Terms & Conditions
1. Definitions
In this Agreement the following terms will have the following meanings;- "Assured Shorthold Tenancy" means a tenancy within the meaning of Section 20 of the Housing Act 1988 (or any statutory amendment consolidation or re-enactment thereof) "Let" means the letting of the property under the Tenancy Agreement "Management Fee" means the fee payable to Jon Hallett Ltd of 25% of the first months rent as a letting fee and 15% of each months rent from and including the first month of rents receivable unless otherwise stated on the front of this agreement by the Owners under the Tenancy Agreement or any increase thereof as calculated at the beginning of each month such fee to be paid on a monthly basis at the end of each month plus VAT and to be apportioned in respect of any part of a month "Property" means the Owners Property "Services" means the Services of managing agents hereafter provided "Service Contract" means any service contract required to be observed by the Owners in respect of the Property "Tenant" means the Tenant found by Jon Hallett Ltd to Let the Property "Tenancy" means the Assured Shorthold Tenancy entered into between the Owners and Tenant or such other tenancy agreement as the owners may require.
1.1 Let only service to pay in addition to the fee agreed on the front of this agreement the sums stated in clauses 4.6 (mandatory), 4.7 (if applicable) 5 (if applicable) and 7.8 (as applicable).
1.2 In line with current deposit regulations, all deposits must be held in an approved scheme. Access to Jon Hallett scheme is charged at £50 + VAT per tenancy.
1.3 The Agent is a member of the Tenancy Deposit Scheme, which is administered by:
The Dispute Service Ltd
PO Box 1255
Hemel Hempstead
Herts
HP1 9GN
phone: 0845 226 7837
web: www.thedisputeservice.co.uk
email: deposits@tds.gb.com
fax: 01442 253193
1.3.1 If we are/ the Agent is instructed by you/the Landlord to hold the Deposit, we/ the Agent shall do so under the terms of the Tenancy Deposit Scheme.
1.3.2 The Agent holds tenancy deposits as Stakeholder (if not already specified with the Tenancy Agreement).
1.3.3 At the end of the tenancy covered by the Tenancy Deposit Scheme
1.3.4 If there is no dispute we/the Agent will keep any amounts agreed as deductions where expenditure has been incurred on behalf of the Landlord, or repay the whole or the balance of the Deposit according to the conditions of the Tenancy Agreement with the Landlord and the Tenant. Payment of the Deposit will be made within 10 working days of written consent from both parties.
1.3.5 If, after 10 working days* following notification of a dispute to the Agent/Member and reasonable attempts having been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will be submitted to the ICE for adjudication (subject to C2.3 below). All parties agree to co-operate with any adjudication.
1.3.6 When the amount in dispute is over £5,000 the Landlord and the Tenant will agree by signing the Tenancy Agreement to submit the dispute to formal arbitration through the engagement of an arbitrator appointed by the ICE although, with the written consent of both parties, the ICE may at his discretion accept the dispute for adjudication. The appointment of an arbitrator will incur an administration fee, to be fixed by the Board of The Dispute Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.
1.3.7 The statutory rights of either you/the Landlord or the Tenant(s) to take legal action against the other party remain unaffected.
* These time scales can be changed by agreement with the tenant in individual cases or by the contract used as standard by the agent.
1.3.8 It is not compulsory for the parties to refer the dispute to the ICE for adjudication. The parties may, if either party chooses to do so, seek the decision of the Court. However, this process may take longer and may incur further costs. Because it is a condition of the Tenancy Agreement signed by both parties, judges may refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding.
1.3.9 If there is a dispute I/we must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed by the parties and paid over to them. This must be done within 10 working days of being told that a dispute has been registered whether or not you or I/we want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline me/us.
1.3.10 The Agent/we must co-operate with the ICE in the adjudication of the dispute and follow any recommendations concerning the method of the resolution of the dispute.
1.3.11 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 taken the landlord agrees to reimburse and compensate the Agent for all losses suffered.
1.3.12 The following clauses can be inserted if the agent allows the landlord to hold the deposit outside TDS
1.3.13 If you/the Landlord decide(s) to hold the Deposit yourself, we will transfer it to you within 5 days of receiving it. You/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 you fail to do so the Tenant can take legal action against you/the Landlord in the County Court. The Court will make an order stating that you/the Landlord must pay the Deposit back to the Tenant or lodge it with the custodial scheme which is known as the Deposit Protection Service. In addition a further order will be made requiring you/the Landlord to pay compensation to the Tenant of an amount equal to three times the Deposit. You/the Landlord will be unable to serve a Section 21 Notice on your Tenant until compliance with the above conditions and the Court will not grant you/the Landlord a possession order. We have/the Agent has no liability for any loss suffered if you/ the Landlord fail to comply.
