Form 554, Schedule - Tenant Customer Service Agreement

What Is a Form 554, Schedule - Tenant Customer Service Agreement

Form 554, Schedule - Tenant Customer Service Agreement, is an official document used in real estate transactions to outline the terms and conditions of the service agreement between tenants and property management. This form is particularly common in Ontario and part of the Purchase and Sale Agreement. It ensures both parties are clear on their obligations, rights, and the specific details regarding services provided by the landlord or property management company.

When to Use Form 554, Schedule - Tenant Customer Service Agreement

Form 554, Schedule - Tenant Customer Service Agreement is used in several key situations:

• When entering into a new tenancy agreement to formalize the services provided by the landlord.
• When renewing an existing lease and updating or reaffirming the service agreement.
• When there is a change in property management new service terms need to be established.
• When a tenant requests additional services or modifications to existing services.
• When resolving disputes by clearly outlining the responsibilities and services agreed upon by both parties.

How To Fill Out Form 554, Schedule - Tenant Customer Service Agreement

Filling out Form 554, Schedule - Tenant Customer Service Agreement involves several steps:

Property and Parties Information

• Enter the full names of the buyer (tenant) and seller (landlord).
• Provide the property address and other identifying details.

Agreement Date

• Specify the date the agreement is being made.

Initials

• Both parties must initial the form to acknowledge and agree to the terms.

Deposit Terms

• Detail the deposit amount and terms, including interest provisions, as per the Real Estate and Business Brokers Act 2002.
• Include any specifics regarding the holding and eventual disbursement of deposit interest.

Interest on Deposit

• State the conditions under which interest on the deposit will be paid to the tenant.
• Include the procedure for providing the tenant’s Social Insurance Number (SIN) for T5 purposes if interest exceeds $150.00.

Administrative Fee

• Outline the handling of interest amounts less than $150.00, indicating the brokerage will retain it.

Banking Days Definition

• Clarify what constitutes "banking days" or "business days" within the context of the agreement.

Additional Terms

• List any additional terms, including the condition of chattels included in the purchase price and procedures if the buyer fails to provide a negotiable deposit cheque within the stipulated time.

When to File Form 554, Schedule - Tenant Customer Service Agreement

Form 554, Schedule - Tenant Customer Service Agreement should be filed under the following circumstances:

• At the commencement of a new lease agreement to formalize the service terms.
• Upon renewal of an existing lease, update or reconfirm service arrangements.
• When there is a change in the property management, ensure new terms are documented.
• Whenever amendments to the service agreement are made, such as adding or altering services provided to the tenant.
• During the resolution of disputes, document the agreed-upon responsibilities and services between the landlord and tenant.

Following these steps and guidelines, landlords and tenants can ensure a mutual understanding of the service terms, fostering a harmonious rental relationship.