Agreement between the Client and the Manager setting out the terms of appointment for management

Transcription

1 Agreement between the Client and the Manager setting out the terms of appointment for management Subject Property: xxxxxxxxxxxxxx Client: xxxxxxxxxxxxxx Date of Agreement: xxxxxxxxxxxxxx Definition of Terms: "The Client" is xxxxxxxxxxxxxxxxxxxxx Crabtree PM Limited Registered Office Marlborough House 298 Regents Park Road London N3 2UU tel: fax: "The Manager" is Crabtree PM Limited Version 2017/2018 1

2 TERMS AND CONDITIONS CONTENTS 1. Definitions 2. Appointment 3. Services to be provided by the Manager 4. Conduct of the Manager 5. Conduct of the Client 6. Client Staff 7. Contractors 8. Utilities 9. Commissions 10. Fees and Charges 11. Handling of Client s Money 12. Ending of this Agreement by the Client 13. Ending this agreement by the Manager 14. Ending this Agreement (insolvency) 15. On termination 16. Accounts 17. Insurance 18. Liability 19. Assignment 20. Renewal of this Agreement 21. Dispute Resolution 22. Non-variance Version 2017/2018 2

3 APPENDIX 1 APPENDIX 2 APPENDIX 3 APPENDIX 4 APPENDIX 5 APPENDIX 6 APPENDIX 7 APPENDIX 8 APPENDIX 9 THE FEE AGREEMENT STANDARD SERVICES COVERED UNDER THE MANAGEMENT FEE STANDARD COMPANY SECRETARIAL SERVICES ADDITIONAL CHARGES PRECEDENT CLIENT WARNING LETTER PRECEDENT CLIENT TERMINATION LETTER (FAULT BASIS) PRECEDENT CLIENT TERMINATION LETTER (NO FAULT BASIS) PRICE LIST HR & PAYROLL SERVICES BROCHURE 1. Definitions a. The Client means the resident management company, right to manage company, landlord, or other named entity at page 1 of this Agreement. b. The Manager means the managing agent named at page 1 of this Agreement. c. The Property means the subject property, estate, scheme, or development named at page 1 of this Agreement. d. The Management Fee means the fee set out in the Fee Agreement at Appendix 1. e. The Quarter Days, mean: 1st January, 1st April, 1st July, 1st October. f. The Services means the services set out and specified in Appendix 2 and 3, and, if applicable, Appendix 4. g. Additional Charges mean the charges listed for the Additional Services in Appendix 4. h. Additional Services are listed in Appendix 4 and are those services in addition to those set out and specified in Appendix 2 and 3, for which the charge is not included within the Management Fee. i. Review Date means the review date for the Management Fee and Additional Charges being each anniversary of this Agreement. j. Term means the term or period specified in the Fee Agreement in Appendix 1. k. The Parties means the Client and the Manager. l. Office Hours means Monday to Friday between the hours of 9am 5pm. Version 2017/2018 3

4 2. Appointment a. The Client appoints the Manager to be its managing agent for the Property. 3. Services to be provided by the Manager a. The Manager will perform the Services as set out in Appendix 2 and 3, for the Management Fee. b. The Manager will provide the Additional Services for the Client for the Additional Charges, as set out in Appendix 4. c. The Services will generally be provided by the Manager, but may, on occasion, be provided by another company within the Crabtree Property Group ( the Group ) (being companies owned or part owned by Crabtree Property Holdings Limited). The services set out within this agreement represent the Manager s standard terms and conditions which will only be applied to the Client in the event they are applicable. 4. Conduct of the Manager a. The Manager must comply with the appropriate terms of the relevant documentation governing the Property (for example, the relevant lease). b. In performing the Services, the Manager must reasonably comply where applicable, with the latest:- i. ARMA Q Standards and Charter (and must give the Client and any lessees up-to-date copies of such, upon request); and ii. The RICS Service Charge Code of Practice. c. The Manager must also comply with relevant legislation and regulations concerning the management of the Property. d. The Manager must hold professional indemnity insurance, including fidelity cover in the minimum sum of 5M, and maintain it during the Term. On request, the Manager must give the Client a copy of the policy of insurance. e. The Manager must comply with the rules of the Financial Conduct Authority, when carrying out any insurance related activities. f. The Manager will hold the Client s data in accordance with its Data Protection Policy. The Manager may provide the Client s data, for marketing purposes, to another company within the Group. The Manager may also provide the Client s data to a third party if necessary for the effective management of the Property. Version 2017/2018 4

