Terms of Business

Definitions

AGENT:

Lime Lettings ltd trading as Property Genius

LANDLORD:

The person, firm or company named in the agency agreement

PROPERTY:

The Property or Properties specified in the Agency Agreement together with any common ways or shared facilities of the property of which the property forms a part and any fixtures and furniture belonging to the landlord

TENANT:

The tenant(s) introduced to the Agent who remain in occupation of the Property

AGENCY AGREEMENT:

The Agency Agreement is the part signed by the Landlord. This document sets out the terms and conditions of the agreement

CALENDAR DAY OR DAY

Means any day of the year, including Saturdays, Sundays and bank holidays.

RELEVANT PERSON

Means person who paid the deposit or any part of it on behalf of a tenant.

STAKEHOLDER

Means a person or body who holds the deposit at any time from the moment it has been paid by the tenant until its allocation has been agreed by the parties to the tenancy agreement, determined by the ADR process, or ordered by the court.

MY AREA

Secure section on the agents website available to landlords and tenants to access documents, accounts and tenancy information

SCHEME

Means an authorised tenancy deposit protection scheme (set up in accordance with the Housing Act 2004 and operated under a service concession agreement with the government) administered by The Dispute Service Limited.

STATUTORY TIME LIMIT

Means the time limit set out in the Housing Act 2004 (as amended) in which the initial requirements of the Scheme must be met, and prescribed information must be provided to the Tenant and any Relevant Person.

WORKING DAY

Means a day that is not a Saturday or Sunday, nor any day that is a bank holiday under the Banking and Financial Dealings Act 1971 or any customary or public holiday in England and Wales.

Landlord Obligations

1.1    If a head lease governs the property, you agree that you have contacted the freeholder to obtain permission to enter this agreement.

1.2    If the property is mortgaged you agree that you have the consent of the mortgage company to let the property.

1.3    You agree that you are entitled to all of the rent from the property.

1.4    You agree that you have provided Property Genius with all of the relevant information relating to the property, especially those which affect the tenants use of the property.

1.5    You agree that you have sufficient building and contents insurance for the property, and you have informed them of your intentions to let out the property

1.6    You agree to either provide: Gas Safety certificates (by a contractor with the relevant legal entitlement and accreditations) to Property Genius prior to commencement of any tenancy, if Property Genius have not received these prior to the commencement of the tenant then you authorise Property Genius to instruct their own contractors to attend the property to obtain the relevant certificates. The cost of which you will be liable for.

1.7    You agree to Property Genius signing the Tenancy Agreements and Notices requiring possession. on your behalf as your authorised agent, you agree that you will be bound by the terms and conditions of the tenancy agreement.

1.8    You authorise third party companies such as, but not limited to, utility and management companies to have access to your details and information about yourself.

1.9    You agree that any rooms, lofts or outhouses that are not be included with the tenancy will be securely locked and Property Genius advised in writing, we accept no responsibility to lost or damaged items in these rooms.

1.10    Were an offer have been made and accepted and you decline the tenancy other than because the prospective tenant has failed referencing, the fees paid by the applicant in respect of referencing and holding deposit will be refunded in full to the application and you would be liable for these costs.

1.11    You agree to inform Property Genius if any other person or agency is marketing the same property. If Property Genius are not informed we will assume that we are working on a sole agency basis. If we receive an application to rent a property from a prospective tenant, you agree to inform other people / agencies to cease marketing of the property. If another person or agency agrees a let on the property then you must make Property Genius aware immediately as we may have booked viewings. If you fail to inform us prior to completion of the tenants references you will be liable for a cancellation charge of £120 inc VAT, if we have completed the references and drawn up the paperwork you agree that you will be liable for all fees in relation to the letting of the property, you will not be liable for any management fees unless the tenancy has commenced and Property Genius are actively managing your property.

1.12    In accordance with the Finance Act 1995, you agree that if you are or become an “overseas Landlord” and take up residence outside of the United Kingdom you agree to inform Property Genius, a deduction of the rent will be made and forwarded to HMRC on a monthly basis until a valid certificate of exemption is received by our accounts department.

