PARKS RESIDENTIAL S TERMS & CONDITIONS

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1 PARKS RESIDENTIAL S TERMS & CONDITIONS 1. LETTING SERVICE While the Agent are instructed to let the Property they will in the course of their service carry out the following: Advise on rents, furnishings and any pertinent matters Advertise the Property as they deem necessary Arrange appointments for prospective tenants to view the Property Introduce prospective tenants Take up written references for prospective tenants and refer these to the Owner for the Owner's approval Prepare, sign and complete the Tenancy Agreement Receive the rent for the first rental period together with any deposit which will be held in accordance with the terms of this Agreement Remit net rents received to the account stipulated by the Owner The Owner undertakes to ratify whatever the Agent shall do in the performance of their letting/management service and to indemnify them against all costs, claims, payments and expenses incurred by them. 2. MANAGEMENT SERVICE The Owner appoints the Agent to be his general Agent in respect of the Property and in particular (but without prejudice to the generality of such appointment) for the purposes of enabling the Agent to perform efficiently the duties of such General Agency appoints the Agent (which for this purpose shall mean the Agent, the Directors of the Agent and each of them at the date of this Agreement) to be his Attorney and on his behalf but at the sole discretion of the Agent to do all and any of the following:- 2.1 To effect minor repairs to the Property up to the agreed limit specified in this Agreement. 2.2 The Owner authorises the Agent to retain to effect minor repairs to the Property. 2.3 To replace maintain service or repair any furniture or equipment or machinery in the Property. 2.4 To arrange for periodic cleaning of the Property subject to payment of the cost of cleaning. 2.5 To inspect the Property and forward a written report to the Owner in the fourth month of tenancy and subsequently (in the event of an agreed extension of tenancy) every sixth month thereafter. Additional visits and the final "check-out" of the Tenant will be charged to the Owner in accordance with the scale of fees set out in Clause Provided that the Owner has not made alternative arrangements and providing that the owner's account is in credit, to pay all rates, community or other charges expenses ground rent maintenance and other outgoings as demanded from time to time payable in respect of the Property. 2.7 To demand and recover from tenants all rents and sums of money payable and to take all necessary steps whether by action or otherwise to recover any rent or other sum of money in arrears or due and owing but conversely to return to the Tenant or give credit for any monies or rents which the Agent considers are due to the Tenant from the Owner. 2.8 To grant or renew Tenancy Agreements and to sign the same on behalf of the Landlord and to vary any clauses or provisions therein or grant approvals pursuant to any clauses thereof. 2.9 To sign and give Notices to any tenant to terminate such Tenancy or to repair or to abate a nuisance or remedy a breach of agreement or for any other purposes whatsoever and to accept surrenders of any Lease or Tenancy Agreement upon whatsoever terms the Agent think fit If deemed appropriate by the Agent to commence any action or legal proceedings in the name of and at the expense of the Owner in any Court or to submit to arbitration for any purpose necessary to preserve the Owner's rights and property and to defend all actions or other legal proceedings that may be brought against the Owner in connection with the Property. The Owner will be responsible for all the costs and expenses of any Court action to which he is a party (including any costs of the Agent including their staff time) and hereby indemnifies the Agent in respect thereof including all Solicitors and Counsel's fees and other disbursements To warn off and prohibit and if necessary proceed by Court action against all trespassers on the Property In general for the purposes of the Agency to perform every other act usually performed by Letting or Managing Agent to all intents and purposes as the Owner could do personally. Terms & Conditions ~ Page 1 of 6

