Leasing and letting Flashcards
Tell me about your understanding of legislation relevant to your leasing and letting
practice?
Estate Agents Act 1979
It lays out the duties and responsibilities of estate agents, including standards for competence, the information that must be provided to clients, and handling clients’ money.
Tell me about your understanding of the Estate Agents Act 1979.
Its purpose is to make sure that an agent works in the best interests of your clients, and that both buyers and sellers are treated honestly, fairly and promptly.
What are the 6 key principles of the Estate Agents Act 1979?
- Honesty and accuracy
2.Clarity as to the agency terms of engagement - specify all costs and fees in advance, in writing in terms of business (Section 18) - Absent of discrimination
- Client money kept separately
- Declaration of regarding personal interests (Section 21)
- All offers must be reported
How does Section 18 relate to your letting practice?
Clarity on terms of engagement, which must specify all costs and fees.
What are the various agency bases?
Market Value
Market Rent Value
Fair Value
What does the Unfair Contract Terms Act 1977 say?
A statute which imposes limits on the extent to which liability for breach of contract, negligence or other breaches of duty can be avoided by means of contractual provisions such as exclusion clauses. It regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability.
Tell me about your understanding of the Code for Leasing Business Premises in England
& Wales.
The objective is to improve the quality and fairness of negotiations on lease terms and to
promote the issue of comprehensive heads of terms that should make the legal drafting process
more efficient.
When and how was it last updated?
What happens if there is no alienation clause in a lease?
the tenant will be free to deal with it as it wishes.
What is subletting?
when your existing tenant lets part or all of the property to another third party
What is assignment?
When your existing tenant relinquishes all obligations of the whole property to another third party
Explain your understanding of the Landlord & Tenant (Covenants) Act 1995 and how it
affects your leasing work.
What does S19 1a of the L&T Act say?
19Provisions as to covenants not to assign, &c. without licence or consent.
(1)In all leases whether made before or after the commencement of this Act containing a covenant condition or agreement against assigning, underletting, charging or parting with the possession of demised premises or any part thereof without licence or consent, such covenant condition or agreement shall, notwithstanding any express provision to the contrary, be deemed to be subject—
(a)to a proviso to the effect that such licence or consent is not to be unreasonably withheld, but this proviso does not preclude the right of the landlord to require payment of a reasonable sum in respect of any legal or other expenses incurred in connection with such licence or consent; and
What is an Authorised Guarantee Agreement and when might one be given?
An AGA is an agreement which places an obligation on an outgoing tenant to guarantee the performance by the new tenant or “Assignee” of the tenant covenants contained in the lease.
If the Assignee fails to perform the tenant covenants in the lease (which include payment of rents and repair obligations) the AGA allows the landlord to pursue the outgoing tenant under the terms of the AGA
Can a tenant assign a lease to it’s guarantor?
The decision in EMI Group Ltd v O & H Q1 Ltd makes clear that a tenant cannot assign its lease to its guarantor. Any attempt to do so will be void and will result in the lease remaining vested in the tenant, and the guarantor continuing to be subject to their responsibilities as guarantor.
