TERMS AND CONDITIONS OF BUSINESS
MULBERRY PROPERTY MANAGEMENT
1. INTRODUCTION
This document sets out the standard terms and conditions under which Mulberry Property Management will act for clients as agents in the letting and management of residential property.
2. DEFINITIONS AND INTERPRETATION
In these Terms and Conditions of Business, the following words and phrases shall have the meaning set out in this clause unless the context otherwise requires.
2.1 Rent shall mean any payment to be made by the Tenant or the Agent(s) of the Tenant for the use of the Property whether expressed to be rent, a premium or any other form of payment whether paid directly by the Tenant or his Agent(s) or gained from other means such as deduction from the deposit.
2.2 Tenant shall mean any one or more individuals or corporate entities named as Tenant Lessee or Lodger in the Tenancy Agreement or Lease or License or referred to in Paragraph 5.11 hereof.
2.3 Commission shall mean the commission or fees, details of which are set out in Section 5 of these Terms and Conditions of Business.
2.4 Mulberry Property Management shall mean Firstcall Properties, Mulberry Estate Agents and or any other subsidiary or associated company trading under the name of Mulberry Property Management.
2.5 The Tenancy shall include any extension or renewal whether by way of memorandum, agreement or otherwise.
3. MULBERRY PROPERTY MANAGEMENT SERVICES
We offer four services related to Residential Properties. These are
3.1 Letting Service
In providing our Letting Service, Mulberry Property Management will:
(a) Agree with you in advance a rent to be quoted for your property and market your property as appropriate at the agreed rental. Once we have found a Tenant, we will apply for appropriate references and contact you for approval (or agree with you in writing in advance the extent of our authority to accept a Tenant on your behalf). A company search would be separately charged.
(b) Ensure that an appropriate Tenancy Agreement, counterpart Tenancy Agreement and Notices are prepared and signed by or on behalf of the Landlord and Tenant (see also Paragraph 5.5 relating to costs) and arrange for the appropriate Housing Committee consent form to be submitted.
(c) Arrange for the preparation of an independent inventory prior to the commencement of the tenancy, if required (see also paragraph 5.6 relating to the costs). Arrange for the Inventory to be checked at the termination of the tenancy, and for a check out report to be supplied. Any damage or dilapidation which may have occurred during the tenancy is recorded on the report, copies of which are sent to the Landlord and Tenant who mutually agree what amount (if any) is to be deducted from the dilapidation’s deposit.
(d) Collect and hold any deposit paid by the tenant against dilapidation’s. Interest will not paid on any deposit unless it is agreed in advance and in writing.
(e) Where practical, notify service companies (gas, electricity, telephone, water,) of user change at the commencement and termination of a tenancy without liability on our part. It should be noted that these bodies increasingly require such instructions direct from a Landlord or Tenant as appropriate, not from an Agent.
(f) Notify the Parish of the change of occupant for the purpose of Rates liability or any charge which may replace it.
(g) In the event of your agreeing to a change of tenant during an existing tenancy, we reserve the right to make an additional charge to cover the costs of taking references, arranging for any new tenant(s) to enter into the Tenancy Agreement, and the service of appropriate Notices.
3.2 Letting and Rent Collection Service
In providing our letting and rent collection service, Mulberry Property Management will in addition to the services outlined in paragraphs a) to g) above.
(h) Collect the monthly or quarterly instalment of rent. Submit monthly or quarterly statements of account with copies of relevant invoices, vouchers and receipts if required.
3.3 Management Service
In providing our Management Service Mulberry Property Management will, in addition to the services outlined in paragraphs a) to h) above.
(i) Pay from rent received such outgoings as ground rent, foncier rates insurance premiums (on receipt of demand), service charges, maintenance contracts etc., all on the sole basis that we hold sufficient funds on your behalf. Although we will use our best endeavours to query any obvious discrepancies as we discover them, we must emphasis that we are entitled to accept and pay on your behalf demands and accounts which appear to be correct.
(j) Carry out routine inspection of the property two to three times a year (and upon a serious defect requiring our inspection being reported to us) and submit a written report to you on each occasion if required. It should be appreciated that any such inspections and assessment of those defects which are brought to our notice would be of cursory nature and would embrace only apparent or obvious defects and would not amount in any way to a structural or other survey. Any non routine inspection by us or structural or other survey by a qualified body would be subject to an additional fee. Any written or other report supplied you following an inspection by us will not amount to a warranty as to the state or condition of the property. Such report will be prepared solely for your benefit and may not be produced or reproduced to any third party as evidence of the state or condition of the property. Whilst we will make every endeavour to ensure the accuracy of any report, no liability can be accepted by Mulberry Property Management for the accuracy or otherwise of any statement made.
