Estate Agency AI Q's

Question 1

What is the purpose of the RICS Global Real Estate Agency and Brokerage Professional Statement 2016?

Answer 1

To establish mandatory standards for RICS members in agency and real estate management.

This statement aligns with the UK specific Professional Statement.

Question 2

How many core principles must agents observe according to the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 2

TWELVE core principles - essential for maintaining ethical standards in real estate practice

These principles are essential for maintaining ethical standards in real estate practice.

Question 3

What is the first core principle agents must observe of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 3

Act in an honest, fair, transparent and professional manner.

Question 4

What does the second core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016 emphasize?

Answer 4

Carry out work with due skill care and diligence.

Question 5

What must clients be provided with according to the third core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 5

Clear/fair terms of business and details of the firm’s CHP.

Question 6

What does the fourth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016 advise regarding conflicts of interest?

Answer 6

Do the utmost to avoid conflicts of interest, deal with them openly and fairly.

Question 7

What is prohibited under the fifth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 7

Discrimination unfairly in any dealings.

Question 8

What are all communications with clients required to be according to the sixth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 8

Fair, decent, clear, timely and transparent.

Question 9

What does the seventh core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016 state about advertising and marketing material?

Answer 9

All advertising and marketing material is honest and truthful.

Question 10

What must be done with client money as per the eighth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 10

Held separately and covered by adequate insurance.

Question 11

What type of insurance must agents hold according to the ninth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 11

PII/errors or omissions insurance to protect clients from loss through negligence.

Question 12

What must agents clarify regarding their clients as per the tenth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016?

Answer 12

The identity of the client and ensure all parties are clear of obligations.

Question 13

What does the eleventh core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016 require agents to provide?

Answer 13

Realistic assessments of prices/rents/financial costs based on market evidence and professional judgement.

Question 14

According to the twelfth core principle of the RICS Professional Statement: UK Commercial Estate Agency 2016, how should meetings, inspections, and viewings be conducted?

Answer 14

In accordance with the client’s wishes, considering security and personal safety.

Question 15

What key area of estate agency involves having a duty of care?

Answer 15

Acting ethically.

Question 16

What does securing instructions in estate agency involve?

Answer 16

Legal requirements, AML checks, types of agency, and H&S.

Question 17

What is included in the marketing of a property?

Answer 17

Legal requirements, market appraisals, and preparing particulars.

Question 18

What does implementing the disposal refer to?

Answer 18

Methods of sale and legal requirements.

Question 19

What is important in the acquisition of property?

Answer 19

Managing conflicts of interest, client communication, and progressing purchases.

Question 20

What is the Estate Agents Act 1979 primarily concerned with?

Answer 20

Disposal or acquisition of an interest in land, freehold property, leasehold property with a capital value, land and buildings

The Act regulates the actions and responsibilities of estate agents.

Question 21

Name the seven key principles established by the Estate Agents Act.

Answer 21

• Clarity as to terms of the agency (section 18)
• Honesty and accuracy
• Agreement and liability for costs
• Openness regarding personal interests (Section 21)
• Absence of discrimination
• Legal obligation to tell the client about offers received
• Keep clients’ money separate

Question 22

What must be specified in writing according to the Estate Agents Act?

Answer 22

Costs/fees in advance

All payments must be itemized; global budgets are not allowed.

Question 23

What are the types of agency rights mentioned in the Estate Agents Act?

Answer 23

• Sole selling rights
• Sole agency rights
• Joint sole agency
• Multiple agency

Question 24

What must agents disclose regarding personal interests?

Answer 24

Any personal interest declared on the heads of terms as a minimum

A connected person must be disclosed (section 21).

Question 25

True or False: Agents are allowed to mislead clients about offers received.

Answer 25

False

Question 26

What is the role of the National Trading Standards Estate & Letting Agency Team (NTSEAT)?

Answer 26

Enforce the Estate Agents Act 1979 and Tenant Fees Act 2019 ## Footnote They police compliance and may impose penalties.

Question 27

What type of licensing can estate agents face penalties under the Estate Agents Act?

Answer 27

Negative licensing ## Footnote This means the right to be an estate agent can be revoked.

