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APC > Leasing And Letting > Flashcards

Leasing And Letting Flashcards

1
Q

What are sole selling rights?

A

Fee due if unconditional contracts exchanged during period of sole selling rights, even if purchaser found by another agent or client.

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2
Q

What happens after expiry of sole selling rights?

A

Fee due if contracts exchanged with purchasers introduced during period with whom agent had negotiations

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3
Q

What are sole agency rights?

A

Fee due if unconditional contracts exchanged with purchaser introduced by agent or another agent or with whom agent had negotiations during period of sole agency. No fee due if purchasers found by client

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4
Q

What is the main change brought in by Consumer Protection from Unfair Trading Regulations (CPRs) & Business Protection from Misleading Marketing Regulations 2008?

A

Wider scope so cannot rely on caveat emptor principle

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5
Q

What is caveat emptor principle?

A

‘Let the buyer beaware’

The overriding common law principle means that the buyer is responsible to satisfy itself on all matters relating to the property

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6
Q

What is misrepresentation?

A

Misrepresentation of fact during negotiations which is relied upon and induces other party to enter contract

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7
Q

Current RICS leasing & letting guidance?

A

RICS Real Estate Agency & Brokerage Pro Statement (3rd edition, August 2016)

RICS UK Commercial Real Estate Agency (1st edition, October 2016) known as the purple book

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8
Q

Under REAB PS can you disclose offers to other tenants?

A

With consent of your client and tenant yes

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9
Q

How long do you have to confirm offers in writing to your client?

A

1 day (2 in exceptional circumstances)

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10
Q

What does L&T covenants 1995 Act say?

A
  • Wef from January 1996
  • abolished privity of contract
  • no automatic requirement for AGA but LL can reasonably request
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11
Q

Can a tenant assign to its guarantor?

A

No.
EMI Case ruling - void by the anti-voidable provisions at 25(1) of the 1995 Act

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12
Q

What happens if there is no alienation clause?

A

Tenant can do what they want

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13
Q

Regulations for marketing boards?

A
  • flat boards max 2 sqm
  • v boards max 2.3 sqm
  • 1 per building
  • not project more than 1m from wall
  • not project more than 4.6m above ground
  • need planning for illuminated, remote or boards erected on listed buildings or conversation areas
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14
Q

What is your duty of care as an agent?(5)

A
  1. Best endeavours to achieve best outcome for client.
  2. Not misuse confidential information.
  3. Only appoint sub agent with permission
  4. Ensure all staff appropriately trained
  5. Ensure you are competent
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15
Q

What is your duty of care acting for the seller?

A

Reasonable care and skill in advising on appropriate asking price/rent through employing a marketing strategy.

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16
Q

What is your duty of car acting for the buyer?

A

Reasonable care to ensure the information passed on is not misleading.

17
Q

What must you do prior to an agreement?

A

Conflict & AML checks to confirm clients identity

18
Q

What are the legal and statutory requirements for marketing a property?

A

Data Protection Act 1998
Estates Agent Act 1979
L&T Covenants Act 1995
Misrepresentation Act 1967

19
Q

What does market appraisal mean?

A
  • advising on property price/rent
  • provide market advice
  • reporting to the client
  • keeping records
20
Q

What documentation should you request?

A
  • EPC
  • Leases
  • Floor plans
  • Access statement (ensure compliance with Equality Act 2010)
  • Asbestos register
21
Q

What should you include in your marketing strategy?

A
  • analysis of current market
  • recommended method of sale
  • marketing materials
  • budget
  • required docs
  • recommended asking price
  • likely timescales
  • arrangement for holding keys
22
Q

What are the methods of sale?

A
  1. Auction
  2. Private Treaty (direct negotiation)
  3. Tender
23
Q

How long should you keep files?

A

Min 6 years but can be sued for negligence for up to 15 years.

24
Q

Different types of lettings?

A
  1. Open market
  2. Sub lettings
  3. Assignments
25
Q

What is the legislation for specifying costs and fees?

A
  • Supply of goods and services Act 1982
  • Estates Agent Act 1979
26
Q

During the course of an instruction, what legislation must you comply with?

A
  1. Consumer Protection from unfair trading 2008
  2. Business protection from misleading marketing Regulations 2008
27
Q

What is the legislation for marketing boards?

A

Town and Country Planning (control of advertisements) Regulations 2007

28
Q

What RICS statement should be considered when entering negotiations with a prospective tenant?

A

Code for leasing business premises Feb 2020 (wef Sep 2020).

Sets the mandatory provisions for HOTs

29
Q

What are the 7 principles of Estate Agents Act 1979?

A
  1. Honest & Accurate
  2. Clarity on TOE
  3. Open & transparent
  4. No discrimination
  5. Pass on all offers
  6. keep client money separate
  7. Agreement & liability for costs
30
Q

What is S18 of the Estate Agents Act 1979?

A

Terms of agency work.

31
Q

When considering tenant selection, what do you ask for?

A
  • bank account & 2 years trade references
  • previous or existing LL reference
  • 3 years audited/management accounts
32
Q

What are the 12 core principles of RICS Commercial Real Estate Agency October 2016?

A
  1. Conduct business in an honest, fair, transparent and professional manner.
  2. Carry out work with due skill, care and diligence and ensure that any employed staff have necessary skills to carry out their tasks.
  3. Provide fair and clear TOE.
  4. Avoid conflicts but where they do arise, deal with fairly, openly and promptly.
  5. Not discriminate.
  6. Ensure communications are fair, clear and transparent.
  7. All marketing and advertising is honest, decent and truthful.
  8. Client money to be held separately from other monies.
  9. Adequate PII.
  10. Ensure your scope of obligations are clear to each party.
  11. Give a realistic assessment of the likely quoting price, associated cost of occupancy or of the likely financial outcome of any issues, using best professional
    judgment.
  12. Meetings, inspections and viewings to be carried out in the accordance with the client’s lawful and reasonable wishes, having due regards for security and personal safety of the parties
33
Q

What terms should you include in TOE?

A
  1. Property address
  2. Client details
  3. Type of agency
  4. Sub agents
  5. method of payment
  6. Marketing programme
  7. Sales boards
  8. Viewing arrangements
  9. EPC
  10. Data Protection Act 2018
  11. Bribery Act 2010
  12. Complaints handling procedure

APC (16 decks)

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