*General Flashcards
What professional statements do you need to be aware of?
- RICS Real Estate Agency and Brokerage, 3rd Edition
2. RICS UK Commercial Real Estate Agency, 1st Editio
What does the RICS Real Estate Agency and Brokerage cover?
Professional statement which sets out 12 principles to shape fairness and transparency in real estate agency activities and sets out best practice to underpin the core principles.
Can you give me an example of some of the 12 principles included in the professional statement?
- Conduct business fairly and honestly
- Provide terms of engagements which are fair and clear
- Carry out work with due skill, care and dilligence
- Do not discriminate
- Ensure advertising is honest and truthful
- Have adequate PI
What topics are covered in the RICS Professional Statement?
- Ethics
- Securing instructions
- Acting for sellers
- Acting for the buyer
- Ending the instruction
- Safety and Security
- Agency management
Can you give me an example of some of the best practices contained in the Professional Statement?
- Ethics - Avoid conflicts of interest
- Securing instructions - agree terms of engagement which details fee liability, basis of agency cooling off period and whether you intend to offer services to other parties
- Marketing - particulars should be prepared by someone who has inspected the property and keeping records of viewings.
What does the RICS UK Commercial Real Estate Agency cover?
It assists RICS members to apply the 12 principles that shape fairness and transparency in a UK jurisdiction.
Can you give me some ethical examples members should follow under the UK Professional statement?
- Requires members to have regard to UK legislation when acting as an agent, such as the Estate Agents Act 1979, Money Laundering Regulations 2019, Consumer Protection Regulations 2008 and the Anti Bribery Act 2010.
- Have regard to RICS Rules of Conduct, avoid conflicts of interest and not accept gifts that could be construed as a bribe.
What basis of agency are you aware of?
- Sole selling rights
- Sole agency
- Joint agency
- Multiple agency
What is sole selling rights?
Where the instructed agent will be due a fee after contracts have been exchanged with a purchaser introduced by the agent, another agent or the seller.
What is sole agency?
Where the instructed agent will be due a fee after contracts have been exchanged with a purchaser introduced by the agent or another agent. No sale, no fee.
What is joint agency?
Where two agents are instructed and they agree to split the fee.
What is multiple agency?
Where multiple agents are instructed and the agent that introduces the purchaser will be due a fee after contracts have been exchanged.
What common law duties do you have as an agent?
- A duty of care - a duty of skill and care
- A duty of loyalty (confidentiality, trust)
- A duty to account in full (pass on all offers to your client)
What is dual agency?
Where the agent acts for the buyer and the seller, although this is prohibited by the RICS in commercial transactions.
What is RICS Conflict of Interest in Real Estate Agency?
Professional statement with mandatory requirements for members and firms to avoid conflicts of interest when transacting commercial real estate in the UK.