Marketing valuation draft 8.11.18

Terms of Engagement for the Sale or Letting of Real Property

7.3 Where the firm’s fees are based on a percentage of the sale/letting price, such price includes any extra allowance for curtains, carpets, furniture, fixtures and fittings or other chattels, machinery, goodwill, stock, growing crops, livestock, tenant right and all quotas and payments for rights to livestock premia, unless a separate arrangement is made and agreed in writing in advance. 7.4 The sale/letting fee does not include charges and other expenses for marketing as described in paragraph 9 below nor fees for professional work such as formal valuations; estate, farm and forestry consultancy; development consultancy; schedules of dilapidation or condition; building works; sale of timber; negotiations with district valuers; work linked with legal or fiscal matters; planning advice; structural surveys or other professional work. The firm reserves the right to charge a separate fee for such matters. 7.5 Where you sell/let part of the Property in respect of which the firm are instructed, a pro rata part of the sale/letting fee shall be payable in respect of that part as if the whole had been sold/let and subject to any minimum fee agreed and there shall also be payable a charge for abortive work in connection with the part remaining unsold/unlet as set out in the letter of engagement/marketing report, if applicable. 7.6 Where the firm is instructed to sell/let a property and introduce a buyer/tenant who buys/leases a larger property, the same rate of commission will apply to the larger property as is agreed for the original Property. 7.7 Where the firm’s fees are based on the rent agreed, for the purposes of calculating the amount payable, rent is calculated as being the amount payable, exclusive of VAT if any, by the tenant for the lease of all or part of the Property for a period of one year, net of any service charges, rates or insurance payable, and means: a) on the grant of a lease, the annual rent reserved following the expiry of any initial rent free or reduced rent or concessionary rent period, unless that rent is stepped, and ignoring any financial or capital contributions or other inducements made or to be made by you; and b) where the rent is stepped, the aggregate amount of rent reserved for the period from the expiry of any initial rent free or concessionary rent period up to the first date when the rent is to be reviewed or the expiry of the term of the lease whichever is the earlier, divided by the length of that period expressed in years, and ignoring any financial or capital contribution or other inducements made or to be made by you. 7.8 Where an existing lease is to be assigned, acquired or surrendered, then in addition to the fee calculated on the basis of the rent, you will also pay the firm a fee calculated at the rate specified in the covering letter on any positive or negative premium given or received, or on the value of any works carried out and/or goods and/or services supplied or any property exchanged in consideration of the assignment, acquisition or surrender. 8 SUB AGENTS 8.1 The firm reserves the right to instruct sub-agents on your behalf where it considers such a step to be in your best interests. All viewings and negotiations remain co-ordinated through the firm. Should any additional fee be applicable it will be clearly set out in the letter of engagement/marketing report. Unless otherwise agreed, these same Terms of Business will apply to sub-agents. 9 MARKETING CHARGES 9.1 You are responsible for all agreed charges for marketing and other expenses as set out in the letter of

engagement/marketing report and/or budget, or subsequently agreed during the marketing period. 9.2 Until the firm receives written authority to proceed and, where requested, a cheque in the sum of the agreed charges, the firm will not be able to proceed with the marketing process. 9.3 In providing such marketing services the firm will act as principal not as agent for you and the firm reserves the right to retain or share the benefit of any marketing or other discounts and commissions. 9.4 Where specifically agreed, the firm will make a charge for the design and preparation of brochures, plans, photography and organising of advertising, etc. 9.5 You will be responsible for costs incurred on your behalf in carrying out your instructions. Anticipated costs (net of VAT) are set out in the letter of engagement and will be charged as follows:- • Travel by car charged at 60p per mile from the office where instructions are received. • Travel by public transport at standard fare rates or equivalent. • Photocopying of leases, and other documents, charged at 10 pence per A4 black & white copy. • Copying of plans charged at cost. • Courier: actual costs charged by the courier firm. • Overseas postage, fax and telephone at actual costs charged to the firm. 10 UNOCCUPIED PROPERTY 10.1 The firm is not responsible for the management, maintenance or repair of the Property unless by specific agreement, when an additional fee will be charged. It is your responsibility to ensure that it is adequately secured, mains services are turned off, water and heating systems professionally drained and insurers of the Property notified. Any costs incurred by the firm in arranging such matters will be charged to you. 10.2 If the firm holds keys to the Property, it may loan these to prospective buyers and/or tenants (unless you instruct the firm in writing to the contrary). The firm will exercise reasonable care when loaning keys but it can take no responsibility for the actions of any third party. The firm will not be liable for any loss, unless arising directly through our negligence. 11 CONSUMER PROTECTION REGULATIONS 2008 and/or BUSINESS PROTECTION FROM MISLEADING MARKETING REGULATIONS 2008 We are responsible under these Regulations for any misleading information relating to the property. Misleading information could involve us in a criminal prosecution. Copies of the draft sale particulars will be sent through to you for your approval. You undertake to read them carefully and if there are any inaccuracies make appropriate amendments and return a signed copy. You also agree to complete a Consumer Protection Regulations Questionnaire which will ensure that we are able to provide buyers with accurate information relevant to the sale. RELATED SERVICES 12.1 It is possible that a buyer or tenant may wish to instruct, or indeed has already instructed, the firm (or a person connected with the firm) with regard to a property-related service. If this is or becomes the case, the firm will notify you in writing as soon as reasonably possible. Related services might include: a) Sale or purchase of a property or chattels 12

b) Letting of a property

c) Provision of financial services through a third party

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