Question 28

What does the Estate Agents (Undesirable Practices) (no 2) Order 1991 require agents to do?

Answer 28

Inform clients about services offered to prospective purchasers at the same time as terms of business ## Footnote Unless these services are offered free of charge.

Question 29

What must be provided in writing according to the Estate Agents (Provision of Information) Regulations 1991?

Answer 29

* The service to be provided * Remuneration

Question 30

What is the maximum 'cooling off' period allowed for clients who change their minds regarding instructing an agency?

Answer 30

Up to 14 days

Question 31

What replaced the Property Misdescriptions Act (PMA) in October 2013?

Answer 31

Consumer Protection Regulation (CPRs) under the Unfair Trading Regulations, 2008

Question 32

What do the Consumer Protection Regulations prohibit?

Answer 32

Unfair business to customer commercial practices ## Footnote These regulations apply to lettings and sales.

Question 33

List the key facts regarding agents' responsibilities under the Consumer Protection Regulations.

Answer 33

* Regulations apply to all lettings and sales * Agents have a duty of care to clients and all interested parties * Agents must declare everything known about a property – good and bad * Agents must not exert undue pressure on potential buyers * Any omissions can lead to a breach of regulations * Full due diligence is required for all new instructions * Must be validated by the client * Policed by the Trading Standards Office

Question 34

What does 'Caveat Emptor' mean?

Answer 34

'Let the buyer beware' ## Footnote It indicates the buyer's responsibility for the disclosure of information.

Question 35

What does the Consumer Rights Act 2015 amend?

Answer 35

Existing consumer protection law and consolidates law related to unfair terms and contracts between businesses and consumers

Question 36

What must letting agents clearly display according to the Consumer Rights Act 2015?

Answer 36

Summary of charges in the office and on the website

Question 37

What is the penalty for breaches under the Consumer Rights Act 2015?

Answer 37

Fine up to £5k per breach

Question 38

What does the Misrepresentation Act 1967 address?

Answer 38

Misrepresentation of fact made by a party during pre-contractual enquiries which causes a party to purchase ## Footnote This act allows for damages and contract rescission when misrepresentation occurs.

Question 39

Can a vendor and agent be sued under the Misrepresentation Act 1967?

Answer 39

Yes, they can be sued for damages and the contract can be rescinded ## Footnote This is due to the civil nature of the offence, which is actionable as tort.

Question 40

What types of misrepresentation are recognized under the Misrepresentation Act 1967?

Answer 40

Fraudulent, negligent, or innocent ## Footnote Each type has different implications for liability and damages.

Question 41

What is the duty of care of an agent under the Misrepresentation Act?

Answer 41

To ensure advice/information is reliable ## Footnote This duty is crucial to avoid liability for negligent statements.

Question 42

What case relates to liability for negligent statements?

Answer 42

Hedley Byrne & Co Ltd v Heller & Partners (1964) ## Footnote This case established the tests for determining liability in negligent misrepresentation.

Question 43

What are the three tests established by the Hedley Byrne case?

Answer 43

* Foreseeability * Proximity * Fairness ## Footnote These tests help decide liability for negligent statements.

Question 44

What does the Tenant Fees Act 2019 aim to improve?

Answer 44

Transparency in the residential lettings market ## Footnote This act bans various fees often charged to residential tenants.

Question 45

What is the purpose of the Regulation of Property Agents (RoPA)?

Answer 45

To regulate estate agents and letting/managing agents in England ## Footnote This includes mandatory qualifications and a code of practice for agents.

Question 46

What are the priorities outlined in the RoPA report?

Answer 46

* Transparency of charges * Disclosing conflicts of interests * Administration of charges ## Footnote These priorities aim to enhance fairness in the property market.

Question 47

What is required for non-residential boards over 2 sq m according to the Town and Country Planning Regulations?

Answer 47

Planning consent This regulation also applies to illuminated boards, remote boards, and boards on listed buildings. ## Footnote This regulation also applies to illuminated boards, remote boards, and boards on listed buildings.

Question 48

How long must marketing signage be removed after a transaction?

