Last updated 01/05/2024
Purpose
‘Client money’ is defined as money that belongs to a client and not the organisation. Examples of client money include:
- Rent received from a client’s tenant awaiting transfer to the client.
- Future client disbursements, for example funds for property maintenance.
- Fees paid by the client to Settio for work not yet done by the organisation.
As Settio conduct services covered by the Estate Agents Act 1979 it must operate a distinct client account.
Settio Property Experience Ltd. hold a client account with Barclays Bank. Settio have informed Barclays that this account has been designated as their organisation’s client account. Settio has a client account paying-in book and cheque book and will keep all client account bank statements. All monies coming in and out of Settio’s client account will be supported by the relevant documentation, which includes organisational ledgers, receipts and invoices.
Fees paid to Settio for work not yet done
All payments including deposits made by a client to Settio in advance of any work to be done will be:
- Deposited into the client account and not the business account
- On completion of the work, the organisation will invoice the client providing details of the work done, the cost and confirmation that the relevant payment will be transferred from the client account to Settio’s business account.
- If a client withdraws their instructions, or if Settio withdraws from the work/s, the client will be invoiced for any work completed to date
- If the fee charged to the client by Settio, is less than the amount held in the client account, the balance will be returned to the client.
Advance payments to be made on behalf of a client (E.g. disbursements)
Wherever possible, disbursements and payment of fees to building managing agents, HMRC, local authorities and similar bodies will be made by the client direct to those authorities. If this is not possible, these payments will be paid into the client account until required and:
- These payments will remain in the client account until they are needed for the disbursement to the relevant authority.
- If Settio pays the client’s disbursement from the office account, then the payment will be transferred from the client account to the office account.
- If Settio receives an advance payment that is a mixture of the organisation’s fees and disbursements, the whole amount will be paid into the client account. Settio will then transfer the fee into the office account once the relevant work is completed.
- If a client withdraws their instructions or if Settio withdraw from the work before a disbursement has been paid, the client will be refunded all outstanding funds being held in the client account.
Rent paid to Settio on behalf of the client
Settio will collect rent for Landlords from their tenants.
- Rent will only be deposited into the client account and not the business account.
- The client account will be reconciled each week day and any amounts due to clients sent via electronic transfer or cheque.
- Transfers to the client will be accompanied by a monthly statement detailing all incoming rent and outgoing expenses including any fees and commissions due to Settio.
- Any fees and commissions due to Settio will be transferred from the client account to the business account.
- If Settio receives other moneys from a tenant for future disbursements these shall remain in the client account and be shown on the tenant’s ledger until required.
Refunds
- If a refund is due to the client, Settio will ensure the refund is paid from the correct bank account.
- Settio will keep a record of all refunds. This includes any credit note issued which will be produced whenever a client receives a refund.
- If Settio makes a refund to a client, a copy of the credit note issued to the client will be retained on the client’s case file in order for there to be a clear financial audit trail.
- Settio will provide all clients with statements of their financial transactions upon request.
- Settio will ensure that it keeps written details and records of all transfers into and out of the client account. This will be done using its accountancy package, client and office ledgers, receipts and invoices as appropriate.
Penalty for Delay and Withdrawal
At all times, all client money will be held in the client account and is available on demand to clients without undue delay. Any penalty for withdrawal of Client Money is limited, by ARLA Property Mark’s regulation, to interest earned.
- Settio will pay interest at the annual rate of 3% on all payments overdue to clients by ten days or more.
Download our Client Money Protection certificate now, by clicking the link below.
