TERMS OF BUSINESS FOR ACTING AS AN INTRODUCER TO A COMMERCIAL PROPERTYFOR A BUYER
This Agreement is made between (1) Alex Martin Commercial Limited (Company Registration Number: 6955399) of registered office 249 Cranbrook Road Ilford Essex 1G1 4TG and whose trading address is 9 Holyrood Street, London, SE1 2EL (“Us”); and (2) (“You”)
WHEREBY it is agreed as follows:
Appointment
- In consideration of Us introducing to You the property or properties listed in the Schedule to this Agreement, You appoint Us to act on your behalf and negotiate for You. Furthermore, You agree that if You or any connected party proceed to exchange Contracts to buy or lease any of the property listed in the Schedule (below) to this Agreement, You will pay a commission as set out below.
SCHEDULE
The Property known as Commission Rates
- Unless otherwise agreed in writing with You, the following commission rates will apply
Freehold/Long Lease of 25 years or more = 2% plus VAT of the purchase price
Lease of less than 25 years = 10% of the average annual rent plus VAT
Exclusivity
- By entering into this Agreement You agree that all negotiations must be conducted exclusively through Alex Martin Commercial Limited. (Please see definitions section for the meaning of “We” or “Us”)
Time For Payment of Fees
- Our fees and any disbursements will be payable immediately upon completion of the transaction for Freehold/Long Leasehold/Lease. For the purposes of ascertaining the date of completion, this shall be the date upon which the legal estate is transferred to You by the Seller by a written Lease or Transfer document executed by the Seller/Landlord. Execution by the duly authorised Agent of the Seller or Landlord will suffice for these purposes. For the avoidance of doubt, the date of the Transfer or the Lease shall be the date on which the written document confirming the interest in the land is shown to bear and not the later date when the document may be registered at the Land Registry or at such other register as may be necessary to give effect to recording the information in a publicly available ownership register.
Calculation of Fees
- In calculating fees payable, the following rules shall apply
(i) On the sale of Freehold land, the fee shall be calculated on the full purchase price agreed from the Transfer of the Fee Simple or long Lease and for these purposes there should be added any sum agreed for over-ridge or future phased payments for the property
(ii) In calculating the average annual rent this shall mean the average annual rent is the rent payable throughout the whole of the term and shall ignore any rental holiday or rent free period that the parties may agree is applicable in the first or early years of the term
(iii) In addition to the above, where payment is made for purchase of business premises or where fittings, furnishings, fixtures or other chattels are included in the agreed purchase price, the full purchase price shall include the sum payable for these items.
Minimum Fee
- Unless otherwise agreed in writing with You, a minimum fee of £2,000.00 plus VAT will apply to this Agreement.
Completion
- For the purposes of ascertaining the date of legal completion, written confirmation from the Seller’s Solicitor of the date of completion shall be conclusive evidence of the completion date for the purposes of this Agreement.
Delayed Completion
- Should a completion date agreed subsequently be delayed beyond three months from the date stated in the Sale Agreement or Agreement for Lease, then 50% of the fee is payable on exchange of contracts and the remainder is payable upon completion. The date of exchange of Contracts shall be the date notified by the Seller’s Solicitors to Us as the date and in the absence of such communication shall be the date entered on the contract for sale by your Solicitor, which You hereby authorise your solicitor to produce to us within 7 days of You receiving a written request for the same.
Late Payment of Fees
- Any fees payable under this Agreement are payable within 30 days of completion. In the event that payment of our invoice is not made within 30 days of the date shown thereon, You shall be liable to pay interest at the current statutory rate prescribed by the Late Payment Commercial Debts (Interest) Act 1998 on the entire fee including VAT shown on the invoice until such sum has been paid in full.
Indemnity Costs
- In the event that We (Alex Martin Commercial Limited) have to instruct Solicitors to recover unpaid invoices, You agree You will pay our Solicitors fees and disbursements on a full indemnity basis whether or not legal proceedings are issued.
VAT
- All our fees are payable together with VAT at the appropriate rate prevailing at the date of issue of the relevant invoice.
Duration of this Agreement
12 (i) Unless otherwise agreed in writing with You, this Agreement appoints Us (Alex Martin Commercial Limited) to act exclusively for You in connection with the properties stated in the Schedule to this Agreement for a period of twelve calendar months from the date of this Agreement.
12 (ii) On the expiration of twelve calendar months, either You or Us may terminate this Agreement by one week’s written notice to the other, such notice to be given in writing to the address of the other shown on the first page of this Agreement.
Marketing
- You agree that We (Alex Martin Commercial Limited)shall, from the date of completion of a Freehold / Long Leasehold purchase or the granting of a Lease have a Licence from You to erect on that property a Board marked “Acquired For Clients” for a period of three calendar month from the date of completion.
Definitions
- For the purposes of this Agreement
(i “We” or “Us” means Alex Martin Commercial Limited
(ii) “You”, “Our” means You as the signatory of this Agreement
(iii) “Introduced” means the supply of any verbal or written information on the Property listed in the Schedule by Us (Alex Martin Commercial Limited). Such information includes addresses, plans or any other details.
(iv) “Fee” means the fee for the introduction of the property in accordance with this Agreement
(v) “Property” means any commercial or residential property portfolio, houses, apartments, commercial premises or sites
(vi) “Information” shall mean information in relation to who owns the properties listed in the Schedule to this Agreement together with information of any other property that is provided to You by Alex Martin Commercial Limitedduring the duration of this Agreement and for the purposes of this Agreement information on such properties provided to You in writing after the date of this Agreement on properties other than properties listed in the Schedule hereto shall constitute an introduction by Alex Martin Commercial Limitedof such property to You as if that property had been named in the Schedule to this Agreement. Therefore, in the event of completion by You of a sale or Lease of any such property We (Alex Martin Commercial Limited)shall be entitled to a fee thereon as if that property had been specifically listed as a property in the Schedule to this Agreement.
Notices
- Any Notice given under these terms shall be in writing and may be delivered by hand, First Class Post, Special Delivery Post or such other means as the parties may agree to the relevant address to that party stated in this Agreement. Where the parties agree that Notice may be given by fax or by email and a fax or email address is stated in this Agreement, then Notice may be given by fax or email to the fax or email address as stated herein.
Law and Jurisdiction
16. This Agreement is governed by English law. The parties hereto submit to exclusive jurisdiction of the English Courts.