Agency work

Question 1

What are the four methods of sale?

Answer 1

Private treaty
informal tender
formal tender
auction

Question 2

What is a private treaty?
Advantage?
Disadvantage?

Answer 2

Parties free to negotiate in their own time.
Flexible, informal, no obligation to sell, confidential

Question 3

What is an informal tender?

Answer 3

Used when there is a high level of interest. Allows marketing period to come to an end with parties submitting offers for a property. Final round is where best & final bid is made

Question 4

What must an agent include in their letter for best & final bids?

Answer 4

1) date & time response required
2) Name & address of solicitor
3) escalator bids will not be accepted
4) Funding arrangements
5) conditions of bid
6) State that highest bid, or any bid does not need to be accepted

Question 5

What is a formal tender?

Answer 5

Often used my statutory bodies as has high levels of accountability.
One round of bidding, opened in front of client.
Full marketing prepared before bids.
Vendor can state bid has to be accepted.

Question 6

Why use auctioneering?

Answer 6

Certainty of sale
Short timescale for selling
Used for properties that have high demand
Used for unusual assets which are hard to gauge price

Question 7

Any disadvantages to auctioneering?

Answer 7

Can’t choose buyer
Intensive marketing
Cost of promotion
Lack of confidentially

Question 8

Auctioneering process?

Answer 8

1) TOE agreed in writing before
2) COI
3) Money laundering checks on purchaser & seller
4) all docs must be available before the sale
5) Reserve price agreed
6) contracts exchange at fall of gavel

Question 9

What is exchange of sale?

Answer 9

When contracts have been exchanged between parties.
Sellers solicitor holds signed transfer of title deeds.
Buyers solicitor holds deposit &/or mortgage offer

Question 10

What is completion of sale?

Answer 10

When sellers solicitor confirms all monies have been recieved