Terms of Business
TERMS OF BUSINESS & AGENCY AGREEMENT
This document (referred to as our “Terms of Business” or “Agency Agreement”) gives you information about the terms upon which we agree to offer and provide you with our Products and Services.
“Coast To Castle Property Services are obliged to ensure that any information used in the marketing of your property does not misrepresent your property or mislead a potential purchaser. It is important that the information about your property is accurately recorded and forms a true representation of your property as any prospective purchaser may rely upon this information to conclude a sale.
BEFORE YOU SIGN THIS AGENCY AGREEMENT, PLEASE READ THE TERMS OF BUSINESS AND CLARIFY ANY POINTS OF POSSIBLE MISUNDERSTANDING THAT YOU MAY HAVE WITH THE AGENT IN OUR OFFICE.
The Estate Agents’ Act 1979 requires “Coast To Castle Property Services” terms of business to be confirmed in writing and these are set out below.
The term of this Agency agreement starts from the date written below. Thereafter you may terminate this Agency Agreement by giving us 14 days notice in writing, but we reserve the right to cease marketing earlier if we deem it appropriate.
"Agent" is Coast To Castle Property Services.
"Seller" is the person/persons who owns the house named in part I.
"Property" is the property at the address named in part II
"Terms of Business or Agency Agreement" is this signed contract.
"Property Sale" is the exchange of contracts and full completion of sale as authorised by solicitors of the property.
"Completed" is the final part of the transaction after contracts have exchanged, money has been transferred and keys have been legally released to the new owner.
"Exchange" is when contracts have exchanged and the property sale becomes legally binding.
Introduction is the introduction of a potential buyer to the property.
"Memorandum of Sale" is the document with details of transaction that goes to all parties including solicitors.
"Another Agent" is someone involved in estate agency work or someone who in the course of a business introduces a Buyer to the Property but has no further involvement.
"Upfront Fee" is payment of £499 paid to Coast To Castle before the commencement of marketing.
"Completion Fee" is payment of £500 to be paid on completion of sale. (Usually by solicitors.)
"Dual Fees" – When two or more estate agents are all entitled to get paid on the same sale.
1. Entitlement to fee
1.1 Both the Upfront Fee and the Completion Fee is payable under the circumstances set out in clause 2 and/or clause 3 below.
1.2 The Completion Fee will be payable whether the introduction is a direct introduction or an indirect introduction (where the Buyer makes the purchase as a result of becoming aware that the Property was for sale through the marketing of the Property by the Agent) and whether or not the Buyer makes the offer to purchase through another Agent or through any other person.
1.3 The Agent’s contractual responsibility is confined to marketing the property and the other obligations set out in this Agreement, and any further assistance in relation to the purchase is entirely at the Agent’s discretion.
1.4 In the event of a part exchange, the agreed Completion Fee is still payable in full.
1.5 Any furniture, fixtures and fittings purchase are to be agreed between Buyer and Seller and stated on the Memorandum of Sale. This will not affect the Completion Fee.
2. Coast To Castle Sole Agency
2.1 The Agent will be the only agent for the sale of the Property unless termination of contract by Agent or Seller as per clause 2.4. (Coast To Castle Property Services).
2.2 The Seller agrees to pay the Upfront Fee of £499 before the commencement of marketing and will be liable to pay the Completion Fee to the Agent, in addition to any other costs or charges agreed, in each of the following circumstances:-
• if unconditional contracts for the sale of the Property are exchanged in the period during which Coast To Castle Property Services is instructed, even if the Buyer was not found by the Agent but by another agent or by any other person, including the Seller;
• if unconditional contracts for the sale of the Property are exchanged after the expiry of the period during which Coast To Castle Property Services is instructed but to a Buyer who had previously begun negotiation with Coast To Castle Property Services or the Seller during that period or with whom the Agent had negotiations about the Property during that period.
2.3 However, the Seller will not be liable to pay the Completion Fee in any of these circumstances if the unconditional contracts for the sale of the Property are exchanged after the expiry period of notice laid out in clause 2.4 and where the Seller has appointed another estate agent whose activities have resulted in the sale of the Property.
2.4 The Sole Agency shall continue as Coast To Castle Property Services until either:-
• it is terminated by either the Seller or the Agent on 14 days’ written notice; or
• the Seller by 14 days’ written notice converts Coast To Castle Property Services Sole Agency into a Multiple Agency, which Multiple Agency shall then continue on the terms set out in clause 3 below; or
• the Seller appoints another agent without giving any or any adequate notice, in which case Coast To Castle Property Services will continue to apply save that the Completion Fee would be payable if a fee becomes due.