5 5. Conduct of the Client a. The Client must not issue any instructions to the Manager that require it to breach the terms of the documentation that governs the Property (for example, the relevant lease), relevant legislation or regulations concerning the management of the Property, or the latest:- i. Bye-Laws of ARMA; or ii. The RICS Service Charge Code of Practice. b. The Client must act in a manner that ensures there is no unlawful discrimination in the provision of the Services, the sales and lettings of units of the Property and the employment of any staff or contractors. c. Unless otherwise instructed, the Manager will place Directors and Officer s insurance on behalf of the Client. Where the Client makes its own arrangements, it must notify the Manager and on request provide a copy of any such insurance certificate. d. The Client must keep the Manager informed of all and any notices affecting the Property and also inform the Manager of any other issues that affect the Property, including the sale of any freehold or leasehold interests, the formation of a residents association, or the use of the right to manage, enfranchise or any other action referred to in the Leasehold Reform Housing and Urban Development Act 1993, the Commonhold and Leasehold Reform Act 2002, or any other legislation or rules that affect residential property, of which the Client becomes aware. e. In relation to any new instruction, the Client will provide all documentation, financial, legal and other to enable the Manager to provide its services under the terms of this agreement. In the event that this is not the case, the Manager will attempt to obtain whatever is needed elsewhere, if possible, at the Client s expense (See appendix 4). 6. Client Staff The Client will indemnify the Manager in the event of any claim being brought against them in the event of any information or documentation not being made available, causing a claim to be submitted. a. In the performance of the Services, the Manager may utilise the Client s staff. In that connection, the Manager will need to manage and instruct the Client s staff from time to time but always subject to the Client s right to veto any instruction and to issue alternative instructions. The Client shall exercise such right to veto reasonably and as appropriate. However, should the Client fail to follow the advice given by the Manager in relation to any formal matter, then the Manager will not be held responsible for any potential claim that may arise from failure to follow such advice. In this respect, the Client will not be covered under any insurance indemnity backed scheme placed on its behalf. Version 2017/2018 5

6 b. If the need arises for the Manager to manage or instruct the Client s staff, such management and instruction shall be in accordance with the Client s policies and rules ( the Rules ) and in accordance with the contracts of service or for services ( the Contracts ) between the Client and the staff. c. The Client shall at all times determine the staffing levels and the staff available to the Manager in connection with the performance of the Service. d. The Manager will be responsible for the general management, appraisal and monitoring of the Client s staff in accordance with the contracts of service or for services ( the Contracts) between the Client and the staff. e. The Manager will deal with any informal disciplinary, grievance or other issue which may arise in relation to the Client s staff. The Manager shall notify the Client of any incident concerning the staff which impacts upon the Manager s performance of the Service, however should these matters fall outside of the general management remit and require formal rather than informal attention, any subsequent proceedings may be subject to charge (see Appendix 4, page 18). In addition, any workforce planning activity, such as recruitment and redundancy will be chargeable, as will the development and implementation of appropriate HR policies and procedures (see Appendix 4, page 18). 7. Contractors 8. Utilities f. The Manager shall notify the Client if it becomes aware of any complaint that any of the Client s staff may have in relation to their employment or engagement by the Client. g. Nothing in this clause shall be construed or have effect as construing any relationship of employer and employee between the Manager and any of the Client s staff, unless the Client requests for the Manager to employ the staff directly. a. All contractors instructed by the Manager on the Client s behalf will be subject to the Manager s relevant vetting procedures to ensure compliance with all appropriate Health and Safety Legislation, latest regulations and insurance requirements. In doing this, the Manager will use its best endeavours to reasonably ensure they and the Client are adequately protected against any potential liabilities which may arise as a result of the contractor s actions on site. The Manager will take no responsibility and accept no liability for any contractor instructions made directly by the Client. a. The Client authorises the Manager to negotiate, handle and place on its behalf all utility contracts relating to the property whether directly, or through a Version 2017/2018 6

7 9. Commissions specialist broker. The Manager will seek to secure the most favourable terms reasonably available at renewal. a. If the Manager administers buildings or other insurances on the Client s behalf then it will be entitled to receive, in full, any commission paid via the insurance policy. The Manager will endeavour to ensure that any insurance policy arranged is placed at the best terms reasonably obtainable for the Client, irrespective of whether commission is received and the commission rate. b. The Manager will disclose details of any commissions received, upon the written request of the Client. 10. Fees and Charges a. The fees and charges payable by the Client to the Manager are as set out in Appendices 1 and 4. b. The Client authorises the Manager to deduct the Management Fee from the client account on the Quarter Days and any additional charges, when billed. Where the Client does not have sufficient funds in its client account for payment to be made to the Manager on the Quarter Days, then the Manager may, at its discretion, transfer funds from any Client account(s) held, or, if there are still insufficient funds, grant a loan to the Client for a similar amount to be repaid, as and when the client account has sufficient funds. Any such loans will bear interest at the rate of 4% over Bank of Scotland base rate, on a daily basis. c. The Client may pay the Manager a setting up fee as specified in Appendix 4, for the work involved in setting up the management arrangements for the Property. If payable, the setting up fee must be paid on production of an invoice by the Manager. 11. Handling of the Client s Money a. The Manager will open a designated interest bearing trust bank account(s) on behalf of and in the name of the Client in relation to the Property for the receipt of all money due to the Client and the payment of expenses relating to the Property. Interest will be credited quarterly in respect of monies held in the account(s). The account(s) will be debited quarterly by the Manager with a transaction charge for each items debited or credited to their Client bank account. Items will include Direct Debits, cheques, standing orders, electronic payments, card payments, electronic transfers, BACS, CHAPS etc. b. The Manager should comply with all statutory rules and the RICS Service Charge Code of Practice rules in relation to the holding of any funds of the Client. Version 2017/2018 7

