Agency Agreement

1. Definitions and Interpretation

1.1 Defined Terms

Agreement means this agreement, annexures attached to this agreement and any document varying this Agreement.

Fees means the fees payable by the Principal to the Agent in connection with this Agreement as set out in Annexure C.

GST means Goods and Services Tax, calculated pursuant to the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

Marketing Plan means the plan prepared by the Agent for the Principal in relation to the marketing of the Property for lease.

Property means the property that the Principal appoints to the Agent for the exclusive leasing and management of under this Agreement, as referred to in Annexure B of this Agreement.

Tenancy means any tenancy agreement entered into in respect of the Property referred to in Annexure B of this Agreement.

1.2 Interpretation

In this Agreement and any annexure to it, unless thecontrary intention appears:
(a) The Annexures or schedules form part of this Agreement;
(b) The singular includes the plural and vice versa.
(c) Person includes a firm, body corporate, an unincorporated association or an authority.
(d) Where a party consists of more than one person this agreement binds those persons jointly and individually.
(e) If a period of time is specified and dates from a given day or the day of an act or event, it is to be calculated exclusive of that day.
(f) A reference to a day is to be interpreted as the period of time commencing at midnight and ending 24 hours later.
(g) A reference to an amount for payment is inclusive of GST.
(h) A reference to:
(i) A person includes the person's executors, administrators, successors, substitutes and assigns;
(ii) A document includes any variation or replacement of it;
(iii) A law includes regulations and other instruments under it and amendments or replacements of any of them;
(iv) A thing includes the whole and each part of it; and
(v) A group of persons includes all of them collectively, any two or more of them collectively and each of them individually.
(i) The words include (in any form) and such as foregoing a list of items does not limit the meaning of the words to which the listrelates to those items or to items of a similar kind.
(j) Headings are inserted for convenience and do not affect the interpretation of this Agreement.

1.3 Governing Law

This Agreement is governed and construed in accordance with the law of the Australian Capital Territory.

2. Appointment and Authority of Agent

2.1 Commencement and Termination

(a) Unless the contrary intention appears, this Agreement is for a period of 12 months, commencing on the date specified as the date ofexecution at Annexure B ("Term").
(b) At any time the Principal may terminate this Agreement by providing the Agent with a written notice of termination on seven (7) days' notice, provided the Principal has paid all outstanding fees, charges and/or disbursements owed to the Agent. The Principal acknowledges that if it intends to re-occupy the property, any tenancy in operation at the property must be terminated in accordance with the Residential Tenancies Act 1997 (ACT).
(c) Where the Agreement is not terminated by the Principal in accordance with clause 2.1(b), the Agreement will continue for another period of 12 months commencing on the anniversary of the date of execution (or successive periods of 12 months commencing on each anniversary) and operate on the same terms.
(d) The Agent may terminate this Agreement by providing the Principal with a written notice of termination on seven (7) days' notice.

2.2 Appointment of the Agent

The Principal appoints the Agent for the exclusive leasing and management of the Property, and to provide the services specified in clause 2.3.

The Agent accepts the appointment as agent for the Principal in consideration for the Fees.

2.3 Property Management Services

The Principal appoints and authorises the Agent to provide property management services, including:

(a) obtain references from prospective tenants;
(b) arrange inspections of the property by prospective tenants;
(c) select tenants;
(d) enter into and sign tenancy agreements (specifying the term for which the Property may be let);
(e) undertake inspections of the Property;
(f) effect repairs to and maintenance of the Property, including engaging tradespersons to do so;
(g) pay disbursements and expenses incurred in connection with this Agreement and as specified in Annexure A of this Agreement;
(h) collect rent;
(i) receive, claim and disburse rental bond money;
(j) serve notices for breach of any tenancy agreement and when required, terminate the tenancy agreement in accordance with the Residential Tenancies Act 1997 (ACT).;
(k) undertake the necessary steps to obtain vacant possession of the Property and recover any money owing to the Principal in relation to the tenancy of the Property;
(l) representing the Principal in any tribunal or court proceedings in relation to the tenancy of the Property;
(m) pay accounts for amounts owing in relation to the Property as specified in Annexure A and C of this Agreement;
(n) advertise the Property for letting; and
(o) anything required by law or otherwise required to give effect to this Agreement.

