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Fees and Terms of Business
AGENCY TERMS AND CONDITIONS OF APPOINTMENT
1. Preliminary
DMH Baird Lumsden undertakes all services on the basis of these Terms and Conditions from which there will be no variation unless agreed in writing between the authorised representatives of DMH Baird Lumsden and the Client. Unless otherwise agreed in writing, DMH Baird Lumsden is retained by the Client as either its sole or joint Agent.
2. Sole Selling/Letting Rights
For the purpose of this Agreement and the Conditions, Selling/Letting Rights means that the Client will be liable to pay full remuneration to DMH Baird Lumsden, in addition to any other costs or charges agreed in each of the following circumstances:
i. If unconditional missives for the sale/lease of the property are concluded in the period during which DMH Baird Lumsden have Selling/Letting Rights, even if the Purchaser/Tenant was not found by DMH Baird Lumsden but by another agent or by any other person, including the Client.
ii. If unconditional missives, or conditional missives which are subsequently purified, for the sale of the property are concluded after the expiry of the period in which DMH Baird Lumsden have Selling Rights, but with a Purchaser/Tenant who was introduced to the Client during that period or with whom DMH Baird Lumsden had negotiations about the Property during that period.
iii. If a Purchaser/Tenant has expressed an interest in the property, entered into negotiations, either verbally or in writing, or had his/her Agents or others acting on his/her behalf enter into such negotiations with a view to purchasing/letting the property and thereafter made an offer or caused an offer to be made for the property, whether verbally or in writing, at an acceptable price or rent and on normal terms, but has been unable to conclude a bargain for the property on account of your actings or omissions or the actings or omissions of others acting on your behalf, or representing you or your interests in the market, outwith the control of DMH Baird Lumsden.
iv. All enquiries regarding the Property will be handled by DMH Baird Lumsden. If any enquiries are made to you direct, these should be passed to DMH Baird Lumsden so that we can advise you accordingly.
3. Fee Basis
i. DMH Baird Lumsden`s professional fees in connection with achieving a successful sale/letting of the property will be a % of the gross sale / letting price. In the case of a joint Agency, the above fee scales will be multiplied by 1.5 and split equally between both Agents. In all circumstances the minimum fees due to DMH Baird Lumsden will be of £1,500.00 + VAT, unless expressly varied in writing.
ii. Rent free periods, reverse premiums and other inducements should be ignored for the purposes of calculating commission. A transaction for a term of 12 months or more constitutes a letting/subletting for the purposes of calculating commission as above.
iii. In addition to any commission, the Client will be liable to pay to DMH Baird Lumsden, in full, the charges (plus VAT) for any outlays and agreed marketing expenses. These will be invoiced to the Client as the charges are incurred. DMH Baird Lumsden`s terms for payment are strictly 30 days. Marketing and advertising budgets will be agreed with the Client based on the suggested programmes and recommendations provided by DMH Baird Lumsden.
iv. DMH Baird Lumsden will charge an abortive fee should the selling rights be withdrawn prior to a successful sale/letting being achieved. This is to cover the professional time involved in setting up and running the marketing campaign. The abortive fee in this instance would be: a) calculated on a quantum meruit basis, b) a specific sum of money or c) a % of the asking price or rental amount + VAT, exclusive of any approved outlays and marketing expenses which will be charged in addition.
v. DMH Baird Lumsden reserves the right to charge the Client interest (both before and after any judgement) on any unpaid invoice, at the rate of 3% per annum over the base rate for the time being of Clydesdale Bank Plc, from 30 days after the date of invoice until payment is made.
4. Duration/Termination of Agreement
i. DMH Baird Lumsden`s appointment will be for a minimum period of six months from the date of this Agreement. The period will continue indefinitely, either until the property is let/sold or until termination by service of two weeks' written notice by either party upon the other. If termination is received during the six month Sole Selling/Letting Rights period, a withdrawal fee will be applied, as per Condition 3(iv) above. For the avoidance of doubt, termination of the appointment will not affect or prejudice the liability for payment of any commission, fee, outlays or agreed marketing expenses.
5. When and How is Payment Due?
i. Fees will be payable to DMH Baird Lumsden on conclusion of unconditional missives or such other date as may be appropriate in accordance with Conditions 2 and 3 above.
ii. With this Agreement, the Client undertakes to irrevocably authorise his/her undernoted Legal Agents to pay such fees out of the proceeds of sale/lease on completion. In the event that such proceeds of sale/lease are not sufficient, after deduction of prior claims, to meet DMH Baird Lumsden's fees, DMH Baird Lumsden's fees will be paid directly by the Client. Unless an alternative arrangement has been agreed, for example invoicing directly to the Client, DMH Baird Lumsden will raise an invoice which will be sent to the Legal Agents and this will be copied to the Client.
Name & address of appointed Legal Agents
………………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………………….
6. Conflict of Interest
DMH Baird Lumsden is not aware, as at the date of this Agreement, of any services which may be offered to a potential Purchaser/Tenant by a connected person of DMH Baird Lumsden or of any services which may be offered by any other person to a potential Purchaser/Tenant, for which DMH Baird Lumsden or a connected person of DMH Baird Lumsden may benefit financially. If DMH Baird Lumsden should become aware of the offer or actual provision of any such services to a potential Purchaser/Tenant, DMH Baird Lumsden should provide details in writing to the Client immediately DMH Baird Lumsden becomes aware of such offer or provision or as soon as practicable thereafter.