2 Empty Properties 2.13 The above management services are not provided during any period during which there is no tenant for the Property or the Property is empty. 3. DEPOSITS 3.1 Parks Residential Ltd is a member of the Tenancy Deposit Scheme, which is administered by: The Dispute Service Ltd PO Box 541 Amersham Bucks HP6 6ZR Phone Fax The Agent is instructed by you the Landlord to hold the Deposit, we shall do so under the terms of the Tenancy Deposit Scheme. 3.3 The Agent holds tenancy deposits as Stakeholder throughout the tenancy. All interest in the Deposit will belong to the Agent. 3.4 At the end of the tenancy covered by the Tenancy Deposit Scheme If there is no dispute 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 Tenant. 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 and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the Landlord and the Tenant over the allocation of the Deposit it will (subject to 3.3 below) be submitted to the Independent Case Examiner for the Dispute Service ( 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 Tenant 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 Service Ltd from time to time, shared equally between the Landlord and the Tenant. The liability for any subsequent costs will be dependent upon the award made by the arbitrator The statutory rights of either the Landlord or the Tenant(s) to take legal action against the other party remain 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, this process may take longer and may incur further costs. Judges may, because it is a condition of the Tenancy Agreement signed by both parties, refer the dispute back to the ICE for adjudication. If the parties do agree that the dispute should be resolved by the ICE, they must accept the decision of the ICE as final and binding If there is a dispute The Agent must remit to The Dispute Service Ltd the full deposit, less any amounts already agreed 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 the Landlord or the Agent want to contest it. Failure to do so will not delay the adjudication but The Dispute Service Ltd will take appropriate action to recover the deposit and discipline the Agent 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. Terms & Conditions ~ Page 2 of 6

3 3.5 The Landlord warrants 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. 3.6 Parks Residential Limited will retain the deposit throughout the tenancy, and will insure the deposit through the Dispute Services Ltd (TDS) at a cost of 40 plus VAT per calendar year charged to the Landlord. 3.7 Any claim against the deposit is made only at the end of the tenancy, when Parks Residential Limited can pay out any claim providing the tenant agrees in writing, or there is a court order, or a determination by an adjudicator appointed by The Dispute Services Limited. Any disputed claim which results in the Dispute Service adjudicating the claim will incur a minimum administration charge of 100 plus VAT. The Agent also reserves the right to invoice charges in respect of any work concerning The Dispute Services Ltd. The Agent also reserve the right to invoice charges in respect of any work concerning The Tenancy Deposit Dispute Schemes of an unusual nature not envisaged in the letter of instruction, or this Agreement. 3.8 More information on the claims process can be found on the TDS website at 3.9 Deposits in all non-assured Shorthold Tenancies are also held by Parks Residential Limited as stakeholder and are governed by the terms of our standard tenancy agreement. The Dispute Service Limited can also arbitrate on these deposits if both the landlord (through Parks Residential Limited) and the tenant consent, and The Dispute Services Ltd will also make an administration charge to you as above The statutory rights of either landlord or tenant to claim against the other are not affected by these provisions. 4. REPAIRS AND STATUTORY OBLIGATIONS 4.1 When the Agent are appointed Managing Agent of the Property then: They have authority to carry out repairs to the Property (including the replacement maintenance servicing or repair of any furniture, furnishings, appliances, equipment or machinery) up to the limit specified in the letter of instruction save in the circumstances set out in this Clause The Owner appoints the Agent to carry out any actions or duties in respect of any statutory obligations or regulations, rules or orders which may now or at any time relate to the Property The Agent have authority to carry out any appropriate action pursuant to all Statutes and Regulations and to incur such expenditure as Parks Residential deems necessary to comply with the same and The Owner 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 or non observance or non performance by the Agent and\or the Owner of such Statutory obligations or Regulations, Rules and Orders. 4.2 For the sake of clarity, where the Property is part only of a building the expression "the Property" for the purpose of this Clause 3 does not extend to any other part of that building including common parts or ways or conducting media or fire escapes. 4.3 The Owner hereby indemnifies the Agent against any payment of Council Tax or Rates (if any) payable in respect of the Property Terms & Conditions ~ Page 3 of 6

