Leasing and Letting

Question 1

What is the UK Commercial Real Estate Agency (1st Ed. Oct 2016)?

Answer 1

A professional statement which provides a set of mandatory standards for RICS members involved in agency & Real Estate management work.

Question 2

What is the structure of RICS Professional Statement Code for Leasing Business Premises 2020?

Answer 2

1. Introduction
2. Mandatory Requirements
3. Lease Negotiation Best Practice
4. Appendices

Question 3

What are the 12 key areas described in the UK Commercial RE Agency (1st Ed. Oct 2016)?

Answer 3

1. Ethics
2. Regulatory and Legal Compliance
3. Client Care
4. Conflicts of Interests
5. Conflict Resolution and Dispute Management
6. Fee Structures
7. Market Knowledge
8. Due Diligence
9. Marketing Standards
10. Health and Safety
11. Client Communication
12. ESG

Question 4

What are the key aspects of the Property Agency and Management Principles (2025)?

Answer 4

1. Alignment with the RICS Rules of Conduct
2. Working with Clients
3. Managing businesses and staff

Question 5

What are the four types of agency relationships?

Answer 5

1. Sole agency
2. Joint Agency
3. Sole/Joint Agency
4. Multiple Agency

Question 6

What is Sole Agency?

Answer 6

The Landlord has appointed one agent represent them in a transaction

Question 7

What is Joint Agency?

Answer 7

The Landlord has appointed two or more agents to represent them in a transaction

Question 8

What is Sole-Joint Agency?

Answer 8

A hybrid of a sole agency and a joint agency arrangement. There will be a sole agent but but if another agent introduces a tenant, they are entitled to a share of the fee.

Question 9

What is Multiple Agency?

Answer 9

When the Landlord lists the property with several agents, but the agent who lets the property will earn the fee.

Question 10

What is included in Heads of Terms?

Answer 10

Date
Address
Landlord and Tenant’s details
Rent
Lease Term
Use class
Incentives
Break date
Rent Reviews

Question 11

Are Heads of Terms legally binding?

Answer 11

No

Question 12

What are Heads of Terms?

Answer 12

Outlines the basic framework of the deal

Question 13

What is the difference between a lease and a license?

Answer 13

A lease is a legally binding contract that allows exclusive possession for a fixed term

A license is a personal permission to occupy or use a property, but it does not grant exclusive possession