8 c. The Client authorises the Manager to deduct any outstanding Management Fee and Additional Charges after this Agreement terminates, from the designated trust bank account(s). d. The Client authorises the Manager to make payments for the benefit of the Property from the designated trust bank account(s) held for the Property. 12. Ending this Agreement (by the Client) Fault basis a. In the event of the Client (adopting a reasonable and objective standard) being unsatisfied with the Services or Additional Services provided by the Manager, the Client may serve a warning letter upon the Manager, in the form of the precedent set out at Appendix 5, identifying its concerns and affording the Manager one month, from receipt of the said letter, to take such steps as would be considered reasonable (adopting a reasonable and objective standard) to remedy the situation. b. If the Manager does not take such remedial steps (on a reasonable and objective construction) within the one month period stated, then it is open to the Client to elect to terminate the Agreement by first serving upon the Manager a termination letter (in the same form as the precedent provided at Appendix 6) giving the Manager a minimum of three months notice of termination of this Agreement, with such notice period to commence on the next Quarter Day. No-fault basis c. In the event of there being no issue regarding the Services or Additional Services provided by the Manager, then the Agreement will run until the end of the Term of the Agreement and then be renewed in accordance with clause 20. However, the Client can terminate the Agreement at the end of the Term, in such circumstances, by giving a minimum of three months notice to the Manager, prior to the end of the Term, in the form of the precedent set out at Appendix 7. d. All letters and notices issued by the Client pursuant to this clause 12 are not valid unless addressed to the Managing Director of the Manager and dispatched to the Manager at its registered office, by recorded delivery post. 13. Ending this Agreement (by the Manager) Fault basis a. In the event of the Manager being unsatisfied with the conduct of the Client, the Manager may serve a warning letter setting out the areas of concern and give the Client one month to rectify the situation. After the one month period has lapsed, and, if the situation has not been rectified to the Manager s satisfaction, the Manager may terminate the Agreement by the serving of a Version 2017/2018 8

9 termination letter, giving a minimum of three months notice, such notice period to commence on the next Quarter Day. No-fault basis b. In the event of there being no issue with the conduct of the Client, then the Agreement will run until the end of the Term of the Agreement. However, the Manager can terminate the Agreement at the end of the Term (and thereby avoid the Agreement renewing, in accordance with clause 20 of this Agreement), in such circumstances, by giving a minimum of three months notice to the Client, prior to the end of the Term. c. All letters and notices issued by the Manager pursuant to this clause 13 are not valid unless addressed to all of the directors of the Client and dispatched to all of the directors last known addresses, by recorded delivery post. 14. Ending this Agreement (insolvency) 15. On Termination a. If either party ( the Defaulting Party ) becomes unable to pay its debts as they fall due or becomes insolvent or goes into liquidation or has a receiver or manager, administrator or administrative receiver appointed over any of its assets, then the other party may at any time and by notice to the Defaulting Party and without liability, terminate this Agreement with immediate effect, or with effect from such later date as may be specified in the notice. b. The Manager will continue its duties as normal during any period between such notice being given and termination of this Agreement. c. The Client will agree to pay to the Manager prior to the termination of this Agreement, any fees or additional charges owing to the Manager which are subject to this Agreement. Action on termination a. Once the Agreement has terminated, the Manager will forthwith cease carrying out the Services. Handover b. The Manager and the Client will use their best endeavours to ensure that they are ready and able to deal with the handover of the management of the Property as near as possible to the date of termination of this Agreement. On handover, the Manager will:- i. Provide to the Client or the Client s new manager all originals and copies of deeds and documents held in the Manager s possession and all other pertinent materials relating to the Property, together with details of all recurrent maintenance contracts; Version 2017/2018 9

