SALES TERMS AND CONDITIONS OF BUSINESS, FEES AND EXPENSES
These Terms set out the agreement between (1) you (‘you’, ‘the client(s)’ or ‘your’) and (2) Checkmate Estates Ltd (‘us’, ‘we’ or ‘our’) under which we will act as agents for you in the sale of your Property. These Terms are, necessarily, quite detailed and precise. If you require clarification, please contact us.
We are a member of The Property Ombudsman (‘TPO’) and abide by the TPO Code of Practice. You agree that we may disclose information relating to the sale of a Client’s Property to TPO, if you have registered a complaint and TPO asks for it. You also agree that we may disclose your contact details to TPO if they ask for it, to assist in their monitoring of our compliance with the Code of Practice.
Traditional Agency Services
Where we are instructed to act as the sole agent to sell the Property and where any of the above Services have been performed, our Commission Fees in addition to any other costs or charges agreed outside the scope of this contract, will become payable if at any time contracts for sale of the Property are exchanged either:
- with a purchaser introduced by us during the period of our sole agency; or
- with whom we had negotiations about the Property during that period; or
- with a purchaser introduced by another agent during that period; or
- with a purchaser introduced to you privately or already known to you.
Sole agency instructions are subject to a minimum contract period of eight weeks to ensure our marketing strategies are fully implemented
Joint Sole Agency:
Where we are instructed to act as a joint sole agency to sell the Property, and where any of the above Services have been performed, our Commission Fees in addition to any other costs or charges agreed outside the scope of this contract, will become payable if at any time contracts for the sale of the Property are exchanged either:
- with a purchaser introduced by us or the joint sole agent(s) during the period of our joint sole agency; or
- with a purchaser with whom we have had negotiations concerning the Property during the period of our joint sole agency; or
- with a purchaser introduced by another agent during that period.
- with a purchaser introduced to you privately or already known to you.
Joint Sole Agency instructions are subject to a minimum contract period of twelve weeks to ensure our marketing strategies are fully implemented.
Where we are instructed with one or more agents on a Multiple Agency basis, and where any of the above Services have been carried out, our Commission Fees in addition to any other costs or charges agreed outside the scope of this contract will become payable whether or not the other agent(s) is/are subsequently dis-instructed, if contracts for the sale of the Property are exchanged, whether during or after the period of our agency:
- with a purchaser introduced by us during the period of the multiple agency; or
- with whom we have had negotiations concerning the Property during the period of the multiple agency.
- with a purchaser introduced to you privately or already known to you.
Multiple Agency instructions are subject to a minimum contract period of twelve weeks to ensure our marketing strategies are fully implemented, irrespective of whether you dis-instruct any or all of the other agents.
Sole Selling Rights
Our period of Sole Selling Rights extends for two years after the Termination Date of this contract and is only applicable where we have been instructed as Sole Agents in the first instance.
Sole Selling Rights mean you will be liable to pay our Commission Fees in either or both of the following circumstances:
(i)If contracts for the sale of the property are exchanged in the period during which we have been instructed, even if a purchaser was not found by us but by another agent or by any other person, including yourself
(ii) If contracts for the sale of the property are exchanged after the expiry of the period during which we have sole selling rights but to a purchaser who was introduced to you during that period or with whom we had negotiations about the property during that period.
For the avoidance of doubt and without prejudice to the above it is the intention of the parties to this agreement that any purchase by way of asset transfer will be effected to maximise efficiencies and that such a transfer will be treated as if it was a sale of property for the purposes of this agreement.
Commission Fees Payable (only for Traditional Agency Services)
Checkmate Estates’ Commission Fees are calculated as a percentage (%) of the actual sale price achieved plus Value Added Tax (VAT) at the prevailing rate (currently 20%).
As Checkmate Estates’ Commission Fees are based on a percentage of the price achieved, should this be higher or lower than the asking price, Checkmate Estates’ Commission Fees will also be correspondingly higher or lower. For All:
Sole Agency Instructions, this percentage is at a rate of 1.5% + VAT (1.8%).
