Ethics Level 2 - Acting with a Duty of Care to the Public Flashcards
What does Rule 2 say?
Members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise
What is an example of level 2?
Only undertaking work that I feel I have the knowledge skills and resources to carry out competently
developing my knowledge and skills through careers by undertaking CPD
What is contained in the legal pack?
Title Plan, Title Register, EPC, Floor plans or an addendum.
What is an addendum?
An item of additional material that is typically used to correct something. If the particulars of sale or legal documents have changed materially since first marketing this should be brought to the attention of interested parties as soon as possible by a written update.
What forms an auction contract?
An auction contract or purchase agreement is made up of the seller, the buyer, the auction date, the lot number, the purchase price, the deposit, the buyers solicitors. The buyers fee invoice is also contained in this. You may also find the addendum.
Who signs the auction contract?
The seller authorises the auctioneer to sign this agreement on their behalf. This is agreed in the auction agency agreement which gives the auctioneer authority to exchange on behalf of the seller at auction if the price is at the reserve or higher. Any sale prior to or after auction would need the sellers permission in order to exchange on their behalf.
Unconditional contract?
The majority of sales are unconditional and at the fall of the gavel there is a binding contract. If the sale is subject to conditions the conditions attached to the sale should be clear in the terms of appointment. It should also be clearly stated in any marketing materials for the benefit of the bidders and buyer.
As most auction contracts are unconditional the buyer is relying on the information available before bidding and for the documentation to be as accurate and comprehensive.
What happens if you fail to complete?
The buyer will be served a notice to complete as per the General Auction Conditions of Sale, which is 10 working days. The seller’s solicitor would charge a fee (usually £500) to the buyer to do so. The notice would include a warning that the seller may exercise their rights to rescind the contract and retain the deposit should the buyer not complete in this period.