10 ii. iii. iv. Provide documentation to the Client of all on-going litigation, disputes and insurance claims; Transfer to the Client, wherever possible electronically, all relevant documents held on the Manager s computer system; Hand over all original documentation held and will not retain copies; and 16. Accounts 17. Insurance v. The Client or its new manager must collect all documentation from the Manager s registered office. c. The Manager will make a charge for the handover of the management based upon the time taken at the appropriate rate for the personnel involved, plus disbursements, subject to a minimum fee of plus VAT. This fee will be paid by the Client via funds held by the Manager on its behalf at the point of termination or, if funds are not held, as soon as possible after the termination date. a. At or before termination of this Agreement, the Manager will pay over any funds to the Client or its new manager. Funds will strictly only be paid into a designated trust account. b. If, at the date of termination, the year-end accounts are due to be audited, the Manager will be under no obligation to arrange for the audit of these accounts, although the Manager will produce sufficient information and documentation to enable the audit to take place, unless termination takes place a minimum of three months after the last financial year date, in which case, the Manager will undertake to arrange for the audit of those accounts. c. The expiry or ending of this Agreement shall be without prejudice to any rights which have already accrued to either of the Parties under this Agreement. a. Any buildings insurance cover arranged by the Manager on behalf of the Client will be done on the basis that both the Manager and the Client appear jointly named as insured on the policy. Where obligated to do so by Law and as prescribed by industry best practice, the Manager will automatically place and renew all insurances on behalf of the Client. In line with Clause 9 above, the Manager will disclose details of any commission received upon receipt of a written request from the Client. Where buildings insurance is arranged by a third party, the Manager will arrange appropriate insurance to cover both the Client s and its own interests. Any costs associated with the arrangement of such insurance will be payable by the Client. Version 2017/

11 18. Liability b. Where the Manager acts as Company Secretary for the Client, the Client will have adequate Directors and Officers insurance cover. Wherever necessary, the Manager will arrange appropriate insurance to cover both the Client s and its own interests. Where the Manager is not appointed to act as Company Secretary and does not make arrangements for the appropriate Directors and Officers insurance, the Client will remain fully liable for any associated claim(s) which may arise. a. Nothing in this Agreement shall limit or exclude the Parties liability for: death or personal injury caused by its negligence; fraud or fraudulent misrepresentation; or any other liability which cannot be limited or excluded by applicable law. b. Subject to clause a) above, no liability shall attach to the Manager either in contract, tort or otherwise for any loss, damage or legal or other expenses sustained as a result of: The Client s failure to provide all relevant and accurate information; The Manager reasonably relying upon the Client to provide all relevant and accurate information; Any inaccurate forecast by the Manager of future income or expenditure unless done so negligently; Any defect in the Property, or plant and machinery, equipment or materials used for the property, whether or not such defect be latent or apparent upon examination; The act, omission or insolvency of any person other than the Manager. c. Subject to clause a) above, the Manager shall not be liable to the Client, whether in contract, tort (including negligence), for breach of statutory duty, or otherwise, arising under or in connection with this Agreement for loss of profits, loss of sales or business, loss of agreements or contracts, loss of anticipated savings, loss of or damage to goodwill, loss of use or corruption of software, data or information or any indirect or consequential loss. d. Subject to clause a) above, the Manager's total liability to the Client, whether in contract, tort (including negligence), for breach of statutory duty, or otherwise, arising under or in connection with this Agreement shall be limited to 5 million. e. The Client shall indemnify the Manager against all liabilities, costs, expenses, damages and losses (including but not limited to any direct, indirect or consequential losses, loss of profit, loss of reputation and all interest, penalties and legal costs (calculated on a full indemnity basis) and all other reasonable professional costs and expenses) suffered or incurred by the Manager arising out of or in connection with: The Client s breach of any of the terms of this Agreement; or Version 2017/

12 19. Assignment CLIENT NAME xxxxxxxxxxxxxxxxxxx any claim made against the Manager by a third party arising out of or in connection with the provision of the Services, to the extent that such claim does not arise out of the breach, negligent performance or failure in performance of this agreement by the Manager, its employees, agents or subcontractors. f. This Clause 18 shall survive termination of the Agreement. a. This Agreement may be assigned by the Manager provided it first gives the Client at least 14 days written notice. 20. Renewal of this Agreement a. In the event of a new management agreement not being mutually agreed by the end of the Term and neither party having terminated this Agreement in accordance with the provisions of clauses 12 and 13, then this Agreement will be deemed to have been automatically renewed for a further term of one year (and then, similarly, in subsequent years) on the same terms as this Agreement; with the exception of the Management Fee which the Manager may reasonably review in continuing to provide the Services as an interim measure only, until such time as agreement is reached. Any subsequent debit/credit adjustment whether owed or payable by the Client will be applied by the Manager on the next relevant quarter day. 21. Dispute Resolution a. If any dispute arises out of this Agreement, the Parties will attempt to settle it by negotiation. b. In the event a dispute cannot be resolved informally, by negotiation, The Manager will direct complainants to its formal complaints process, a copy of which can be found on the Manager s website (Help & Advice/Downloads/Crabtree Complaints Handling Procedure). Alternatively, the Manager will provide an electronic copy by , upon request. c. If the complaints process has been exhausted, the Manager will invite the Client to write to the Ombudsman Services: Property ( the Ombudsman ) for Consumer Clients. For Business Clients, the Manager will invite the Client to write to CEDR Solve. 22. Non-variance d. The decision of the Ombudsman about the dispute will be final and binding on the Parties. However, this does not affect either Parties statutory rights. a. Neither the Client, nor the Manager, is permitted to vary any of the clauses in the Agreement without the written consent of both Parties. Version 2017/