1.13    You agree to Property Genius storing information on yourself and your property on our computer system, this information will not be divulged to third parties without your written authorisation. We may from time to time contact you in relation to our business.

1.14    You agree to indemnify Property Genius against any claims or liabilities if Property Genius have acted in an appropriate and legal manor.

1.15    You agree that if Property Genius introduce a prospective purchaser to yourself or agent and the prospective purchaser completes a sale on the property, you will pay Property Genius a commission equal to 1% of the purchase price.

Assured Shorthold Tenancy Deposits

2.1    If a tenant pays a deposit in connection with an assured shorthold tenancy (“AST”) the deposit must, from the moment it is received, be dealt with in accordance with a government-authorised tenancy deposit protection scheme.

2.2    The landlord must give the tenant and any Relevant Person ‘prescribed information’ about the deposit and comply with the initial requirements of an authorised scheme within the Statutory Time Limit including for every renewed Tenancy Agreement and Periodic extensions.

2.3    We are a member of the Tenancy Deposit Scheme, which is a government-authorised tenancy deposit protection scheme, administered by:

The Dispute Service Limited PO Box 1255
Hemel Hempstead
Herts HP1 9GN

Phone: 0845 226 7837
Web: www.tds.gb.com

Email: deposits@tds.gb.com

Fax: 01442 253193

2.4    If we receive an AST deposit on your behalf, we will serve the prescribed information and comply with the initial requirements of the Tenancy Deposit Scheme on your behalf, unless you give us prior written instructions to the contrary before we receive the deposit.

2.5    If you do not want us to protect the deposit on your behalf, it will be your responsibility to protect it as required by law. A valid notice seeking possession under s21 of the Housing Act 1988 cannot be served on a tenant whose deposit is not protected. A tenant or any Relevant Person may apply through the courts for compensation of at least the amount of the deposit, and up to three times the deposit, if the landlord (or someone acting on the landlord’s behalf):

a)  fails to give prescribed information within the Statutory Time Limit; or

b)  fails to comply with the initial requirements of an authorised scheme within the Statutory Time limit; or

c)  notifies the tenant or Relevant Person that the deposit has been protected in a scheme, but the tenant or Relevant Person cannot obtain the scheme’s confirmation that the deposit is protected.

2.6    If you do not give us written instructions that you want to make your own arrangements for deposit protection, we will hold deposits relating to your properties under the terms of the Tenancy Deposit Scheme. We must comply with the rules of the Scheme, and this means that we will not be able to act on your instructions with regard to the deposit if those instructions conflict with the Scheme rules.

2.7    The Scheme rules are available to view and download from www.tds.gb.com. A very important point for you to bear in mind is that we must hold the deposit as “stakeholder”. This means that we can only pay money from the deposit if:

a)  both landlord and tenant (and any Relevant Person) agree; or

b)  the court orders us to do so; or

c)  the Tenancy Deposit Scheme directs us to do so.

DURING THE TENANCY

2.8     We will hold the deposit as stakeholder in our client account (separate from the money we use to run our business).

2.9    Interest earned on the deposit will belong to the person entitled to it under the tenancy agreement.

2.10    If the Tenancy Deposit Scheme directs us to send the deposit to them, we must do that within 10 days of receiving their direction. The Scheme will not normally direct us to send them the deposit unless there is a dispute about how it is to be paid at the end of the tenancy.

WHERE THERE IS NO DISPUTE ABOUT THE DEPOSIT AT THE END OF THE TENANCY

2.11    At the end of an AST we will liaise with you to ascertain what (if any) deductions you propose to make from the deposit, or have already agreed with the tenant. [Where the property is managed or instruction has been agreed, we will help you to try and resolve any areas of dispute within a reasonable time obtaining quotations, estimates or arranging contractors on your behalf in accordance your instructions].