Joint Sole Agency Instructions, this percentage is at a rate of 2.5% + VAT (3.0%).
Multiple Agency Instructions, this percentage is at a rate of 2% + VAT (2.4%).
For example, on a Sole Agency instruction our fees of 1.5% + VAT for a £400,000 property would be £6,000 + VAT. On a Joint Sole agency instruction our fees of 2.5% + VAT for a £400,000 property would be £10,000 + VAT. On a Multiple Agency instruction, our fees of 2% + VAT for a £400,000 property would be £8,000 + VAT.
All Commission Fees are subject to a minimum fee of £3,000 + VAT (£3,600).
The sale price will be deemed to include any extra prices for fixtures, fittings, goods, chattels, carpets, curtains and other such related items.
Online Agency Service Fees
Our fees for this service are fixed at £1,000 + VAT (£1,200) and include all of the Marketing Fees as listed below excluding Accompanied Viewings which, if requested, will be charged separately and will be due as per our standard invoicing terms.
Where any fees remain unpaid, Checkmate Estates reserves the right to terminate the Online Agency Services agreement by giving 2 working days’ notice allowing you time to settle any outstanding payments.
Where you settle the payment late, and unless otherwise expressly agreed by us, the re-marketing of your property on our Online Agency Only Service will constitute a new instruction and our fees in this instance will be reduced to £500+VAT (£600) to cover the administrative time spent re-activating the listing, and liaising with third party marketing suppliers e.g. ‘For Sale’ board management companies.
|Erecting and removal ‘For Sale/Sold’ board||£90|
|Professional Floor Plan||£120/180|
|Creating Professional Marketing Materials||£240|
|Advertising on third party websites||£300|
|Accompanied Viewings per purchaser viewing||£42/ea|
All Marketing Fees quoted are inclusive of VAT.
Time and payment of fees
All Checkmate Estates’ Commission Fees become due and payable upon exchange of contracts. However, and at the discretion of Checkmate Estates, fees may be paid on completion. On signing this document, you hereby irrevocably authorise your lawyers to pay our fees in full out of the sale proceeds no later than three working days after completion and that they shall accept receipt of this signed document as instructions to do so.
All Checkmate Estates’ Online Agency Service Fees are payable in advance of any of the stated services being performed.
Responsibility of Fees
The responsibility for the payment of Commission Fees and/or Marketing Fees remains with the party(ies) named on this document who is presumed to be the proprietor of the Property or an authorised Trustee acting on behalf of the beneficiaries of the Property. In the event that we are instructed by more than one person, each entity and/or individual shall be jointly and severally liable for the payment of Commission Fees, Marketing Fees and other charges outside the scope of this contract, unless it is agreed in writing by us that a third party is responsible. There may be a dual fee liability if:
- the seller has previously instructed another agent to sell the same property on a sole agency, joint sole agency or a sole selling rights basis; or
- that seller instructs another agent during or after the period of Checkmate Estates’ sole agency, joint sole agency or sole selling rights period.
Termination/Withdrawal or Variation of Instruction
Where you have instructed us for either Sole, Joint Sole or Multi Agency, if for any reason the sale of the property is
- withdrawn, or
- the sale becomes abortive; or
- our instructions are terminated for any reason prior to the property being fully disposed of, or
- you have decided to appoint us for an alternative agency instruction (Sole/Joint/Multi) before the transaction reaches the conveyance stages
you agree to pay us in respect of all our Marketing Fees, for each instruction.
In the event that you withdraw from a transaction once solicitors have been instructed, you agree to pay us fifty per cent of the Commission Fees that would have been due on completion of the transaction, in respect of the Agency Type, plus any other charges as agreed outside the scope of this contract.
Either party may terminate such a contract by giving four weeks’ notice in writing thereafter our ‘Termination/Withdrawal or Variation of Instruction’ clause will come in to effect. Such notice cannot be served prior to the eighth week of instruction on our Sole Agency type or the twelfth week on our Joint Sole or Multi Agency types due to the minimum period as stated above.
