Terms & Conditions
THE ESTATE AGENTS ACT 1979
AGENCY TERMS OF ENGAGEMENT
Oct 2002
1. PRELIMINARY
1.1 These terms may only be varied by agreement in writing between P.K Property
Services Limited and the client.
1.2 These terms are to be read in conjunction with the fee confirmation letter
sent by P.K Property Services Limited to the client.
1.3 In the event of any ambiguity or conflict between the fee confirmation
letter and these terms of engagement, the terms of the fee confirmation letter
shall prevail.
2. DEFINITION OF AGENCY INVOLVEMENT
2.1 P.K Property Services Limited is required by the Estate Agents Act 1979
and subsequent regulations to define its agency involvement with a client’s
property. One of the following alternatives will apply as stated in the fee
confirmation letter:
2.1.1 Sole Agency
You will be liable to pay remuneration to us, in addition to any other costs
or charges agreed, if at any time unconditional contracts for the sale of the
property are exchanged:
a) with a purchaser introduced by us during the period of our sole agency or
with whom we had negotiations about the property during that period; or
(b) with a purchaser introduced by another agent during that period.
2.1.2 Sole Selling Rights
You will be liable to pay remuneration to us, in addition to any other costs
or charges agreed, in each of the following circumstances:
a) if unconditional contracts for the sale of the property are exchanged in
the period during which we have sole selling rights, even if the purchaser
was not found by us but by another agent or by any other person, including
yourself;
b) if unconditional contracts for the sale of the property are exchanged after
the expiry of the period during which we have sole selling right but to a purchaser
who was introduced to you during that period or with whom we had negotiations
about the property during that period.
2.1.3 Joint Agency Situations
Where P.K Property Services Limited acts as joint agent then the references
to sole agency and sole selling rights set out in paragraphs 2.1.1 and 2.1.2
will be substituted by the words joint agency and joint selling rights and
liability for remuneration will be incurred in the applicable circumstances
set out in Conditions 2.1 to 2.3.
2.2 Properties To Let
The wording set out in paragraphs 2.1.1 2.1.2 and 2.2 is specified in the Estate
Agents Act 1979 and relates to the sale of property. These provisions shall
apply in like manner upon the exchange of contracts for the grant of a lease,
as they apply to contracts of sale.
2.3 Conditional Contracts
In the case of a conditional contract, an unconditional contract will be deemed
to have been exchanged on the date of the satisfaction of the last condition
or, if earlier, on the date of the completion of the transaction notwithstanding
any condition remains to be satisfied.
2.4 Absence of Contract
If any matter proceeds straight to completion this is to be treated as exchange
of unconditional contracts.
3. BASIS OF FEES
3.1 P.K Property Services Limited will agree the level of fees to be charged
with the client for each job undertaken. These are stated in the fee confirmation
letter.
3.2 Value Added Tax
VAT is payable in addition to any fees invoiced, at the rate prevailing at
exchange of contracts.
3.3 Leases
3.3.1 Where fees are based on a percentage of one year’s annual rent
this will be the average annual rent achieved, calculated from the rent commencement
date until the first rent review, ignoring any rent free or concessionary rental
period.
3.3.2 Where an existing lease is to be assigned or acquired then, in addition
to the fee calculated on the basis of the passing rent, there will also be
a fee charged at the rate specified in the fee confirmation letter on any positive
or negative premium given or received.
3.4 Pre-sales and pre-lets
3.4.1 Where P.K Property Services Limited achieves a pre-sale or pre-let of
a building which is to be constructed, completed or refurbished prior to completion
of the sale or letting, one half of the anticipated fees will be payable on
exchange of contracts or agreements for lease, with the balance payable on
completion of the sale or lease or upon occupation by the purchaser/tenant
whichever is earlier.
3.4.2 In this paragraph 3.4 the expression “pre-sale” and “pre-let” shall
mean the exchange of contracts for a sale of or grant of a lease over the property
prior to the completion of the works of construction, completion or refurbishment.
3.4.3 In the event that the works to the property are not completed in accordance
with the terms of the contract and in consequence the purchaser or tenant refuses
to complete the sale or lease, the full fees will still be payable, as if the
contract has been completed in accordance with its terms, and shall become
due and payable at the time when the contract is terminated. However P.K Property
Services Limited retains the discretion if it thinks fit to waive all or part
of any abortive fee.
3.5 Refund of fees
P.K Property Services Limited will not be liable to refund to the client all
or any part of any fees paid in accordance with this paragraph 3 in the event
that, for any reason whatsoever, the contract shall not be completed.
3.6 Interest
P.K Property Services Limited reserves the right to charge interest on any
invoice for fees or marketing costs or other disbursements which remains unpaid
30 days after the date of the invoice, at the rate of 4% per annum above base
rate from time to time of HSBC Bank Plc, from the date of the invoice until
payment is made, and as well after as before judgement.
3.7 Method of payment
Where a capital receipt is to be obtained from a property, P.K Property Services
Limited reserves the right to require the client to authorise its solicitors
to deduct the fees and costs plus VAT payable hereunder from the sale proceeds
and to remit the same directly to Breeze Management Limited on completion.
3.8 Out of Pocket Expenses
Where it is agreed that P.K Property Services Limited is out of pocket expenses
are to be paid by the client, invoices will be available for the client’s
inspection, except for minor costs, which will be scheduled. Car mileage will
be charged at the standard RAC scales.
3.9 Associated Companies
Where P.K Property Services Limited is instructed to acquire or dispose of
a property belonging to a subsidiary or associate of the client company, then
the right is reserved to invoice the client company, if the subsidiary or associate
is unable to meet its liabilities under these terms of engagement.
