and Customs will contact you with an exemption/approval
number which must be given to us with a copy of your letter from HM Revenue and
Customs prior to letting the property with a copy of the exemption number Clair
James are able to pay your rental to you without making any deductions for tax. It is
then your responsibility to deal with your tax returns in the usual way.
Should exemption not be received and your contact address for Clair James purposes
is overseas. Clair James are obliged by law to deduct tax at the basic rate from the
rents received and pass this over to HM Revenue and Customs on a quarterly basis. It
may be that payments made to HM Revenue and Customs exceed your liability
however it will be your responsibility to claim back any overpayments from HM
Revenue and Customs directly at the end of the tax year when you complete your Self
Assessment Tax Return.
Clair James cannot accept anything other than the Inland Revenue number for Tax
Exemption under this scheme.
General Terms
Clair James agree to set up an electronic payment method with your tenants. In all
case we make every effort to process your account in a timely manner. However Clair
James cannot be held responsible for any changes incurred by you in the event of late
payment irrespective of circumstances.
There is no expiry of these Terms of Business and these may be transferred to another
Let or Property. Should Clair James wish to alter or amend these terms we may do so
by giving three month’s notice.
Clair James reserve the right to cancel these Terms of Business with immediate effect
if you are significant breach of these Terms of Business. In this case no refund of
commissions will be due to you.
Fees
Clair James commission charge for the Tenant Find Service is 8% of the gross monthly
rent for the entire duration of the tenancy and any subsequent extensions to the
Agreement.
Clair James commission charge for the Fully Managed Service is 10% of the gross
monthly rent for the entire duration of the tenancy and any subsequent extensions to
the Agreement.
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Clair James commission charge for the Fully Managed Service to include a rent
guarantee is 12% to be taken from the gross monthly rent for the entire duration of
the let and is collected monthly from rental payments received.
Should you verbally accept an offer from prospective tenants that you subsequently
withdraw from once administration has commenced Clair James will levy an
administration fee of £200.
Inventory
Clair James use the services of an independent inventory clerk for the purpose of
check-in, check-out, making the initial inventory and updating inventories. The cost of
all inventory work with the exception of the check-out is at the Landlord’s
responsibility. Prices for these services are dependent of the size of the property and
level of furnishings. The cost of these services are available at request.
Sale of Property
In the event of any tenant or other person we introduce proceeding to exchange
contracts for the purchase of the property, or in any event that you instruct us to sell
the property, you agree to pay us our usual commission of 1.25% of the sale price in
respect of such an introduction. This fee is due on exchange of contracts and is
payable on completion of sale.
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 legal proceedings to be taken the
landlord agrees to reimburse and compensate the Agent for all losses suffered.
Declaration
It is important that you fully understand the Terms and Conditions of these Terms of
Business as once signed it is a legally binding document that you will be bound by. By
signing these Terms of Business you declare that you are the legal owner of the
property named below. If you are signing with Power of Attorney this should be
attached to this document.
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PROPERTY INFORMATION
Is there a TV Aerial in the property: Y/N
Does the landlord allow sky/cable at the
property: Y/N
Is the loft boarded & does the landlord
allow the tenant use of the loft: Y/N
Refuse collection arrangements:
Instruction Manuals located:
UTILITY PROVIDERS
Council Tax:
Water:
Gas:
Electric:
PREFERRED CONTRACTORS
Plumber:
Electrician:
General Maintenance:
OTHER INFORMATION
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INSTRUCTIONS TO ACT
I hereby authorise Clair James to act as Letting Agent with respect to the property
at:
Full management incurs a one off initial letting fee of £150 to include Tenant Find, Tenancy
Agreement and all administration
The Management Fee is deducted from the gross monthly rent for the entire duration of the
Let and is collected monthly from rental payments received.
Please tick as appropriate
Full management Service to include rent guarantee 12%
Full management Service 10%
Tenant Find Service 8%
Marketing Service £75
EPC (Energy Performance Certificate) £60
GSR (Gas Safety Record) £60
Tenancy Deposit Administration – Tenant Find Service
(included in Fully Managed Service) £45
LANDLORD BANK DETAILS
BANK:
ACCOUNT NAME:
ACCOUNT NUMBER:
SORT CODE:
I wish for Clair James to act as my Letting Agent and hereby
authorise them to sign the tenancy agreement on my behalf:
I/we acknowledge receipt of a copy of Clair James Terms of
Agreement and agree to the contents therein:
Yes/No
Yes/No
This is a legally binding document by signing these Terms of Business you declare
that you are the legal owner of the property named below. If you are signing with
Power of Attorney please attach evidence of this to this document.
I /we the Landlords are unaware of any reason for this property to be unsuitable for
rental purposes to the best of our knowledge.
Signed (by landlord):
Date:
Print Name:
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