Standard Terms Of Business

Agreement between the Landlord / Residents’ Management Company and the Agent setting out the
Terms of Appointment for the
Management of the common parts and areas
of a residential estate





1.      'The Service' to be provided by the Agent

2.      Authorisations of the Agent by the Client 

3.      Communications between the Client and the Agent

4.      Undertakings by the Client

5.      Bases of Remuneration

6.      Assignment

7.      Termination

8.      Liability of the Agent

9.      Waiver

10.    Term of this Agreement





Terms of Appointment


1.         'The Service' to be provided by the Agent 


With reasonable skill, care and diligence to:



1.1        attend to routine maintenance enquiries relating to the common parts and areas of the Property from the Client or from any leaseholder or freeholder at the property;


1.2        administer contracts and works orders and check demands for payment for goods, services, plant and equipment supplied for the benefit of the Property where the cost falls within the expenditure limits specified in the attached Agreement.  Then administer payments from the service charge accounts of such valid demands;


1.3        inspect without use of equipment and on a regular basis such of the common parts of the Property as can be inspected safely and without undue difficulty to ascertain for the purpose of day‑to‑day management only the general condition of those common parts and to regularly report the outcome of such inspections and related works to the Client;


1.4        attend to routine accounts enquiries from the Client or any leaseholder, freeholder, or auditor;


1.5        administer any service charge or contingency and future expenditure funds;


1.6        prepare the annual estimate of future service charge expenditures.  The annual service charge is to be set in consultation and agreement with the Directors.


1.7        prepare and distribute appropriate service charge accounts at the appropriate time;


1.8        use his best endeavours to collect current and overdue instalments, service charges, contingency and future expenditure fund contributions, and any other pay­ments due from leaseholders of the property, and hold such sums in accor­dance with the guidelines of the Association of Residential Managing Agents.


1.9        Make reasonable efforts to ensure suitable insurance cover is in place with respect to buildings insurance and public liability insurance for the common areas of the Property;


1.10      Make reasonable efforts to ensure suitable insurance cover is in place with respect to Directors and Officers insurance cover for the Client, if required;


1.11      keep files of leases and other documents relating to the Property that have been sup­plied to the Agent;


1.12      provide quarterly statements of account to the Client, as appropriate;


1.13      liaise with the appointed auditors for matter relating to the auditing of end of year accounts.


1.14      within the time specified in the Agreement after the end of each agreed accounting period, or of the termination of the Agreement, send to the Client a written state­ment for that period of:

  • monies due, showing how much the Agent has received and outstanding debtors.  Also, from time to time, any interest that has accrued on monies received due to the reserve fund accounts;

  • remuneration due to the Agent (any fixed element of fee being apportioned as appropriate if this Agreement takes effect or is terminated during a payment period) and any VAT due;

  • expenses and other disbursements made on behalf of the Client and whether any VAT is included;

  • any sum due to the Agent or deducted in calculating (a) above for bank charges relating to the administration of a service charge account(s).


1.15      attend occasional Directors meetings and the Annual General Meetings of the Clients. (an additional fee may be charged for meetings held outside normal business hours)


1.16      Monitor requirements for compliance to current fire, health and safety legislation.


2.         Authorisations of the Agent by the Client


The Client authorises the Agent as follows:


2.1      to expend any service charge monies for the benefit of the Property that are within the expenditure limits specified in the Agreement and also, in cases of emergency, to take such reasonable measures as the Agent shall consider appropriate;


2.2      to expend, from the service charge, any other sums considered necessary by the Agent to ensure compliance with any statutory provision affecting the Property or affecting the Client or the Agent with regard to the Property;


2.3      from monies received by The Agent for the Client (generally the service charge):


(a)      at any time to pay or reimburse himself for any expenses or other disbursements recoverable from the Client;


(b)      to deduct during any payment period his remuneration for that period, other than any charge already collected in advance by agreement;


(c)       after termination of the Agreement, to deduct his outstanding remuneration and/or expenses due.