Where you have instructed us for our Online Agency Service, notice of Termination is accepted upon receipt and we advise that it may take up to 48 hours to withdraw advertising of your property from the market. There is no notice period required. There are no further marketing fees due on termination.
Any variation of instruction type is treated is a new instruction whereby a new contract is formed and bound by the terms as set out herein.
Where you wish to vary the instruction type from Online Only to either Sole, Joint Sole, or Multi Agency, we will deduct any Marketing Fees paid in advance from our Commission Fees that would be due on completion of the sale.
It is a requirement of this agreement that should an offer be agreed privately, or via another estate agent, you must disclose to Checkmate Estates the identity of the purchaser prior to exchange of contracts.
We reserve the right to charge interest from the date of exchange of contracts on any amounts still outstanding 28 days after Checkmate Estates’ fees are first demanded. The prescribed rate of interest shall be 8% above the Bank of England base rate as at the date they are first demanded and payable from that date.
Marketing and Viewing of Property For Sale
While we will exercise all reasonable care in the marketing and viewing of the Property, this involves providing information to a significant number of people. We include all properties for sale on our website and other third-party websites and may include Property details within marketing material that we may produce to promote our company as part of a marketing exercise, unless specifically instructed otherwise in writing. We do not accept responsibility for any misuse of this and other published information relating to the Property. Whilst we will exercise all reasonable care when arranging or conducting a viewing (individual or ‘Open House’), you are advised to ensure that you have in place sufficient insurance arrangements for any liability which may arise as a result of such visits to the Property as we shall have no liability for any acts or omissions of any person (other than our employees) during such visits.
Checkmate Estates reserves the right to sub-instruct other agencies at any time during our agency if we consider that this would be in your best interests. This will not involve any extra costs and all viewings and negotiations will be co-ordinated by Checkmate Estates.
Energy Performance Certificate (EPC)
It is a legal requirement to have commissioned an EPC before marketing can commence on your property (Not applicable for properties outside of England and Wales). Where you request that we arrange an Energy Performance Certificate (EPC) through one of our EPC Providers, you shall only be licensed to use the EPC upon cleared payment for the EPC.
If you supply us with an EPC that has been arranged and prepared by a company other than one of our EPC Providers, we will only be able to commence marketing if the aforementioned EPC is legally compliant and you have authority to allow us to use the document to commence marketing the Property.
We exclude all liability for the use of any EPC provided or any of the information contained within it for any other purpose other than for which is expressly provided and to the fullest extent as permitted by law. We assume no responsibility and shall not be liable for any damages, losses or claims or any direct, indirect, incidental, consequential damages of any kind howsoever arising (including, but not limited to, as a result of our negligence) in connection with the use or the reliance of any information or material contained in or referred to in the EPC.
Value Added Tax (VAT)
All Checkmate Estates’ commission fees and any other charges are currently subject to VAT at the prevailing rate. At the time of this agreement the rate is 20%.
Should the prevailing rate change, by signing this agreement you agree to pay our commission, in addition to any other costs or charges agreed, plus VAT at the current prevailing rate.
Our VAT Registration Number is 263 8220 09
All VAT which is payable on all Commission Fees, Marketing Fees and other expenses to your Property is payable at the prevailing rate from time to time, irrespective of your place of residence.
As required by Section 21 of the Estate Agents Act 1979, unless specifically stated otherwise, we are not aware of any personal interest existing between ourselves or anyone in our employ or any connected person(s) and yourself(ves). If you are or become aware of such an interest you should notify Checkmate Estates immediately.
A purchaser may wish to instruct us about a related service. Checkmate Estates does offer such services to purchasers including the following: the sale or rental of this or another property; the provision of financial services; and management of property. Where this occurs, Checkmate Estates or its employees may receive a fee. Any commission or other income earned by Checkmate Estates while carrying out our duties as agent for the sale of the property, for example by referrals to third party EPC suppliers or solicitors, will be retained by Checkmate Estates.
