Our terms for Lettings

Estate Agents are now subject to a number of orders and regulations deriving from the Estate Agency Act of 1979 and subsequent legislation. We are therefore required to write to prospective clients setting out our fees and terms of engagement prior to marketing, these fees and terms of engagement must be agreed in writing by the landlord. Upon the introduction of a tenant with an acceptable offer, Greenstone Estates will use its best endeavours to carry out and apply the following Terms of Business:

 

Prior to Tenancy

1a.           The Gas Safety ( Installation & use ) Regulations 1998

It is the Landlord responsibility to ensure that all gas appliances and any fixed installation are checked at least every 12 months by a CORGI registered plumber and a ‘ Landlords Gas Safety Certificate’ is issued before the Tenancy commences.

1b.           The Electrical Equipment ( Safety ) Regulations 1994

It is the Landlord responsibility to ensure that all electrical appliances and any appliances in the property are checked regularly by an appropriate registered engineer.

1c.           The fire and Furnishings ( Fire) ( Safety ) Regulations 1988
                The fire and Furnishings ( Fire) ( Safety ) Regulations (Amended) 1993

The Landlord by signing this document declares he is fully aware of the terms and conditions of the above regulation and further declares that all furniture and effects comply with all the regulations ( a copy of which is available by request from our office )

The Landlord undertakes to keep Greenstone Estates fully and effectively indemnified in respect of any claim, cost or prosecution that may arise due to the failure of the Landlord to comply fully with the terms of the above regulations being clause 1a, 1b and 1c above.

If either the Landlords Gas Safety Certificate or Electrical Certificate is not provided to Greenstone Estates prior to the commencement of the Tenancy or renewed to cover any extension of the Tenancy then Greenstone Estates reserves the right to appoint the relevant engineer to carry out the tests, make any remedial repairs and provide the necessary certificate. The cost of which is the Landlords responsibility and will be deducted from initial monies collected on behalf of the Landlord, together with Greenstone’s administration charge of £ 25 per certificate.

References

Upon finding suitable tenants on terms acceptable to you Greenstone will obtain references for your approval. By signing the agreement you are accepting these references and instructing Greenstone to proceed with the Tenants. We are unable to guarantee the suitability of the tenants and cannot be held liable by the landlord for late or non payments of rents etc

Tenancy Agreement

Greenstone Estates will prepare the Tenancy Agreement and ensure all parties sign prior to the tenancy. Our cost for the preparation of this document is £ 50.

Commission / Fees

Upon the signing of a Tenancy Agreement by both a Landlord and a Tenant introduced by Greenstone Estates Ltd whether directly or indirectly, commission becomes payable to Greenstone Estates Ltd.

Commission fees are payable on or before the commencement of the Tenancy and are deducted from monies collected in advance ( first rental payment )  by Greenstone Estates Ltd. If the fee is greater than the first rental payment then the remaining portion of our fee is collected from the next rental payment received.

If Greenstone does not collect the rent then our commission will be due prior to the commencement of the tenancy.

Should the Landlord or Tenant renew or extend or hold over the tenancy for a period beyond the original term then Greenstone Estates Fee is payable as set out on page 1

Should the Tenant break the tenancy in accordance with a break clause contained in the Tenancy Agreement at the time the agreement was executed Greenstone will refund commission for the remaining part of the tenancy on a pro-rata basis. No refund is given for the first six months of the tenancy. No refund is given should the Landlord break the Tenancy.

Our fees are 15 % of the total rent for the term, excluding any deductions, as follows :

• A Letting fee of 10 % that will be deducted from advance monies collected by Greenstone, prior to the commencement of the Tenancy and
• A Management fee of 5% that will be collected as the rent is paid by the Tenant.

Inventory

Greenstone Estates will arrange for or prepare an Inventory of contents and conditions and arrange for the Tenants to be ‘checked in‘ to the property. The cost of both the inventory and check in is the responsibility of the Landlord.

At the end of the Tenancy, however so determined, Greenstone Estates will check out / arrange the checking out of the Tenant and prepare a check out report. The cost of the check out and the report is the responsibility of the Tenant.

Deposit

Greenstone Estates will obtain and hold, in accordance with the Tenancy Agreement, a deposit against unpaid rent or damage to the property. The Landlord will not be entitled to any interest accrued.

Renewals / extensions

Greenstone Estates will contact both Landlord and Tenant before the end of a Tenancy to ascertain whether either party would like to renew the tenancy.

If a Tenancy renewal agreement is required we will prepare the appropriate renewal documents and obtain the necessary signatures.

Renewal commission becomes due in full whether a Renewal Agreement is signed or not when all or one of the original tenant(s) remains in occupation. Commission is due whether or not the renewal is negotiated by Greenstone Estates.

