Simple and Smart Solutions for property buying, selling, letting and maintenance.
TERMS OF BUSINESS
Deposit should be defined as “stakeholder”
Define “ICE” as the “Independent Case Examiner of The Dispute Service”.
All references will be made available for inspection, by the Landlord, prior to the singing of the Tenancy Agreement (if required). Ultimately the landlord must satisfy him/herself as to the suitability of any buyer introduced.
STATUTORY OBLIGATIONS- FAILURE to COMPLY IS A CRIMINAL OFFENCE!
Before allowing occupation to a buyer, proof of compliance with the landlords Statutory Obligations and Duty of Care in respect of Gas, Electric and Furniture Safety will be required. The gas & electric supply must be connected and where applicable, gas meter cards and electricity meter keys must be made available for these checks to be carried out.
All gas appliances must be checked annually by a GAS SAFE registered Installer and electrical appliances must also be tested. A portable electrical appliances test and cursory visual installation check will be carried out before by the Landlord; all soft furnishings supplied must met strict safety controls.
This checks the energy and environmental impact of your property and will be rated on a scale from A-E.
With the 1 April 2018, the new regulations preventing landlords from granting leases on properties which have an EPC rating lower than E unless they have carried out all cost-effective works to improve energy efficiency or if an exemption applies.
The landlord, hereby acknowledge it is his/her responsibility to ensure the property is let in accordance to the Housing Act 1996, particularly those regulations, stated below, that are legal requirements:
GSI– Gas Safety Inspection by CORGI registered engineer
PAT– Portable Appliance Test by qualified engineer
EPC– Energy Performance Certificates are a legal requirement, and one is required before the property can be marketed (England, Wales, Ireland). From April 1st, landlords will face having to face a hefty fine if found out to be renting out new lets if their properties fall below an ‘E’ Energy Performance rating.
Energy performance Certified by Domestic Energy Assessor Also, it is recommended that the following is also undertaken to ensure Health & Safety and to comply with counsel regulations:
ESI– Electrical Safety Inspection by NICEIC registered engineers
The landlord also hereby indemnifies MAK Property Services of any action relating from the failure to ensure the property is safely let.
To avoid delays and loss of rental income MAK Property Services require all safety checks to be arranged before a buyer is found. Where MAK Property Services contractors are used, costs including administration fees will be borne by the landlord. All documentation relating to safety inspection remains the property of the landlord.
PLEASE NOTE: These checks are to ensure an appliance or installation is safe, not that it is operational.
MAK Property Services reserves the right not to instruct a contractor until in receipt of cleared funds and to clear personal cheque through the banking system before any contractor is instructed.
MAK Property Services do not manage vacant properties. The Landlord must advise their insurers as soon as the property becomes vacant and adhere to any stipulations contained in their policy in respect of it becoming vacant.
MAK Property Services must hold keys and be able to show the prospective buyer the property immediately. Where this is not possible, buyers will usually be suited elsewhere. No landlords and buyer is always available to allow access. Furthermore prospective buyers are frequently late or simply fail to keep appointments. This always causes inconvenience and annoyance to landlords or existing buyers who make special arrangements to be present.
The property will be left as secure as the keys supplied allow.
TO LET/ LET BY SIGN
Erected free of Charge
Holding deposit (not to be confused with “The Deposit” referred to below) is requested from all buyers prior to processing their application.
This is held as security against damages, rent arrears and any other breaches of the tenancy agreement.
IMPORTANT: This money belongs to the buyer and must be held in a buyers deposit scheme for the duration of the tenancy. You the landlord will hold the deposit. The client account is a no interest received account.
The tenancy deposit 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
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.
If you/ the Landlord decide to hold the deposit yourself, we will transfer it to you within five days of receiving it. You the Landlord must then register it with another Tenancy Deposit Protection Scheme within the further 9 days if the Tenancy is an Assured Shorthold Tenancy.
If you fail to do so, the Buyer can take legal action against you/ the Landlord in Country Court. The Court will make an order stating that you the/ Landlord must pay the Deposit back to the Buyer or lodge it with custodial scheme which is known as the Deposit Protection Scheme.
In addition a further order will make made requiring you/ the Landlord to pay compensation to the Buyer of an amount equal to three times the Deposit. You the Landlord will be unable to serve a Section 21 Notice on your buyer until compliance with the above conditions and the Court will not grant you / the Landlord a possession order the Agent has no liability for any loss suffered if you/The Landlord fails to comply.
