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Terms and conditions
Lettings Agency Terms and Conditions*
(Lettings with additional Property & Tenancy Management Service)


BETWEEN "The Principal"  
(Owner of the property which will be let) 

AND "The Agent"
Happy Landlords Ltd
 

IT IS HEREBY AGREED AS FOLLOWS


1. Interpretation

1.1. Except where the context requires otherwise, words importing the masculine shall include the feminine; words importing the singular shall include the plural; words importing natural personage shall be equally applicable to corporate personage and vice versa.

2. Relationship Between the Parties & Term of Agreement

2.1.  The Principal appoints the Agent as an agent for the purpose of actively marketing a lease of the Property to potential tenants and of managing that Property.
2.2. The Principal authorises the Agent to sign any tenancy agreement  under which a lease of the Property is granted on behalf of the Principal wherever he is unable to sign this himself, and to bind the Principal to this agreement. The Agent will not sign a tenancy agreement except on the Principal's express instruction.
2.3. No term of this agreement or course of dealings between the Parties shall operate to make the Agent an employee or agent of the Principal.
2.4. Neither Party shall assign or transfer any of their rights, liabilities or obligations arising under this agreement without the prior written consent of the other Party.

3. The Principal's Warranties as to Title and Consents Etc.

3.1.  The Principal warrants and guarantees that:
a) He is the owner of the Freehold interests in the Property or that if he is himself a tenant then all of the following conditions are met:
i.  The Principal's lease permits him to sublet the property.
ii. The unexpired term on the Principal's lease is greater than the term of the sub-let lease which he himself intends to grant.
iii. The Principal has obtained his landlord's written permission to sub-let the property.
b) Where the Property is subject to a mortgage, the Principal has at the time of entering into this agreement obtained the written consent  of the Mortgagee.
c) He has obtained appropriate and adequate buildings and contents insurance and that his policy covers lettings.
d) Any furniture supplied with the property conforms to the Fire & Furnishing (Fire) (Safety) (Amendment) Regulations 1993.
e) Any and all electrical equipment or gas installations have been recently serviced and an applicable safety certificate has been issued.
3.2.  The Principal shall indemnify the Agent in respect of any loss or damage, direct or indirect and howsoever caused which arises from a breach of any of these warranties by the Principal.

4. Lettings Services Provided by the Agent

4.1. The Agent agrees to undertake the following services for the Principal in respect of letting the property:
a) To undertake a market appraisal of the property in order to determine a recommended rent.
b) To prepare marketing materials for publication at the Agent's premises, on the Agent's website, and via the local press (at the discretion of the Agent).
c) To field enquiries from potential tenants and arrange.
d) To negotiate with potential tenants regarding the terms of the tenancy agreement (albeit that the Agent will only provide a tenancy agreement if the terms fall in line with his standard form agreement and where any specialist or custom terms are agreed, it shall be the  responsibility of the Principal to bear the cost of drafting the agreement).
e) To take up references for prospective tenants albeit that the Agent will not bear the burden of any charges for company investigations, nor shall the Agent provide any warranty as to the suitability of a tenant.
f) To collect any dilapidation or rent deposits which are required and to hold these as stakeholder.
g) To notify utility companies and the relevant local authority of the commencement of the Tenancy.

5. Property & Tenancy Management Services Provided by the Agent

5.1.  The Agent agrees to undertake the following services for the Principal in respect of managing the property or the occupation of the property under any let arranged: 
a) To demand and collect rent from the tenants on behalf of the Principal and to forward that rent to the Principal and provide regular rent statements.
b) Where the Principal specifically requests and authorises separately in writing, and where this is agreeable to the Agent, to pay on behalf of the Principal and current outgoings such as council tax, insurance premiums or service or management charges. The Agent shall be  entitled to deduct the cost of these outgoings from any rent collected before forwarding that rent to the Principal and shall account to the Principal regularly in respect of these outgoings.
c) To investigate (on a non-expert basis) any defects which are clearly brought to the Agent's attention by the tenants.
d) To inspect the property as required by the Principal subject to payment of a fee of £50.00 per inspection although the Agent's inspection shall extend only to an investigation of the 
state and manner in which the Tenants keep the property and any obvious and apparent defects. The Agent accepts no responsibility for any structural, latent or hidden defects.
e) To arrange for the property to be professionally cleaned between tenants where required (albeit that the cost of such will be deducted from the dilapidation deposit provided by the outgoing tenants or shall be charged to the Principal).
f) To commission and arrange on behalf of the Principal minor repairs to the Property up to a maximum of £100.00 in respect of any one item, defect or problem.
g) The Agent shall, wherever practical, arrange for quotes and estimates to be submitted to the Principal for approval in respect of any work, repair, redecoration or refurbishment which is likely to cost more than the figure mentioned above. 
5.2. The Agent shall continue to carry out management duties under this section (and shall continue to be entitled to his additional commission  in respect of these duties as set out below) until these services are terminated in accordance with this agreement.
5.3.  The Agent shall not be liable to supervise the property during any period when it is not let or when the Principal is in the process of finding a tenant. The Agent accepts no  responsibility for any structural, latent or hidden defects or security issues.