Where you provide us with a set of keys (or authorise us to use keys held by another agent), we may make further copies to facilitate viewings by the instructed office and other offices where appropriate. We will not charge you for this service. Checkmate Estates’ secure key tag system ensures that third parties cannot identify which property a set of keys belongs to, therefore, in the event that keys are lost or unaccounted for, Checkmate Estates’ liability is strictly limited to the cost of cutting a new set of keys.
We are a member of The Property Ombudsman (TPO) Scheme. In accordance with TPO’s Code of Practice, we operate a formal procedure to deal with complaints from clients and others. Should you have any problems with Checkmate Estates’ service which you are unable to resolve with the Negotiator involved or the branch/department Manager, you should write to the Director. Complaints MUST BE IN WRITING and should be delivered or sent to Checkmate Estates, 793 Harrow Road, Wembley, HA0 2LP; or by email to firstname.lastname@example.org. Your complaint will be acknowledged within three working days of receipt and an investigation undertaken. A formal written outcome of the investigation will be sent to you within 15 working days. This letter will confirm that you are entitled, if dissatisfied, to refer the matter to The Property Ombudsman (TPO) within six months for a review. For the avoidance of doubt, TPO will only review complaints made by consumers.
Anti-Money Laundering Regulations
Checkmate Estates is subject to the Money Laundering Regulations 2007 which require us to verify your identity and the identity of any beneficial owner before acting as agents. As a result, we will need to ask you for suitable identification. We will not take any steps, either formal or informal, to market the Property until the verification of identification has taken place. We reserve the right to employ third party electronic verification for the purpose of verifying identity.
We also require proof of ownership of the property for sale which can be obtained from the Land Registry. Our charges for this service is £5.00 + VAT (£6.00) to obtain an electronic copy of the official title deeds.
Please note this agency agreement is not to be treated as an established or concluded agreement until we have verified yours and any beneficial owner’s identities.
Transfer of Liability
You warrant that the Property has a valid building insurance policy with cover that extends to public liability. You further warrant that the property is in a safe state of repair to conduct visits and property viewings to potential purchasers. If at any point during this contract you become aware that the health and safety of any visitors at the property is at risk, you must notify us immediately and hereby exclude us from any liability whatsoever that may give rise to a claim.
To give a false or misleading description of a property is a criminal offence for which you hereby guarantee to indemnify us from. You hereby warrant that you are authorised to instruct us to sell the Property and that all information provided to us to assist in the description and marketing of the Property is true and accurate. Furthermore, you agree to notify us immediately if you become aware that any aspect of the sales particulars produced by us or other information provided to us is or has become inaccurate or misleading and therefore take ultimate responsibility and liability in the event of any claims arising from the same.
Where you have instructed us to erect our ‘For Sale’ marketing board on your property, Checkmate Estates accepts no liability for any damage or nuisance caused.
Checkmate Estates is registered under the Data Protection Act 1998 and we undertake to comply with the Act in all our dealings with your personal data. We will keep your personal information secure. Occasionally, we may contact you by letter, telephone, email or otherwise to inform you about other products and services we offer. We try to limit this contact to acceptable levels, but if you wish to exercise your right to opt out, simply inform us.
Notice of Right To Cancel
Where these Terms are not signed within our offices, you may have the right to cancel this agency agreement under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 within 14 days of the date upon which it was signed. Notice of cancellation MUST BE IN WRITING and should be delivered or sent to Checkmate Estates, 793 Harrow Road, Wembley, HA0 2LP; or by email to email@example.com . Notice of cancellation is deemed to be served as soon as it has been delivered, posted or sent.
If work on this agency agreement has begun before the end of the cancellation period, you may be required to pay for any goods or services supplied, including any Expenses and you understand and agree that you will be liable for any fees incurred under the ‘Withdrawals’ section of this agreement. The signing of this agency agreement shall be treated as a request by you for us to commence performance of the contract prior to the end of the cancellation period.
These Terms, including the signature page, constitute the entire agreement between the parties and supersede all prior agreements, understandings, representations or communications between the parties. No amendment or variation of these terms will have any contractual effect unless approved in writing. Checkmate Estates reserve the right to amend and update these terms.
The High Court and the County Courts of England and Wales shall have jurisdiction over this agreement.