Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Flashcards > General Estate Agency > Flashcards

General Estate Agency Flashcards

1
Q

What is the global professional statement relating to Estate Agency / Brokerage?

A

RICS Global Real Estate Agency and Brokerage Professional Statement 2016

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the UK professional statement relating to Residential Estate Agency / Brokerage?

A

RICS UK Residential Real Estate Agency Professional Statement 2017

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

In the Global Estate Agency Statement, what are the twelve core principles which agents must observe?

A
  1. Act in honest, fair, transparent and professional manner
  2. Carry out work with due skill, care and diligence and ensure all staff employed have necessary skills to carry out their tasks
  3. Ensure clients are provided with terms of business which are fair. These must also include your companies complaints handling procedure.
  4. Do the utmost to avoid conflict of interests and where they do arise, deal with them openly and fairly
  5. Not to discriminate unfairly in any dealings
  6. All communications with clients are fair, decent, clear and timely and transparent
  7. All advertising and marketing material is honest and truthful
  8. Any client money is held separately and is covered by adequate insurance
  9. Hold appropriate PI / errors or omissions insurance to ensure customer does not suffer loss due to negligence
  10. Make it clear the identify of your client and ensure all parties are clear of your obligations to each party
  11. Give realistic assessments of selling prices / rents / financial costs having regard to market evidence and using best professional judgement
  12. Ensure all meetings inspections and viewings are carried out in accordance with the client’s wishes having due regard to security and personal safety.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Apart from the 12 core principles of the UK Commercial Estate Agency statement, what other advice does the statement provide?

A
  1. Acting ethically - having a duty of care, gifts and incentives and dealing with conflicts of interest
  2. Securing instructions - legal requirements, AML checks, types of agency and H&S
  3. Marketing the property - legal requirements, market appraisal and preparing particulars
  4. Implementing the disposal - methods of sale and legal requirements
  5. Acquisition of property - conflict of interest, client communication and progressing purchases.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the statement for Commercial Estate Agency?

A

RICS UK Commercial Estate Agency Professional Statement 2016

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the purpose of the UK Residential Real Estate Agency Professional Statement?

A

To provide a summary of code of practice in all aspects of property marketing for residential property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does the UK Residential Real Estate Agency Professional Statement comprise of?

A
  1. Relevant Estate Agency legislation
  2. Standards and ethics
  3. Before securing instructions
  4. Property marketing
  5. Acting for the vendor, purchaser and landlord
  6. Ending the instruction.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the Estate Agency Legislation?

A

Estate Agents Act 1979

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does the Estate Agents Act 1979 apply to?

A
  1. Disposal or acquisition of an interest in land
  2. Freehold property
  3. Leasehold property with capital value
  4. Land as well as buildings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the SEVEN key principles of Estate Agents Act 1979?

A
  1. Clarify as to the terms of the agency
  2. Honesty and accuracy
  3. Agreement and liability for costs
  4. Openness regarding personal interests
  5. Absence of discrimination
  6. Legal obligation to tell the client about offers received
  7. Keep client’s money separate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are important points of the Estate Agents Act 1979? (Not the 7 key principles)

A
  1. Specify all costs / fees in advance, in writing in terms of business
  2. Itemise all payments
  3. Specify nature of agency and selling rights to be agreed
    - Sole selling rights or sole agency rights
    - Sole, joint sole agency or multiple agency
  4. Advise clients of any services available to applicant
  5. Disclosure of personal interests - and state in Heads of Terms
  6. Tell the truth regarding offers received
  7. Handling clients money - follow RICS rules
  8. Procedure to follow when offers are received promptly and in writing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What Penalties could occur and who enforces them if you don’t follow the Estate Agents Act 1979?

A

National Trading Standards Estate & Letting Agency Team

Penalties:
1. Negative licensing - right to be an estate agent can be taken away
2. Prohibition or warning
- Prohibition order stops an agent practising
- Warning order less punitive
- Usually on 10-12 order issued each year
- Can be against an individual or a practice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Other than the Estate Agents act, what else does the National Trading Standards Estate & Letting Agency Team enforce?

A

Tenant Fees Act 2019

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What does the Estate Agents (Undesirable Practices) No 2 Order 1991 state?