13 APPENDIX 1 FEE AGREEMENT 1. The Term of this Agreement means a period of 12 months running from 12 to 31 st July in each calendar year. 2. The Management Fee, in respect of the Services in Appendix 2, shall be XXXXXxxxxxxxX, plus VAT, for the year commencing XXXXXXXXXXXXX, charged quarterly in advance on the Quarter Days or, if those days are not working days, on the next working day. 3. The Management Fee, in respect of the Services in Appendix 3, shall be XXXXXXXXXXXXX, plus VAT for the year commencing XXXXXXXXXXXXXXXXX. Signatories Signed on behalf of the Client... Signed on behalf of the Manager Robert Robertson - Managing Director Crabtree PM Limited Signed on behalf of Property Manager Version 2016/

14 APPENDIX 2 STANDARD SERVICES COVERED UNDER MANAGEMENT FEE DEPARTMENT SERVICE PROPERTY MANAGEMENT Preparing an annual draft budget, agreeing this with the Client and then submitting demands and collecting service charges, rentcharges and other charges at appropriate intervals in accordance with the lease, deed of rentcharge or other legal documentation relevant to the property. Note: This provides for posting to each property a demand, a reminder and a final notice. Operating a designated trust status client bank account with The Bank of Scotland to be utilised for all incoming and outgoing financial transactions. Making payments to suppliers, contractors, insurers, superior Lessor and others as may be appropriate. Administering buildings and other insurances. (NB. If the Manager arranges any insurance policy on your behalf then they will be entitled to receive, in full, any commission paid by the brokers. The Manager will endeavour to ensure that any insurance policy arranged is placed at the best possible terms for the Client irrespective of whether commission is received and the commission rate). The Manager will disclose any commissions received upon the written request of the Client. Preparing and submitting a financial report to the directors of the Client quarterly. Each report will consist of details of expenditure, income and individual property balances for the period in question and a comparison of expenditure for the year to date against the budget. Note: Statement periods will usually end on 31 March, 30 June, 30 September and 31 December annually unless the client s year end makes this inappropriate. Producing year-end financial reports, passing them to the Client s accountants/auditors. Answering enquiries from accountants/ auditors. Once company and/or service charge accounts are produced by the accountants/auditors, circularising service charge or rentcharge accounts and supplying such information and details to which the lessees /owners are entitled. Note: Any accountants and/or auditors fees or other disbursements will be charged in addition. Version 2017/

15 Subject to and as provided by clause 6 above, liaising with any on-site staff employed or engaged directly by the Client. NB: This does not include any matters relating to recruitment, employment contracts, disciplinary matters, pensions or payroll. Version 2017/

16 Arranging and monitoring maintenance contracts for all plant and equipment. Engaging required contractors and effecting necessary subsequent monitoring. Attending to normal routine enquiries from lessees/owners. Making visits to the Property, as necessary, to ensure proper day-to-day running and to inspect as to general condition. Dealing with day-to-day repairs to structure, plant, fixtures, fittings and equipment. Keeping records in relation to tenancies and other relevant matters relating to the Property/properties. Advising generally on management policy. All correspondence is sent by Second Class post. Providing a 24/7 out of hours emergency contact. ACCOUNTS Preparing and sending out service charge demands Issue reminders and final Notices for unpaid service charges/ground rent/rent charges Accounting for Service Charges Providing information to accountants for certification Bank Reconciliations Quarterly Financial reporting to the Board Answering Lessee Account Queries Opening designated Client accounts Version 2017/

17 APPENDIX 3 STANDARD COMPANY SECRETARIAL SERVICES COMPANY SECRETARIAL Ensure the company is run according to the Memorandum and Articles of Association File the changes in the directors, members and share capital which occur during the year with Companies House Provide the registered office of the company to which all reminders, letters and correspondence will be sent from Companies House Present the Client with the company accounts and ensure that these shall be filed at Companies House File the annual return at Companies House Maintain the company s books and records for inspection Send out notices for the Annual General Meeting Arrange up to four Directors meetings in office hours Attend the Annual General Meeting and take minutes to be distributed to all shareholders/members Arranging for a member of the Manager s staff to act as a joint Company Secretary for the purpose of the issue of any court claims in respect of outstanding services charges etc. Version 2017/