4. MARKETING COSTS
4.1 P.K Property Services Limited will give written notice to the client of
any proposed marketing cost which it wishes to incur on the client’s
behalf. At the time of taking instructions approximate estimates of cost
for any initial marketing campaign will be given. However P.K Property Services
Limited reserves the right to revert to the client with further proposals,
if additional marketing is required.
4.2 Any costs given are either best estimates or actual quotations from suppliers.
Advertising and printing rates quoted will be from the publishers’ rate
cards current at the date of P.K Property Services Limited is marketing proposals.
Any rate increases by the publishers made before the advertising space is booked
will be passed on to the client.
4.3 All costs given to the client are subject to the prevailing rate of VAT.
Individual printers’ conditions apply to all client work placed with
suppliers.
4.4 All costing given are gross and no allowance will be made for trade discounts
offered by newspapers, periodicals or other suppliers.
4.5 Where changes are made to artwork or other advertising material, which
are not errors by suppliers, P.K Property Services Limited will pass on to
the client any additional charge made by the suppliers for such corrections.
4.6 Whilst every effort is made to provide accurate production costs for artwork,
photography, printing, film etc, these can only be approximate estimates, and
the final cost may vary.
4.7 Accounts for marketing costs will be submitted at the time when expenditure
is incurred by P.K Property Services Limited, and are due for settlement on
presentation.
4.8 P.K Property Services Limited reserves the right, where marketing costs
would involve substantial financial outlay, to require an advance deposit from
the client to cover such costs. Any surplus sums shall be repaid to the client,
without interest, once all accounts have been finalised and settled. Alternatively
the client may, at its own discretion, place orders directly with the suppliers.
P.K Property Services Limited reserves the right to issue further invoices,
where marketing costs exceed the deposit held, and such invoices become due
for payment when issued.
5. DISPOSALS
5.1 P.K Property Services Limited will be entitled to make the following assumptions,
which it will be under no duty to verify, when instructed to market a property:
5.1.1 All information provided by the client and/or its professional advisers
regarding the property is complete and correct;
5.1.2 Information provided as to the extent of and ownership of the property
is complete and correct and that t here are no encumbrances or unduly onerous
or unusual easements, restrictions, outgoings or conditions attaching to the
property save as specifically notified to P.K Property Services Limited;
5.1.3 The property complies with all relevant statutory requirements, including
but not limited to bye-laws, fire, health, environmental and safety at work
regulations and does not feature on any register of contaminated land.
5.1.4 The property has been constructed, and is occupied, in accordance with
valid planning, building regulation and all other necessary approvals;
5.2 P.K Property Services Limited will have no management role or responsibility
in relation to the property. In particular, the client shall be responsible
for making such security arrangements for the property, as the client shall
deem appropriate.
5.3 P.K Property Services Limited accepts no liability or responsibility for
the maintenance or repair of or for any damage to the property while
unoccupied. If the property is vacant when adverse weather conditions are likely,
frost damage may occur to water and heating systems and sanitary appliances.
The client is strongly recommended to take all necessary action to protect
the property form such risks, and to ensure that adequate insurance cover is
in force.
5.4 It is not P.K Property Services Limited policy to provide any services
for financial gain, either direct or through a connected person, to a prospective
purchaser or tenant in respect of a property it is marketing, until unconditional
contracts have been exchanged. P.K Property Services Limited will notify the
client if the prospective purchaser or tenant requests it to act on its behalf
in respect of the property.
6. CONTAMINATED LAND
6.1 P.K Property Services Limited will not be responsible for any investigations
into the existence or otherwise of any issues concerning pollution including
potential land, air or water contamination in respect of the property or
any adjoining property.
6.2 Unless P.K Property Services Limited are instructed by the vendor/client
to arrange specialist report s t hen the vendor/client will be responsible
for making his own enquiries in this regard and in the absence of any advice
to the contrary, P.K Property Services Limited will be entitled to assume that
no contamination exists.
7. TERMINATION
Subject to any fixed period of appointment which has been agreed P.K Property
Services Limited appointment may be terminated by either party giving 14
days notice in writing to that effect to the other. Any outstanding fees,
together with any other disbursements or marketing costs previously agreed
with the client and actually incurred or committed shall be paid forthwith.
8. PROPERTY DETAILS
Whilst every care is taken in the preparation of property
details to meet the requirements of the Property Misdescription Act
1991, you are required to advise P.K Property Services Limited, in
writing, at once if any aspect of the property particulars we supply
is, or later becomes, inaccurate or in any way misleading.
9. REFERENCES
Where P.K Property Services Limited introduce a tenant or assignee for a lease
of a property, where appropriate, references will be taken up and supplied
to the client. P.K Property Services Limited is not responsible for the interpretation
of any references or accounts obtained, and it is for the client or its accountants
to satisfy themselves as to the financial strength of the proposed tenant
or assignee.
10. PERSONAL INTERESTS
Under the Estate Agents Act P.K Property Services Limited must disclose to
an intending purchaser or tenant any personal interest, however remote, in
a property to be sold or let. The client is to notify Breeze Management Limited
if it is, or becomes, aware of any such relationship with P.K Property Services
Limited Partners or Staff.
11. JURISDICTION
Any and all disputes howsoever arising and including but not limited to disputes
arising out of or in connection with the terms and conditions of engagement
should be governed by and construed in accordance with the laws of England
and the parties hereby submit to the exclusive jurisdiction of the High Court
of Justice in London .
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