Estate Agency Flashcards
The RICS Blue Book provides a code of practice in all aspects of marketing for which types of property?q
Residential
What are the guidelines for commercial property contained within?
RICS Commercial Real Estate Agency and Brokerage Standards 2014 (The Purple Book).
What is the main legislation relating to Estate Agency?
Estate Agents Act 1979
The Estate Agents Act 1979 states that all _______ should be agreed in advance in writing within terms of business.
Costs/fees
The Estate Agency Act also states that ____ rights agreed should be specified.
Selling
______ interests should be disclosed.
Personal
RICS rules relating to the handling of clients’ _____ should be followed.
Money
Who polices the Estate Agents Act 1979?
Trading Standards Office of Local Authority.
A ______ order is a penalty that stops an agent from practising.
Prohibition
What less punitive order gives a written warning not to undertake an action again?
Warning order.
What cooling off period is allowed for clients who change their minds and do not want to instruct the agent in line with consumer protection regulation?
14 days
What regulations replaced the Property Misdescriptions Act 1991 and offers consumer protection?
Consumer Protection Regulations
Consumer Protection Regulations prohibit _______ business.
Unfair
Who polices the Consumer Protection Regulations?
Trading Standards
What is the maximum penalty for breach of CPRs?
Unlimited fine
Prohibition order
2 years in prison
Compensation to claimant up to £25,000
Regulation apply to all _____ and _____.
Lettings and sales
Agents have a duty of care to ______ and ___ __________ _______.
Clients, all interested parties
What must agents declare about properties?
Everything known
Agents must not exert ______ ________ on potential buyers.
Undue pressure
Any ________ can lead to a breach of the regulations.
Omission
Which Act relates to a misrepresentation or false statement of fact made by a party during pre-contractual negotiations which has the effect of inducing the party to purchase?
Misrepresentation Act 1967
What is the penalty for breach of the Misrepresentation Act 1967?
Agent sued for damages
Contract rescinded
Breach of the Misrepresentation Act 1967 is a ______ offence and is actionable as ____.
Civil, tort.
What has the agent got a duty of care to check?
Advice/information/opinion is reliable
What clauses may be effective in protecting the vendor and his agent is fair and reasonable?
Exclusion (disclaimer)
What are the three tests created by Hedley Byrne v Heller (1964) relating to liability to negligent statements?
- Foreseeability - damage reasonably foreseeable.
- Proximity - relationship can be characterised in law as being sufficiently proximate.
- Fairness - it is regarded as fair, just and reasonable for such a duty of care to arise.
What does caveat emptor mean?
Let the buyer beware
Caveat emptor is the staring point when discussing who has the responsibility for the disclosure of _________.
Information
The overriding common law principle of caveat emptor means that the buyer should _____ ____ on all matters relating to the property.
Satisfy itself