2.12    Once you and the tenant have agreed how the deposit should be allocated, we will ask you both to confirm your agreement in writing. We will then pay the deposit according to what you have agreed, within 10 days of receiving confirmation of agreement from you and the tenant(s). We cannot pay until we have the tenant’s agreement. If you have joint tenants, all of them must agree.

WHERE THERE IS A DISPUTE ABOUT THE DEPOSIT AT THE END OF THE TENANCY

2.13    You must use reasonable efforts to reach a sensible resolution to the dispute as soon as practical after the tenancy ends.

2.14    A tenant can ask us to repay the deposit at any time after the tenancy has ended. You must agree to us releasing promptly any part of the deposit that does not need to be held back to cover breaches of the tenancy agreement. We will take your instructions at the time regarding the amount to be withheld.

2.15    If the tenant asks us to repay some or all of the deposit, and we do not do so within 10 days from and including the date of the tenant’s request, the tenant can notify the Tenancy Deposit Scheme. The Scheme will then direct us to pay the disputed amount to the Scheme. We have 10 days, from and including the date we receive the Scheme’s direction, to send in the money.

2.16    If we protect a deposit with the Scheme on your behalf, you hereby authorise us to pay to the Scheme as much of the deposit as the Scheme requires us to send. We will contact you to keep you informed, but we will not need to seek your further authority to send the money to the Scheme.

2.17    The Tenancy Deposit Scheme will review the tenant’s claim and decide whether it is suitable for independent alternative dispute resolution. Usually, this will take the form of adjudication, but it may involve assisted negotiation or mediation. “Alternative” in this context means an alternative to court proceedings. It is intended to be a faster and more cost-effective way of resolving disputes. The Scheme does not make a charge to landlords or tenants for using the alternative dispute resolution service if it relates to an AST.

2.18    If the tenant’s claim is referred for alternative dispute resolution, we and you will be invited to accept or contest the claim. You must notify the Scheme whether you agree to submit the dispute for alternative dispute resolution within 10 Working Days from (but not including) the date of the Scheme’s communication to you. If you do not respond to the Scheme by the deadline, you will be treated as having given your consent to alternative dispute resolution.

2.19    Agents and landlords are permitted to refer a dispute about a deposit to the Tenancy Deposit Scheme. If you or we refer a deposit dispute to the Scheme, the Scheme will contact the tenant to confirm whether the tenant will agree to alternative dispute resolution. If there are joint tenants, all the joint tenants must agree. A tenant who does not reply to the Scheme is NOT deemed to consent to alternative dispute resolution. If the tenant (or all joint tenants) do not agree to alternative dispute resolution, and do not agree to the deposit deduction(s) you claim, you will need to begin court proceedings if you wish to pursue your claim.

2.20    If the parties agree to adjudication, the adjudicator’s decision is final and there is no right of appeal. Further information about adjudication is available free to download from www.tds.gb.com.

2.21    The Tenancy Deposit Scheme will pay the disputed amount to the person(s) entitled within 10 days beginning on the date the Scheme receives notice of (a) the adjudicator’s decision or (b) an order from the court that has become final or (c) an agreement being reached between you and the tenant(s).

2.22    If you order any work to be done at the property before a dispute has been resolved, you do so at your own risk. There is no guarantee, if you incur expense, that a dispute will ultimately be resolved in your favour.

WHERE YOU INSTRUCT US THAT YOU DO NOT WANT US TO PROTECT AN AST DEPOSIT

2.23    If the deposit relates to an AST and you decide to hold the deposit yourself, you must tell us before the tenancy agreement is signed. We will notify you of the date we receive the deposit and aim to transfer the deposit to you within 5 days of receiving it. By law you must then register the deposit with an authorised tenancy deposit protection scheme within 30 days of the date we received it. You must also give the tenant(s) and any Relevant Person ‘prescribed information’ about the deposit. If you do not do both these things within 30 days of us receiving the deposit, the tenant or any Relevant Person can take legal action against you. The court can make an order stating that you must pay the deposit back to the tenant, or lodge it with the custodial scheme run by the Deposit Protection Service. The court will then also order you to pay compensation to the tenant of between one and three times the amount of the deposit.

