Commercial Property Disposal Terms

1. PRELIMINARY

  • 1.1 These terms may only be varied by agreement in writing between Dutch & Dutch and the client.
  • 1.2 These terms are to be read in conjunction with the fee confirmation letter sent by Dutch & Dutch to the client.
  • 1.3 In the event of any ambiguity or conflict between the fee confirmation letter and these terms of engagement, the terms of the confirmation letter shall prevail.

Dutch & Dutch are required by the Estate Agents Act 1979 and subsequent regulations to define its agency involvement.

2. DEFINITION OF AGENCY INVOLVEMENT

2.1 SOLE AGENCY:

You will be liable to pay the agreed ‘% Commission’ to us, in addition to any other costs or charges agreed, if at any time contracts for the sale or letting of the property are exchanged with a purchaser or tenant;

  • a) introduced by us, with whom we conducted an inspection or with whom we had any form of negotiations about the property during the period of our sole agency.
  • b) introduced by another agent during that period.
  • c) with whom you have had direct negotiations during that period.

2.2 JOINT AGENCY SITUATIONS:

Where Dutch & Dutch acts as joint agent then the reference to Sole Agency will be substituted by the words Joint Agency. For Joint Agency instructions where two or three agencies are appointed to act together, the ‘% Commission’ will be shared equally between the agents unless otherwise agreed in writing. In the case of a joint agency, we shall not, under any circumstances, bear any responsibility for liability to you or third parties for the acts and defaults of any joint agents appointed by you.

2.3 RENTAL & LEASEHOLD PROPERTIES:

Commission will be calculated as the agreed % Commission of the headline rental agreed up to the first rent review, if any, ignoring rent free periods or incentives granted to secure the letting.

Where the property is let at a stepped rent over the initial period of the Lease the % Commission will be calculated as a % of the average annual rent payable up to the first rent review ignoring rent free periods or incentives granted to secure the letting.

When acting for a Tenant, should a surrender of the Lease be affected by our marketing efforts then Commission will become due upon completion. In these circumstances our Commission will be calculated as the agreed % Commission of the passing rent or revised/new rent agreed whichever the greater.

Where an existing lease is to be assigned or acquired then, in addition to the fee calculated on the basis of the passing rent, there will also be a fee charged at the rate specified in the fee confirmation letter on any positive or negative premium given or received.

2.4 TENANTED FREEHOLD PROPERTIES
(INVESTMENT / PART INVESTMENT PROPERTIES)

In the case of a tenant or long-leaseholder of the Property contracting to purchase the Property as a result of our marketing activities (either directly or indirectly) Dutch & Dutch will be entitled to the % Commission.

2.5 CONDITIONAL CONTRACTS:

In the case of a conditional contract, an unconditional contract will be deemed to have been exchanged on the date of the satisfaction of the last condition, or if earlier, on the date of the completion of the transaction, notwithstanding any condition which remains to be satisfied.

3. BASIS OF FEES

Dutch & Dutch will agree the level of fees to be charged with the client for each job undertaken. Fees become payable upon exchange of contracts or two months following occupation, whichever is earlier.

3.1 VALUE ADDED TAX:

VAT is payable in addition to any fees invoiced at the rate prevailing at exchange of contracts.

3.2 ABORTIVE FEES:

If the Client withdraws from an agreed sale or letting following instruction of solicitors, or a contract is not completed, 50% of the % Commission that would have been charged had the sale or letting proceeded will be payable to Dutch & Dutch.

3.3 INTEREST:

Dutch & Dutch reserve the right to charge interest on any invoice for fees, or marketing costs, or other disbursements which remain unpaid 28 days after the date of the invoice at the rate of 4% per annum above the base rate of Barclays Bank plc from the date of the invoice until payment is made.

3.4 METHOD OF PAYMENT:

Where a capital receipt is to be obtained on a property, authority is hereby given by the client to the solicitor or conveyancer acting on their behalf to pay to Dutch & Dutch fees and costs plus VAT upon completion.

3.5 OUT OF POCKET EXPENSES:

Where it is agreed that Dutch & Dutch’s out of pocket expenses are to be paid by the client, invoices will available for the client’s inspection, except for minor costs which will be scheduled.

3.6 ADDITIONAL FEES:

Where a tenant introduced by Dutch & Dutch subsequently contracts to purchase the building from the landlord within three years from the original letting, an additional fee of 2% of the purchase price, plus VAT, becomes payable.

4. MARKETING COSTS

  • 4.1 Dutch & Dutch will give written notice of any marketing costs which they wish to incur on the client’s behalf. These could include advertising, brochure production, professional photography, signboards, direct mailing and so on. At the time of taking instructions, approximate estimates of cost for any initial marketing campaign will be given. However, Dutch & Dutch reserve the right to revert to the client with further proposals, if additional marketing is required.
  • 4.2 Any costs given are either best estimates or actual quotations from suppliers. Advertising and printing rates quoted will be from the publishers’ rate cards current at the date of Dutch & Dutch’s marketing proposals. Any rate increases by the publishers made before the advertising space is booked will be passed on to the client.
  • 4.3 All costs given to the client are subject to the prevailing rate of VAT, individual printers’ conditions apply to all client work placed with suppliers.
  • 4.4 All costings given are gross and no allowance will be made for trade discounts offered by newspapers, periodicals or other suppliers.
  • 4.5 Where changes are made for artwork or other advertising materials, which are not errors by suppliers, Dutch & Dutch will pass on to the client any additional charge made by the suppliers for such corrections.
  • 4.6 We may appoint other agents to assist in the marketing of your premises.

5. TERMINATION OF AGENCY

  • 5.1 Our appointment will continue until you provide us with 7 days written notice to terminate our instruction. Any Commission due as a result of the introduction of a tenant or purchaser prior to our termination will remain due to Dutch & Dutch.