Terms - Smeaton

Terms of Business

To provide a management service to the best of the Agent’s ability which complies with the management company’s management and maintenance obligations under the terms of the lease. This would normally include the following:

Accounting

To include the collection of service charges, special levies and any other payment due from leaseholders. Setting up or continuance of separate, designated trust accounts; setting up or continuance of interest-bearing accounts, if applicable, for reserve fund and service charge monies held in excess of that required for immediate expenditure. All accounts to be held in accordance with the requirements of Section 42 of the Landlord and Tenant Act as amended by Section 156 of the Commonhold and Leasehold Reform Act 2002 and will comply with the requirements of ARMA and the Service Charge Residential Management Code of the RICS as appropriate. Submitting all relevant accounting records at end-of-year to the independent accountant retained by the client for preparation of year-end accounts. Ensuring accountants comply with Section 152 of the Commonhold and Leasehold Reform Act which provides for prescribed detailed information within the annual service charge statement. Prepare, if required an annual estimate of anticipated expenditure for approval by the client.

Insurance

Arrange / renew insurance cover in respect of the property, if requested by the client through an FCA endorsed broker. Pay all premiums promptly. Dealing with the building insurance claims on behalf of the Client, where appropriate and possible.

Maintenance and Repair

Administer contracts, such as cleaning, gardening, window cleaning, lift maintenance, etc. Review of a re-allocation of contracts where necessary. Obtaining of estimates, where appropriate, and issuing instructions to contractors on minor items of maintenance and repair, within the agreed limits specified with the Client (which presently would be at amounts under Section 20 Consultation limits). Check demands for payment of goods, services, etc., supplied for the benefit of the property and settle such demands.

Major items of Expenditure, Exterior and Interior Re-Decoration / Consultation Procedures

Provide advice to the Client in respect of leasehold legislation requirements. Recommending the appointment of surveyors, architects and other professionals where appropriate. The issuing of Notices under Section 20 of the Landlord and Tenant Act 1985 (as amended by the CLRA 2002) and acting as liaison between the surveyor and Client.

General Responsibilities

To inspect the communal areas of the building, without use of equipment as can be inspected safely in order to ascertain its general condition. To extend a courteous and professional service to lessees. To attend promptly to correspondence and telephone calls received relating to the property. Quarterly electronic newsletter to all leaseholders and residents. Quarterly board meetings, distribution of notices and taking minutes in line with the Company’s Articles of Association. Annual general meeting, distribution of notices and taking minutes in line with the Company’s Articles of Association.

Determination for Breaches of Covenant (e.g. Non-payment of service charges)

If the Client requires the agent to pursue a leaseholder for breach of covenant, then additional fees will apply although advice will be given within the standard management fee. Similarly, applications to the Leaseholder Valuation Tribunal, or extensive involvement with solicitors / county courts, etc., would be an additional fee, as agreed in advance.

Management Fees

Management fees are very much dependent on the building, location of it and the amount of work involved. We have the flexibility to move away from a fixed fee, one size fits all mentality. We welcome discussion around what is required and how best we can meet need.

CHARGES

Please find below a schedule of additional charges, which would not form part of the agreed management fee, as it would be circumstantial and apply to individual leaseholders.

*Additional Service*	*Charging Basis*
Providing copies of documents electronically (Including Leases, Invoices, etc)	£20 per request
If paper copies were to be requested, we would apply an additional fee per copy of	£5
Section 20 Consultation – including serving of 3 required notices, instructing and liaising with specialist consultants and contractors	To be negotiated, dependant on the complexity of work required
Out of Hours Call Out	£50 per unit or event
Service Charge Reminders
First Reminder	No Charge
Second Reminder	No Charge
Third Reminder	£75
Solicitors’ fees	TBC

Authorisation of The Agent By The Client

The client authorizes the Agent to expend any sums for the benefit of the Property that are within the expenditure limit agreed as specified below, and also, in cases of emergency, to take such reasonable measures as the Agent shall consider appropriate. The Client has agreed that the Agent can spend up to £………… in a single transition, without prior authorization to address day-to-day emergency issues without delay.

Specified Expenditure Limited

All instructions of the Client to the Agent with regard to the service to be performed by the Agent, shall be given to the Agent in writing or, if given verbally, shall be confirmed in writing within seven days.

The Client is to provide all information necessary to initiate and undertake the management service and any additional work necessary by the absence of such information, as carried out by the Agent, would attract an additional charge.

The Client to authorize the Agent to reimburse himself for agreed management fees (in advance where appropriate), administrative fees and any other agreed expenses / disbursements whenever expended. The basis of the Agent’s remuneration, as recorded in the Agreement, shall apply.

Termination

Either party may terminate this Agreement by serving on the other three months’ notice in writing.

Notwithstanding the above, if either party is in breach of this Agreement:-

the other may serve on the party in breach written notice specifying the breach or breaches and requiring them it be remedied within 60 days and
if the party fails with 60 days of the service of such notice to remedy such breach or breaches, then
the party who served the notice may terminate the Agreement upon serving the written notice to that effect on the other party.

Liability Of The Agent

Unless caused by the Agent’s negligence in the provision of Service, the Agent is not liable either in contract or in tort for any loss, injury, damage or legal or other expenses sustained as a result of:-

the Agent having reasonably relied upon the Client to provide accurate information
any inaccurate estimation / forecast by the Agent of future income or expenditure
any failure to identify any defect in the property, equipment or materials used for the property
the act, omission or insolvency of any person other than the Agent.

The client shall indemnify the Agent should any claim be made by a third party for any loss, injury, damage or legal expenses referred in a) to d) above.

The Agent shall not be liable to indemnify the Client in respect of any similar claims by a third party against them.