18 APPENDIX 4 ADDITIONAL CHARGES CLIENT NAME xxxxxxxxxxxxxxxxxxx SERVICES FOR WHICH ADDITIONAL FEES MAY BE CHARGED FROM TIME TO TIME TO THE CLIENT IF THE SPECIFIC SERVICES ARE PROVIDED DEPARTMENT ADDITIONAL SERVICE FEE FREQUENCY SET UP FEES The Manager may propose a set-up fee where more detailed (than ordinary) investigations are required in relation to the financial position of the Client or in respect of any legal or other matters that require confirmation or clarification. To be agreed Frequency: Within 12 months of handover PROPERTY MANAGEMENT Dealing with insurance claims relating to communal areas of the Property including handling of paperwork and liaising between interested parties. 10% plus VAT of the sum claimed with a minimum of plus VAT Providing copy documents including insurance policies, copies of invoices and receipts which may be chargeable See additional price list Assisting the Client in the, engaging of replacement staff. Based upon the time taken at the appropriate rate for the personnel involved plus disbursements. Where the Client engages an independent contractor to administer any form of parking scheme plus VAT per unit. Minimum fee of plus VAT. Engaging specialist contractors to deal with Health & Safety and associated inspections. 10% plus VAT of the contractors fee Version 2017/

19 Dealing with a new installation of specialist mechanical and electrical equipment if under Section 20 limits. Includes tendering, administration, etc. 10% of contract price plus VAT. Minimum fee plus VAT. Dealing with the installation of an upgraded or new door entry system if under Section 20 limits. Includes tendering, administration, etc. 10% of contract price plus VAT. Minimum fee plus VAT. Dealing with the installation of a communal satellite dish. Includes tendering, administration, etc. 10% of contract price plus VAT. Minimum fee plus VAT. All other matters By arrangement ACCOUNTS Where Ground Rent is collected on behalf of a Client: For maintaining separate Client facilities including a separate bank account. 10% plus VAT of the Ground Rent if due annually. (Minimum fee 10 plus VAT per lessee.) 12.5% plus VAT of the Ground Rent if due half yearly. (Minimum fee 15 plus VAT per lessee.). 15% plus VAT of the Ground Rent if due quarterly. (Minimum fee 20 plus VAT per lessee.) Production of nontrading/dormant accounts 200 plus VAT Annually Completion of Tax Return 50 plus VAT Annually CONTRACT ADMINISTRATION /SURVEYING SERVICES: - if the Manager s Surveyor is appointed to oversee a works project. Further information on this service is available upon application. Fee; By negotiation depending on size of property and scope of works. SECTION 20 ADMINISTRATION: - for those works, or for long term agreements that are subject to Section 20 procedures Further information on this service is available upon application. Fee; By negotiation depending on size of property and scope of works. When necessary Version 2017/

20 HUMAN RESOURCES If required, the Manager will provide payroll services on behalf of the Client for Client s staff plus VAT per month per member of staff. Fee also includes outsourced informal HR support and an indemnity offered by the outsource provider providing that their advice is followed. All other matters including assisting with recruitment, contracts, formal matters of concern, Employment Tribunals referrals, TUPE transfers etc. This will include time taken by Manager s staff dealing with any formal matters other than assisting with payroll services and informal HR support. Please see HR & Payroll Services brochure for details. COMPANY SECRETARIAL Attending additional meetings of Directors By agreement based on the time taken at the appropriate rate by the person attending. Version 2017/

21 SERVICES FOR WHICH ADDITIONAL FEES MAY BE CHARGED FROM TIME TO TIME TO THE CLIENT BUT MAY BE RECOVERED FROM INDIVIDUAL PROPERTY OWNERS DEPARTMENT ADDITIONAL SERVICE FEE FREQUENCY PROPERTY MANAGEMENT Availability to residents, lessees, owners and Clients outside normal business hours. Call out charge based upon the time taken, including travelling time and expenses, at the appropriate rate for the personnel involved plus disbursements Dealing with DVLA enquiries and removal of vehicles plus VAT per vehicle. Please note that the Client will also be liable for charges made by any contractor or other organisation for removing the vehicle and for any DVLA search fee.. All costs incurred will be chargeable to the owner of the vehicle wherever possible Inspecting, photographing and administering the removal of satellite dishes plus VAT per dish. Please note that the Client will also be liable for any charges made by any contractor for removing the satellite dish. All costs incurred will be chargeable to the owner/user of the dish wherever possible. Where the Manager is required to write to a property owner more than once in the space of 3 months to warn of a breach in any documentation governing the management of the property i.e. items stored in common parts, failure to deal with a reported escape of water, instances of anti-social behaviour, smoking within internal common parts or any act which is deemed to be prohibited plus VAT for every second letter or final warning (before action) which the Manager is required to send. All costs incurred will be chargeable to the legal property owner, wherever possible. Issuing Keys for the communal areas. See price list Issuing duplicate parking permits See price list Issuing remote control units for electronic gate systems. See price list ACCOUNTS Health and Safety Signage. Various. Separate price list available upon request. Version 2017/