A

Estate Agents must inform their clients at the same time as they are informed about their terms of business, as to any services to be offered to prospective purchasers unless offered free of charge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does the Estate Agents (Provision of Information) Regulations 1991 state?

A

Following thins must be provided in writing
1. Service to be provided
2. Remuneration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is the cooling off period?

A

Period of up to 14 days is allowed for clients who change their minds and do not want to instruct the agent in accordance with current consumer protection regulation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What regulation does the Property Misdescriptions Act 1991 come under?

A

Consumer Protection from Unfair Trading Regulations 2008

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does your firms disclaimer clause say?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are the key differences between the Misrepresentation Act 1967 & CPR 2008?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the business protection from misleading marketing regulations 2008?

A

relate to business activities and prohibits misleading business to business advertising. They impose restrictions on how businesses compare their products to products from other companies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is Caveat Emptor?

A

‘Buyer beware’
The starting point when discussing who has responsibility for the disclosure of information. This overriding common law principle means that the buyer should satisfy itself on all matters relating to the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the Consumer Rights Act 2015?

A

Amends existing consumer protection law and gives consumers new rights and remedies
Consolidates the law relating to unfair terms and contracts between businesses and consumers
Letting agents must clearly display a summary of their charges both in their office and on their website for the letting and management of property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How must information be provided according to the Consumer Rights Act 2015?

A

Must be based on calculation of the charges and who is responsible for payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What penalty is associated with the Consumer Rights Act 2015?

A

Penalty up to £5,000 for each breach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the misrepresentation act 1967?

A

Relates to the misrepresentation or false statement of fact made by a party during pre-contractual enquiries, which has the effect of inducing the party to purchase.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What happens if a contract has been misrepresented under the misrepresentation act 1967?

A

The vendor / and or agent could be sued. And / or the contract rescinded.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Is breaching the misrepresentation act a criminal offence?

A

No, it’s a civil offence, actionable as tort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Misrepresentation can be……

A

Fraudulent, negligent or innocent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is the case associated with the Misrepresentation act 1967?

A

Hedley Byrne & Co v Heller & Partners 1964

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the three tests associated with Hedley Byrne & Co V Heller & Parnter (Misrepresenation act)

A
  1. Foreseeability - the damage is reasonably foreseeable
  2. Proximity - the relationship can be characterised in law as being sufficiently proximate
  3. Fairness - it is regarded as fair, just as reasonable for such a duty of care to arise
31
Q

What year was the Tenant Fees Act come into effect?

A

2019

32
Q

What does the Tenant Fees Act 2019 aim to do?

A

Improve transparency and affordability in residential lettings market
Bans various fees often charged to residential tenants for new lettings
Refundable tenancy deposits are now capped

33
Q

What is the cap for tenancy deposits?

A

Under £50,000 pa -5 weeks rent
Above £50,000 pa - 6 weeks rent

34
Q

Who polices the Tenant Fees Act 2019?

A

National Trading Standards Estate & Letting Agency Team

35
Q

What does the Regulation of Property Agents propose?

A

Property agents to be regulated by an independent regulator, with mandatory qualifications for agents and a code of practice
All qualifying agencies will have to be licensed and abide by new code of practice

36
Q

What does the Regulation of Property Agents prioritise?

A

Transparency of charges
Disclosing conflicts of interest
Disclosing administration of service charges

37
Q

When does the regulation of property agents come into affect?

A

No date has been announced.

38
Q

What Regulation does Marketing Signage come under?

A

Town & Country Planning (Control of Advertisement) (England) Regulations 2007

39
Q

What does the Town & Country Planning (Control of Advertisement) (England) Regulations 2007 state for non-residential boards?

A

Planning consent is required for non-residential boards over 1 sqm flat and 2.3 sq m V board
AND
Only one board per building

40
Q

What does the Town & Country Planning (Control of Advertisement) (England) Regulations 2007 state for residential boards?

A

Different sizes for residential boards. Maximum size allowed 0.5 sqm flat and 0.6 sqm V board

41
Q

When is planning consent required when putting up a marketing board?