1.3.14 If you/the Landlord decide(s) to hold the Deposit and the Tenancy is an Assured Shorthold Tenancy you/the Landlord must specify to us/the Agent prior to the start of the Tenancy under which other Tenancy Deposit Protection Scheme the Deposit will be covered. If the Deposit is covered by Tenancy Deposit Solutions you/the Landlord must provide proof of membership, together with a copy of the insurance policy before the Deposit can be released. If the Deposit is to be sent to the custodial scheme known as the Deposit Protection Service (DPS) we/the Agent will forward the Deposit to the DPS and register the details of the Tenancy on your behalf OR give you a cheque for the amount of the Deposit made payable to the DPS for you to forward within nine days.
2. Appointment
2.1 The Owners appoint Jon Hallett Ltd to be their Managing Agents to provide the Services in respect of the Property in accordance with the following terms.
2.2 If and to the extent that this Agreement conflicts with the brochure provided to the Owners then this Agreement shall prevail.
3. Pre-Let Management
Jon Hallett Ltd shall;-
3.1 find and assess Tenants to Let the Property; and
3.2 advise the Owners of any Tenant found; and
3.3 on confirmation from the Owners that they wish to proceed with the Tenant to prepare all the necessary documentation and the Tenancy Agreement to Let the Property
3.4 The Owners hereby agree that where they have given confirmation to proceed in accordance with clause 3.3 that if they fail to proceed with the Tenant or enter into the Tenancy Agreement they shall pay to Jon Hallett Ltd the sum of £250 (Two Hundred and Fifty) plus value added tax as compensation for time spent by Jon Hallett Ltd in preparing for the Let of the Property together with all costs and expenses incurred on the Owners behalf by the Managing Agent (including solicitor's and other reasonable fees incurred) in preparing to Let the Property on an indemnity basis and in any event within 14 days of being requested to pay the same.
4. Management
Jon Hallett Ltd following execution by the Owners and Tenant of the Tenancy Agreement shall provide the Services as follows:-
4.1 Collect from the Tenant all rents from time to time payable to the Owners in respect of the Property or any part of it.
4.2 Collect from the Tenant all charges fees or other sums (other than rent) from time to time payable to the Owners in respect of the Property or any part of it which the Owners have specified to Jon Hallett Ltd in writing and which are collectable under the Tenancy Agreement.
4.3 Notify the Owners of every occasion when any sum due by way of rent or other charge fee or sum within Clauses 4.1 and 4.2 above has been outstanding for 28 days and with the prior consent of the Owners and at the Owners' expense to take such steps as may be appropriate to recover any outstanding rent or fees.
4.4 Discharge the following liabilities of the Owners in respect of the Property and to pay the following sums in respect of it but only to the extent that Jon Hallett Ltd are able to do so out of the sums collected and retained by them pursuant to Clauses 4.1 and 4.2 above:-
4.4.1 any cost of maintaining the Property in accordance with Clause 4.5 below
4.4.2 sums due from the Owners under any Service Contract in respect of the Property or any part of it
4.4.3 The cost of preparing Renewal Tenancy Agreements, £50 plus VAT
4.4.4 any reasonable sums necessary to be expended in respect of the Property which in Jon Hallett Ltd's reasonable opinion require immediate payment in accordance with the principles of good estate management
4.4.5 the Management Fees payable pursuant to Clause 7.1 below
4.4.6 any taxes levy or imposts payable by the Owners in respect of the Property.
4.5 to inspect the state of repair and condition of the Property every 16 weeks or such other period as Jon Hallett Ltd may deem appropriate to identify all reasonably necessary works of repair and maintenance of the Property.
4.6 In accordance with inland revenue requirements under 1970 taxes and management act report yearly to the revenue under section 19 on all income handled on your behalf. A report is compiled and filed yearly by our accounts dept .Cost £25.This also applies to the let only service and will be deducted from first account
4.7 Where a landlord is situated outside the UK a quarterly report must be compiled by our accounts department and filed on your behalf. To the inland revenue. Cost per quarter £20 plus VAT
4.8 except in case of emergency to notify the Owner as often as may be considered necessary of all works of repair and maintenance reasonably required to be carried out on the Property and to seek the Owner's instructions as to the carrying out such works in accordance with clause 6 hereof
4.9 to notify the Owners of any occasion when Jon Hallett Ltd are unable to discharge any liability of the Owners or to pay any sum pursuant to Clause 4.4 above on account of insufficiency of the sums collected and retained by them pursuant to Clauses 4.1 and 4.2 above.