4 5. LETTING AND MANAGEMENT FEES 5.1 The following fees and commissions will be payable by the Owner to the Agent: Letting (including rent collection) on first and subsequent years Please call us for our best rates Letting and Property Management on first and subsequent years Premium Property Care (with rent protection) on first and subsequent years 5.2 The commission for letting is due in advance in full at the commencement of the Tenancy based on the initial letting period and further payment at the same rates as above will be due forthwith upon the grant of a new Tenancy to the same Tenant (notwithstanding any termination of the Agent's capacity as Letting Agent pursuant to Clause 13.3). For the purpose of this Agreement if the Tenant is more than one person then this further commission shall be payable if one or more of such Tenants remains in occupation. 5.3 If the initial letting period is for part only of a year, then the said commission shall be based upon such period, with a minimum of six months period. 5.4 If for any reason this Agreement is terminated by either party hereto pursuant to Clause 13 hereof then no letting commission or part thereof shall be returnable to the Owner even if the termination takes effect during any period of any Tenancy Agreement, or any extension of any Tenancy or otherwise. 5.5 The Management fee (4%) is payable by the Landlord monthly upon the same dates as any rents due from the Tenant and the Landlord hereby authorises the Agent to deduct such fees monthly on receipt of any rents from the Tenant. 6. ADDITIONAL FEES 6.1 The following additional charges will be made: Tenancy Agreement (Owner's share) Tenancy Extension (Owner's share Renewal) Tenancy Deposit Protection Fee per annum Optional Services: Inventory Preparation: Furnished: Unfurnished: Studio Bed Bed Bed Bed Bed Check-Out of Tenant: Furnished: Unfurnished: Studio Bed Bed Bed Bed Bed Landlord Legal Protection per annum Landlord Contents Insurance (incl. AD cover) from per annum Landlord Buildings Insurance from 3.00 per Property Inspection from These charges are subject to review in the discretion of the Agent in the event that the Property shall be considered unusually large or of an unusual nature. If these charges are to be increased the Agent shall inform the Owner in writing prior to any letting being completed. 6.3 Appropriate charges will be made for processing insurance claims, tenancy deposit disputes, management between lettings and supervision of major renovation, and\or for the provision of any other services - for example gardening services, cleaning, decoration or inventory replacement. The Agent will quote for these services on request. Terms & Conditions ~ Page 4 of 6

5 6.4 Value Added Tax or any other Tax or Charge that may be levied will be charged in addition to the above fees. 6.5 The Agent also reserve the right to invoice charges in respect of any work or management of an unusual nature not envisaged in the letter of instruction, or this Agreement. 7. SALE OF PROPERTY TO A TENANT Where a tenant purchases a freehold or long leasehold of the Property occupied or previously occupied by that Tenant during or within 6 months of the end of any Tenancy a fee equivalent to 2% plus VAT of the purchase consideration will forthwith become due and payable by the Owners to the Agent. 8. REGISTRATION OF HOUSES IN MULTIPLE OCCUPATION CONTROL SCHEME 2002 If (the Agent) considers that the Property is registerable with Brighton & Hove City Council pursuant to the Brighton & Hove City Council (Registration of Houses in Multiple Occupation) Control Scheme 2002 then the Landlord hereby authorises them to make such application and will pay the Agents a fee of plus VAT for such service together with all fees payable to Brighton & Hove City Council 9. INSURANCE The Owner must affect his own insurance in all respects and will inform his insurers of the letting of the Property. The Agent will not be responsible for advising thereon or arranging or renewing any Policy of Insurance. 10. MORTGAGEE'S AND FREEHOLDER'S CONSENTS 10.1 The Owner must obtain the consent to any letting from any mortgagee of the Property The Owner must, if applicable, obtain the consent of any Freeholder or Superior Landlord of the Property to any letting of the Property. 11. THE FURNITURE AND FURNISHINGS (FIRE) (SAFETY) REGULATIONS 1988 AS AMENDED The Owner warrants to the Agent that all furniture and furnishings in the Property to be let and included in the letting fully comply with the requirements of the Consumer Protection Act 1987 and all statutory instruments made under it including in particular the Furniture and Furnishings (Fire) (Safety) Regulations 1988 as amended by the Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1989 and OWNERS RESIDENT ABROAD - S.78 TAXES MANAGEMENT ACT 1970 Where the Owner is resident abroad or taxed as such the Agent shall be entitled to retain out of any monies received the amount of any tax due or likely or estimated to be due to the Inland Revenue and to pay the same to the Inland Revenue if required by them. The Owner hereby indemnifies the Agent against all payments of tax interest thereon or penalties levied on or made by the Agent and shall pay to the Agent any shortfall of such monies (if any) together with interest thereon at 3% above Barclays Bank Base lending rate in force on a daily basis from the date of payment by the Agent until reimbursement in full be made. 13. TERMINATION 13.1 Subject to Clause 13.2 the Agent appointment (if any) as Managing Agent shall continue for the initial letting period and thereafter from month to month The Agent may at any time terminate such appointment as Managing Agent on one month's notice (whether during the Initial Letting Period or not) and the Owner may terminate the same at any time after the Initial Letting Period on one month's written notice The Agent appointment as Letting Agent shall continue until determined by either party giving one month's written notice to the other subject to the rights of the Agent to be paid commission for letting the Property pursuant to the terms hereof and in particular commission on extensions or renewals of the tenancy pursuant to Clause 5.2. hereof provided that any letting effected or Tenant introduced during such period of Notice shall still entitle the Agent to be paid commission therein as if such Notice had not been given. Terms & Conditions ~ Page 5 of 6

