TERMS OF BUSINESS

1. Definitions

In these Terms of Business the following words and abbreviations have the following meanings unless the context requires otherwise:

1.1 “Agreement” means this Agreement between the Client and the Company incorporating these Terms of Business for the provision of the Service;

1.2 “Client” means a person or persons who has contacted the Company or has been introduced to the Company by a Third Party for the purpose of

a)       Attaining a purchase price "below market value" on the purchase of a property with assistance from the Company

b)       The provision of assistance with legal transactions relating to the purchase of a property or properties including but not limited to mortgage arrangements

c)       The provision of support and assistance throughout the property location and purchase lifecycle

1.3    “Company” means HBF Investments Limited.

1.4 “Information” means details about property opportunities, in the form of, but not limited to market research, statistics, forecasts, reports

1.6 "Packaging Fee" means the sums paid to the Company by the Client to reserve the Property for purchase

1.7 “Placement Fee” means the sums paid to the Company by the Client for the procurement of property opportunities and for Information

1.8 “Private Details” means the client’s forename, surname, postal address, e-mail address and telephone number(s); and other such details as may be required by the Company to provide the ‘Service’ requested by the ‘Client’

1.9 "Property" means the physical Property that has been sourced by the Company on behalf of the Client in order for the Client to buy for the purposes of ownership and letting

1.10 “Service” means the services provided by the Company, which include but are not limited to an advice and procurement service for property and property related goods and services in the United Kingdom and Overseas

1.11 “Third Party” or “Third Parties” means solicitors and mortgage brokers or other third parties of good calibre, who offer a service or product deemed to be of good quality and reasonable cost as advised to You by the Company

1.12 “We”, “Us, “Our” means the Company

1.13 “You”, “Your”, “Yourself” means the Client

2. Basis of agreement

2.1 We agree to provide the service as defined within these Terms of Business. By using the Company You agree to abide by these Terms of Business

2.2 These Terms of Business shall apply to all future business between You and the Company unless specified otherwise

2.3 You must notify the Company of any amendment to your ‘Private Details’ immediately

2.4 We reserve the right to refuse any application for any reason

2.5 We reserve the right to make changes to the Service as deemed necessary or desirable or to vary these Terms of Business at any time

3. Terms

3.1 The Company agrees that:

• You will be advised about property purchasing opportunities that the Company  considers may be of purchasing interest to You
• Upon agreement (in principal) by You, the Company will negotiate the purchase price with the vendor or any other related third-party source(s)
• You will be required to pay for a maximum of two valuations to ensure that the best valuation is achieved for the property.
• Throughout the entire purchasing life-cycle, the Company will monitor and progress all related arrangements through to the property purchase conclusion on Your behalf
• All properties purchased by You via the Company are done at Your own risk
• The Company does not accept liability for any failure to make the mortgage payments

4. Data Protection

4.1 Pursuant to the Data Protection Act 1998, we will keep Your Private Details confidential (except for that which is already in the public domain) and will not disclose such information, without Your consent (except if required to be disclosed by law), save to our professional advisers, our employees, any professional advisers to whom You may require Us to introduce You and to the prospective vendors and their agents in respect of any property to which We introduce You provided that such information shall be divulged for the sole purpose of enabling You to enter into a contract for the purpose of purchasing such a property.

4.2 The Company may use the information to inform you by letter, telephone, email or otherwise, about any products and services offered by Company and selected third parties. The Company reserves the right to share information between any of its affiliated companies to provide products and services outside of this agreement

5. Vendor

5.1 The Company does not act on behalf of the vendor. Your rights against the vendor will depend upon the terms of Your contract with the vendor; therefore the Company will not be responsible for any acts or omissions on the part of the vendor in respect of the remedies available to You

6. Placement fees

6.1 The Placement Fee will always be disclosed to You before You sign this agreement

6.2 Any such Placement Fee will be subject to VAT

6.3 The Placement Fee is payable upon signing this agreement and is non refundable (apart as set out in Clause 8.3)

7. Packaging fees

7.1 A Packaging Fee is payable upon you returning a completed Packaging Form to the Company either by email or by fax. Any such Packaging Fee will be subject to VAT.

7.2 The Packaging Fee is non refundable (apart as set out in Clause 15.2) but is transferable should a property purchase be aborted through no fault of the Client.  Any such transfer of the Packaging Fee will be subject to costs deductions (e.g for payment of Valuation Fees, Broker Fees and Legal Fees) and the Client may be required to pay an additional fee to procure a replacement property

7.3 The Company reserves the right to return a Packaging Fee to you for any reason and at any stage of the purchasing process to cancel a sale. The Company will not be liable for any losses or costs incurred by you in such a case.