2.4 Leasing Property Services

(a) obtaining references from prospective tenants, arranging inspections of the Property by prospective tenants and choosing a tenant;
(b) entering into and signing a tenancy agreement;
(c) undertaking an initial inspection of the Property;
(d) collecting initial rent payment;
(e) receiving and disbursing rental bond money;
(f) advertising the Property for letting.

2.5 Inspection and Inspection Reports

The Agent will carry out routine visual inspections of the Property and provide the Principal with a tenancy inspection report. The inspection does not include the moving of furniture, lifting of floor coverings, inspecting the interiors of roof spaces, under flooring, inside of cupboards and inspecting the tenants' belongings.

The Principal acknowledges that the Agent's role is to manage the tenancy. The Agent is not qualified to assess the structural integrity of the Property or to ensure that plumbing, electrical or gas fixtures or fittings, windows, doors and balustrades, smoke alarms, asbestos and swimming pools (and associated fittings) comply and operate in accordance with the applicable codes and/or laws. The Principal acknowledges that it is the responsibility of the Principal to have regular inspections carried out by suitably qualified, licensed and insured contractors and experts.The Principal expressly acknowledges and agrees that it will obtain and provide to the Agent any asbestos management reports.

2.6 Agreement Variation

This Agreement may be varied by express agreement between the Agent and the Principal.

3. Indemnities

3.1 Agent Indemnity

The Principal indemnifies the Agent, its directors, officers, employees and agents against any liability or loss suffered by the Agent, all action, suits, proceedings, claims, demands and expenses and any cost incurred by the Agent (including legal fees on a full indemnity basis) in connection with the performance or exercise of any powers and duties of the Agent, its directors, officers, employees and agents under this Agreement, including any liability or loss resulting from:

(a) injury to, or death of any person; or
(b) loss, damage to or destruction of real or personal property; and
(c) loss or damage suffered as a result of any act or omission (excluding negligence) of the Agent, its directors, officers, employees and agents. The Principal agrees to comply with all legislation and
regulations, including any notices issued, in relation to residential tenancies in the Australian Capital Territory.

3.2 Indemnity to Continue

The Principal acknowledges that each indemnity in clause 3 is independent from the Principal's other obligations and continues during this Agreement and after it expires or is terminated.

4. Expenses Incurred by Agent

4.1 Advertising Expenses

The Agent is authorised to advertise the availability of the Property for leasing and the Principal acknowledges it will pay all advertising expenses as outlined in the Marketing Plan, and clause 5 of this Agreement or any other fees as agreed between the Agent and the Principal from time to time.

4.2 Repairs & Maintenance

The Agent is authorised to undertake any necessary repairs on the Property, as prescribed in this Agreement, including the authority to purchase supplies and to pay all accounts associated with undertaking repairs on the Property and the Principal agrees to reimburse the Agent for these expenses.

The Agent agrees to obtain the approval of the Principal on expenditure in excess of $250.00 per item, excluding monthly operating charges and/or emergency repairs in excess of the maximum, if such repairs are necessary to protect the Property from damage, injury to persons or to maintain essential services to the tenant, pursuant to the tenancy agreement or the Residential Tenancies Act 1997 (ACT).

The Principal may elect to engage a qualified tradesperson of their choice.

The Principal acknowledges it is bound to pay for any repairs that the tenant undertakes in accordance with the Residential Tenancies Act 1997 (ACT).

5. Fees & Charges

5.1 Disclosure

The Agent may receive a commission ("referral payment") from externally referred agencies of up to $65.00 per referral.

