Estate Agency

Question 1

What is the RICS Guidance relating to the Estage agency?

Answer 1

RICS Global Resl Estate Agency and Brokerage Professional Statement (2016)

UK version is very similar and is called:
RICS Prof Statement: UK Commercial Estate Agency (2016)

Question 2

What is included / what is the structure of the UK RICS Prof Statement: UK Commercial Estate Agency (2016)?

Answer 2

Provides mandatory standards for RICS members involved in agency and real estate management. Along with 12 core principles.

Question 3

What are the 12 core principles of the RICS Prof Statement: UK Commercial Estate Agency (2016)?

Answer 3

1. Act in an honest and professional manner
2. To provide honest marketing / advertising
3. Carry out work with due diligence and care
4. To not discriminate
5. To avoid COI
6. Provide clear/fair TOB to clients
7. Ensure clear/fair communications with your client
8. Hold client money seperately and is covered by adequate insurance
9. Have appropriate PII
10. Undertake viewings/inspections/meetings as the client wishes but having regard to security and personal safety
11. Give realistic assessments of rents/selling prices/financial costs, having regard to market evidence and using professional judgement
12. Make it clear the identity of your client and ensure all parties are clear of your obligations to each party

Question 4

The RICS Prof Statement: UK Commercial Estate Agency (2016) also provides advice in what key areas?

Answer 4

1. Acting ethically -> ie COI/ gifts / incentives
2. Securing instructions –> AML, types of agency
3. Marketing –> legal requirements
4. Implementing the disposal –> methods of sale and legal requirements
5. Acquistion of the property –> COI, clear comms

Question 5

Is there any RICS Estate Agency guidance for Resi?

Answer 5

Yes, the RICS Professional Statement: UK Residential Estate Agency (2017)

Question 6

What does the RICS Professional Statement: Residential Estate Agency (2017) include?

Answer 6

It is mandatory and covers standards and ethics, property marketing, relevant legislation, before securing instructions and ending the instruction.

Question 7

What are some of the Key legislation regarding estage agency?

Answer 7

Estate Agencts Act (1979)

Misrepresentation Act (1967)

Conusmer Protection Regulations (2008) from Unfair Trading Regulations

Question 8

Can you tell me more about the Estate Agencts Act 1979

Answer 8

Covers disposal or acquisition of an interest in land, freehold property, leasehold property with a capital value and land as well as buildings.

They most important points it covers are:
1. To specify all costs/fees in advance in TOB (s.18)

2. Disclose personal interests ie connected person like business associate/personal relation (s.21).
   any personal interest at min
   referenced in HOTs and
   comms to be cut if
   appropriate
3. Specify nature of the agency ie sole, joint, multiple
4. Advise clients of services available ie financial advice
5. misrepresentation of offers/interest - you can only tell the truth on offers received
6. Follow RICS rules on handling client money
7. Follow procedures when offers are received in writing

Question 9

Non compliance penalties for Estate Agents Act 1979?

Answer 9

Negative licensing
Prohibiton order
Warning order