7. Money Laundering Regulations
The Money Laundering Regulations 2003 require people and companies involved in estate agency work to obtain identification from clients. This may necessitate parties providing the likes of copy passports, driving licences, utility bills or Council Tax bills. In the case of companies, a copy of the Certificate of Incorporation may be required. Not all clients will fall under the regulations and DMH Baird Lumsden will therefore advise whether there is a need for provision of such information. In the event that such information is required by law and it is not provided by the Client, DMH Baird Lumsden will have the option of terminating this agreement with immediate effect.
8. Complaints Handling Procedure
DMH Baird Lumsden has a Complaints Procedure in accordance with The Royal Institution of Chartered Surveyors Rules of Conduct and Disciplinary Procedures. A copy of this procedure is available on request.
9. Instructions
The Client`s instructions for DMH Baird Lumsden to act as Agent in connection with the disposal of the property are given on the Terms and Conditions set out herein. The Client`s instructions will, if accepted by DMH Baird Lumsden, be accepted on the same basis and subject to the assumptions attached at Appendix I. The Client may instruct DMH Baird Lumsden to act on his/her behalf and confirm his/her agreement to these Terms and Conditions by signing, completing and dating the section below, following which the document should be returned to DMH Baird Lumsden.
CLIENT’S DETAILS:
CLIENT`S NAME ………………………………………………………..
(BLOCK CAPITALS)
SIGNATURE …………………………………………………………
POSITION / DESIGNATION …………………………………………………………
COMPANY …………………………………………………………
(If appropriate)
ADDRESS ………………………………………………………...
…………………………………………………………
…………………………………………………………
DATE ………………….
CLIENT`S NAME ………………………………………………………….
(BLOCK CAPITALS)
SIGNATURE …………………………………………………………
POSITION / DESIGNATION …………………………………………………………
COMPANY …………………………………………………………
(If appropriate)
ADDRESS …………………………………………………………
…………………………………………………………
…………………………………………………………
DATE ………………….
SIGNED …………………………………………………
On behalf of DMH Baird Lumsden
NAME …………………………………………………
DATE ………………………………………………….
APPENDIX I
AGENCY ASSUMPTIONS
Our instructions shall be carried out and advice shall be provided by us to you on the basis set out below:-
i. Any information supplied by you, your staff and/or professional advisers, Local Authorities and other statutory bodies and investigation agencies is accepted as being true, complete and accurate unless otherwise specified. DMH Baird Lumsden should also be notified immediately of any information or event which occurs, which adversely affects the property or previous information supplied concerning the Property.
ii. The Property Misdescriptions Act 1991 makes it a criminal offence to make, and in certain circumstances for a client to make, any representations which are false or misleading to a material degree. It is assumed that any information provided to DMH Baird Lumsden by you or your staff or professional advisers can be relied upon by DMH Baird Lumsden and any joint agents, if applicable, and that you will advise DMH Baird Lumsden immediately you become aware of any inaccuracies, e.g. to sales/letting particulars.
iii. Title Deeds and Leases will not be inspected unless there are specific instructions to the contrary. It will be assumed that the property is free from any encumbrances, servitudes, liabilities, restrictions or unduly onerous covenants that may affect the value and marketability of the property. DMH Baird Lumsden strongly recommend that you liaise with other professional advisers, particularly your Legal Agents, to ensure that any special features or issues of importance are clearly defined and accounted for at an early stage.
iv. It is assumed that the property is constructed and capable of being occupied in accordance with valid Planning and Building Regulation Approvals. It is also assumed that the property complies with all relevant statutory requirements, including (but not limited to) Bye-Laws and Fire and Health and Safety at Work Regulations.
v. DMH Baird Lumsden shall have no management role or responsibility for investigating the history of the property or adjoining properties or for establishing the possibility of the existence of contamination on or near the property. DMH Baird Lumsden may, as appropriate, pass comment upon the apparent existence of contamination or pollution at or in the area of the property, the impact of past, existing or proposed uses of the property on its immediate environment or other environmental issues. Such written or verbal advice, howsoever provided, does not constitute an environmental audit or survey. In providing you with disposal advice DMH Baird Lumsden will not have considered whether there is any current liability to carry out work needed to comply with environmental legislation or any liability which may arise in future as a result of proposed legislation.
vi. The property, if unoccupied, shall be left in a clean and tidy state. DMH Baird Lumsden accept no liability or responsibility for the management, maintenance or repair of the property or for any damage done or injuries caused to parties inspecting the property during marketing. You are strongly recommended to take all necessary action to protect your Property from such risks and to ensure that adequate arrangements are made for insurance cover, security and protection on termination of services.
vii. A Marketing Report is not a Valuation and should not be construed as such. It is not suitable for any purpose other than the provision of estate agency by DMH Baird Lumsden. For the avoidance of doubt, Marketing Reports are not prepared in accordance with the Appraisal and Valuation Manual published by the Royal Institution of Chartered Surveyors. A formal Valuation can be supplied if required by separate arrangement. Any Marketing Report is supplied for your private use only and may not be disclosed to third parties or published in any way, either in part or as a whole, without the prior written approval of DMH Baird Lumsden.
viii. An acceptable selling price or rent is the price or rent at, or in excess of that stated within our marketing report, or alternatively a reduced price or rent with the prior agreement of yourself or DMH Baird Lumsden.
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