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APC TH > Estate Agency Legislation > Flashcards

Estate Agency Legislation Flashcards

1
Q

What is the main government legislation for agency?

A

Estate Agency Act 1979

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2
Q

What is the Estate Agency Act 1979 applicable to?

A

Disposal or acquisition of interest in land
Freehold property
Leasehold property, with a capital value
Land as well as buildings

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3
Q

What are the key principles of the Estate Agency Act 1979?

A

T - TERMS Clarity on terms of agency (s18 - specify all costs)
H - HONESTY Honesty and accuracy
I - INTERESTS Openness for Personal Interests (s21)
D - DISCRIMINATION Absence of discrimination
O - Tell clients all OFFERS
C - Agreement and liability for COSTS
C - Keep CLIENT’S money separate

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4
Q

What are the key sections within Estate Agency Act?

A

Section 18 – ToE, specify costs/fees, itemise all payments
Section 21 – disclosure of personal interests in particulars and HoTs

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5
Q

What are some key points highlighted with the Estate Agency Act?

A
  • Cooling off period = 14 days clients can change mind
  • Personal interest should be stated on particulars and HOTs
  • Specify nature of agency and selling rights to be agreed
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6
Q

What is an offence under the Estate Agency Act?

A

acting dishonestly, not providing clarity to the ToE, not disclosing a personal interest, not telling client about offers received

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7
Q

What are some penalties of the Estate Agency Act?

A

Prohibition order – stop agents practicing
Warning order – written order telling agent to not do it again and may include fine

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8
Q

Who policies the Estate Agency Act?

A

National Trading Standards Estate and Letting Agency Team (NTSEAT), working with local authorities

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9
Q

What is the RICS Professional Standard for Estate Agency?

A

RICS UK Commercial Estate Agency Professional Statement 2016

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10
Q

What does the RICS UK Commercial Estate Agency 2016 outline?

A

Standards that provide comprehensive advice in all areas of commercial estate agency work.

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11
Q

What are the 12 core principles of the UK Commercial Estate Agency Professional Statement 2016?

A
  1. Act honestly and professionally
  2. Carry out work with due skill, care and diligence
  3. Terms of business that are fair and clear
  4. Avoid conflicts of interest
  5. Not to discriminate
  6. All communications to be clear and timely
  7. Marketing material to be honest and truthful
  8. Clients’ money to be held in separate accounts
  9. Hold appropriate PII
  10. Make clear your obligations to your client / each party
  11. Realistic assessments of prices / rents
  12. All meetings, inspections and viewings to be carried out with clients wishes and safety
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12
Q

What regulation protects consumers in estate agency?

A

Consumer Protection Regulations 2008

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13
Q

What are some of the Consumer Protection Regulations 2008 rulings?

A
  • Duty of care = clients + all interested parties
  • Must not exert undue pressure on purchaser
  • Applies to all lettings and sales
  • Agents must declare everything, even if found out after commencement of process
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14
Q

Who policies the CPR 2008 and what are some punishments?

A

Trading Standards Office - £25,000 compensation, prohibition order, unlimited fine

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15
Q

What does the Misrepresentation Act 1967 relate to?

A

Relates to misrepresentation or false statement which has the effect of inducing a party to purchase. Vendor/agent can be sued for damages.

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16
Q

What can misrepresentation be?

A

Fraudulent, negligent & innocent
It is a Civil offence

17
Q

What are the three tests of reasonableness?

A

Foreseeability, proximity and fairness

18
Q

What is the key case law regarding misrepresentation?

A

Hedley Byrne v Heller 1964 - Marketing company attempted to sue a bank because bank had told them a client was financially sound and went bust two weeks later - bank won

19
Q

What does CBRE disclaimer for misrepresentation include?

A
  • All info is given in good faith and subject to change
  • Don’t rely on statements as fact
  • Purchasers must investigate and satisfy themselves information is correct
  • Areas and measurements are approximate
20
Q

What is the Land Registration Act 2002?

A

A framework for electronic property conveyancing

21
Q

Which properties must be registered with the Land Registry?

A

All FH, new leases over 7 years and existing leases with more than 7 years left

22
Q

What was the main change brought in by the Consumer Protection from Unfair Trading Regulations (CPRs) and Business Protection from Misleading Marketing Regulations 2008 (BPRs)?

A

Wider scope so cannot rely on caveat emptor principle.

23
Q

What is a typical legal process?

A

Once HoTs agreed, can take 8-12 weeks until exchange of contracts, after this, legally binding and deposits paid and a completion date should be set for the handing over of keys

24
Q

What can be used within the legal process to keep the buyer engaged?

A

Signposting e.g. valuation, building survey

25
Q

What sections of the Landlord and Tenant Act dictate being inside or outside the act?

A

Inside - S.24-28
Outside - S38A

APC TH (15 decks)

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