Renewal commission ( being at the same rate as the original term ) is charged in advance as a percentage of the rental income for the new term. Where the tenant extends and/or holds over indefinitely, commission will be payable for the same period and rate as the initial agreement and in both circumstances is to be paid upon receipt of the first rent of the new term.

Greenstone Estates will arrange for the Tenants to sign the Renewal Agreement, arrange for payment of the first months rent and complete a new standing order mandate for the new term.

Management Services

Our management service, charged at 5% of the rent and collected as it is received, comprises:

M1)          We will hold a set of keys in our secure key holding system. All keys are tagged and cannot be identified. Should Greenstone Estates lose a set of keys we will only be responsible for cutting a new set.

M2)          We will visit the property every 4 months of the Tenancy and report to the Landlord the general condition only. Additional inspection can be carried out at a cost of £ 75 per visit

M3)          We will notify the electricity supplier, gas supplier and Council tax department of the Tenants details and obtain meter readings prior to the tenancy. It is the responsibility of the Tenant to open the accounts in their name and we cannot be held responsible if services are not transferred or disconnected. At the end of the tenancy we will take end of tenancy meter readings and inform the relevant utilities.

M4)          We will require a float of £ 250 at the commencement of the Tenancy to enable us to meet costs that arise on the Landlords behalf.

M5)          If the Landlord instructs us to do so and if we hold sufficient funds we will pay service charge, ground rents, utility bills or any other regular payment on behalf of the Landlord

M6)          Should the tenant report a problem with the property we will attend to the repair or maintenance required where we believe the cost to be less than the float we hold on your behalf. Should the cost of repair be higher than the float held we will seek the Landlords permission prior to proceeding with the repair, unless instructed otherwise. In emergencies where we consider it necessary we reserve the right to arrange repairs without the Landlords consent

Sale of the property

Should a Tenant or Tenants introduced by our agency enter into an agreement to purchase the property then a fee of 2.5% of the purchase price will become payable by the owner / landlord. Our fee becomes due upon the contract of sale exchanging. Greenstone Estates reserves the right to defer payment of this commission until completion of contracts.

Should the Landlord sell or transfer the property to another party with the benefit of the Tenants then our fees remain the responsibility of the original Landlord in accordance with our renewal clause above.

Overseas Landlords

The Non-Resident Landlords Scheme is a scheme for taxing the UK rental income of non-resident Landlords. The scheme requires UK Lettings Agents to deduct Basic Rate Tax from any rent collected for non-resident landlords.
Unless exemption is provided in the form of a FICO certificate Greenstone Estates are required by law to deduct tax and account to the Inland Revenue on a quarterly basis. The cost for submitting quarterly returns on your behalf is £ 75.

The Landlord is responsible for obtaining exemption and upon receipt of a FICO certificate Greenstone can release rent without tax deducted.

General

The landlord warrants he has notified his insurance company of his intention to let and has obtained their agreement to extend the insurance the insurance cover on the property and its contents to cover the changed circumstances.

The landlord warrants that where he is a joint owner, he has ensured that all the owners are named in the tenancy agreement and that he is authorised to give instructions on their behalf.

Any commission, interest or other income earned by Greenstone Estates while carrying out our duties as agent for the letting and/or management of the property, for example by referrals to contractors, will be retained by Greenstone Estates.

The landlord agrees that, where any of Greenstone Estates fees , commission charges and/or renewal commission charges remain outstanding for more than seven days, Greenstone Estates may use any sums obtained or held on the landlord’s behalf to pay the outstanding sums, including rental payments on this or any other property on which Greenstone Estates is instructed.

Greenstone Estates is not responsible for any legal steps for the recovery of rent or repossession of the property.  Appearances before any court or tribunal will be held by special arrangement and the fee for any such attendance will be charged per day, or part thereof.  Greenstone Estates will not accept service of legal proceedings on the landlord’s behalf. 

The landlord agrees to indemnify Greenstone Estates as agents against any costs, expenses or liabilities incurred or imposed on us, provided they were incurred on the landlord’s behalf in pursuit of our normal duties.

This contract constitutes the entire agreement between Greenstone Estates and the landlord and supersedes all prior agreements, understandings, representations or communications between the parties.  No amendment or variation to this contract will have any contractual effect unless approved in writing by one of the Directors of Greenstone Estates.

VAT

All Greenstone Estates commission fees and any other charges are subject to VAT at the prevailing rate. 

The High Court and the County Courts of England and Wales shall have the jurisdiction to hear and determine any action or proceeding in respect of this agreement

Greenstone Estates reserves the right to change the schedule of fees and these terms of business.