Leasing and Letting Flashcards
Estate Agents Act 1979 (best practice)
1) Honesty and accuracy.
2) Clarity on ToE.
3) Open and Transparent.
4) No discrimination.
5) Pass on all offers in writing.
6) Keep client’s money separate.
Explain the bases of agency
1) Sole letting rights
2) Sole agency
3) Joint agency
4) Multiple agency
Money Laundering regs 2017 & Proceeds of Crime Act 2002
- Complete ID check on tenant x 2
- Audit trail
RICS professional standards and guidance:
UK real estate agency 1st edition, Oct 2016
Mandatory, replaces purple book.
1) Scope.
2) Standards and ethics.
3) Securing instructions.
4) Disposal: Marketing property.
5) Implementing disposal.
6) Acquisitions.
7) Ending instruction
What is needed for pre-let/agreement to lease?
- Licence for alterations.
- Lease pre-agreed form.
- Plans and specifications
- Developer’s guarantee.
- Collateral warranties
Marketing legislation
Consumer Protection Regulation 2008 :
- Must not mislead average consumer.
- Particulars must be accurate.
- Civil/criminal action if non compliant.
- Concepts such as ‘transactional decision’ and ‘material circumstances’ considered.
Rules on to let boards
Permitted development rights:
- 2 sqm (2.3sqm if V board)
- Projection 1m from building.
- Planning permission needed in conservation area/listed building.
- No illumination.
- Remove within 14 days of letting.
Examples of marketing plans
- Targeted mail shots.
- Press and internet advertising.
- To let board.
- Estate agent window.
What are EPCs?
- Borne from Energy Performance of Buildings Directive - EU
Energy Act 2011. - New lets from April 2018, all from April 2023.
- Must be done prior marketing.
- MEES
How can the tenant’s covenant strength be checked
- Credit reference agency check (Dunn and Bradstreet, credit safe)
- 3 yrs accounts - profit or assets = 3x rent.
- References.
How to cover for weak covenant strength
- AGA
- Deposit
- Guarantor
- Rent paid upfront.
Incentives to help with lettings
- Rent free.
- Flexible terms.
- Contribution to fit out.
- Reverse premium.
Sometimes agreed in side letter to keep headline rent.
What does the equality act 2010 cover?
- Disabled access.
- Reasonable adjustments.
Case law on break clauses
NYK logistics v Ibrend Estates 2011 - tenant must give vacant possession on exercising break.
What are sole agency rights?
Fee due if unconditional contracts exchanged introduced by agent or another agent or had negotiated with during sole agency. No fee if found by client.
