Disposals: Marketing The Property Flashcards
When marketing a property what laws must you comply with?
-Data Protection Act 1998
-Estate Agents Act 1979
-Landlord and Tenants (Covenants) Act 1995
-Misrepresentation Act 1967
-Consumer Protection from Unfair Trading Regulations 2008 and Consumer Rights Act 2015 (when dealing with consumers)
-Business Protection from Misleading Marketing Regulations 2008 (when dealing with businesses)
-Auctions (Bidding Agreements) Acts 1927 and 1969.
What should you do when taking on a subletting or assignment?
Terms of the lease - that the proposed lease is allowed and that proposed use is okay, check for any side agreements, any licensee on the property, service charges and provisions allocations.
What must you do on receipt of any agency instruction?
Inspect the property internally and externally. Only on special circumstances should a property be placed on the market without an inspection, the particulars must detail this.
What are you doing when providing a market appraisal?
Providing realistic and justifiable advice in regard to the likely selling price or rent based on your best professional judgement.
-A reflection of the current market conditions
What should you take into account when providing a market appraisal on a letting
Likely lease terms that wold be acceptable to the market.
What should be included in a market appraisal?
-Agents realistic and justifiable opinion of the FH/LH values based on the current market.
-Relevant comps
-Statement that the report is not a formal valuation
-Make clear you are providing an estimate of anticipated market price/rent
How would you undertake a market appraisal
-Inspect the whole property inside & out
-Measure up as accurate as possible (for sale/letting)
-Review general condition of the prop
-Ask the client Qs to establish that they are the legal owner & relevant issues.
-Find relevant comps in the local area
When reporting your advice to the client what should you state?
Recommended selling/letting price in writing, even if discussed verbally, where letting provide recommend lease terms.
Report needs to be fair, clear, ref current market conditions & estimated period to complete sale/letting.
Do you need to keep records for market appraisals?
Yes, same as standard jobs for the same period.
Should all relevant documentation be obtained prior to marketing the property?
Yes. If an EPC it must be instructed prior to marketing the property and then you should provide it by 7 days but you have 21 days after the expiry of the 7 days to obtain and list the EPC rating.
If there is a Green Deal what must you do?
Must advise potential buyers or tenants.
What should you do when selling an investment? (Or assignment)
Provide a copy of any of the relevant leases, service charge statements & relevant invoices.
What must you obtain prior to marketing a property
Clients permission and ensure that the client is the persons with the legal right to dispose of the prop, agreement to an appropriate marketing strategy.
What should be included within a the marketing strategy?
-Agents analysis of the current market (local & national)
-Agents recommend method of sale & reasoning
-Marketing material & budget
-Documents to be provided
-Recommended asking price & likely selling price
-Agents opinion on timescale
-Agent approach to viewing & key holding
-Data protection
-Mechanism for reviewing
Who should draft the particulars?
The person who inspected the prop, or they should enter the relevant info and review the particulars.
Particulars should include material facts including those about contamination & other issues of significance for potential buyers.
What do you need prior to making particulars live
Clients written approval
What should be included on the particulars?
-Location/address
-Availability, nature of services facilities, amenities
-Proximity to services, places, facilities or amenities
-Accommodation & size (state measuring practice)
-Fixtures/fittings
-Physical/ structural characteristics, form of construction - if a physical issue has to be stated
-Fitness for specific purpose
-Conformity or compliance with a specific scheme
-Survey, inspection, investigation if relevant, have permission and if you have seen the doc yourself.
-Grants/prizes for design
-History, age, use of land
-Price (if in physical print must be displayed with the date)
-Title type leasehold or freehold
-Leases & licenses, liability for service charge/repairs
-Business rates
-Exisiting planning consents
-Restrictive covenants/easements/rights of way
What should you ensure when online marketing?
-Transparency in the estate agency operation as a business
-Honesty in obtaining prop details (only advertising what you have been instructed)
-Quality in the conduct of your business
-Accuracy of the prop information
-Respect for the privacy and security of agents property and other users data.
What should you do in regards to boards?
-Must only erect a for sale/to let board on prop your instructed to sale/let.
-If a multiple occupation prop must make clear one referred to
-You must not replace another agents board with your own
-Can only put up a board with clients permission
What must you do with client keys?
Keep them coded in order to keep them secure.
What should you do once you have undertaken a viewing?
Record the viewing, advise client of viewing, feedback received (within 3 working days).
How is your personal safety at risk as an agent?
Visiting properties, meeting people you don’t know, travelling between visits. You should have a buddy so someone can check in on you.
What must you do when responding to questions from potential buyers
Advise them of all relevant issues to the best of your knowledge & not make any material omissions from the info you provide.
What must you make clear to the sellers prior to the disposal
-Who will have the liability for the fee
-Your recommended method and any appropriate alternatives risks, advantages & disadvantages of each approach
-Costs for both buyer & seller & implications for stamp duty
What must you do when agreeing a method of sale with the client?
Discuss all the options available to the seller, make clear the risks of each approach, specific issues stated;
-Who will have the liability for the fee
-Your recommended method & pros/cons/risks
-Costs for both buyer/seller & implications for stamp duty
What is the surveyors duty as an auctioneer
-Surveyor has a duty to both parties
-Have power to exchange contracts, binding the seller and buyer
-Should act inline with Auctioneers selling real estate guidance note
-Should refer to Auctioneers selling real estate guidance note
What must you do as the agent when selling by private treaty
-Take reasonable steps to find out source and availability of funds
-Advise client of all offers received as soon as reasonably possible & in writing providing enough details for the client to understand strengths/weaknesses of the offer
Define how you must not discriminate against any prospective purchaser/lesse
-Failing to inform client of offer
-Informing the client of offers slower than you have with other offers
-Misrepresenting the nature of the offer/revival offer
-By sending prop details to clients who’ve promised to use your services first
-Making it a condition that the potential buyer must use a specific service from your company or anyone else
How quickly should you report an offer?
24hrs
What should you include when reporting an offer?
-Time/dat of offer
-Amount
-Any conditions attached
-Source of funds
-Any services offered by you to the buyer
-Any other factors that may influence the purchase
In accordance with the Fraud Act 2006, what must you not do?
Make up fake offers.
In a bidding situation can you discuss bids received with interested parties?
No, but you can give an indication i.e offer received are far in excess of the asking price or your offer is well below offers received.
What should you do during the negotiation period?
-Keep client informed
-Seek their consent
-Keep them informed of all submitted/amended offers
What must you do when an offer is accepted?
Generate HoTs, send to both parties and their legal representatives.
What should you do if a purchaser seeks other services off you, whilst still purchasing?
Advise the client (the vendor) that your services have been requested and what for.
What must you do when selling by tender?
-Must clearly identify any fee liability for buyers on sale/letting particulars
-All offers must be advised to your client unless otherwise specified in writing
-Bids form should be attached to the particular & instructions on how to submit bid clear & deadline
-Must state if formal or informal
What should prospective tenants know prior to making an offer to rent?
-Length & break terms
-Will they have security of tenure
-Rent review arrangements
-Rights to assign, sublet etc…
-Repairing obligations
-VAT status of prop