Residential Lettings Agency Terms and Conditions (Fully Managed Service) 
These Residential Lettings Agency Terms and Conditions (Fully Managed Service) are designed for estate agents specialising in lettings and property management. They outline the responsibilities of both the Agency and the Owner/Landlord and specify how commission will be paid. Together with the Residential Agency Appointment Form (Fully Managed Service), they form the contract between the Agency and the Owner/Landlord.
This version of the Terms and Conditions should be used where the Agency will be providing a “Fully Managed” service. This means the agent will be dealing with the day-to-day management of the property, as well as finding a tenant and setting up a tenancy.
Other versions are available for “Letting and Rent Collection” or “Letting Only” arrangements.
This version of the Terms and Conditions take into account the changes to the Fire Safety Regulations 2023 (applicable to England only), as well as the Tenant Fees Act 2019, and the Renting Homes (Fees etc.) (Wales) Act 2019.
Clause 1: contains definitions and key terms relating to the commission which includes two parts: the “Letting Commission”, paid for finding a tenant and setting up the tenancy agreement; and the “Management Commission”, paid for managing the property during the tenancy. The commission is paid in monthly instalments.
If the Owner cancels the contract during the Management Period (while the tenancy is active), the full Letting Commission becomes due immediately.
Clause 2: outlines the appointment of the Agent.
Clause 3: explains the Agent’s responsibilities during the Introduction Period (when the property is being marketed) and the Managements Period (when the tenancy is ongoing). These duties include creating property listings, screening tenants, managing tenants’ security deposits, collecting rent, following up on overdue rent, and handing maintenance issues.
Clause 4: outlines the Owners responsibilities. These include getting any necessary approvals from insurers, landlords, or mortgage companies, and meeting legal requirements for gas appliances, electrical safety, and fire safety.
Clause 5: deals with termination of the contract between the Agent and the Owner. Different rules apply depending on whether its during the Introduction Period (before a tenant is found) or the Management Period (while a tenancy is active).
Clause 6: deals with renewing or extending the tenancy. If the tenant stays after the original agreement ends, the Agent is entitled to additional commission called “Renewal Commission.”
Clause 7: outlines the Agents complaints process and confirms which redress scheme they are part of.
Clause 8: Deals with the Client Money Protection Schemes for Property agents
Clauses 9 and 10 are standard legal clauses relating to the service of notices.
Clause 11: deals with Anti Money Laundering Regulations for Agents
Clause 12: a standard legal clause dealing with Data Protection
Clauses 13-16 are standard clauses dealing with VAT, the relationship between the parties and the duty of disclosure of Material Information and jurisdiction.
Optional phrases/clauses are enclosed in square brackets. These should be read carefully and selected to be compatible with one another. Unused options should be removed from the document.
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