4.10 To advise the Owners on what sums should be retained by he Managing Agents in order to enable them to meet their obligations under Clauses 4.4 above and to remit to the Owners such part of the sums collected pursuant to Clauses 4.1 and 4.2 above together with any interest earned as the Owners shall from time to time direct.
4.11 To maintain all reasonably necessary books and records in respect of the Property.
4.12 To notify the Owners of any apparent breach of any lease of the Property or any part of it or of any unlawful or suspicious acts or omissions or circumstances relating to the use of occupation of the property or any part of it and in such cases to seek instructions from the Owners before demanding or accepting rent or other sums due under any relevant lease or otherwise treating such leases as subsisting. PROVIDED ALWAYS that Jon Hallett Ltd will be liable under this Clause only to the extent that they are able to pay for such works out of the sums collected and retained by Jon Hallett Ltd pursuant to Clauses 4.1 and 4.2 above.
5. Inventory Fees
To pay for the cost of the preparation of a full inventory noting full condition of the property and its contents. And the checking of the inventory at the commencement and termination of each tenancy.
6. Maintenance
6.1 Where the Owners have instructed Jon Hallett Ltd to obtain estimates and arrange inspections of the Property for maintenance to be carried out in accordance with clause 4.6 and instruct Jon Hallett Ltd to arrange for the works to be carried out the Owners shall pay to Jon Hallett Ltd all costs and expenses incurred in carrying out such works.
6.2 Where the Owners decide not to carry out the works or to conduct the works themselves they shall pay to Jon Hallett Ltd all costs and expenses incurred by Jon Hallett Ltd for obtaining estimates and carrying out inspections on the Property (if any).
6.3 There shall be a charge to the Owner of £100 plus VAT where the Managing Agent is required to attend a repair with a preferred contractor of the Owner who cannot collect keys from the Managing Agent or organise access via the tenants at the property.
7. Owner's Obligations
In consideration of Jon Hallett Ltd performing the Services the Owners hereby agree and confirm:-
7.1 To pay to Jon Hallett Ltd the Management Fee
7.2 To pay Jon Hallett Ltd other charges for all Services provided during the period of the Let at the rate set out herein.
7.3 To pay all monies Jon Hallett Ltd may by law be required to expend in respect of the Property and to indemnify Jon Hallett Ltd against all costs claims and expenses incurred by it;
7.4 That the Owners shall ensure that the Property is always fully and adequately insured and will indemnify Jon Hallett Ltd against any failure to comply with this undertaking or any act or omission of the Owners that causes insurance cover to be cancelled or to lapse or if for any reason such insurance cover be inadequate;
7.5 That they have informed and have or will obtain the consent of all and any mortgagors banks or building society to each and every proposed Let of the Property or extension thereof.
7.6 To allow Jon Hallett Ltd to sign the tenancy agreement and relevant notices together with any other paperwork relating to the Property.
7.7 To allow Jon Hallett Ltd to erect "To Let/Let" boards during the last two months of the tenancy where the tenant has given notice and the agents are instructed to re-let the property.
7.8 To allow Jon Hallett Ltd to call in professional cleaners to the property prior to the first let if this is deemed necessary to ensure the smooth change over from the landlord to the tenant and indeed to ensure that the property is kept to a high standard and good management maintained. The cost of such cleaning is the responsibility of the landlord.
7.9 To advise the local council in respect of council tax with a date of departure and forwarding address for a closing account.
7.10 To advise water, the gas and electric utility companies and British Telecom/local cable company with a date of departure and forwarding address for a closing account.
7.11 The Owners hereby give permission for Jon Hallett Ltd to carry out minor repairs up to the value of £200 and reservedly where it is needed for the good management of the Property.
7.12 To provide Jon Hallett Ltd with one set of keys for each tenant along with a master key to be held by Managing Agent. Jon Hallett Ltd can cut duplicate sets upon request subject to a handling charge of £20 plus VAT in each instance.
7.13 To pay Jon Hallett Ltd £40 + VAT in the event that a copy transaction history is required. Please note that no charge is made for monthly statements.