5.2 Reimbursement of Agent

The Agent is entitled to be reimbursed for any costs incurred by the Agent in connection with this Agreement or otherwise in connection with the property. The Agent may deduct from any rent or other monies received by the Agent, the amount of any cost incurred, including:

(a) Any applicable statutory charges payable in respect of the Property;
(b) Body corporate fees or charges of a similar nature, as noted in Annexure A;
(c) Any amounts incurred in connection with the repair and/or maintenance of the Property; and
(d) Any agency charges as specified in clause 5.3 of this Agreement.

5.3 Agency Charges

The Principal will pay the Agent the Fees specified in the Schedule of Fees and Charges, at Annexure C of this Agreement within the specified timeframe.

The Agent can increase the Fees on the provision of 30 days' written notice to the Principal, such fee increases to be reasonable and in accordance with industry standards.

If the Principal is not satisfied with the fee increase it may terminate the Agreement.

5.4 Disbursements

The Agent will pay the disbursements specified in Annexure A of this Agreement.

The Agent is not responsible for the payment of insurance or for the non-payment of interest charges accrued if insufficient funds are being held for payments in respect
of the Property.

If any disbursements paid are in excess of the monies available to the Agent, the Principal agrees to pay such excess amount within 7 days of notification from the Agent of the amount incurred.

6. Principal's Duties and Warranties

6.1 Principal's Duties

The Principal agrees to:

(a) the payment of any fees or charges payable to the Agent in connection with this Agreement within the specified timeframe.
(b) provide the Agent with all reasonable forms of assistance that may be necessary or conducive to the Agent performing duties pursuant to this Agreement, including prompt instructions when
they are sought by the Agent.
(c) comply with the Residential Tenancies Act 1997 (ACT) and all other applicable laws, statues ordinances and/ or regulations in performing its duties pursuant to this Agreement.
(d) provide the Agent with an energy efficiency rating statement (if any) for the Property.
(e) provide the Agent with an asbestos management plan (if any) for the Property.
(f) arrange for the Property to be professionally cleaned and for all household contents to be removed, prior to the commencement of any tenancy. If the Principal fails to do so, authority is provided to the Agent to arrange a cleaner on the Principal's behalf.
(g) comply with all privacy legislation in relation to the disclosure of personal or sensitive information relating to the tenant or potential tenant to any third party.

6.2 Principal's Warranties The Principal warrants:

(a) that it has authority to enter into this Agreement and agree to the terms of this Agreement.
(b) there are no defects in the Property that may result in injury to any person except those previously disclosed to the Agent in writing.
(c) that no high-risk asbestos is present at this Property.
(d) That it has been advised of the risks associated with owning an investment property and will provide the Agent with the details of its Landlord insurance policy. The Principal acknowledges it is responsible for providing a secure Property for each tenancy. This means that any locks/barrels may need to be changed prior to the commencement of a new tenancy.

6.3 Keys

The Principal agrees that before the Agent commences managing the Property, the Principal will provide the Agent with all keys to facilitate access to the property, as well as 1 full set for any prospective tenant and 1 full agency set. This includes remote controls, swipe cards or fobs.

7. Agent's Duties

7.1 Agent's Duties

The Agent will comply with the Residential Tenancies Act 1997 (ACT), the Agents Act 2003 (ACT) and all other applicable laws in undertaking its duties pursuant to
this Agreement.

7.2 Dispute Resolution

If the Principal believes the Agent has breached any term of this Agreement, the Principal agrees to provide the Agent with a notice to remedy the breach within a reasonable time
before the Principal takes any further action.

7.3 Privacy

The Agent may use personal information collected from the Principal in order to act as the Principal's Agent and to perform its duties under this Agreement.

The Agent may also use such information to promote the services of the Agent.

The Agent may also disclose information to:

(a) Potential lessees;
(b) Clients of the Agent (both existing and potential);
(c) Tradespeople;
(d) Owners' corporations;
(e) Government and statutory bodies;
(f) Business partners; and
(g) Third parties as required by law.