(k) Deal with routine management matters including minor works up to £300 for any one item without further instruction from you. In order to provide such service, we would set up a float (not less that £300 when monthly rental payments are received and not less than £500 when quarterly rental payments are received ) from the initial payment of rent and maintain it at the agreed level from subsequent net rents passing from the Tenant to yourself. In particular, please note that under no circumstances will we arrange for works prior to a letting unless we are holding sufficient funds from you to cover such cost.
(l) Deal with matters of redecoration, renewal, replacement or repair between £300 and £500 with your verbal authority (save in the case of emergency and/or when it is impractical so to do). Following your written approval of written estimates, we will organise and inspect works in excess of £1,000 for an additional administration and arrangement fee to be agreed between parties and any such charge to be deducted from any monies received by us on your behalf unless payment is received from you direct.
(m) Lodge and progress any insurance claim relating to the property on your behalf. An additional fee of 10% of the cost of the works would be applicable as outlined in 1) above, should you decide not to proceed with any insurance claim, we shall be entitled to charge for the work undertaken by Mulberry Property Management.
n) Put in hand any cleaning and repair works arising out of the schedule of dilapidation’s as outlined in c) above (subject to availability of funds held on your behalf) and obtain estimates for major works if appropriate. We will submit the same to both landlord and tenant, requesting agreement on what amount is to be deducted from the dilapidation’s deposit. If we have been unable to reach agreement with both parties within two months of this submission, we reserve the right at our sole discretion to apportion the deposit between the parties without liability on our part, or to refer the mater for independent arbitration, such costs involved to be shared equally between Landlord and Tenant.
o) Pay from rent received for any cleaning or minor repairs on a change of tenancy during our continued appointment as Managing Agents.
p) When managing a property let by another party, Mulberry Property Management will require copies of the tenancy agreement, tenant references, inventory and other relevant documents concerning the property.
Our appointment as Managing Agents, unless otherwise agreed in advance in writing, will be for the duration of the tenancy as defined in these Terms and Conditions of Business, subject to three months written notice to terminate from either side. In the event of such termination taking place, Mulberry Property Management will remain entitled to commission for introducing the tenant(s) as defined in paragraph 5.1 and 5.2,
3.4 Property Minding Service
It should be noted that our Management Service as described at 3.3 above does not apply when your property is vacant. Mulberry Property Management can manage your property before it is let, for any vacant periods between tenancies, or should you merely wish to leave it unoccupied.
There are two levels of service offered. In providing our Standard Property Minding Service, Mulberry Property Management will:
q) Carry out routine inspection of the property once per week (and upon a serious defect requiring our inspection being reported to us). We would not supply written weekly reports to you, but all other elements of paragraph j) above would apply.
r) Deal with routine management matters as defined in paragraph J) above, save that the definition of ‘minor works’ shall be less than £200 and subject to you providing us with and maintaining a working float of £500.
s) Deal with major matters of redecoration, renewal replacement or repair in the manner outlined in paragraph 1) above.
t) Arrange for the payment of utility invoices and service charges, the cleaning of the property including garden maintenance, the collection and redirection of mail, and the setting of central heating systems, time switches and alarms.
In providing our Supplementary Property Minding Service, Mulberry Property Management will:
u) Deal with any insurance claim in the manner outlined in paragraph m) above.
v) Arrange for specific matters as directed by you, including delivery of fresh flowers and stocking of the refrigerator.
Our appointment as Property Minding Agents, unless otherwise agreed in advance in writing, will be for an initial period of two months thereafter subject to one months written notice to terminate from either side.
3.5 Project Management & Consultancy
Mulberry Property Management can provide a Project Management and Consultancy Service in respect of the development and major refurbishment of residential property. In brief we will:-
w) Attend meetings and consult with Architects and other related professionals in respect of any proposed development or scheme and provide advice in respect of investment and marketing.
x) Oversee and Project Manage the scheme.
Owing to the diversity of refurbishment and development schemes, full Terms of Business and responsibilities in this respect will be separately agreed, in writing prior, to the commencement of building works.
Fees for attending initial meetings will be charge at an hourly rate of no more than £100 per hour.