3.         Communications between the Client and the Agent


3.1      All instructions of the Client to the Agent with regard to the Service to be performed by the Agent shall be given to the Agent in writing or, if given orally, shall be confirmed in writing within seven days.


3.2      The Client shall promptly upon request by the Agent provide to the Agent any decision or information that the Agent considers necessary for the proper performance of the Service to be performed by the Agent.


3.3      The Agent shall promptly upon request by the Client allow the Client to inspect and at the Client's expense copy any accounts and documents in the possession of the Agent relating to the Property.


3.4      It shall be sufficient service of any written notice or other written communication to send such by first class post to the address specified in the Agreement or the Iast known address of the person for whom the communication is intended; and


(a)      any notice or communication posted on a Monday or Tuesday shall be deemed served on the following Thursday;


(b)      any notice or communication posted on a Wednesday or Thursday shall be deemed served on the following Tuesday;


(c)       any notice or communication posted on a Friday, Saturday or Sunday shall be deemed served on the following Wednesday.


3.5      The Client undertakes to keep the Agent informed of proposals to sell the Property or any part thereof.

4.           The Client Undertakes:


4.1      upon written notice by the Agent that the Agent requires the Client immediately to advance or reimburse sums in respect of Clauses 2 to immediately do so.  The Agent will be entitled to charge interest at the rate specified in the Agreement on any outstaning amounts not received within 14 days of such a request.


4.2      to independently verify, or have verified, any communication from the Agent which may be considered as advice pertaining to legal, contractual or accounting issues or other areas in which the Agent may not reasonably be expected to be professionally qualified.



5.         Bases of Remuneration


5.1      The basis or bases of the Agent's remuneration as recorded in the Agreement shall apply.


5.2      In the event of it being agreed that additional work not part of the Service (Clause 1) shall be remunerated by the hour, the rates to apply shall be as specified in the Agreement.  In the case of works being undertaken beyond the scope of the Agreement (Annexe), a fee as specified in the Agreement shall apply.


5.3      The Client shall reimburse the Agent for any out‑of‑pocket expenses and disbursements immediately on request in accordance with clause 2.3.


6.         Assignment


6.1      This Agreement may be assigned or transferred in whole or in part subject to the transferring party providing to the other party reasonable notice of its intention to assign or transfer.

7.         Termination


7.1      Either party may terminate this Agreement by serving on the other three months notice in writing.


7.2      If either party is in breach of this Agreement:


(a)      the other may serve on the party in breach written notice specifying the breach or breaches and requiring them to be remedied within 60 days; and


(b)      if the party in breach fails within 60 days of the service of such notice to remedy such breach or breaches; then


(c)       the party who served the notice may terminate the Agreement upon serving written notice to that effect on the other party.


7.3      If either party commits an act of bankruptcy or has a receiving order made against him or makes any arrangement with his creditors or if distress or execution is levied or threatened upon any of his property or any judgement against him remains unsatisfied for more than 14 days or if being a limited company a party enters into liquidation whether compulsory or voluntary (other than a voluntary liquidation for the purpose of amalgamation or reconstruction) or has a receiver appointed of any of its assets, the other party may terminate the Agreement upon serving written notice to that effect.



8.         Liability of the Agent


8.1      The Agent is not liable either in contract or in tort for any loss, injury, damage or legal or

           other expenses sustained as a result of:


(a)      the Agent having reasonably relied upon the Client to provide accurately all relevant information;


(b)      any inaccurate forecast by the Agent of future income or expenditure;


(c)       any defect or failure to identify any defect in the Property or plant, machinery, equipment, or materials used for the Property whether or not such defect be latent or apparent on examination;


(d)      carrying out its duties under the terms of this Agreement;


(d)      the act, omission or insolvency of any person other than the Agent.


8.2        The Agent shall not be liable to indemnify the Client in respect of any claims made by another or third party for any loss, injury, damage or legal or other expenses.


8.3        Clauses 9.1 to 9.2 above shall not be valid in so far as prohibited by statute.


8.4        In no circumstances shall the Agent be liable for anyconsequential loss or damage save where loss, death or injury results from negligence on behalf of the manager.


