Leasing And Letting Flashcards
Difference between a lease and a licence
Lease has exclusive possession, licence does not. Both can pay rent and has a defined period of term
What are the key points of the unfair trading regulations 2008?
Obligation to trade fairly and honestly
What are the key points in the property misrepresentations act 1967? Types and remedy
3 types of misrepresentation:
-fraudulent misrepresentation
-negligent misrepresentation
-innocent misrepresentation
Two types of remedy
Damages
Unwinding a contract
What are the key points in the Estate Agents Act 1979? 7
You are an estate agent if you deal with people in the transaction of property
Must be transparent about fees and charges in terms of business
Clarity as terms of agency
Honesty and accuracy
Agreement and liability for costs
Openness
Absence of discrimination
Legal obligation to tell the client about offers received
Keep clients money separate
What are 2 main pieces of legislation for estate agency globally and the UK?
RICS global real estate agency and brokerage professional statement 2016
RICS Uk commercial estate agency professional statement 2016
What are the 12 core principles which agents must observe within Uk commercial estate agency 2016?
1 act in honest fair and transparent manner
2 carry out work with due care skill and diligence
3 ensure terms of business are provided
4 avoid conflicts of interest
5 No discrimination
6 good client communication
7 marketing material is honest
8 client money held separately and insured
9 hold appropriate PII
10 clear identification of client
11 give realistic assessments of prices
12 ensure viewings meetings are carries out to the clients wishes
What other advice does RiCs commercial agency 2016 provide ? 5
Acting ethically
Securing instructions
Marketing the property
Implementing the disposal
Acquisition of property
When does the estate agency act 1979 apply? When does it not?
Land interests
Freehold property
Leasehold property with a cap value (long leasehold)
Land itself
Not pure leasehold
What does the consumer protection regulations prohibit?
Prohibits unfair business to consumer commercial businesses. Average customer = reasonably well informed person
What is the max penalty for CPR?
Unlimited fine and or prohibition order
Compensation up to £25,000
Key points under unfair trading regulations 2008? 10
- Regs apply to all lettings
2 Duty of care to all parties
3 declaration of every known
4 must not exert undue pressure on potential buyers
5 pass on any new information
6 any omissions can be a breach
7 full dd required for new instructions
8 must be validated by client
9 policed by trading standards office
10 disclaimers do not apply to this
Name some key differences between misrepresentation act 1967 and CPRs 2008?
Misrepresentation is a false statement of a fact whereas CPRs can relate to omission of facts which influence a purchase
Disclaimer clauses can be effective for misrepresentation act, not for CPRs
CPRs can lead to prison, misrepresentation is being sued for damages
What marketing signage requires planning consent?
What are other restrictions?
2sq m flat or 2.3 sq m v board - only one board per building
Need planning for illuminated and remote boards
Mustn’t be 4.6m off the ground or 1m away from face
When must you remove marketing signage?
14 days after completion of transaction
What legislation does signage relate to? Who is it policed by?
Town and country (control of advertisement) regs 2007
Policed by local authority
What act relates to leases and freeholds being registered with the land registry?
Land registration act 2002
When is the land registry aiming to achieve comprehensive registration of all property and land?
2030
What are the 4 parts of the code for leasing business premises?
Part 1 intro
Part 2 mandatory requirements
Part 3 lease negotiation best practice
Part 4 appendices
What are 2 key points of part 2 of the code for leasing business premises?
Negotiations must be approached in a constructive and collaborative manner
Heads of terms Should quote subject to contract
What should be a minimum for heads of terms? Name over 8
Identify premises
Special rights granted
Length of term
Exclusion of 1954 act?
Break clauses or renewal
Guarantor
Rent deposit
Rent free period
Alienation
Repairing obligations
Alterations
Conditions on letting
What is included in part 3 of code for leasing business premises? 5
Specific advise on lease terms:
Rent deposits
Rent reviews
Service charges
Repairs
Alienation
What is included in part 4 of the code for leasing business premises?
Model heads of terms
What lease terms effect value? Name 6
Lease length
Term certain
Alienation
Repair obligations
User clauses
Rent review
Security of tenure
How should a rent review be conducted? 6
Willing tenant
Willing landord
Open market
Premises are fit for use
Property is vacant
Good lease term for tenants
Conditions where a landlord can refuse the grant of a new lease. Name 4
Breached repairing covenants
Paid rent late
Other substantial breaches in lease
Suitable alternative accommodation
Sub let
Demolition or reconstruction
Landlord occupancy
What’s the penalties for estate agents act 1979?
Warning order or prohibition order and or fine
What would be covered in terms of engagement? Name 6
Identification of client
Agent
Basis of instruction
Fees
Client money handling procedure
PI limit
CHP
Scope of services
Conflict of interest
Exclusions of liability
Money laundering compliance
What are the useful functions of a licence for alterations?
To protect the parties at rent review and dilaps the end of a lease