6 13.4 Further in the event that either party terminates the appointment of the Agent hereunder (in either capacity) it shall be without prejudice to any claim by either party against the other in respect of any monies due or any antecedent breach of the terms hereof or in respect of any claim pursuant to Clause 5.2. and Clause 7 hereof which Clauses shall continue in force notwithstanding any termination of the Agent's appointment hereunder. 14. DEFINITIONS In these terms and conditions the following expressions shall have the following meanings: "The Agent" - Parks Residential Limited and its successors in title or assigns "The Owner" - The Owner named in the instruction letter or his successors in title or assigns "The Property" - The Property specified in the instruction letter or any part thereof together with any common ways or shared facilities if the Property is part only of a building and also includes any fixtures fittings and furniture belonging to the Owner "The Tenant" - Any Tenant or Tenants of the Property from time to time or if the Tenant is more than one person then this expression shall be read and construed accordingly and will include any person who was within this definition who remains in occupation of the Property. The expression "Tenancy" shall be read and construed accordingly "Initial Letting Period" - Shall mean the full length of the term of any tenancy entered into and for the purpose of calculation of fees due hereunder shall not take into account any termination clause or right to terminate any tenancy (whether or not the same is exercised) or any earlier forfeiture surrender termination or repudiation of same. 15. HOUSES IN MULTIPLE OCCUPATION If the Property is classified as a house in multiple occupation pursuant to the Housing Act 2004 ( Act ) then the Landlord warrants to Parks Residential Lettings that: With effect from 6 th April 2006 the Property has been licensed ( the Licence ) with the relevant Local Authority; 15.2 No further licences are required to let the Property; and 15.3 The Landlord has and will continue to comply with all requirements of the Licence and the Act The Landlord will indemnify Parks Residential Lettings as from and against all costs, claims, fines, damages and expenses incurred by them as a result of any breach or non-compliance with the Licence or the Act The Landlord will give to Parks Residential Lettings prior to the tenancy commencing the originals of:- (i) the Licence; (ii) a current Gas Safety Certificate; (iii) a current Electrical Safety Certificate; and (iv) any other documents required as a condition of the Licence If, prior to the tenancy commencing or during management, Parks Residential Lettings considers that any requirement of the Act has not been complied with or which will render Parks Residential Lettings liable to prosecution, then Parks Residential Lettings may terminate its contract with the Landlord without notice or penalty without prejudice to any claim by either party against the other in respect of any other matter in these Terms and Conditions of Business. Signed: Dated: Printed: Terms & Conditions ~ Page 6 of 6

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