Estate Agency

Question 1

The RICS Blue Book provides a code of practice in all aspects of marketing for which types of property?q

Answer 1

Residential

Question 2

What are the guidelines for commercial property contained within?

Answer 2

RICS Commercial Real Estate Agency and Brokerage Standards 2014 (The Purple Book).

Question 3

What is the main legislation relating to Estate Agency?

Answer 3

Estate Agents Act 1979

Question 4

The Estate Agents Act 1979 states that all _______ should be agreed in advance in writing within terms of business.

Answer 4

Costs/fees

Question 5

The Estate Agency Act also states that ____ rights agreed should be specified.

Answer 5

Selling

Question 6

______ interests should be disclosed.

Answer 6

Personal

Question 7

RICS rules relating to the handling of clients’ _____ should be followed.

Answer 7

Money

Question 8

Who polices the Estate Agents Act 1979?

Answer 8

Trading Standards Office of Local Authority.

Question 9

A ______ order is a penalty that stops an agent from practising.

Answer 9

Prohibition

Question 10

What less punitive order gives a written warning not to undertake an action again?

Answer 10

Warning order.

Question 11

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?

Answer 11

14 days

Question 12

What regulations replaced the Property Misdescriptions Act 1991 and offers consumer protection?

Answer 12

Consumer Protection Regulations

Question 13

Consumer Protection Regulations prohibit _______ business.

Answer 13

Unfair

Question 14

Who polices the Consumer Protection Regulations?

Answer 14

Trading Standards

Question 15

What is the maximum penalty for breach of CPRs?

Answer 15

Unlimited fine

Prohibition order

2 years in prison

Compensation to claimant up to £25,000

Question 16

Regulation apply to all _____ and _____.

Answer 16

Lettings and sales

Question 17

Agents have a duty of care to ______ and ___ __________ _______.

Answer 17

Clients, all interested parties

Question 18

What must agents declare about properties?

Answer 18

Everything known

Question 19

Agents must not exert ______ ________ on potential buyers.

Answer 19

Undue pressure

Question 20

Any ________ can lead to a breach of the regulations.

Answer 20

Omission

Question 21

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?

Answer 21

Misrepresentation Act 1967

Question 22

What is the penalty for breach of the Misrepresentation Act 1967?

Answer 22

Agent sued for damages

Contract rescinded

Question 23

Breach of the Misrepresentation Act 1967 is a ______ offence and is actionable as ____.

Answer 23

Civil, tort.

Question 24

What has the agent got a duty of care to check?

Answer 24

Advice/information/opinion is reliable

Question 25

What clauses may be effective in protecting the vendor and his agent is fair and reasonable?

Answer 25

Exclusion (disclaimer)

Question 26

What are the three tests created by Hedley Byrne v Heller (1964) relating to liability to negligent statements?

Answer 26

1. Foreseeability - damage reasonably foreseeable.
2. Proximity - relationship can be characterised in law as being sufficiently proximate.
3. Fairness - it is regarded as fair, just and reasonable for such a duty of care to arise.

Question 27

What does caveat emptor mean?

Answer 27

Let the buyer beware

Question 28

Caveat emptor is the staring point when discussing who has the responsibility for the disclosure of _________.

Answer 28

Information

Question 29

The overriding common law principle of caveat emptor means that the buyer should _____ ____ on all matters relating to the property.

Answer 29

Satisfy itself