4. NOTES
a) Rent: Unless otherwise agreed the rent quoted by us will include those payments for which you are liable as Landlord such as ground rent, service charges etc., but will exclude those payments for which the tenant is in most circumstances liable, e.g. gas, electricity, and other fuel charges, telephone, water rates and Rates or any charge which may replace it.
b) Dilapidation’s Deposit: Unless otherwise agreed, this will normally be a sum equivalent to six weeks rent. Mulberry Property Management will hold the sum as stakeholder in a designated client account and any interest accrued therein will not be credited to either the Landlord or the Tenant, and will release it in the manner outlined in paragraph c) or n) above (subject to service). When we are providing our Letting Service or Letting and Rent Collection Service only, we will not become involved in anyway in the agreement of dilapidation charges from the deposit which must be negotiated directly between the Landlord and Tenant.
c) Inventories: In arranging for the preparation of an independent Inventory, we cannot be held responsible for any error or omission on the part of the appointed clerk.
d) Contractors: Our panel of appointed contractors is constantly monitored to ensure that all members comply with our high standards of quality, cost and speed of delivery. We will endeavour to use any contractor specified by you, but cannot guarantee to do so. Whilst exercising all due care and skill in our choice and administration of contractors, we cannot accept any responsibility for any loss or damage caused by the neglect or default of any contractor.
e) Leasehold Property: If the property to be let is leasehold, it is important to ensure that:
* any intended letting is permitted by the terms of the lease.
* any tenancy is for a period expiring prior to the termination of the lease.
* the written permission of your Superior Landlord is obtained and Licence to Sub/Underlet is granted if necessary.
f) Joint owner (s): Authority to let the property should be obtained from any joint owner(s) who should be named in the Tenancy Agreement.
g) Insurance: The property and its contents should be comprehensively insured to include third part and occupiers’ liability risks. Failure to inform your insurer that the property is let could render the policy void. You should obtain detailed advice from your insurers as to the nature and extent of insurance cover required.
h) Clearance of Funds: The Jersey banking system can take a few days to clear funds paid to us by means of standing order or cheque and to transfer them (less fees and any other monies due to us) to your account. We always endeavour to pass funds to our clients as quickly as possible.
i) Rent Arrears: Should any rent arrears or breaches of covenant be brought to our attention you will be informed as soon as reasonably practicable. Thereafter, you will become responsible for instructing your solicitor as necessary, and for any fees and/or charges made by them. We cannot take legal action for you as the tenancy contract is between you and your tenant(s), nor can we accept liability for arrears or breaches of covenant. Mulberry Property Management as a matter of course institutes a procedure for pursuing the payment of outstanding rent, but reserves the right to make a separate charge for time spent in connection with preparations for, and attendance at, any court proceedings resulting from action taken against the tenant(s).
j) Income Tax: Mulberry Property Management are not responsible in any way for the Landlords income tax returns.
k) Handling of Working Floats and Rental Transfers:
Working floats (for managed properties) and rental transfers are handled by Mulberry Property Management through a designated client account. Due to the speed and number of transactions involved Mulberry Property Management do not attempt to calculate or credit to the client any interest which may be earned as a result of handling these monies.
l) Statutory Applications: We will only deal with applications for Rents Rebates, or other Court or Tribunal matters, by special arrangement and for which additional charges will be agreed with you in advance.
m) Keys: We ask for four complete sets of keys for your property, if you are unable to supply four complete sets, we will have them cut at your expense. We recommend that if there are any lost or unaccounted keys to your property, locks are changed before a tenancy commences. Mulberry Property Management cannot be held liable for lost or unaccounted keys.
n) Furniture, Furnishings, Gas and Electrical Safety: Landlord must ensure that the property complies with all safety regulations and that the property is in a sound state of repair and all reasonable steps have been taken to ensure that the property is free of any defect that might pose a safety risk to tenants and the general public. In the event of the of any safety risk being found, your acceptance of these Terms and Conditions of Business will be deemed as having indemnified Mulberry Property Management against any liability occasioned by such risk.
p) Rent Control. Mulberry Property Management will not automatically act for a landlord where a tenant has appealed to the Housing Committee. Terms for Mulberry Property Management to act on behalf of a landlord will be agreed separately.
5. COMMISSIONS, FEES AND CHARGES
Unless agreed otherwise, in writing, our fees are as follows:-
5.1 Letting Service: Mulberry Property Management’s commission is 7.5% of the total rental payable, payable in advance for the term of the tenancy, on the signing of the Tenancy Agreement. (10% of the total rent payable for tenancies of 3 months or less).
5.2 Letting and Rent Collection Service Mulberry Property Management’s commission is 10% of the total rent payable, payable From and at the same frequency as rent received (12% of the total rent payable for tenancies of 3 months or less)
5.3 Letting and Management Service: Mulberry Property Management’s commission for their Letting Service is 7.5% of the total rent payable, payable in advance for the term of the tenancy on the signing of the Tenancy Agreement. Mulberry Property Management’s commission for their Management Service is 7.5% of the total rent payable, payable from and at the same frequency as rent received. (20% of the total rent payable for tenancies of three months or less).