8. Right to cancel

8.1 You may cancel this contract within a 7 day cancellation period starting on the date of the agreement

8.2 To cancel the contract you should write to the Company at 11 Westbank Road, Birkenhead, Merseyside, CH42 7JL.  Your cancellation notice will take effect from the date of posting. Proof of posting will be requested. You are advised to retain a copy of the cancellation notice

8.3 Any Placement Fee (less any costs which has been incurred by the Company up to the date of written notice of cancellation) will be refunded to you provided the Company is satisfied that you exercised your right to cancel within the period and manner stipulated

9. Termination

9.1 We have the right to terminate this Agreement if the information You provide is found to be untrue or if You breach the terms of this agreement

10. Restrictions

If You, without notifying Us, and within one year of the date an opportunity was originally introduced to You by Us

• Engage in any capacity directly with a supplier or developer originally introduced to You by Us
• Or engage with the supplier or developer over new opportunities,
• Or if you refer an opportunity introduced to You by Us to another person, or body and that person or body engages in any capacity directly with the supplier or developer of the opportunity,

Then You will be liable to pay a fee at the prevailing rate

11. Indemnity

11.1 You agree to indemnify Us against any and all losses, proceedings, lost profits or damages, awards, expenses, costs (including increased administration costs and legal costs on a full indemnity basis), claims, actions and any other losses and/or liabilities suffered by Us and arising from and/or relating to Your use of the Company’s information and/or other material arising from or due to any breach of contract, and/or omission and/or any breach of statutory duty by You

12. General

12.1 All third party rights are excluded and no third parties shall have any right to enforce this agreement

12.2 These Terms and Conditions are subject to the law of England and Wales and the exclusive jurisdiction of the courts of England and Wales

12.3 No waiver by Us of any breach of this agreement shall be considered as a waiver of any subsequent breach of the same provision or any other provision

13. Descriptions of property

13.1 The Company will provide Information about property purchase opportunities from a number of third party sources.  Particulars, specifications, pictures and artists impressions of any property, home, building, location or development are given in good faith and believed to be correct, but they do not form part of any offer or solicitation and are intended only as a general guide.  Whilst we endeavour to provide accurate, up-to-date and complete Information we make no warranties or representations as to the accuracy, reliability or completeness or otherwise of the Information and assume no responsibility or liability for any omissions or errors contained in the Information, nor does it warrant the adequacy or fitness of any property for any particular purpose you might have in mind for it.

13.2 All descriptions are intended only as a general guide and are not to be relied upon by You or other interested parties as a statement or representations of fact but You should satisfy yourself by inspection or otherwise. No warranties or representations are given that the contents of the website or information otherwise distributed will reflect the most recent plans, designs or specification. The Company will not accept any responsibility or liability for misinformation supplied and the Client must ensure that the content of such information is correct and must carry out their due diligence

14. Properties from 3rd Parties

14.1 The Company makes no warranties or representations as to the reliability of the services provided by Third Parties and assumes no responsibility for their actions, omissions or errors

14.2 The Company is not liable for refunding any fees, costs or losses which may be incurred by You during the purchasing of any properties from 3rd Parties introduced by the Company. This includes any losses resulting from monies paid by you and by the Company on your behalf from the Packaging Fee, to 3rd Parties and/or 3rd Party solicitors and/or 3rd Party brokers

14.3 If you pay any fees to 3rd Parties and/or 3rd Party solicitors and/or 3rd Party brokers you do so entirely at your own risk

15. Due Diligence and Refunding of Packaging Fees and RICS Valuation Fees:

15.1 Upon payment of the Packaging Fee, you are assumed to have carried out your own due diligence and are in full agreement with the purchase price and estimated open market valuation of the property

15.2 From the time of payment of the Packaging Fee, whether in cleared funds or not, you have a 7 day “cooling-off period” in which to view the property and to request a full refund of the Packaging Fee if you decide not to proceed with the purchase of the property at the agreed price. Any such request must be made in writing. Proof of posting will be requested. You are advised to retain a copy of the cancellation notice

15.3 The RICS valuation must be carried out or the surveyor or valuer instructed within 7 days of payment of the Packaging Fee (excluding the date of payment).  The costs of the RICS valuation will not be refundable under any circumstances

15.4 You have the opportunity to visit the Property at any time once the Packaging Fee has been paid but should you choose not to view the Property within the 7 day cooling off period, and you do not request a refund within that time and cancel your purchase, then you will be deemed to be satisfied with the valuation, purchase price and condition of the Property. You cannot subsequently renegotiate the purchase price unless the RICS valuation indicates a lower value than requested in the mortgage application.

15.5 If following the receipt of a RICS valuation, the mortgage lender is unwilling to lend you sufficient funds to purchase the Property then:

15.5.1  Provided that the actual valuation is not lower than requested in the mortgage application by more than 10 per cent or £10,000, you will offer to pay the Vendor from other sources a maximum sum of either  5 per cent of the RICS valuation or up to £10,000 (whichever is the greater) in order to secure the purchase.  You must ensure that you have the funds readily available in the event such a situation arises in order to ensure a speedy completion of the purchase

15.5.2  If a sum being less or the equivalent of 5 per cent of the surveyor’s valuation or £10,000 (whichever is the greater) is required to secure the purchase and you are unable or unwilling to offer to pay the Vendor that sum then you will lose your Packaging Fee and Placement Fee and will not be entitled to a refund or a transfer to another property