6. Payments and Commissions

6.1.  On finding a potential tenant who is accepted by the Principal or whom the Principal has given the Agent authority to accept on his behalf and assuming that the prospective tenant enters into a tenancy agreement the Agent shall be entitled to a commission.
6.2.  The Commission payable to the Agent in respect of arranging the tenancy shall be 3.5% of the total rent due to be paid. The commission shall be due for payment on a monthly basis for as long as the management services are provided.
6.3.  The Agent's commission in respect of arranging the tenancy shall be payable in full at the commencement of the tenancy and the Agent shall be entitled to receive the entirety of the first month's rent towards his commission in order to secure payment of this albeit that:
a) Where the first month's rent is greater in value than the Agent's commission the Agent shall account to the Principal in respect of the remainder.
b) Where the first month's rent is less than the value of the Agent's commission the Agent shall invoice the Principal in respect of the shortfall.
6.4. Failure to settle any payments due to the Agent within the agreed timeframes shall entitle the Agent to claim, in addition to the sums due, interest on those sums at a rate of 10 percentage points per annum above the Bank of England base rate.

7. Cancellation and Direct Dealing

7.1. Where the Agent informs the Principal that he has located a prospective tenant who is willing to enter into a tenancy agreement and the Principal agrees to the Agent taking up references, and the Principal subsequently decides to cancel the Agent's services or engage another agency or let the property directly, the Agent shall be entitled to a fee of 3.5% of the proposed rent for the proposed initial fixed period of the tenancy.
7.2. Where the Agent informs the Principal of the name of an interested party and that party subsequently enters into a lease of the property directly with the Principal, the Agent shall be entitled to a fee of 3.5% of the proposed rent for the proposed initial fixed period of the tenancy.

8. Termination

8.1. Where this agreement is terminated the Agent shall cease to carry out any further property and tenancy management duties and shall not be entitled to further commissions in respect of these management duties as set out above in this agreement. However, notwithstanding the above, termination shall have no effect on the basic commission to which the Agent is entitled in respect of introducing a tenant to the Property or any extension of that tenancy or purchase or the property by the tenant and the Agent shall continue to be entitled to receive that basic commission for as long as the tenant remains in the property in accordance with the sections noted above.
8.2. This agreement may be terminated by either Party upon 30 days written notice served on the other at his address as set out at the head of this agreement by personal service, registered post or first class post. Notice sent by post shall be effective 48 hours after sending.
8.3. Without prejudice to the above this Agreement may be terminated immediately where any of the following circumstances arise:
a) Either Party commits a serious breach or persistent breaches of this agreement including but not limited to the non-performance, neglect or default of any of his duties as outlined herein (including a failure on the part of the Principal to make payment within agreed timescales) and after notice of this breach has been given to the defaulting Party it remains un-remedied and un-rectified 30 days after such notice.
b) The Agent commits any act of fraud or theft against the Principal.
c) Either Party becomes insolvent or enters into a CVA or IVA or ceases to trade.
8.4. Upon termination of this agreement outstanding payments in respect of service provided by the Agent shall become immediately due for payment.

9. Statutory Requirements

9.1. The Landlord and Tenant Act 1987 requires the Agent to include on all rent demands served on the Principal's behalf the Principal's full name and address in England and Wales at which notices and proceedings may be served on him. If the Principal resides outside England and Wales and unless otherwise instructed the Agent shall give his registered office or principal place of business as the address for service. The Agent will endeavour to forward any notices or proceedings to the Principal promptly; he cannot accept any responsibility for loss or damage caused either directly or indirectly as a result of this.

10. Disclaimers And Exclusions

10.1. The Agent shall not be responsible in any circumstances to the Principal or any third party for any indirect or inconsequential or economic damage or loss, howsoever caused, whether as a result of negligence, misrepresentation, breach of contract or otherwise.
10.2. Nothing in the forgoing shall be read as restricting or limiting in any way the Agent's liability for death or personal injury.

11. Indemnity

The principal shall indemnify the Agent against any loss or damage which results from the Principal's breach of this agreement or failure to abide by any of its terms.

12. Force Majeure

Neither Party shall be liable for any delay or failure in performing its obligations or duties under this agreement which results from circumstances outside his reasonable control including but not limited to acts of God, industrial action, civil disturbance or rioting, government or regulatory action, breakdown in plant or machinery or shortage or raw materials or supplies.

13. Warranty of Contractual Capability

Both Parties to this agreement warrant that they are authorised and permitted to enter into this agreement, and have obtained all necessary permissions and approvals.

14. Whole Agreement, Governing Law and Severability

14.1 This document constitutes the entirety of the agreement between the parties. It supersedes any prior representations which may have been made, whether orally or in writing. Any modification to this agreement must be made in writing and signed by both Parties.
14.2. This Agreement shall be governed by the Law of England and Wales and the parties agree to submit to the exclusive jurisdiction of the English Courts.
14.3. All clauses, sub clauses and parts thereof shall be severable and shall be read and construed independently. Should any part of this Agreement be found invalid this will not affect the validity or enforceability of any other provision of this agreement as a whole.
14.4. All terms, conditions and covenants contained in this agreement shall bind the parties and their heirs, legal representatives, successors to title and permitted assignees.
14.5. Nothing in these terms and conditions shall incur any rights on a third party and no third party may enforce and provision of this contract under the Contracts (rights of Third Parties) Act.


* Terms and Conditions according to Membership Type

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