8. Gas Appliances
The Owner's will, prior to the letting of the Property obtain or have had during the previous twelve months, service and maintenance on all gas appliances in the Property including fires, cookers and central heating systems and will supply Jon Hallett Ltd confirmation of this and will continue to pay on an annual basis for the service of all gas appliances. The Owners hereby authorise Jon Hallett Ltd to deduct any sums that will be due from the Owners for the annual servicing of all gas appliances within the Property for payment to the suppliers of the appliance services and maintenance. The Owners further agree that before the management of the said Property commences they will supply the agents, Jon Hallett Limited, a certificate of proof that all gas appliances have been serviced (within the past six months) by a Corgi registered engineer.
8.1 Electrical Appliances
The Owner hereby give authorisation to Jon Hallett Ltd to instruct a registered electrician to annually check all electrical appliances in the said property in accordance with all electrical safety regulations. It is further agreed that before the commencement the services of the Managing Agency, the Landlord will provide the said Agent with a certificate (issued by a registered electrician) confirming all appliances have been checked for safety. Failure to supply such certificate the owners unreservedly give Jon Hallett Ltd permission to arrange such services in line with current legislation at the owners expense.
8.2 Furnishings
The Owners of the Property hereby confirm to Jon Hallett Ltd, that all of the furnishings in the property comply with the 1993 Fire Regulations Act and accordingly such furnishings display the relevant safety labels. The Owners also give authority for Jon Hallett Ltd to remove any items that do not comply with the regulations, should the Owner not remove and dispose of such items prior to the start of the services.
8.3 The Owners further agree that where possible full instruction booklets will be supplied on all appliances left in the property. A copy of the instruction booklets will be retained by the Owners of the property or given to Jon Hallett Ltd by the Owner for safekeeping.
9. Liability
It is hereby agreed and understood between the parties:-
9.1 That whilst Jon Hallett Ltd will take all reasonable steps to demand and recover all rents and monies payable to the Owners Jon Hallett Ltd do not accept any liability or responsibility whatsoever for any amounts due and/or outstanding;
9.2 That whilst Jon Hallett Ltd will take reasonable steps to assess the suitability of the Tenant Jon Hallett Ltd do not warrant his/her or their suitability and do not accept any liability in respect of the Tenant and the Owners accept all risks in respect of the choice of the Tenant together with all damages and liabilities that may arise out of the Tenants' occupation of the Property;
9.3 That whilst Jon Hallett Ltd will take all reasonable care in inspecting the Property these inspections are not to be considered full surveys or anything more substantial than a visual examination and Jon Hallett Ltd do not accept any liability corresponsibility whatsoever for any losses costs or expenses arising out of any failure by Jon Hallett Ltd to advise the Owners or effect repairs to any damage not readily discoverable by such a visual examination.
10. Termination
10.1 This Agreement may be terminated by either party giving to the other not less than one month's written notice expiring at any time.
10.2 Where the Owners terminate this Agreement in accordance with sub-clause 10.1 and the Tenant remains in the Property they shall pay to Jon Hallett Ltd a sum representing one months rent plus VAT.
10.3 Jon Hallett Ltd shall be entitled to deduct the sum due from the Owners in accordance with clause 10.2 from any deposit or rent held on behalf of the Owner.
11. Notices
Any notice required to be given under this Agreement shall be in writing and shall be sent to the address of the other party as set out in this Agreement or such address as that party may designate by notice given in accordance with the provisions of this clause. Any such notice may be delivered personally or by first class pre-paid letter telex or facsimile transmission and shall deemed to have been served if personal delivery when delivered and if by first class post 48 hours after posting and if by telex or facsimile transmission when dispatched
12. Joint and Several Liability
12.1 The Owners are jointly and severally liable for performance of all obligations accepted by them under this Agreement.
12.2 Where there is more than one Owner and Jon Hallett Ltd receive instructions from one of the Owners they shall be treated as receiving instructions from all the Owners
13. Commission
If the Owners sell the Property to the Tenant the Letting Agents shall be entitled to a commission of 1% plus VAT of the sale price for the introduction of the Tenant and shall invoice the Owners on completion of the sale of the Property.
14. Law and Jurisdiction
This Agreement shall be governed and construed and take effect in accordance with the laws of England and shall be subject to the exclusive jurisdiction of the High Court of Justice in England AS WITNESS the hands of the parties the day and year first above written.
