General Estate Agency Flashcards
What is the global professional statement relating to Estate Agency / Brokerage?
RICS Professional Statement: Global Real Estate Agency and Brokerage, 2016
What is the UK professional statement relating to Residential Estate Agency
RICS Professional Statement: UK Residential Real Estate Agency, 2017
In the Global Estate Agency Statement, there are 12 core principles which agents must observe. Name some of these principles.
- Act in honest, fair, transparent and professional manner
- Carry out work with due skill, care and diligence and ensure all staff employed have necessary skills to carry out their tasks
- Ensure clients are provided with terms of business which are fair. These must also include your companies complaints handling procedure.
- Do the utmost to avoid conflict of interests and where they do arise, deal with them openly and fairly
- Not to discriminate unfairly in any dealings
- All communications with clients are fair, decent, clear and timely and transparent
- All advertising and marketing material is honest and truthful
- Any client money is held separately and is covered by adequate insurance
- Hold appropriate PI / errors or omissions insurance to ensure customer does not suffer loss due to negligence
- Make it clear the identify of your client and ensure all parties are clear of your obligations to each party
- Give realistic assessments of selling prices / rents / financial costs having regard to market evidence and using best professional judgement
- Ensure all meetings inspections and viewings are carried out in accordance with the client’s wishes having due regard to security and personal safety.
Apart from the 12 core principles of the UK Commercial Estate Agency statement, what other advice does the statement provide?
- Acting ethically - having a duty of care, gifts and incentives and dealing with conflicts of interest
- Securing instructions - legal requirements, AML checks, types of agency and H&S
- Marketing the property - legal requirements, market appraisal and preparing particulars
- Implementing the disposal - methods of sale and legal requirements
- Acquisition of property - conflict of interest, client communication and progressing purchases.
What is the statement for Commercial Estate Agency?
RICS Professional Statement: UK Commercial Estate Agency, 2016
What is the purpose of the UK Residential Real Estate Agency Professional Statement?
To provide a summary of code of practice in all aspects of property marketing for residential property.
What does the UK Residential Real Estate Agency Professional Statement comprise of?
- Relevant Estate Agency legislation
- Standards and ethics
- Before securing instructions
- Property marketing
- Acting for the vendor, purchaser and landlord
- Ending the instruction.
What is the Estate Agency Legislation?
Estate Agents Act 1979
What does the Estate Agents Act 1979 apply to?
- Disposal or acquisition of an interest in land
- Freehold property
- Leasehold property with capital value
- Land as well as buildings
What are the SEVEN key principles of Estate Agents Act 1979?
- Clarity as to the terms of the agency
- Honesty and accuracy
- Agreement and liability for costs
- Openness regarding personal interests
- Absence of discrimination
- Legal obligation to tell the client about offers received
- Keep client’s money separate
What are important points of the Estate Agents Act 1979? (Not the 7 key principles)
- Specify all costs / fees in advance, in writing in terms of business
- Itemise all payments
- Specify nature of agency and selling rights to be agreed
- Sole selling rights or sole agency rights
- Sole, joint sole agency or multiple agency - Advise clients of any services available to applicant
- Disclosure of personal interests - and state in Heads of Terms
- Tell the truth regarding offers received
- Handling clients money - follow RICS rules
- Procedure to follow when offers are received promptly and in writing
What Penalties could occur and who enforces them if you don’t follow the Estate Agents Act 1979?
National Trading Standards Estate & Letting Agency Team
Penalties:
1. Negative licensing: right to be an estate agent can be taken away
2. Prohibition: Prohibition order stops an agent practising
3. Warning: Warning order less punitive. Usually on 10-12 order issued each year. Can be against an individual or a practice
Other than the Estate Agents act, what else does the National Trading Standards Estate & Letting Agency Team enforce?
Tenant Fees Act 2019
What does the Estate Agents (Undesirable Practices) No 2 Order 1991 state?
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
What does the Estate Agents (Provision of Information) Regulations 1991 state?
Following things must be provided in writing
1. Service to be provided
2. Remuneration
What is the cooling off period?
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
What regulation does the Property Misdescriptions Act 1991 come under?
Consumer Protection from Unfair Trading Regulations 2008
What does your firms disclaimer clause say?
These particulars are for general information purposes only and do not represent an offer of contract or part of one. Carter Jonas has made every attempt to ensure that the particulars and other information provided are as accurate as possible and are not intended to amount to advice on which you should rely as being factually accurate. You should not assume that the property has all necessary planning, building regulations or other consents and Carter Jonas have not tested any services, facilities or equipment. Any measurements and distances given are approximate only. Purchasers must satisfy themselves of all of the aforementioned by independent inspection or otherwise. Although we make reasonable efforts to update our information, neither Carter Jonas LLP nor anyone in its employment or acting on its behalf makes any representations warranties or guarantees, whether express or implied, in relation to the property, or that the content in these particulars is accurate, complete or up to date. Our images only represent part of the property as it appeared at the time they were taken. If you require further information, please contact us.
What are the key differences between the Misrepresentation Act 1967 & CPR 2008?
What is the business protection from misleading marketing regulations 2008?
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
What is Caveat Emptor?
‘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
What is the Consumer Rights Act 2015?
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 must information be provided according to the Consumer Rights Act 2015?
Must be based on calculation of the charges and who is responsible for payment
What penalty is associated with the Consumer Rights Act 2015?
Penalty up to £5,000 for each breach
What is the misrepresentation act 1967?
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.
What happens if a contract has been misrepresented under the misrepresentation act 1967?
The vendor / and or agent could be sued. And / or the contract rescinded.
Is breaching the misrepresentation act a criminal offence?
No, it’s a civil offence, actionable as tort
Misrepresentation can be……
Fraudulent, negligent or innocent.
What is the case associated with the Misrepresentation act 1967?
Hedley Byrne & Co v Heller & Partners 1964
What are the three tests associated with Hedley Byrne & Co V Heller & Parnter (Misrepresenation act)
- Foreseeability - the damage is reasonably foreseeable
- Proximity - the relationship can be characterised in law as being sufficiently proximate
- Fairness - it is regarded as fair, just as reasonable for such a duty of care to arise
