Case Study - Allens Green Farm

Question 1

How did you ensure there was no conflict of interest?

Answer 1

I carried out a conflict of interest check on our internal database.

Question 2

How did you determine the acreage and boundary of the holding?

Answer 2

The boundary is compliant to that of the Land Registry Title and was converted onto a plan using GIS GPS software.

Question 3

What condition was the Farmhouse & Annexe in?

Answer 3

I did not carry out a structural survey of the property, however, it was in need of modernisation/renovation internally.

Question 4

What does fully equipped steading mean?

Answer 4

A steading that is suitably equipped to carry out the appropriate range of agricultural purposes for the holding.

Question 5

What was the significance of the Property not being in the National Park?

Answer 5

Much more freedom in terms of what can and cant be carried out on the property. Such as planning, public footpaths, nature and habitat creation and maintenance. National Parks and Access to the Countryside Act 1949.

Question 6

What is the significance of the transport links to the Property?

Answer 6

Potentially commutable to Newcastle or Carlisle if member of family is not working on the farm. Accessible for deliveries and loads leaving the farm.

Question 7

What were the key points of the CCL and why was this important?

Answer 7

1) The Client & Anti Money Laundering
2) Who is Handling the Work
3) The Scope of Work & Instruction
4) The Fee
5) Timescale
6) Disbursements
7) Complaints Handling Procedure

Sets out the basis of instruction and can be referred back to if there is any misunderstanding during the instruction.

Question 8

What are the key points of GFW’s TOB?

Answer 8

1) Confirmation of the Client
2) Agents fees & charges
3) Withdrawal charges
4) Sole selling rights
5) Marketing, sales boards etc
6) Money handling
7) Complaints handling procedure
8) Consumer Protection From Unfair Trading Regulations 2008

Sets out the basis of instruction and can be referred back to if there is any misunderstanding during the instruction.

Question 9

Why is it important to specify the scope of work, agreed fee and timescales?

Answer 9

To manage the Clients expectations and set out a foundation for the instruction.

Question 10

Was the fee on a commission % basis? What are the advantages and disadvantages of this?

Answer 10

Yes on 2% of the final sale price, inclusive of VAT.

Advantages, there is transparency to the Client, no dispute over time sheets.

Disadvantages, it is performance related and may not reflect the time spent on the job.

Question 11

What is a complaints handling procedure?

Why is it important?

What are the key points?

Answer 11

A mechanism for Clients to register their dissatisfaction with either an employee or a service provided. The CPH must meet the requirements of the RICS Rules of Conduct. It must include an Alternative Dispute Resolution.

It is important to as it allows the Client to feel protected and confident about the service they are receiving.

GFW will acknowledge receipt of your complaint within 7 days and will provide an update within 28 days when you can expect to receive a written response.

Question 12

What are the key points of the Vendor Questionnaire and why is it important?

Answer 12

The Key Points:

1) Information on the property & tenure
2) Services
3) Rights over land and access
4) Planning history
5) Covenants, easements, wayleaves
6) Leasehold information
7) Improvements & alterations
8) Guarantees

It is important as it is part of the Consumer Protection From Unfair Trading Regulations 2008. It helps the agent understand the property they are dealing with.

Question 13

What are the key points of the Consumer Protection From Unfair Trading Regulations 2008?

Answer 13

They protect consumers from unfair or misleading trading practices and ban misleading omissions and aggressive sales tactics.

Question 14

Why is it important to ascertain the Vendor Questionnaire details and how was this checked?

Answer 14

Ultimately those details for the basis of the sale, they are a required part of the agents due diligence on the property. All the information must be checked independently by the agent on Land Registry titles etc.

Question 15

Why were anti money laundering checks not required - how long are they valid for?

Answer 15

They had been carried out within the past 6 months - GFW policy matches that.

Question 16

How is the data stored securely?

What legislation relates to the storage of data and how long can it be stored for?

Answer 16

GFW run a paperless policy where possible, utilising a secure internal database for all information storage.

The Data Protection Act 2018 - 6 years from when the service was provided.

Question 17

How do you check HM Land Registry ownership?

Answer 17

Obtaining the title and checking the proprietor, I would request the title deeds if unregistered.

Question 18

What signed Client documents were received and why is this important?

Answer 18

It confirms the instruction and makes them legally valid and binding on those parties.

Question 19

How did you inspect the property?

Answer 19

I thoroughly walked then entire property with the Client, identifying the location of boundaries, services, differing land types etc. I used GPS to mark significant points and took the appropriate PPE steps.

Question 20

Why is the method of sale important?

Answer 20

It has a significant bearing on the outcome of the sale and essentially forms the backbone of the instruction.

Question 21

What is gazumping?

Answer 21

When someone else makes a higher offer on a house that is already under offer.

Question 22

How can late withdrawals be mitigated?

Answer 22

Sufficient due diligence and information provided to both parties initially. Make sure a property will add up in a security valuation.

Question 23

What is a special purchaser?

Answer 23

A particular buyer for whom a particular asset has a special value because
of advantages arising from its ownership that would not be available to
other buyers in a market.

Question 24

What is the hierarchy of evidence for the comparable method?

Answer 24

1) Category A – direct comparables
2) Category B – general market data
3) Category C – other sources

Question 25

What is marriage value and how is it calculated?

Answer 25

Arises from the combination of two or more assets to create a new asset that has a higher value than the sum of the individual assets.

Question 26

If you were to repeat the instruction, what would you do differently?

Answer 26

1) Potentially look to launch the property earlier having known the level of interest and nature of the offer accepted.
2) Further advise the Client on the possible delays that come from accepting an offer subject to another property sale. Maybe using Private Treaty to our advantage with flexibility to negotiate on that to reflect the delay.