2.5 If at any time during the Sole Agency Period the Energy Performance Certificate for the property ceases to be valid or is found to be invalid in respect of the requirements of the Housing Act 2004 Coast To Castle Property Services shall immediately cease marketing the property until such time as a valid Energy Performance Certificate is available.
3. Coast To Castle Multiple Agency
3.1 If this Agreement is on a Multiple Agency basis or it becomes a Multiple Agency Agreement following the conclusion of Coast To Castle Property Services, the Seller may from the commencement of the Multiple Agency appoint another estate agent or agents in addition to the Agent.
3.2 The Multiple Agency period (the “Multiple Agency Period”) shall continue until terminated by either the Seller or the Agent giving the other party 14 day’s notice in writing expiring on or after the Agency Period, in which case it shall terminate on the last day of the notice period.
3.3 The Seller will be liable to pay the Fee to the Agent, in addition to any other costs or charges agreed if at any time unconditional contracts are exchanged with a Buyer introduced by the Agent or with whom the Agent has had negotiations about the Property during the Multiple Agency Period. However, the Seller will not be liable to pay the Fee in any of these circumstances where the Seller has appointed another estate agent whose activities have resulted in the sale of the Property, or after the expiry of the Agent’s Multiple Agency in all other circumstances.
3.4 If at any time during the Multiple Agency Period the Energy Performance Certificate for the property ceases to be valid or is found to be invalid in respect of the requirements of the Housing Act 2004 Coast To Castle Property Services shall immediately cease marketing the property until such time as a valid Energy Performance Certificate is available.
4. Dual Fee Liability
4.1 If the Seller has previously instructed another agent to act on their behalf, or if in the future the seller instructs another agent, the seller may become liable to pay the other agent a fee as well as any fee due to the Agent under this Agreement. It is advised that the seller consult the terms of business of any agreement the seller has entered into with the other estate agent.
5. Payment of Upfront Fee
5.1 The Upfront fee will become due prior to marketing the property.
5.2 The Upfront fee can be paid by bank transfer at no extra cost to the Seller. However, Credit/Debit card payment will incur an added cost of 1.75%. Cheque payment is accepted but must be cleared prior to commencement of marketing.
5.3 Value Added Tax (VAT) is payable when applicable, at the current rate in accordance with the UK legislation.
6. Payment of Completion Fee
6.1 The Completion Fee will become due on exchange of unconditional contracts for the sale of the Property and payable on completion (“the due payment date”).
6.2 The Seller agrees to instruct and authorise its legal representative to give, no later than exchange of unconditional contracts for the sale of the Property an undertaking to the Agent to pay from its Client Account the Completion Fee as set out in clause 6.1. The Seller agrees that the Agent may send its invoice direct to the Seller’s legal representative. The Seller may revoke his instruction pursuant to this clause if he considers that there are grounds to do so by writing to the Agent stating the reasons.
6.3 The Prepayments/Other agreed Charges itemised on an attached invoice (if applicable) are due and payable in accordance with the invoice terms irrespective of whether the completion Fee is due.
6.4 Where there is more than one vendor you are jointly and severally liable to pay our fees. Where the vendor is a limited company, all Directors of the company are liable jointly and severally for our fees. This applies irrespective of when a Director may be appointed to the company.
6.5 Value Added Tax (VAT) is payable when applicable, at the current rate in accordance with the UK legislation.
7. Interest for Late Payment
7.1 If the Fee or Disbursements are not paid in full within 30 days of the due payment date or any alternative date agreed in writing with the Agent interest will become payable on any outstanding sum or sums.
7.2 A late payment will be deemed according to the law, if paid later than 30 days from the payment due date and will be subject to a £40 administration charge.
7.3 The rate of interest will be calculated using current Bank of England reference rate + 8%.
8. Initial Marketing Price
8.1 The Initial Marketing Price (otherwise referred to as the initial asking price) does not represent a formal valuation of the Property. The Initial Marketing Price may be varied upon the instructions of the Seller, but this shall not affect this Agreement. The Agent has discussed the Initial Marketing Price with the Seller, but has not carried out a structural examination of the Property and has assumed that there are no defects, third party rights, covenants or conditions affecting the Property and that vacant possession will be given on completion. The Initial Marketing Price has been set at a level agreed with the Seller for marketing purposes and is not indicative of the best market price for the Property.
