Agency Law

1. Introduction

This document outlines the Law of Agency governing K Johns Properties Limited ("the Agency") in accordance with the Competition and Markets Authority (CMA) guidance and relevant property laws in the United Kingdom. This document defines the relationship between the Agency, landlords, tenants, and third parties to ensure compliance with legal obligations, transparency, and fairness.

2. Legal Status and Authority

• The Agency acts as an agent for landlords, providing property management and tenant-finding services.
• The Agency is authorised to act on behalf of landlords only within the scope of written agreements, contracts, and specific instructions provided by the landlord.
• The Agency has no implied authority to make decisions beyond what is explicitly granted by the landlord.

3. Duties and Responsibilities of the Agency

• 3.1 Duty of Care and Skill
  • The Agency must exercise reasonable care, skill, and diligence in managing properties and carrying out duties.
  • The Agency must comply with the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and the Business Protection from Misleading Marketing Regulations 2008 (BPRs).
• 3.2 Duty of Loyalty and Good Faith
  • The Agency must act in good faith and in the best interests of the landlord.
  • The Agency must avoid conflicts of interest and must disclose any potential conflicts before taking instructions.
• 3.3 Duty to Provide Accurate Information
  • The Agency must provide landlords and tenants with clear, truthful, and non-misleading information about services, fees, and legal obligations.
  • The Agency must ensure that marketing and property descriptions are accurate and not misleading.
• 3.4 Duty to Comply with Legal and Regulatory Requirements
  • The Agency must ensure compliance with all relevant housing laws and regulations, including:
    • The Tenant Fees Act 2019 (prohibition of unfair fees)
    • The Housing Act 2004 (tenancy deposit protection)
    • The Deregulation Act 2015 (Section 21 eviction rules)
    • The General Data Protection Regulation (GDPR) (handling of personal data)
  • The Agency must ensure all mandatory compliance certificates (Gas Safety, EPC, Electrical Safety) are valid and provided before tenancy commencement.
• 3.5 Duty to Conduct Tenant Screening and Checks
  • The Agency must conduct thorough tenant referencing to assess suitability, including:
    • Credit checks to assess financial responsibility.
    • Right to Rent checks in accordance with UK immigration law.
    • Employment and income verification to confirm affordability.
    • Previous landlord references to verify tenancy history.
  • The Agency must keep records of all checks and ensure compliance with data protection laws (GDPR).
• 3.6 Duty to Handle Client Money Properly
  • The Agency must ensure that client money is protected in accordance with Client Money Protection (CMP) regulations.
  • The Agency must keep client funds separate from business funds and provide clear records of financial transactions.
• 3.7 Duty to Communicate and Report
  • The Agency must communicate regularly and transparently with landlords about property management issues.
  • The Agency must provide detailed statements of rental income, expenses, and property maintenance.

4. Rights and Responsibilities of Landlords

• The landlord retains ownership and responsibility for the property.
• The landlord must provide the Agency with accurate and complete information about the property.
• The landlord must ensure the property complies with health and safety standards.
• The landlord must honour contractual obligations and pay agreed fees to the Agency.

5. Rights and Responsibilities of Tenants

• Tenants must abide by the terms of the tenancy agreement.
• Tenants have the right to safe and habitable living conditions.
• Tenants must pay rent on time and report maintenance issues promptly.

6. Fees and Charges

• The Agency must provide a clear and transparent fee structure to landlords and tenants.
• All fees must comply with the Tenant Fees Act 2019.
• Any changes to fees must be communicated in advance and agreed upon in writing.

7. Termination of Agency Agreement

• Either party may terminate the agency agreement in accordance with the contract terms.
• The Agency must provide reasonable notice before ceasing management services.
• Any outstanding fees or payments due to the Agency must be settled before termination.

8. Complaints and Dispute Resolution

• The Agency must have a formal complaints procedure in line with industry standards.
• The Agency must be a member of a government-approved redress scheme, such as The Property Ombudsman (TPO) or The Property Redress Scheme (PRS).
• Any disputes must be handled fairly and transparently, with mediation before legal action.

9. Amendments and Updates

• The Agency reserves the right to update this document in line with legal changes and industry standards.
• Any changes will be communicated to landlords and tenants as required.