TERMS OF BUSINESS: HANDLING OF CLIENT MONEY

These Terms of Business set out how Lions Property Management Limited (“we”, “us”, “our”) handle client money when providing letting, property management, and serviced accommodation services. These Terms form part of our contractual arrangements with landlords, clients, and, where applicable, tenants and guests.

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These Terms are drafted to comply with the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) (England) Regulations 2019 and the rules of our Client Money Protection scheme.

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1. Definition and Scope of Client Money

1.1 Client money means any money received, held, or controlled by us on behalf of a client or third party, including but not limited to:

• rent and licence fees;

• tenancy deposits and security deposits;

• holding deposits;

• advance payments;

• funds held for repairs, maintenance, or services.

1.2 Client money does not include fees or charges that are due and payable to us and have been properly transferred to our business account in accordance with the relevant agreement.

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2. Client Money Protection (CMP)

2.1 We are a member of Client Money Protect, an approved Client Money Protection scheme.

2.2 Our CMP membership provides protection for client money held by us in the event of misappropriation, subject to the scheme’s rules, exclusions, and limits.

2.3 Details of our CMP membership, including our certificate, are:

• displayed in our offices (where applicable);

• available on our website; and

• available to clients upon request.

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3. Client Bank Accounts

3.1 All client money is held in one or more designated client bank accounts with a UK bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.

3.2 Client bank accounts are:

• clearly designated as client accounts;

• ring-fenced; and

• kept entirely separate from our own business and office accounts.

3.3 Client money:

• does not form part of our business assets;

• will not be used to meet our own liabilities; and

• will not be subject to any charge, security, or set‑off for our benefit.

3.4 Access to client bank accounts is restricted to authorised personnel only.

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4. Receipt of Client Money

4.1 Client money received by us will be paid into the designated client bank account promptly and without unreasonable delay.

4.2 Where client money is received into a business account in error, it will be transferred to the client bank account as soon as reasonably practicable.

4.3 We are not responsible for delays caused by third‑party banking systems beyond our control.

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5. Use and Disbursement of Client Money

5.1 Client money will only be used or disbursed in accordance with:

• written instructions from the client; and/or

• the relevant tenancy agreement, licence agreement, or management agreement.

5.2 Rent and licence fees will be transferred to the landlord or property owner after deduction of agreed fees, costs, or expenses in accordance with the relevant agreement.

5.3 Funds held for repairs or maintenance may be used to pay contractors where:

• authorised by the client; or

• urgent action is required to protect the property, ensure safety, or comply with legal obligations.

5.4 Where urgent expenditure is incurred without prior approval, we will notify the client as soon as reasonably practicable and provide a breakdown of costs.

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6. Records, Accounting, and Reconciliation

6.1 We maintain accurate and up‑to‑date records of all client money transactions.

6.2 Client bank accounts are reconciled at least monthly.

6.3 Records relating to client money are retained for a minimum of six years, or longer where required by law, regulation, or our CMP scheme.

6.4 Statements or transaction information will be provided to clients upon reasonable request.

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7. Interest on Client Money

7.1 Unless otherwise agreed in writing, any nominal interest earned on client money held may be retained by us to offset the costs of operating and administering client accounts.

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8. Return of Client Money

8.1 Client money will be returned promptly when there is no longer a lawful or contractual reason to retain it.

8.2 Tenancy deposits and security deposits will be handled in accordance with the applicable government‑authorised tenancy deposit protection scheme rules or the relevant contractual terms for licence or serviced accommodation arrangements.

8.3 Short-Term and Serviced Accommodation Deposits: Where a security deposit is taken under a short-term or serviced accommodation arrangement using a Host–Guest or licence agreement, the deposit will be held as client money in our designated client bank account. The security deposit will be refunded at the end of the agreement once the accommodation has been vacated and checked, less any deductions properly due in accordance with the terms of the relevant agreement, including but not limited to damage beyond fair wear and tear, cleaning, missing items, or other agreed charges. Such security deposits are not tenancy deposits and are not subject to statutory tenancy deposit protection scheme requirements.

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9. Audits, Inspections, and Disclosure

9.1 We may be required to disclose information relating to client money to:

• Client Money Protect;

• our accountants or auditors;

• banks or financial institutions; and

• regulators or enforcement authorities.

9.2 Such disclosure will only take place where required by law, regulation, or CMP scheme rules.

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10. Complaints and Redress

10.1 Any concerns regarding the handling of client money should be raised with us in the first instance.

10.2 If a complaint cannot be resolved internally, clients may escalate the matter to The Property Redress Scheme (PRS) in accordance with its procedures.

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11. Compliance and Statutory Rights

11.1 We act in accordance with all applicable legislation, including:

• the Client Money Protection Regulations;

• UK GDPR; and

• relevant housing and consumer protection law.

11.2 Nothing in these Terms limits or affects statutory rights.

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12. Updates to These Terms

12.1 We may update these Terms from time to time to reflect changes in law, regulation, or CMP scheme requirements.

12.2 The latest version will be made available upon request or via our website.

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