A
  1. One non residential boards over 2 sqm (flat) and 2.3 sqm V board
  2. Illuminated boards
  3. Remote boards
  4. On listed buildings / conservation areas
42
Q

When should marketing boards be removed?

A

14 days after completion of transaction

43
Q

What year did the Misrepresentation Act come into effect?

A

1967

44
Q

When does the Misrepresentation Act apply?

A

Mis-statements / false / fraudulent statements or misrepresentations made during the pre-contractual enquiries by the vendor of their agent to the proposed purchase.
Freehold and leasehold transactions

45
Q

What is the offence associated with Misrepresentation Act?

A

Civil offence
Actionable by tort
Action can be limited by an effective disclaimer (exclusion clause)

46
Q

What is the penalty associated with the Misrepresentation act?

A

Sued for financial damages and / or contract rescinded

47
Q

When did the Estate Agents Act come into effect?

A

1979

48
Q

When does the Estate Agents Act apply?

A

During sale of or purchase of freehold of leasehold properties with capital value.
S. 18 - Terms of business
S. 21 - Declaration of personal interests

49
Q

What is the offence associated with Estate Agents Act?

A

Acting dishonestly.
Not providing clarify to the TOE or disclosing apersonal interest.
Not telling client about offers received

50
Q

What is the penalty associated with Estate Agents Act?

A

Warning order or prohibition order and / or fine

51
Q

When did the Consumer Protection Regulation come into effect?

A

2008

52
Q

When does the Consumer Protection Regulations apply?

A

During the entire agency sales and letting process

53
Q

What is the offence associated with Consumer Protection Regulations?

A

Criminal offence
Not treating ‘customers’ fairly and / or providing misleading marketing information

54
Q

What is the penalty associated with Consumer Protection Regulations?

A

Unlimited fine
Prohibition order and prison up to 2 years

55
Q

When did the Bribery Act come into effect

A

2010

56
Q

When did the Control of Asbestos Regulation come into effect?

A

2012

57
Q

When did the General Data Protection Regulation come into effect?

A

2016

58
Q

When did the Data Protection Act come into effect?

A

2018

59
Q

When did the equality act come into effect?

A

2010

60
Q

When did the Health and Safety Act come into effect?

A

1974

61
Q

When did the land Registration Act come into effect?

A

2002

62
Q

When did the Proceeds of Crime act come into effect?

A

2002

63
Q

When did the Money Laundering, Terrorist Financing and Transfer of Funds Regulations come into effect?

A

2017

64
Q

When did the Town & Planning (Control of Advertisement)(England) Regulations come into effect?

A

2007

65
Q

List as many of the legislation included under the Estate Agency competency

A

Bribery Act - 2010
Control of Asbestos Regulations - 2012
General Data Protection Regulation - 2016
Data Protection Act - 2018
Equality Act - 2010
Energy Act - 2011
Health and Safety Act - 1974
Land Registration Act 2002
Proceeds of Crime Act - 2002
Money Laundering, Terrorist Financing and Transfer of Funds Regulations - 2017
Current UK Sanctions
Town & Planning (Control of Advertisement)(England) Regulations - 2007

66
Q

Which occupiers cannot register for VAT?

A
  1. Financial institutions
  2. Charities
  3. Medical Practitioners
67
Q

What is Capital Allowances?

A

Important form of tax relief upon capital expenditure for the construction or purchase of commercial property or business assets
Can generate substantial tax savings / relief on the value of plant and machinery fixtures such as air conditioning and lifts

68
Q

Can Capital Allowances be offset?

A

Yes against taxable profit

69
Q

What does the Land Registration Act 2002 provide?

A

Provides framework for electronic property conveyancing, by allowing formal documents to be executed electronically

70
Q

When does something need to registered with Land Registry?

A

All freeholds and new leases granted for terms over 7 years, or existing leases sold or assigned with 7 hyears left to run must now be registered

71
Q

When a freehold / new lease with Land Registry, what should be included in the registration?

A

A compliant lease plant

72
Q

What is Land Registry trying to achieve under the Land Registration Act 2002?

A

Aiming to achieve comprehensive registration of all property and land by 2030

73
Q
A

Flashcards (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions