Leasing and Letting

Question 1

What is the primary piece of legislation regarding leasing and letting in the UK?

Answer 1

Estates Agent Act 1979

Question 2

Who polices the Estates Agent Act 1979?

Answer 2

National Trading Standards + Estate Agency Letting team

Question 3

What are some of the key sections of the Estates Agent Act 1979?

Answer 3

Section 18 - terms of Agency
Section 21 - disclosures of personal interests (connected person)

Question 4

What are the key principles of the Estates Agent Act 1979?

Answer 4

• Clarity regarding terms of agency (s.18)
• Honesty and accuracy
• Agreement and liability for costs
• Disclosing personal interests (s.21)
• Do not discriminate
• Legal obligation to tell client about offers received
• Keep client money separate

Question 5

What is contracting out of the LTA 1954?

Answer 5

When the tenant forgoes their right to security of tenure.

Question 6

What are some potential reasons for contracting out of the Act?

Answer 6

• LL wants future flexibility
• LL wants to redevelop or occupy
• Costs may be lower for tenant if outside the Act

Question 7

What are the two types of declaration in relation to contracting out?

Answer 7

• Simple declaration (14 days)
• Statutory declaration (<14 days)

Question 8

What is the procedure that needs to be followed regarding contracting out?

Answer 8

s.38a of the Act:
- LL must serve notice - warning lease is not protected
- Tenant must make a declaration in response confirming they accept these terms
- Must be complete before the lease is signed

Question 9

What does section 25 and section 26 of the Act refer to?

Answer 9

• Section 25: Landlord’s notice for terminating the lease
• Section 26: Tenant’s request for a new tenancy

Question 10

What are some of the legislations regarding leasing and letting?

Answer 10

• Estates Agent Act 1979
• Misrepresentation Act 1967
• Consumer Protection Regulations Act 2008

Question 11

What are the key principles of the Misrepresentation Act 1967?

Answer 11

The false representation of a fact: There must be a statement or assertion that is untrue or misleading.

The false representation must be a material factor that influences the party’s strategy and decision.

Question 12

Any case law regarding misrepresentation?

Answer 12

Hedley Byrne Co v Heller and Partners (1964) - English tort law case on economic loss in English tort law resulting from a negligent misstatement

Question 13

What are some of the key principles of the Consumer Protection Regulations 2008?

Answer 13

• Duty of care to clients
• Must declare everything about the property good or bad
• Not exert undue pressure
• Information discovered must be passed on
• Due diligence is required and validated
• Regulations apply to lettings AND sales

Question 14

What is the RICS document concerning real estate agency in the UK?

Answer 14

UK Commercial Estate Agency prof statement