General Estate Agency Questions

Question 1

What is specific RICS document covers Estate Agency?

Answer 1

RICS UK Commercial Estate Estate Agency Professional Statement, 2016
RICS Global Real Estate Agency and Brokerage Professional Statement, 2016

Question 2

What are the 12 core principals of the RICS UK Commercial Estate Agency Professional Statement?

Answer 2

1. Act honestly, transparent, fair
2. Skill, care, all staff have the necessary skills
3. Clients are provided with TOB and CHP
4. Avoid and manage conflict of interest
5. Not to discriminate
6. Communications with clients are fair, decent, clear, timely and transparent manner
7. Advertising is honest and truthful
8. Client money is held separately and has adequate insurance
9. PII insurance
10. Identity of client
11. Realistic assessment of price and rent
12. All meetings, inspections and viewings are in accordance with the clients wishes and ensure personal health and safety

Question 3

What legislation covers Estate Agency?

Answer 3

Estate Agency Act, 1979
Misrepresentation Act, 1967
Consumer Protection Act, 2008

Question 4

What does the Estate Agency Act apply to?

Answer 4

Disposal or acquisition of an interest in land
Freehold property
Leasehold property
Land as well as buildings

Question 5

What are the 7 key principles of the Estate Agency Act?

Answer 5

1. Section 18 = Clarity on terms and fees
2. Honesty and accuracy
3. Agreement and Liability of costs
4. Section 21 = Openness regarding personal interests
5. Absence of discrimination
6. Legal obligation to tell the client about offers received
7. Clients money to be kept separate

Question 6

How does the Estate Agency Act 1979 apply to your work?

Answer 6

Sect 18 - fees and costs 
Payments should be itemised 
Specific nature of agency and selling rights to be agreed 
Disclosure of personal interest 
Sect 21 - Connected person 
Personal interests should be declared on HOTS 
Only tell the truth regarding offers 
Follow RICS rules on Handling Money

Question 7

What are the penalties for breaching the Estate Agency Act 1979?

Answer 7

Policed by the National Trading Standards Estate & Letting Agency Team (NTSEAT)
Negative licensing - the right to be a agent can be taken away
Prohibition or warning orders can be made against an agent
Warning order less punitive

Question 8

What is a cooling off period?

Answer 8

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