Terms of Business for Residential Estate Agents and Commercial Lettings Agencies

October 2014
If your business is engaged in the sale or letting of property on behalf of the owner, whether the premises are commercial or residential, it is essential to have detailed and robust Terms of Business.

Adopting formal Terms of Business will help you to meet your professional obligations if you are a member of a regulatory body such as the Royal Institution of Chartered Surveyors (RICS), the National Association of Estate Agents (NAEA) or the Association of Residential Lettings Agents (ARLA).

Signing clients up to your Terms of Business should also provide clarity as to the scope of your role, any action that is required on the part of the client and the commission payable, making disputes less likely to arise.

Commercial Lettings Agency Terms & Conditions

Our new Terms and Conditions for Commercial Lettings Agencies cover three levels of service that may be offered: Letting Only, Letting & Management and Management Only. The documents contain detailed provisions setting out the obligations of the Agent and the Owner. The Terms and Conditions can be used in conjunction with the corresponding Agency Appointment Form to create a binding contract between a landlord and an agent.

Residential Sales Agency Terms & Conditions

Our Estate Agency Terms and Conditions have been updated to include a clause confirming that the Agency operates a complaints handling procedure and giving details of the Ombudsman redress scheme to which the Agency belongs. A corresponding update was made last month to our Residential Lettings Agency Terms and Conditions.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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