9. Energy Performance Certificate
9.1 Where the Energy Performance Certificate has not been supplied by Coast To Castle Property Services, we will not begin marketing until a valid Energy Performance Certificate is in our possession. It is the Seller’s responsibility to ensure that we are given all the necessary powers in respect of a Energy Performance Certificate not supplied by us to enable us to meet our obligations under the Housing Act, including unrestricted access for ourselves and for prospective purchasers and their conveyancers and the facility to obtain hard copies.
9.2 Where an Energy Performance Certificate is not available or expired, Coast To Castle Property Services can supply one at the cost of £69. The seller agrees to allow access to the property at a time agreed by all parties and agrees that the Agent will give property keys to the contractor and will not accompany the checks.
10. Property Misdescriptions Act 1991
10.1 Under the Property Misdescriptions Act, it is a criminal offence for Estate Agents to give false or misleading information in relation to the description of the Property. The Seller agrees to provide the Agent with accurate information about the Property so that the Agent is able to comply with this provision. If the Seller becomes aware of any matters that may affect the accuracy of the sales particulars, the Seller agrees to advise the Agent in writing immediately.
11. Fixtures and Fittings
11.1 To comply with the requirements of the Property Misdescriptions Act 1991, all fixtures and fittings that are mentioned in the sales particulars will be deemed to be included in the sale unless otherwise specified in writing.
12. For Sale Boards
12.1 The Agent may erect a For Sale board outside the Property. It is the seller’s responsibility to confirm permission according to lease or covenant.
13.1 The Seller agrees that the Agent may mention the Property (but not disclose the Seller’s identity) in general advertising during or following the sale to promote both the property and the agency where required.
13.2 The Agent may use images and description as he deems appropriate unless otherwise stated in writing by the Seller.
14. Other Services
14.1 Under the Estate Agent’s Act 1979, The Agent are obliged to provide information on the services that they, or any connected person, may offer to prospective purchasers, from which they will or might earn commission. These services include but are not exclusive to estate agency; arranging mortgages, general insurance or life assurance; conveyancing services; surveys and valuations; lettings and property management, and other property related services.
15. Complaints Procedure
15.1 The Agent is obliged to maintain and operate an in-house complaints procedure.
15.2 The procedure to deal with complaints is available in writing on request. Send requests to Coast To Castle, 9 York Avenue, East Cowes, Isle of Wight. PO32 6QY or alternatively an email to firstname.lastname@example.org.
15.3 Coast To Castle will abide by the timescales set out in the redress scheme Code of Practice.
15.4 Coast To Castle will produce a final view letter if the complaint cannot be resolved.
16. Redress Service
16.1 Coast To Castle Property Services are members of The Property Ombudsman and subscribe to their code of practice. Copies of the Code of Practice are available freely on request. Should a complaint not be satisfied in-house then The Seller have the right to escalate the complaint to The Property Ombudsman for review.
17. Unoccupied Property
17.1 The Agent is not responsible for the maintenance, management, repair, or insurance of any property, save where the Agent negligently fails to secure the Property after an accompanied viewing. It is your responsibility to ensure that where your property is unoccupied, it is adequately secured and maintained. It is the Seller’s responsibility to ensure that mains services are turned off, water and heating systems professionally drained and the insurers notified.
18. Money Laundering
18.1 To comply with Money Laundering Regulations 2003, The Agent must obtain proof of address and evidence of your identity.
18.2 Copies of this will be kept securely until such a time that they are no longer needed, when they will be confidentially destroyed.
19. Tenancy Agreement
19.1 In the event that the Agent negotiates with, or directly or indirectly introduces, a tenant for the Property during the period of this Agreement, then the Agent will be entitled to an introducer’s fee £250.
20. Cooling Off Period
20.1 You have the right to cancel this contract within 14 days without giving any reason. The cancellation period will expire after 14 days from the day this contract was agreed. To exercise the right to cancel, you must inform The Agent of your decision to cancel this contract by sending us a clear statement in writing to Coast To Castle Property Services, 9 York Avenue, East Cowes, Isle of Wight. Po32 6QY or emailing us at email@example.com. To meet the cancellation deadline, it is sufficient for The Seller to send your communication concerning your exercise of the right to cancel before the cancellation period has expired.
21. Final Agreement
21.1 This contract including any Additional Services Agreement (where the Seller requires the Agent to supply Additional Services) sets out the definitive terms and conditions of engagement between the Agent and the Seller and supersedes all previous written, oral or customary arrangements. Any change to the terms and conditions (e.g. a change in the fee rate) must be specifically agreed in writing and signed by both parties.
21.2 An inclusion of VAT will be advised by writing as soon as known by the Agent.