2.24    By law, you may not serve a notice seeking possession under section 21 of the Housing Act 1988 notice until you have served the prescribed information. If you have not complied with the initial requirements of an authorised tenancy deposit protection scheme, you cannot serve a s21 notice until you have returned the deposit (or the agreed balance of it) to the tenant or court proceedings relating to the return of the deposit have been disposed of.

2.25    If you instruct us that you do not want us to protect an AST deposit, we shall not be liable to you for any loss suffered or cost incurred if you fail to comply with your obligations to protect the deposit and give prescribed information. You must pay us for any loss or inconvenience suffered or cost incurred by us if you fail to comply with those obligations. This clause will not apply if the reason for your failure is because we failed to send you the deposit within 20 days of receiving it.

JOINT LANDLORDS

2.26    If there is more than one landlord, any of you will be able to participate in alternative dispute resolution. TDS does not accept liability to any one or more joint landlords for acting on the instructions of any other joint landlord. TDS does not accept directions from joint landlords to deal only with instructions agreed unanimously by joint landlords. If you want all decisions to be made jointly, this is something that should be agreed between the landlords. It will then be a matter for the landlords to resolve among themselves if one or more of them have not complied with that agreement.

Termination of Instructions

3.1    This Agency Agreement may be terminated by either party giving to the other party not less than 30 days notice in writing.

3.2.   Where the service provided is managed, the termination date is equal to the existing expiry date of the Tenancy Agreement, or 60 days notice in writing, which ever is longer.

3.3    Any deposit held by the Agent must remain with the scheme unless the Landlord can show byond reasonable doubt that they are a member of one of the recognised government approved scheme and has obtained expressed permission from the Tenant in writing to transfer the deposit from the Agent to the Landlord in accordance with the Housing Act 2004.

Statutory Obligation of the Landlord when Letting Residential Property

4.1    The Landlord hereby warrants to the Agent that the furniture and furnishing in the Property comply with the requirement of the consumer Protection Act 1987 and all statutory instruments made under it, in particular the Furniture, Furnishings (Fire) (Safety) Regulations 1989 and 1993, The Gas Safety (Installation & Use) Regulations 1998, The Electrical Equipment (Safety) Regulation 1994, The Plug & Socket etc. (Safety) Regulations 1994 and the General Products Safety Regulation 1994 and all other relevant legislation either current or in the future as applicable to the letting of residential Property.

Non UK Resident Overseas - S.78 Taxes Management Act 1970

5.1.   Where the Landlord is resident outside the UK (England, Wales, Northern Ireland and Scotland) for a period of six months or more at a time, the Agents shall be entitled to retain from rental income the amount of any tax due or likely or estimated to be due to the Inland Revenue if required by them. The Landlord indemnifies the Agent against all payments of tax, interest thereon, or penalties levied on or made by the Agent. Should the Landlord fail to apply for an Approval Number from the Inland Revenue, the agent shall be entitled to charge £75.00 in consideration of the additional administration and cost incurred in processing the accounts.

Confirmation of Instructions

6.1.   All instruction to the Agent regarding the service must to given in writing (letter, e-mail or SMS). Any verbal instruction must be confirmed in writing. Sufficient time must be given for the instructions to be fulfilled, failure to do so will not render the Agent negligent. Instructions received at weekend or Bank Holidays may be actioned on the next working day.

Liability of the Agent

7.1    Unless caused by the Agent’s negligence no liability shall be attached to the Agent for any loss, injury, damage or legal or other expenses sustained as a result of:

a) the Landlord’s failure to provide accurately all information reasonably required for the Agent to undertake the service;

b) any forecast by the Agent of likely income or expenditure;

c) failure to identify any defect in the Property or its fixtures, fitting and furnishings.

d) the act, omission or insolvency of any person other than the Agent; and

e) any failure of the Tenant to pay the rent or comply with the terms of the Tenancy Agreement.