22 Dealing with the collection of overdue rent, service charges, rent charges and other charges after a demand, reminder and final notice have been posted. Maximum Fee of VAT (referred to as an Additional Management Fee) Fee charged under the relevant lease/deeds clauses and includes the preparation of the file to be passed to solicitors and liaising with them through to resolution which may also be the forfeiture of the lease. Solicitors fees and Court fees at the prescribed rate will also be payable by the defendant wherever possible. The Manager is authorised to instruct a solicitor to deal with any debt recovery claims on behalf of the client. The Manager may deal with disputed cases instead of a solicitor to the point of resolution and if payment is not made matters will be referred to solicitors in the usual manner. If, in the view of the Manager, it would be uneconomical to pursue any claim then the Manager will make a decision in respect of this upon advice provided by the solicitor dealing. In the event of a claim being referred to the First-tier Tribunal (Property Chamber) or in the event of a lessee referring a case to the Firsttier Tribunal (Property Chamber), the Manager will instruct solicitors. If the Manager is required to attend the hearing or provide documentation a fee will be charged based on the time taken at the appropriate rate by the person attending. Version 2017/

23 SERVICES FOR WHICH ADDITIONAL FEES MAY BE CHARGED FROM TIME TO TIME TO INDIVIDUAL PROPERTY OWNERS DEPARTMENT ADDITIONAL SERVICE FEE FREQUENCY PROPERTY TRANSFER Dealing with Solicitor s presale or pre-mortgage enquiries. See price list Preparation and processing of share certificates or certificates of membership, or production of duplicate certificates. See price list depending on the requirements of the lease/ other legal documentation applicable to the property. Chargeable to the beneficiary. Preparation of Land Registry Certificates dealing with restrictions See price list Preparation of a Licence to Sub-Let See price list Preparation of Pet Licences See price list Facilitating Lease Variations By negotiation Facilitating the formation of Right to Manage Companies and Collective Enfranchisement By negotiation Facilitating the production of a Licence for Alterations Various Version 2017/

24 APPENDIX 5 CLIENT NAME xxxxxxxxxxxxxxxxxxx Your Ref: [DATE] [insert the Manager s reference] By recorded delivery The Managing Director Crabtree PM Limited Marlborough House 298 Regents Park Road London N3 2UU Dear Sir [insert: property address] I write further to clause [ ] of the agreement dated [insert: date] between: (1) [insert: company name], and (2) Crabtree PM Limited. We write, with the full consent of the board of directors of [insert: name of company], to recite areas of non-performance by you, as follows:- 1. [insert all areas of non-performance]. In accordance with the agreement, we give you one month to rectify the situation. Yours faithfully [insert: full name] [insert: position] [insert: name of company] Version 2017/

25 APPENDIX 6 Your Ref: [DATE] [insert the Manager s reference] By recorded delivery The Managing Director Crabtree PM Limited Marlborough House 298 Regents Park Road London N3 2UU Dear Sir [insert: property address] I write further to clause 12(b) of the agreement dated [insert: date] between: (1) [insert: company name], and (2) Crabtree PM Limited and our letter dated [insert: date]. We write, with the full consent of the board of directors of [insert: name of company], to hereby give you three months notice of the termination of the above agreement, with such notice period to commence on the next Quarter Day (as defined within the agreement). Yours faithfully [insert: full name] [insert: position] [insert: name of company] Version 2017/

26 APPENDIX 7 CLIENT NAME xxxxxxxxxxxxxxxxxxx Your Ref: [DATE] [insert the Manager s reference] By recorded delivery The Managing Director Crabtree PM Limited Marlborough House 298 Regents Park Road London N3 2UU Dear Sir [insert: property address] I write further to the agreement ( the Agreement ) dated [insert: date] between: (1) [insert: company name], and (2) Crabtree PM Limited. We write, with the full consent of the board of directors of [insert: name of company], to hereby give you notice in accordance with clause 12c of the Agreement. Yours faithfully [insert: full name] [insert: position] [insert: name of company] Version 2017/