9.         Waiver


9.1      No indulgence shown by either the Client or the Agent shall prevent the other subsequently insisting upon his rights and remedies under the Agreement.


10.      Term of this Agreement


10.2           The Term is for a period of 12 months from the date of this Agreement.


10.3           The client is bound by the terms of this or any other agreement made at any time between the Agent and the Client relating to the Property, on either the signing of the agreement by both parties or from the date the Manager commences the prescribed service(s).




Whilst the following services are provided by the Agent, they are not part of the Service described in the Terms of Appointment to which this is an Annexe and are charged in addition to the charges outlined in the Agreement:


(a)      initiating, conducting, preparing evidence for and attending hearings for and otherwise dealing with any First Tier Tribunal, application for a grant or for consent, insurance claim, arbitration or litigation;


(d)      Involvement with local government matters including assistance with council tax valuations, planning permission, building regulation consent and grant applications;


(e)      preparing specifications and tenders for, organising, supervising or measuring non-routine matters, or works which exceed the specified expenditure limits contained in the Landlord and Tenant Acts 1985 and 1987 or as subsequently amended and which require consultation to be undertaken under Section20 of the Act;


(f)       arranging activities relating to compliance to legislation and other issues relating to health and safety (including asbestos related issues) and fire prevention;


(g)      any advertising and recruitment of staff on behalf of the Client;


(h)      supplying extra copies of statements of account and copies of any other documents;


(i)       if the Client is a company, acting as company secretary;


(j)       dealing or advising upon applications for assignment of tenancies or leases, sub lettings, alterations and changes of use;


(k)      provide information to solicitors and others in connection with enquiries on sales of flats and houses at the Property.





A.  Start date of this Agreement:


B. 'The Client' (name and registered office or address):


c. 'The Agent' (name and address):

Bridgeford & Co Ltd

13 Quay Hill                                                                  


Hampshire  SO41 3AR




20 Wellington Square

East Sussex TN34 1PB


Registered address:


8C High Street


SO14 2DH


D. 'The Property' the subject of this Agreement:                                                                             



E.  The Clauses listed below refer to those in the Terms of Appointment herewith the relevant information is set alongside the corresponding Clause number.


Clause 1.2 and 2.1 - Expenditure limits:


The thresholds below which the Section 20 consultation process (or equivalent levels where Section 20 does not apply) does not need to be entered into for short term contracts or maintenance works, as appropriate.

Clause 1.14 - Period of time for sending written statement of account


3  months

Clause 4.1 – Specified rate

4% above the Bank Of England base rate

Clause 5 - Basis of Agent's remuneration for the Service as described in the Terms of Appointment.


For the avoidance of doubt, unless otherwise agreed in writing, this remuneration does not cover services set out in the Annexe to the Terms of Appointment. Fees should be agreed for these extra services at the time. The Agent shall also be reimbursed by the Client for any reasonable out‑of‑pocket expenses incurred.


The Agent shall be entitled to retain any commission received by him for arranging insurances in respect of the Property.

Clause 5.1 - Basis of remuneration to apply


£(To be agreed) VAT per year.  Fees chargeable apportioned quarterly in advance. Variations and increases may be agreed from time to time.


Clause 5.2 - The hourly rates for additional work

1.    For a Director - £ 100 + VAT                                    

2.    For an associate, surveyor or property manager - £80 + VAT                                                                     

3.    For a clerk or secretary - £ 50 + VAT

This Agreement is to be governed, construed and enforced in accordance with the law of England and Wales.


Please note: References to the masculine include, where appropriate, the feminine




BY OR on behalf of the Client:




Name in capitals:                                                                                                                                  


Signing as:  Director, duly authorised to do so.



in the presence of:                                        


Signature of witness:                                                                                                                              


Name of witness in capitals:                                                                                                                   





SIGNED by the Agent




Name in capitals:                                                                                                                 

in the presence of:                                        


Signature of witness:




Name of witness in capitals: