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Focus Commercial : Estate Agents in Slough

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Terms and Conditions

Guidance Notes for Compliance

THE MONEY LAUNDERING REGULATIONS

In accordance with The Money Laundering Regulations we are obliged to verify the identity of new clients where we are instructed to sell or let a property.

We would be happy to provide you with a full background to the legislation. If we are appointed, we will need to go through the process of confirming your identity formally and will let you have a schedule setting out acceptance documentation to verify this.

As a minimum requirement we will require a copy of your passport and a utility bill.

ENERGY PERFORMANCE CERTIFICATES FOR COMMERCIAL BUILDINGS

The Energy Performance of Buildings Directive (EPBD) requires EU Member States to ensure that the Energy Performance Certificates (EPCs) are made available for prospective purchasers or tenants for all types of property. The Directive also requires that the (EPCs) are produced in an independent manner by qualified or accredited experts.

It is recommended that an EPC is applied for at least 14 days before a property is put on the market, but you should be mindful that unless the necessary information has already been compiled, it may take longer than 14 days to prepare EPC.

The penalty for non-compliance is 12.5% of the rateable value of the building (to a maximum of £5,000, or £750 where formula cannot be applied). We are able to arrange for an EPC inspector to contact you to quote for the report.

MEES

The Government has introduced Regulations to prohibit the letting of commercial properties in England and Wales rated F or G on their Energy Performance Certificates (EPCs) until their energy efficiency is improved and attains at least an E rating. These Regulations are called the Minimum Energy Efficiency Standards (MEES).

Please follow the attached link for a copy of the actual Regulations:

http://www.legislation.gov.uk/uksi/2015/962/made

From 1 April 2018, the regulations will apply to new leases granted to new or existing tenants (so lease renewals will be caught), and

From 1 April 2023, the regulations will apply to all leases, including leases that already exist on that date with tenants in occupation.

The regulations apply to the non-domestic private rented sector in England and Wales, defined in the Energy Act 2011 as any property let on a tenancy, which is not a dwelling. The regulations will exclude from this definition any property which is let on a tenancy which is granted for a term of six months or less (provided the granting of the tenancy does not mean the tenant will have occupied the property for in excess of 12 months). The six month exemption will be welcomed by SME occupiers. However it cannot be used repeatedly, to prevent this exemption being used to circumvent the regulations. Any property let on a tenancy for 99 years or more will also be excluded. All non-domestic property types are in scope of the regulations, except for those specifically excluded from existing EPC obligations such as, for example, buildings with Display Energy Certificates or buildings about to be demolished.

HEALTH AND SAFETY FILE

This should be kept on the premises to include within one package details of the reports and procedures relating to the premises as mentioned above in this article. If building works have been undertaken to construct or alter commercial premises, the full construction (Design and Management) Regulations (CDM) may have been applicable to the works and full details of CDM compliance should be within the general Health & Safety file for the premises and produced for inspection by any prospective buyer or tenant.

FIRE SAFETY

Owners, employers and tenants of commercial premises have a general health and safety obligation to ensure that their premises are safe. With regard to fire safety in particular, as from the 1st October 2006 the system of issuing Fire Certificates to confirm that premises are safe has been phased out and fire safety issues are now governed by the Regulatory Reform (Fire Safety) Order 2005. This Order places the emphasis upon employers, owners and occupiers to undertake appropriate risk assessment and to put in place appropriate precautions to prevent fire occurring in the first place and if it does occur, to ensure that it is dealt with as safely as possible and that risk is minimised for occupiers of the property. Specific guidance is issued for different types of premises such as offices, shops, warehousing etc. It is important to make sure that an appropriate assessment and written record has been made of the fire risk relating to the premises and of the procedures put in place to deal with any such risk. A prospective buyer or tenant will expect to be supplied with a copy of the report and to see that appropriate precautions have been put in place. All 112 pages of the Order are available for download from the Government's internet site under Statutory Instrument 2005 number 1541 and issues of the practical guides are also available from HMSO. A set of guidance notes have been prepared by the Department of Communities and Local Government ( www.communities.gov.uk/fire) to help business people carry out fire risk assessment and identify the general fire precautions that need to be in place.

DISABILITY AND DISCRIMINATION ACT COMPLIANCE

We have assumed that where reasonably possible, the property complies with the current Disability Discrimination Act provisions.

The Disability Discrimination Acts 1995 and 2005 (DDA) that those responsible for all 'public' and most 'private buildings' must make reasonable provision, with regard to access to their premises, for people who have a disability or special need. There may be issue that need to be addressed.

The most common misconception is that the DDA is primarily about wheel chair access, when it is really about access to services and not just access to buildings. Disabled people do not necessarily have to go through same doors, but they do need the same access to work places and services. In fact, the DDA is appropriate for about 10 million people by its current definition, and applies for everybody from wheelchair users to people with visual and aural disabilities and to people with facial disfigurements.

ELECTRICAL & GAS SYSTEMS & EQUIPMENT

Electrical systems and equipment within the property should be checked on a regular basis and a buyer or proposed tenant will expect to see the latest report and be satisfied that any electrical works carried out to the property have been done to a proper standard and certified to comply with current regulations.

The same principles apply to any gas appliances used within the property.

ASBESTOS

Under The Control of Asbestos Regulations 2006 there is a statutory obligation on those who own or occupy or have a repair obligation for commercial premises (and residential premises with any shared or common areas) to ensure that those premises have been properly surveyed for the presence of asbestos and such survey report will as necessary include a management plan for that property.

The principle behind the obligation is to ensure that employees and others working in or using the property are safeguarded from the possibility of contamination and associated health risks from asbestos or asbestos containing materials.

There is a presumption that all properties constructed before 1999 contain asbestos unless there is strong evidence to the contrary. The regulations encourage all parties to co-operate, however the demarcation of responsibility between landlord and tenant is reasonably clear in most instances. Where a property is self contained and occupied on a full repairing and insuring basis, the tenant may be probably responsible for complying with the regulations.

CODE OF PRACTCE FOR COMMERCIAL LEASES IN ENGLAND AND WALES

We support the principals of the above code (www.commercialleasescodeew.co.uk) that contains recommendations for landlords and tenants when they negotiate new leases and where they deal with each other during the term of the lease. The Code consists of 23 recommendations that an industry wide working group, including landlord and tenant representatives, consider reflect current 'best practice' for landlord and tenant negotiating business tenancy. The property industry considers this to be the best way of avoiding potential legislation that would compel landlords to offer terms that may not want to otherwise offer.

If you would like a copy of this code then please let is know. Amongst other matters, the code promotes the idea of choice over different lease terms, with different pricing structures.

LAND REGISTRATION ACT 2002

New land registration rules were introduced on 13 October 2003 by the Land Registration Act 2002.

One of the major changes related to plans submitted with a Land Registry application. The main points are that plans must be drawn to scale (1/1250 0 1/500 or urban properties and 1/2500 for rural properties). They must contain a north point and show the property on its general location – by showing roads, road junctions or other landmarks. Plans must not be photocopied or reduced from an original, disclaimer clauses or notes such as 'for identification purposes only' or 'not to scale' must not be used. Also, for leases of part (as opposed to the whole) of a building, each floor level must be clearly identified on a plan.

Further information and help in obtaining the plans are available on request.

INSURANCE

If letting commercial property, it is usual for the landlord to arrange the insurance of the building and for the tenant to pay the premium costs. The tenant will expect to see the current policy schedule and details of cover.

VAT

We have assumed that an election has been made to charge VAT, unless we are otherwise informed.

CONDITIONS AND PRESENTATION

We will not carry out a structural survey in the preparation for the marketing and we assume that the property is structurally sound and free from serious defects. Please advise if you are aware of any structural issues or know of any defects.