27 APPENDIX 8 CRABTREE PM Limited CLIENT NAME xxxxxxxxxxxxxxxxxxx PRICE LIST REVISED TO COME INTO EFFECT AS AT 1 ST JANUARY 2015 THIS LIST IS INTENDED AS A GUIDE FOR CLIENTS IN RESPECT OF THE SERVICES PROVIDED FOR WHICH ADDITIONAL FEES ARE PAYABLE. THIS LIST IS CURRENT AS AT THE REVISION DATE ABOVE AND GOING FORWARD, WILL BE SUBJECT TO ANNUAL REVIEW. ALL PRICES INCLUDE VAT AT THE CURRENT PREVAILING RATE OF 20.0%. IF THE VAT RATE VARIES THEN THE FEE CHARGED WILL VARY ACCORDINGLY. Availability to residents, lessees, owners and clients outside normal business hours. Hourly Rates Standard fee VAT Total Fee General Administration & Clerical Staff Service Charge & Year End Accountant & Credit Control Assistant Pre-Sales/Company Secretarial Assistant Pre-Sales/Company Secretarial & Accounts Team Leader Property Manager Senior Property Manager Property Management Team Leader Assistant Surveyor Surveyor Department Manager Head of Department Senior/Associate Surveyor Director & Company Secretary Managing Director / Chairman Miscellaneous Standard fee VAT Total Fee Issue of Pet Licence Consent for Licence to Sublet Licence to Sublet (issue of full procedures) Execution of Lease Extension Issuing one key for communal areas Issuing two keys for communal areas

28 Issuing duplicate parking permits Issuing remote control units for electronic gate systems: Cost of unit plus administrative charge for unpaid receipts (charged to the property owner responsible) Photocopying any documentation required Standard Charge Per sheet Obtaining Official Copy documents from the Land Registry (plus cost of Land Registry fee) Solicitor's Pre-Sale and Pre-Re-mortgage Enquiries Standard Fee VAT Total Fee Initial enquiries (Pre-Sale Service Charge/Rent Charge Management) Reply by Reply by post or fax (includes the provision of the enquiries by , if required) Dealing with a set of additional enquiries after an initial pack has been issued 1-5 questions questions Over 10 questions (up to a maximum of 15) Re-sending a pack already issued by the same method Up to date pre-completion statements (no charge if pack already sent) Providing a copy of the Building Insurance Schedule Providing a copy of the Buildings Insurance Policy (by ) Providing a copy of the Building Insurance Policy (by post) Providing a copy of both the Buildings Insurance Policy and Schedule All other requests By Arrangement Preparing Deed of Covenant (not draft as this is inc. in pack) Initial Enquiries (Pre-Sale Ground Rent Collection Management Only) Standard Fee VAT Total Fee All requests Initial Enquiries (Re-mortgage) Standard Fee VAT Total Fee Reply by Reply by Fax (includes the provision of the enquiries by , if required) Reply by post (includes the provision of the enquiries by , if required) Dealing with a set of additional enquiries after an initial pack has been issued 1-5 questions

29 6 10 questions Over 10 questions (up to a maximum of 15) Resending a pack already issued by the same method Up to date pre-completion statements (no charge if pack already sent) Providing a copy of the Buildings Insurance Schedule Providing a copy of the Buildings Insurance Policy (by ) Providing a copy of the Building Insurance Policy (by post) Providing a copy of both the Buildings Insurance Policy and Schedule All other requests By Arrangement Post Completion and Post Re-Mortgage Documentation Standard fee VAT Total Fee Client requirements will vary depending on the lease/other documentation applicable to the property). Issue of a Membership Certificate, or duplicate Issue of a Share Certificate, or duplicate Issue of a Land Registry Certificate Receipt of a Notice (assignment, charge etc) Providing Indemnity for Share Certificate Standard fee VAT Total Fee Discounted fee VAT Total Fee Issue of two Share/Membership Certificates, or duplicates Issue Land Registry Certificate and one Share/Membership Certificate Issue Land Registry Certificate and two Share/Membership Certificates Issue Land Registry Certificate, one Share/Membership Certificate and receipt Notice Issue Land Registry Certificate, two Share/Membership Certificates and receipt Notice Issue Land Registry Certificate, two Share/Membership Certificates and receipt two Notices Issue Land Registry Certificate, three Share/Membership Certificates and receipt one Notice Issue Land Registry Certificate, three Share/Membership Certificates and receipt two Notices Receipt of Notice and issue of Land Registry Certificate Receipt of two Notices and issue of Land Registry Certificate Receipt of Notice and issue Share/Membership Certificate Receipt of two Notices and issue Share/Membership Certificate

30 APPENDIX 9 HR & PAYROLL SERVICES BROCHURE Any Client responsible for the employment of on-site staff should refer to the brochure enclosed/attached.