15.6 If the sale is aborted through no fault of the Client, the Company may transfer the Packaging Fee (less any fees incurred such as solicitor fees, valuation fees and broker fees) towards the procurement of another property. We will not be liable for any losses or costs incurred by the Client in such a case. We will not be liable for, and will not refund, any legal fees, valuations fees and other fees that may have been paid by you, or by the Company on your behalf from the Packaging Fee. Below are some of the examples when a transfer of Packaging Fee (less any fees paid by Us on your behalf) may be considered:

15.6.1 The RICS valuation is lower than requested in the mortgage application by more than 10 per cent or £10,000 or the Lender refuses to provide you a mortgage due to structural issues identified in the RICS valuation report

15.6.1 The vendor’s redemption fees are greater than the price being paid by You and You are unable and/or unwilling to buy at the price required to redeem the secured debt on the property and/or the vendor is unable to repay the additional amount monies required to redeem their secured debt on the property.

15.6.2 There is an irresolvable problem associated with the property ownership and/or Title.

15.6.3 The vendor goes missing and/or refuses to sell their property for any reason that cannot be quickly and easily resolved.

15.7 If reports such as ‘damp and timber reports’ and ‘electrical reports’ are specified in the RICS surveys but they do not affect the valuation of the Property by the RICs surveyor and are not required by the lender to offer a mortgage and do not affect the ‘loan to value’ mortgage then You must continue to complete the property purchase without delay and without any attempt to renegotiate the purchase price with the Company and/or the vendor.

15.7.1 If however the lender reduces the amount of mortgage offered to you through a ‘Retention’ to cover the costs of any rectification works identified in such reports and these costs are paid by vendor and/or the Company then you must also continue to complete the property purchase without delay.

16. Mortgage Brokers and Fees:

16.1 You must use one of the Company’s panel mortgage brokers unless agreed otherwise in writing with Company.

16.2 The broker and valuation fees will depend on the service provider used by the Client. The fees will be specified at the time of payment of the Packaging Fee. You will pay the valuation and broker fees directly to the service provider. However the Company may, in its absolute discretion, pay these fees on your behalf out of the Packaging Fee.

16.3 You must be in a position to provide the following information to lender:

• Proof of deposit and/or acceptable source of deposit.
• Proof of income.
• In some cases, provide tax accounts (e.g. if self employed).
• Other criteria/demands, not listed above, as introduced or requested by lender

16.4 If you are unable to obtain a mortgage, or have a mortgage withdrawn you will be liable for all broker and valuation fees.

16.5 The Company is not liable for refunding broker fees or valuation fees in any circumstances

16.6 You accept sole responsibility for obtaining funds sufficient to complete a purchase.  Under no circumstances will the Company be liable to you in the event that any lender refuses to provide funds to you or withdraws any offer to provide funds

17. Solicitors & Legal Fees:

17.1 You will use one of the Company’s panel solicitors unless agreed otherwise in writing with the Company.

17.2 The Company will have authority to speak to your solicitor for updates at any time during the process.

17.3 You are required to return all legal documentation, proof of identification and any other such information requested by their solicitors as quickly as possible so not to delay their purchase and/or to put their purchase at risk

17.4 If in the opinion of the Company a purchase is aborted through your fault, for example, you delay returning documentation to your solicitor, you are unable to obtain a mortgage or you wish to cancel the purchase, you will be responsible for their abortive legal costs and also the vendor’s legal fees and any legal fees incurred by the Company

17.5 If in the opinion of the Company a purchase is aborted through no fault of yours, you will be responsible for paying your  own abortive legal fees but will not be responsible for paying the legal fees of the Vendor.

17.6 If in the opinion of the Company a purchase is aborted through the fault of the Vendor, the Company will endeavour to recover your  abortive legal fees from the Vendor or the Vendor’s agent but the Company accepts no responsibility or liability whatsoever for any failure to recover those fees.
17.7 You will be required to pay any stamp duty tax that is due on your purchase in addition to all fees and deposits.

18. Lettings Agents and Fees:

18.1 The Company may recommend a third party as a letting agent but accepts no liability whatsoever for any loss or damage caused to you by the acts of such agent in the letting and management of property.

18.2 It is your sole responsibility to ensure that all contracts (e.g. AST’s) and safety certificates have been obtained and that all rents and deposits are being collected by their letting agent and that all utility bills and council taxes are being paid

18.3 In particular the Company is not responsible for ensuring letting agents obtain contracts and safety certificates or that they collect rents and deposits and the Company will not be liable for any losses or costs incurred by you in such a case.

19. Building & Refurbishment Services and Fees:

19.1 The Company may recommend a third party as a supplier of building and/or refurbishment services but accepts no liability whatsoever for the quality of work or standard of service achieved by such supplier and accepts no liability whatsoever for any loss or damage caused to you by the acts of such supplier in providing such services.

19.2 It is your sole responsibility to ensure that any work carried out by 3rd Parties builders recommended by the Company is to your satisfaction in terms of both quality and costs. Furthermore, it is your responsibility to ensure that all work carried out by 3rd Party builders meets all requirements specified in RICS valuations and any other building surveys and that may be needed for mortgage offer and mortgage retention purposes.

20 Cost Illustration

20.1. A Cost Illustration may be provided for guidance purposes only.