*General Flashcards

1
Q

What professional statements do you need to be aware of?

A
  1. RICS Real Estate Agency and Brokerage, 3rd Edition

2. RICS UK Commercial Real Estate Agency, 1st Editio

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2
Q

What does the RICS Real Estate Agency and Brokerage cover?

A

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.

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3
Q

Can you give me an example of some of the 12 principles included in the professional statement?

A
  1. Conduct business fairly and honestly
  2. Provide terms of engagements which are fair and clear
  3. Carry out work with due skill, care and dilligence
  4. Do not discriminate
  5. Ensure advertising is honest and truthful
  6. Have adequate PI
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4
Q

What topics are covered in the RICS Professional Statement?

A
  1. Ethics
  2. Securing instructions
  3. Acting for sellers
  4. Acting for the buyer
  5. Ending the instruction
  6. Safety and Security
  7. Agency management
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5
Q

Can you give me an example of some of the best practices contained in the Professional Statement?

A
  1. Ethics - Avoid conflicts of interest
  2. 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
  3. Marketing - particulars should be prepared by someone who has inspected the property and keeping records of viewings.
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6
Q

What does the RICS UK Commercial Real Estate Agency cover?

A

It assists RICS members to apply the 12 principles that shape fairness and transparency in a UK jurisdiction.

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7
Q

Can you give me some ethical examples members should follow under the UK Professional statement?

A
  1. 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.
  2. Have regard to RICS Rules of Conduct, avoid conflicts of interest and not accept gifts that could be construed as a bribe.
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8
Q

What basis of agency are you aware of?

A
  1. Sole selling rights
  2. Sole agency
  3. Joint agency
  4. Multiple agency
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9
Q

What is sole selling rights?

A

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.

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10
Q

What is sole agency?

A

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.

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11
Q

What is joint agency?

A

Where two agents are instructed and they agree to split the fee.

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12
Q

What is multiple agency?

A

Where multiple agents are instructed and the agent that introduces the purchaser will be due a fee after contracts have been exchanged.

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13
Q

What common law duties do you have as an agent?

A
  1. A duty of care - a duty of skill and care
  2. A duty of loyalty (confidentiality, trust)
  3. A duty to account in full (pass on all offers to your client)
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14
Q

What is dual agency?

A

Where the agent acts for the buyer and the seller, although this is prohibited by the RICS in commercial transactions.

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15
Q

What is RICS Conflict of Interest in Real Estate Agency?

A

Professional statement with mandatory requirements for members and firms to avoid conflicts of interest when transacting commercial real estate in the UK.

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16
Q

What should you do if acting for both buyer and seller (dual agency)?

A

Prohibited in the UK.

In jurisdictions where it is permitted, the agent must seek consent from both buyer and seller.

17
Q

What should you do when you have received instructions from different clients competing for similar property (multiple introductions).

A
  1. Agent must seek consent in writing from the new client.
  2. Make it clear in ToE whether appointment is exclusive or non exclusive.
  3. If exclusive, the agent can no longer proceed with the instruction. If non exclusive, the agent must ensure information barriers are in place to protect client confidentiality.
18
Q

What should an agent do when approached to provide incremental advice?

A
  1. Seek consent from client if it is an exclusive instruction.
  2. If a non exclusive instruction, inform the client and then ensure information barriers are in place to maintain client confidentiality.
19
Q

What should you include in your ToE when conducting agency instructions?

A
  1. Basis of agency
  2. Fee and when the fee becomes payable
  3. Marketing costs and disbursements
  4. Confirmation of no conflicts of interest
  5. Money laundering requirements
  6. Details of complaints handling procedure
20
Q

What actions would you taken when dealing with an acquisition for a client?

A
  1. Conflicts of interest and money laundering checks
  2. Agree terms of engagement
  3. Understand client objectives and search parameters
  4. Locate suitable properties
  5. Inspection and valuation
  6. Check planning use and undertake due diligence
  7. Negotiate / agree conditional contracts
  8. Instruct solicitors
21
Q

What types of due diligence would you undertake when dealing with a property acquisition?

A
  1. Tenure / Title
  2. Planning
  3. Contamination
  4. Flooding
  5. EPC
  6. Building survey
  7. Asbestos
22
Q

What is a ready able and willing purchaser clause?

A

Clause included in the terms of engagement where the agent will be due an abortive fee if they have introduced a purchaser that that is ready and able to proceed and the client subsequently withdraws from the transaction.