5.4 Property Minding Service: Mulberry Property Management’s charges in respect of the Property Minding Service will vary according to your property, its size and location.
5.5 Tenancy Agreement: Our standard form of Tenancy Agreement is used unless otherwise agreed with you in advance, the charge is £100.00, shared equally between Landlord and Tenant, and is payable in addition to our commission. Our standard form of memorandum is used to renew the tenancy of an existing tenant., unless agreed with you in advance, the charge is £50.00, shared equally between Landlord and Tenant, and is payable in addition to our commission. Although our documents are constantly reviewed and updated by our legal advisers, we must point out that Mulberry Property Management are not solicitors, you should consult your own legal adviser if you require further information about your rights and obligations as Landlord.
5.6 Inventory: The charges for preparing an independent Inventory, for checking in and out, and for preparation of the schedule of dilapidation’s, will vary depending upon the property involved. Mulberry Property Management will discuss the fee with you in advance. The cost of the preparation Inventory is borne by the Landlord, where the Tenant has not employed his own representative, all other charges described in this paragraph are shared between Landlord and Tenant.
5.7 Advertising: Our commission fees and charges specified in paragraphs 5.1, 5.2, and 5.3 include any expenses we may decide to incur in photographing and/or advertising your property, unless otherwise agreed with you in advance in respect of advertising in certain specialist publications. If the property is withdrawn from the letting market, if our instructions are withdrawn or if the property is let otherwise than through Mulberry Property Management, we reserve the right to seek reimbursement of expenses up to a maximum of £50.00 unless we have previously received your authority to exceed this sum.
5.8 Sale of Property: In the event that a sale of, or acquisition of an interest in the property (whether by transfer of the Landlord’s interest in the property or the grant of a lease) should be agreed to the Tenant, any associated party or any person introduced at any time by Mulberry Property Management, that passes through The Royal Court or is sold by way of Share Transfer Mulberry Property Management will be entitled to commission on the sale at the rate of 1.75% of the sale price. The commission will become due upon the consent of The Royal Court. In the event that a sale of, or acquisition of an interest in the property should be agreed to a third party, and the tenancy is to continue, then your liability to pay commission continues unless the purchaser enters into an agreement with Mulberry Property Management in the same terms as your own, and Mulberry Property Management agrees to enter into such agreement. Mulberry Property Management reserves the right to refuse to enter into such agreement.
5.9 Variations and Jurisdiction: Variations to the Mulberry Property Management Terms and Conditions of Business will only be valid if agreed in writing with a Director of Mulberry Property Management.
Acceptance of Mulberry Property Management’s Terms and Conditions of Business is a binding legal agreement in accordance with Jersey Law and is subject to the jurisdiction of the Royal Court.
5.10 Liability of a Landlord to Commissions, Fees and Charges: Commission and other charges are due and payable by the Landlord in accordance with paragraph 5 hereof on any letting of the Property to a Tenant would receives consent from the Housing Committee and/or any person or entity introduced by the Tenant or the occupier of the property.
IF YOU WISH TO PROCEED, PLEASE CONFIRM YOUR INSTRUCTIONS BY RETURNING ONE COPY OF THIS DOCUMENT WITH THE SECTIONS BELOW COMPLETED AND SIGNED.
1. I ...............................................................(full name) declare that:
(a) I am the sole legal owner of the freehold /leasehold interest in the property.
OR
(b) I am the joint owner of the freehold/leasehold interest in the property with
.................................................................................................................................
.................................................................................................................................
(please print full name(s) on whose behalf I am authorised to give these instructions to Mulberry Property Management and to make this declaration.
2. I have read and accept the Terms and Conditions of Business and wish you to provide the service(s) marked below and upon the Terms and Conditions stated herein.
3. I understand and acknowledge my obligations pursuant to the Furniture and furnishings, gas and electricity supplies and I accept and confirm that I have full responsibility to ensure that, as far as reasonably possible, the property is safe and free of defects that might pose a risk to tenant and the general public.
Tick Fees Initial
Letting Service 7.5%
Management Service 7.5%
When instructed to let and manage property our management fee is 7½% on the rent and our letting fee is 5% on the first years rent.
Please tick and initial the services required.
PROPERTY ...............................................................................................................
NAME (BLOCK CAPITALS) ...................................................... DATE ..............
SIGNATURE..............................................................................................................