Leasing and Letting Flashcards
What legislation should be considered when marketing a property?
o Data Protection Act 2018
o GDPR
o Estate Agents Act 1979 – helps to ensure buyers and sellers are treated honestly and fairly. Requirements must be set out for handling negotiations, offers received, and record keeping. Agents must not mislead in any way and should not discriminate
o Landlord and Tenant Covenants Act 1995
o Misrepresentation Act 1967 – to help ensure people do not suffer a loss as a result of misrepresentation
o Consumer Protection from Unfair Trading Regulations 2008
o Consumer Rights Act 2015
o Business Protection from Misleading Marketing Regulations 2008
o Auctions (Bidding Agreements) Act 1927 and 1969
What should agents consider prior to marketing a property?
- Existing lease arrangements, eg can it be assigned or sublet
- Measurement
- Market Appraisal – your advice should be realistic and justifiable. Always confirm your advice in writing and keep records
- EPC must be supplied and adverts should include EPC rating on the first page
- Marketing should only be done with the clients permission and you should check the client has a right to dispose of the interest
- You should agree an appropriate strategy with the client and regularly review it with them, explaining your rationale.
What should a marketing strategy include?
- Analysis of the current market – local and national
- Your recommended method of sale and reasons why
- Marketing materials
- Budget
- Documents to be provided
- Recommended asking rent
- Opinion of timescale from marketing through to completion
- Approach to viewings
- Arrangement for holding keys
- Use of data rooms including security arrangements
- Mechanism for reviewing marketing strategy
What should marketing particulars include?
- Should be prepared by someone who has been and inspected
- Should disclose material facts about the property
- Location and address
- Availability of services/facilities/amenities
- Proximity to services/facilities/amenities
- Accommodation and sizes
- Fixtures/fittings
- Physical structure and characteristics
- Compliance
- Person involved
- Price/rent
- Freehold/leasehold
- Service charges
- Rates
- Plannings
- Regulations
- Restrictions, easements etc
Which act ensures buyers and sellers are treated honestly and fairly?
Estate Agents Act 1979
What does the Data Protection Act 2018 relate to?
Legislation regarding the marketing of property.
What must be supplied and included in adverts for properties?
EPC rating
What is the purpose of the Misrepresentation Act 1967?
To ensure people do not suffer a loss due to misrepresentation.
What should you consider when drafting HOTs?
Heads of Terms must be drafted with reference to the Code of Leasing Business Premises 2020.
The code is in place to improve the quality and fairness of negotiations and promote the use of a new set of heads of terms to make drafting more efficient
What is mandatory within the Code of Lessing Business Premises?
- Negotiations over the lease must be approached in a constructive and collaborative manner
- A party not represented must be advised by the other part about the existence of the code and its supplemental guide and must be recommended to obtain professional advice
- Agreement to terms of the lease on a VP letting must be recorded in written heads of term that is is STC and summarising the key position on standard items, eg demise, term length, LTA, renewals, break etc
- At renewal the HOTS must comply with the above except for terms that follow the existing lease ‘subject to reasonable modernisation’
- Negotiations should produce letting terms that achieve a fair balance between the parties having regard to their commercial interests
Fill in the blank: The _______ Act 2010 relates to bribery.
Bribery
What does the Consumer Protection from Unfair Trading Regulations 2008 address?
Protection against unfair trading practices.
What is the aim of the RICS Real Estate Agency and Brokerage professional statement?
To ensure fairness and transparency in real estate activities, including with TOE, conflicts, complaints handling. Ensure communication and marketing info is fair and honest and clients money is handled appropriately. PI insurance etc.
What must be included in the heads of terms for a lease?
Property, rent, term, LTA.
True or False: Agents must not mislead in any way according to the Estate Agents Act 1979.
True
What must be agreed with the client before marketing a property?
An appropriate marketing strategy.
What should all advertising and marketing material be?
Honest, decent, and truthful.
What must be done with client money according to RICS guidelines?
Held separately in designated accounts.
What is the purpose of the Business Protection from Misleading Marketing Regulations 2008?
To protect businesses from misleading marketing.
What should be provided to clients regarding terms of engagement?
Fair and clear terms that meet legal requirements.
What is the aim of the Codes of Practice in real estate?
To ensure ethical practice and transparency.
What should be included in the marketing materials?
Recommended method of sale and reasons why.
What does the Equality Act 2010 relate to?
Protection against discrimination.
What is the importance of the EPC in property marketing?
It provides energy efficiency information.
