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Our Charter - the RBCA Code of Conduct
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Our Charter brings together ethical & professional landlords, setting a benchmark for excellent operating standards, and establishing a forum for redress by victims of malpractice.
The Charter is enshrined in a legally binding Membership Agreement where members subscribe to the RBCA Code of Conduct. These documents specifically address the concerns voiced in the Open Letter that triggered the OFT enquiry. Please read them carefully.
Code of Conduct: Key Points
- Members shall notify prospective vendors of their RBCA status and provide them with a copy of the Code
- All agreed offers shall be accompanied by a standard Certificate of Sale & Rent Back Terms which is registered with the Association; vendors and their solicitors must also receive a signed copy as evidence in resolving possible future dispute
- The Certificate includes contact details, estimated market value, offer price, initial tenancy period, agreed rental period, monthly rent and calculation for future rent increases, as well as any additional charges and further conditions agreed
- Members must provide vendors an honest opinion of the market value and encourage them to seek an independent valuation
- Members shall not prevent vendors withdrawing from agreed offers prior to exchange of contracts, or impose costs for doing so
- Vendors can ask the Association to mediate a dispute by evidencing a signed Certificate; members agree that serious breach of the Code may result in compensation awarded up to the amount of the original discount below market value, plus RBCA's costs, less any benefit the vendor may already have enjoyed.
- A signed Certificate permits members to transfer leads to other RBCA members, but a vendor must grant express written permission before a member transfers a vendor's personal data to a non-member
The RBCA Code recommends members only agree offers that are subject to:
- A maximum 30% discount to market value, unless a specific reason is given and the vendor signs the Certificate twice including specifically where RBCA's recommendation is displayed; and
- A minimum rental renewal period of three years, using a six-month Assured Shorthold Tenancy agreement, subject to the agreed rent increase terms; and
- A maximum annualised rent increase equivalent to 2% over the rate of inflation as measured by the official Index of Retail Prices (RPI).
Membership Agreement: Key Points
- Members agree to abide by the Code and acknowledge that the Association may levy a fine for breaches of the Code
- Membership may be terminated by the Association if a member breaches the Code, becomes insolvent or appoints an administrator, or brings the Association into disrepute
- Members may advertise their commitment to the Code by using Association logos and strap lines together with their membership number
- Members' advertisements and websites must not promote availability of state benefits as a reason for selling a home, but may offer advice and assistance in determining whether the vendor would qualify for benefits
Download PDF version of Membership Agreement & Code
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