If you the Landlord decides to hold the Deposit and the Tenancy are Assured Shorthold Tenancy you/ the Landlord must specify to us/the Agent prior to 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 Scheme we/the Agent will forward the Deposit to the DPS and register the details of the Tenancy.
The Agent holds tenancy deposit as Stakeholder.
At the end of the tenancy covered by the Tenancy Deposit Scheme
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 Buyer. Payment of the deposit will be made within 10 working days of written consent from both parties.
If, after 10 working days following notification of a dispute to the Agent/Member and reasonable attempt have been made in that time to resolve any difference of opinion, there remains an resolved dispute between the Landlord and the Buyer over the allocation of the Deposit it will be submitted to the ICE for adjudication. All parties agree to co-operate with any adjudication.
When the amount in dispute is over £ 5,000 the Landlord and the Buyer 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 Services Ltd from time to time, shared equally between the Landlord and the Buyer. The liability for any subsequent costs will be dependent upon the award made by the arbitrator.
The statutory rights of either you/the Landlord or the Buyers to take legal action against the other party remains unaffected.
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, the process may take longer and may incur further costs.
Judges may because it is the condition of the Tenancy Agreement sign by both parties; refer the dispute back to the ICE for adjudication. If the parties do agree that dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding.
If there is a dispute I/we must remit to The Dispute Services Ltd the full deposit, less any amount agreed already 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 Services Ltd will take appropriate action to recover the deposit and discipline me/us. The agent 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.
If the landlord warrant 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.
Under The Finance Act 1995 landlords must apply for an exemption certificate to be issued to the agent permitting rent to be paid to the landlord without deduction of tax. Only the Landlord can make application which, if granted, will be issued directly to MAK Property Services. Application forms may be obtained from us upon request.
Until an exemption certificate is received we are legally obliged to withhold tax at the basic rate from the rental income. Where MAK Property Services are not instructed to process rent payments, landlords have a duty of care to advise their buyers to make these deductions.
For further information telephone the Inland Revenue, Financial Intermediaries and claims Office on 03000516644.
INCLUDED IN THE TENANCY
WRITTEN CONFORMATION OF THE ITEMS OF FURNITURE, appliances, cutlery, crockery, cooking utensils etc requested, will be included in the tenancy; with all subsequent changes to be confirmed in writing. Until received MAK Property Services will advise prospective buyers in accordance with their understanding of the landlord’s verbal confirmation of the items to be included in the tenancy. MAK Property Services accepts no responsibility for any error in this respect prior to receipt of the fore mentioned confirmation.
PERMISSION TO LET
Landlords should obtain written permission to let the property from their Mortgagee, Freeholder and Insurers before the property is let. The Landlords agrees to provide proof of identity and proof of ownership of the property when instructing the Agent.
AUTHORITY (delete if not required)
The landlord hereby authorises MAK Property Services to sign and execute the tenancy agreement on their behalf and to grant occupation to a buyer(s) on or after the date confirmed in this agreement by the landlord as the date on which the property will be available for occupation, without further referral to the landlord providing MAK Property Services are in the receipt of:
SIGNING OF THE TENANCY AGREEMENT
The landlord agrees to sign the tenancy agreement if so requested by MAK Property Services.
CHANGES TO TERM
THE terms and condition set out in these documents are the standard terms of business of MAK Property Services. For their own property and to avoid misunderstanding, clients are advised to obtain written confirmation of any verbal assurance that may have been made by any representative of MAK Property Services., either promising or implying any changes to these terms.
INVENTORY AND CHECK IN
An inventory is an important legal document forming part of the tenancy agreement. In the case of a dispute, the inventory will be used as evidence in a court of law. If inaccurate or lacking in sufficient details, it may not be possible to make deductions in the event of damage or loss. MAK Property Services will arrange an inventory to be produced by an independent inventory company and will facilitate the buyer signing an inventory. A separate charge of £95.00 will be made for this service.
BEFORE ALLOWING ACCESS TO A BUYER
MAK Property Services must be made in receipt of ALL of the following
DOCUMENTARY PROOF of companies with:-
Electrical Safety Certificate or written confirmation from a qualified electrical contractor that the electrical installation is safe.