Commercial Property Lettings Agency Terms and Conditions (Letting & Management Service) 
These Commercial Property Lettings Agency Terms and Conditions (Letting & Management Service) are intended for estate agents who specialise in letting and management of commercial properties.
They outline the responsibilities of both the Agency and the Owner, and explain the commission payments due to the Agency. Together with the Commercial Property Lettings Agency Appointment Form (Letting & Management Service), these Terms and Conditions form a contract between the Agency and the Owner.
This version of the Terms and Conditions should be used where the Agency will be providing a “fully managed” service. That is handling both the day to day management and renal marketing of the property.
Other versions are available for “Letting Only” and “Management Only” arrangements.
The Terms and Conditions refer to the Minimum Energy Efficiency Standard (MEES) which took effect on 1 April 2018. These Regulations aim to enhance the energy efficiency of buildings. Initially, a minimum Energy Performance Certificate (EPC) rating of “E” was required for commercial properties when grating a new lease. However, since 1 April 2023, this requirement also applies to the continuation of existing leases or tenancies. If your leased property has an EPC rating below “E”, you could face financial penalties ranging from £5,000 to £150,000. It is advisable to review the Government’s EPC Exemption guidance to determine whether the property qualifies for an exemption.
The government plans to introduce additional measures for commercial properties in 2027 and 2030, proposing a minimum Energy Performance Certificate (EPC) rating of “C” and “B” respectively. Landlords should ensure they are taking steps to ensure their commercial properties are energy efficient to comply with current and future regulations.
Clause 1: contains definitions and key terms relating to the commission which includes two parts – the “Letting Commission”, paid for finding a tenant who enters into a lease or licence to occupy, and the “Management Fee”, paid for managing the property during the lease term. The Commission is paid in monthly instalments. If the Owner terminates the contract during the Management Period (i.e. when a lease or licence to occupy is in place), the Letting Commission becomes payable in full.
Please note that under the RICS Professional Statement, ‘Service charges in commercial property (1st edition), RICS members, or firms regulated by RICS, must charge management fees (for administering the services comprised in the service charge) on a fixed price basis.
Clause 2:provides information about the Agency.
Clause 3: provides Communication and Contact details.
Clause 4: covers the Agent’s appointment.
Clause 5: outlines the Agent’s duties during the Introduction Period (when the property is on the market) and the Management Period (when a lease or licence to occupy is active). Duties include preparing property particulars, vetting potential tenants, handling rent deposits (if required), collecting rent, following up on late payments, and managing property maintenance
Clause 6: lists the Owner’s responsibilities, including obtaining any necessary permissions from insurers, landlords or mortgage providers.
Clause 7: outlines the Cancellation of Contract during the Cooling Off Period as required under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 which relate to contract made in a consumers home or otherwise off the traders premises.
Clauses 8 and 9 explains the duration of the Agreement and termination and addresses the renewal or continuation of the lease or licence to occupy. If the tenant remains in occupation after the expiry of the original lease, the Agent is entitled to receive additional commission (the “Renewal Commission”).
Clause 10 refers to the Agent’s complaints procedure and specifies the approved redress schemes the Agent is part of.
Clause 11 includes standard terms on the nature of the Agreement.
Clause 12 is a standard clause dealing with Data Protection.
Clause 13 is a standard clause dealing with Money Laundering Regulations.
Clause 14 deals with Consumer Protection and Disclosure of Information, including obligations of disclosure of Material Information and material defects.
Clauses 15 and 16 are standard clauses dealing with the relationship of the parties and VAT.
Clause 17 sets out other Important Terms relating to the Agreement.
Clause 18 details information on other services available to the Seller as well as details of the commissions payable in certain situations.
Clause 19 is a standard law and jurisdiction clause.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
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