7.2    The landlord shall indemnify the Agent in respect of any claims made by another or third party for any loss, injury, damage or legal or other expenses referred to in Clause 7a above.

Repairs and Statutory Obligations

8.1    The agent has authority to carry out repair to the Property and its contents up to the value of £100.00 save in the circumstance set out in this Clause.

8.2    The Landlord authorises the Agent to carry out any appropriate action to comply with all Statutes and Regulations and to incur the necessary expenditure.

8.3    The Landlord fully indemnifies the Agent against all costs, claims, damages and expenses and other payments made pursuant to this authority or arising out of any breach non observance or non performance by the Landlord of such Statutory obligations or Regulation, Rules and orders.

8.4    Further the Landlord undertakes to ratify whatsoever the Agent shall lawfully do in performance to their Management Service and to indemnify them against all cost, payment and expenses incurred by them.

8.5    The Agent shall not be held responsible for the non-payment of Council Tax, Service Charges, Ground Rents, Rates (if any) or supply of utilities payable in respect of the Property.

Parking

9.1.   Where a Property has a parking space attached to it, the Landlord will be responsible for supplying the Agent with the parking space number and location. The Landlord shall indemnify the Agents from any cost, claims, payments and expenses that arises from the supplying the incorrect information.

Client Identification

10.1.   Under the provision of the Proceeds of Crime Act 2002 it is a legal requirement that the Agent must be able to identify their client. Therefore, all private Landlords are required to furnish the Agent with a copy of their passport or EU photo driving licence and proof of address, to be held on file in accordance with the Data Protection Act 1988. Where there are joint Landlord’s, a copy of the relevant identification for each Landlord will be required. Where the Landlord is a company, at least two directors or a director and company secretary must furnish the Agent with relevant indication.

Consent to use Personal Information

11.1.   We collect several different types of information for various purposes to provide and improve our Service to you. For more informaiton visit http://www.property-genius.co.uk/privacy/

11.2    When you agree to use our services, you agree that we may use information you give us, including information about yourself, for the purposes of performing our obligations to you.

11.3    You agree that we may supply such information as is reasonably required to the Scheme. You agree that the Scheme, or the government department responsible for the Scheme, may contact you from time to time to ask you to participate in surveys. If at any time you do not wish the Scheme to contact you for that purpose, you should write to the Scheme as explained in the Scheme Leaflet (see www.tds.gb.com).

Clients’ Money

12.1.    Clients’ money is held in a client account with BARCLAYS, the details of which can be obtained at any time. No interest will be paid on any moneys held in the client account.

Waiver

13.1.    No actions performed by either the Landlord or the Agent shall prevent the other subsequently insisting upon his right and remedies under this Agreement.

Indemnity

14.1.    The Landlord undertakes to ratify action properly and lawfully performed under the terms of this Agreement and to indemnify them against all costs, claims and expenses incurred by them.

Arbitration

15.1.    Any dispute between the Landlord and Agent arising out of this Agreement may be referred by either or both parties to a sole arbitrator to be agreed between the Landlord and Agent. Arbitration would be possible both through ARLA or The Property Ombudsman. Contact details and processes can be found by visiting their respective websites.

Changes to these Term and Conditions

16.1.    The Agent may alter these Terms and Conditions at any time but must be mutual agreed by both parties. If the amendments are due to statutory changes they will take effect immediately upon notification. The Agent will not accept any alterations to these Terms of Business unless agreed in writing prior to the commencement of the Agreement.

Package Options

17.1    Fees will be deducted from rental income and presented on the monthly statement. Where there is no rental income, or any expenditure exceeds income, fees will be payable no more than 30 days from the date invoiced.

17.2    If the rent is paid in advance by the Tenant for the period of the tenancy for a Property managed by the Agent, a sum of £200.00 will be retained as a reserve for repairs etc, any surplus being returned at the end of the tenancy. If the money retained is insufficient the Landlord will be required to make up the difference.

VAT

18.1   Fees and charges made by the Agent are subjected to VAT at 20% or whichever rate is set at the time of ruling.