Answer 48

14 days ## Footnote Local planning authorities are responsible for policing this requirement.

Question 49

What is the maximum projection allowed for marketing signage from a building face?

Answer 49

1m ## Footnote The height must not exceed 4.6m from the ground.

Question 50

True or False: The RoPA report proposes that all property agents should be regulated by an independent regulator.

Answer 50

True ## Footnote This regulation aims to ensure professionalism in the property industry.

Question 51

What is the Misrepresentation Act and when does it apply?

Answer 51

Applies to false statements made during pre-contractual enquiries by the vendor or their agent to the proposed purchaser. ## Footnote Civil offence actionable by tort, with limitations by effective disclaimer clause.

Question 52

What are the penalties for violation of the Misrepresentation Act?

Answer 52

Sued for financial damages and/or contract rescinded. ## Footnote This refers to legal consequences for making false statements.

Question 53

What does the Estate Agents Act 1979 regulate?

Answer 53

Regulates the sale or purchase of freehold or leasehold properties with a capital value. ## Footnote Includes specific sections on terms of business and declaration of personal interests.

Question 54

What actions can lead to penalties under the Estate Agents Act?

Answer 54

Acting dishonestly, not providing clarity to terms of engagement, or not disclosing personal interest. ## Footnote Includes failing to inform clients about received offers.

Question 55

What are the penalties for violations of the Estate Agents Act?

Answer 55

Warning order, prohibition order, and/or fine. ## Footnote These penalties are aimed at maintaining ethical conduct in real estate transactions.

Question 56

When do the Consumer Protection Regulations 2008 apply?

Answer 56

During the entire agency sales and lettings process. ## Footnote This includes all interactions with customers throughout the sales process.

Question 57

What constitutes a criminal offence under the Consumer Protection Regulations?

Answer 57

Not treating customers fairly and/or providing misleading marketing information. ## Footnote This emphasizes the importance of honesty in advertising and customer relations.

Question 58

What are the potential penalties for violating the Consumer Protection Regulations?

Answer 58

Unlimited fine, prohibition order, and prison up to 2 years. ## Footnote Severe consequences reflect the seriousness of consumer protection.

Question 59

List other relevant legislation affecting real estate.

Answer 59

* Bribery Act 2010 * Control of Asbestos Regulations 2012 * General Data Protection Regulation and Data Protection Act 2018 * Equality Act 2010 * Energy Act 2011 amended for EPCs * Health and Safety Act 1974 as amended * Land Registration Act 2002 * Proceeds of Crime Act 2002 * Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 * Sanctions and Anti-Money Laundering Act 2018 * Town and Planning (Control of Advertisement) (England) Regulations 2007 ## Footnote Each of these acts serves to regulate various aspects of property management and transactions.

Question 60

What is the VAT implication for landlords?

Answer 60

A landlord can elect a property to charge VAT to recover VAT on costs expended. ## Footnote This choice affects the financial arrangements between landlords and tenants.

Question 61

What are Transfer of Going Concern (TOGC) purchases?

Answer 61

Not treated as a supply of goods or services for VAT purposes. ## Footnote This can reduce VAT liability in property sales.

Question 62

What are capital allowances?

Answer 62

Tax relief upon capital expenditure for the construction or purchase of commercial property. ## Footnote They can provide substantial savings on fixtures like air conditioning and lifts.

Question 63

What does the Land Registration Act 2002 provide?

Answer 63

Framework for electronic property conveyancing and mandates registration of certain properties with the Land Registry. ## Footnote It aims for comprehensive registration of all property by 2030.

Question 64

What are the requirements for compliant plans in freehold transactions?

Answer 64

* Drawn to metric scale (1:100 or 1:200) * Have a scale measurement bar * Scale noted on the plan * Include a 1:1250 scale location map * Full address including post code * A north point * Demise in red outlined on the inside edge of the property ## Footnote These details ensure clarity and accuracy in property transactions.

Question 65

What significant changes did the Finance Act 2019 introduce regarding capital allowances?

Answer 65

Includes significant changes to Enhanced Capital Allowances and Structures and Building Allowance. ## Footnote These changes impact the tax relief available for property investments.