1. Commission for the Letting Service
A Landlord will responsible for paying our Commission when any person, company or other organisation enters into a binding contract for the Tenancy of the Property where they do so as a result of the following:
a. a viewing conducted by us;
b. sight of any marketing or advertising material produced by us or by our instructions;
c. by way of an introduction from an existing Tenant for which we have previously charged a commission;
d. through the work of yourself or any other agent where this occurs during our period of sole agency.
Our letting fee will be 12% (inclusive of VAT) of the gross annual Rent, premium or other monies receivable by you during the first year of the Tenancy, with a minimum charge of £600.00 including VAT.
This Commission remains due and payable in relation to any extension, renewal or continuation of the occupancy contract whether or not we are the effective cause of the said extension, renewal or continuation and for the period of time any such party or their assignees, subtenants or successors in title continue to reside in the Property. Our Commission is payable whether or not we are the effective cause of the transaction. You should note that this may involve you paying Commission to two agents if you instruct another agent to find a Tenant for your Property during the period that we are instructed on a sole agency basis.
By signing this Agreement the Landlord gives us the authority to deduct our Commission, fees, expenses and any other costs from any monies belonging to the Landlord or any deductions from the Deposit agreed by the Tenant for any property owned by the Landlord where we are or were acting on the Landlord’s behalf.
Value Added Tax will be chargeable on all Commission at the prevailing rate (currently 20.00%). This rate may change from time to time and the total cost will change accordingly. All fees contained within this Agreement are shown inclusive of VAT.
3. Renewal Commission
A Landlord will have to pay us a Commission at the Let Only Commission percentage of the gross Rent, premium or other money payable throughout the initial fixed Term and any continuation, extension or renewal of it whether fixed term or periodic whether or not we are instructed to act on your behalf (the "Renewal Commission") as shown below.
4. Second Year Renewal Service
If the Tenancy is renewed or extended to the same Tenant for a second year, a reduced letting fee of 9% (including VAT) of the gross Rent premium or other monies receivable by you will be payable on the signing of the extension of the Tenancy Agreement.
5. Third and Subsequent Years Renewal Service
If the Tenancy is renewed or extended to the same Tenant for a third or any subsequent years, a reduced letting fee of 6% (including VAT) of the gross Rent premium or other monies receivable by you will be payable on the signing of the extension to the Tenancy Agreement.
After the initial fixed Term we will charge Renewal Commission if the Tenancy is renewed whether or not we are instructed to act for the Landlord if the Tenant remains in Tenancy.
6. Management Service
If we are instructed to manage the Property then in addition to our Commission for the Let Only Service you will have to pay us an additional Commission at the Full Management Commission percentage being 6% of the gross Rent, premium or other monies receivable including VAT, subject to a minimum management fee of £600.00 including VAT, plus the Commission due for the Letting Service being a total of (18)% including VAT of the gross Rent premium or other money payable throughout the initial fixed Term and any continuation, extension or renewal of it whether fixed Term or periodic whether or not we are instructed to act on your behalf.
7. Commission Due
Our Commission payment will become due at the agreed start date of the Tenancy Agreement and we will where practicable deduct the monies from the first instalment of Rent. We will then invoice you accordingly for any balance outstanding. Should the Tenant fail to make any agreed payments our Commission, Fees and Disbursements will still be payable by you and we will invoice you accordingly.
8. Refund of Commission
We will not make any refund of our Commission if the Tenancy terminates before the originally agreed date whether this occurs due to the use by you or by the Tenant of any contractual break clause in the Tenancy Agreement, an agreed surrender, repudiation, rescission, frustration or forfeiture of the lease, through any Court proceedings, or if your interest in the Property is assigned to another party.
9. Sales Commission
We do not charge sales commission if the Tenant purchases the Property from the Landlord; or if the Landlord sells to a third party.
10. Additional Services
The following Services are in addition to the above and form the subject of an additional charge:
a. Consultancy is offered on request and will be charged at the rate of £48.00 including VAT per hour, plus travel and other reasonable expenses and costs. This Service includes additional visits to a Property (not including the four visits per annum which are included in the management service); serving a Notice under Section 13 of the Housing Act 1988; waiting time at a Property; having extra sets of keys cut; arranging cleaning prior to the start of a Tenancy; arranging safety checks; arranging installation of smoke alarms or carbon monoxide alarms; arranging an Energy Performance Certificate; or obtaining consent from a lender or a Superior Landlord.
b. Preparation of an Inventory and Schedule of Condition on behalf of the Landlord by an inventory clerk will depend on the size and style of the Property. Estimates will be given upon request but will range between £140.00 - £200. The cost of the preparation of the Inventory is borne by the Landlord.
c. Checking and making any alterations requested by your solicitor to our standard Tenancy Agreement: £48.00 including VAT per hour or part of an hour.
d. Referencing a prospective Tenant and preparing a Tenancy Agreement together with a counterpart Tenancy Agreement, in isolation but without providing any other part of our Letting Service and without any further involvement with either the Property or the Tenancy, will be £360.00 including VAT. e. Service of Notices to terminate a Tenancy when Penny and Lisa are not managing the Property will be subject to an administration fee of £60.00 including VAT.
f. Visits during a void period using our caretaking service if we have provided a Management Service will be £47.00 including VAT for one visit each week during office hours. We will at the Landlord’s request continue to pay the outgoing provided the Landlord has deposited a Repair Fund of £300.00 with us which must be topped up monthly. No repairs are arranged unless we hold funds. Penny and Lisa are not liable for any loss suffered if no funds are held.
g. Instructing contractors prior to the start of the Tenancy, during a void period, or if we are not managing the Property will incur an administration fee of £48.00 including VAT payable in advance together with the costs of the contractor. This Service is only offered provided we have written instructions from the Landlord and hold sufficient cleared funds to cover the cost of the work plus our fees.
h. A supervisory fee of 10% of the total cost of any work in excess of £300.00 but subject to a minimum fee of £100.00 excluding VAT is charged for supervising the work.
i. Supervise the partial or total refurbishment of the Property for a fee of 10% of the total cost of the work but subject to a minimum fee of £600.00 including VAT.
j. If the Landlord is not resident in the UK we will charge an administration fee of £120.00 including VAT each quarter for tax retention and completion of the documentation required by the Centre for Non Residents.
k. The administration fee for membership of the Tenancy Deposit Scheme (“TDS”) is £60.00 including VAT paid annually in advance.
l. Preparation of documentation for County Court proceedings or TDS adjudication will be £50.00 including VAT per hour plus our reasonable costs and expenses and attendance at court or any tribunal on your behalf will be charged at £60.00 including VAT per hour plus our reasonable costs and expenses.
m. Duplicate statements can be provided to you or your accountant for a fee of £30.00 including VAT per statement or £60.00 including VAT for all the statements covering a tax year.
n. If you withdraw an offer for any reason bar unsatisfactory references, we will be entitled to be paid a fee equivalent to two weeks Rent to cover our administration costs subject to a minimum of £360.00 including VAT.
o. The cost of advertisements in specialist publications, preparation of brochures detailing the particulars of the Property including photographs (where applicable) will be subject to an additional charge. Full details will be provided on request.
p. Costs of overseas and long distance telephone calls and faxes which will be charged at the current British Telecom rates.
q. A contractual Guarantee in relation to rent is included free of charge in this agreement.
We may give details of your Property on a commission sharing basis to other agents unless we receive your specific written instructions to the contrary. This involves you in no additional expense and increases the chance of letting the Property promptly.