Leasing and letting Flashcards
Explain Professional standard: Property agency and management principles (2024)
This standard consolidates guidance across various disciplines, including:
The standard emphasizes openness and transparency in client services, aiming to protect consumers and enhance public confidence in surveyors worldwide.
It aligns with RICS’s five key rules of conduct:
-Auctioneering (commercial, residential, mixed-use)
-Sales and leasing (commercial, residential, mixed-use)
-Property management (commercial, residential, mixed-use)
-Landlord and tenant lease advisory
It aligns with the RICS Rules of Conduct, emphasizing ethical practice, competence, and public interest.
Key principles:
-Working with Clients: Ensuring transparency, honesty, and integrity in all client interactions
-Managing Businesses and Staff: Promoting competent service delivery, ethical conduct, and professional development within organizations
Describe a spec of an institutional grade A office?
Describe a spec of an institutional warehouse?
What is B class?
industrial
B2 - General
B8 - storage and distribution
What is C Class?
resi, hotels,
What is sui generis?
No class specific - theatres, pubs, concert hall
What is F class?
F1 learning / F2 community eg essential good shops
What is zoning?
valuation technique
What’s in ToE?
1.Basis of Agency Instruction (sole or joint)
2.Rights of the Agency (sole selling rights or ready willing and able purchaser) 3.Proposed fee
4.Marketing expenses and disbursements
5.Confirmation of no conflicts of interest
6.Money Laundering checks
7.Timetable for payment of fees and disbursements
8.Details of the firm’s complaints handling procedure
What is the act that governs this?
The Estate Agents Act 1979, seeks to promote
- honesty and accuracy,
- clarity in terms of engagement,
- agreement and liability for costs
- clarity in respect of personal interests,
- absence of discrimination,
- legal obligation to tell the client about all offers
- Differentiation for clients’ monies from office accounts.
Combination of criminal and civil penalties - applies to all types of interests (freehold or leasehold) property (sale or lease, land or property – includes auction).
whats S18?
Specifies information agent must give to the prospective client before entering into an agency contract – in writing
- When the client will become liable to pay remuneration.
- Amount of agent’s remuneration.
- Particulars which don’t form part of agent’s remuneration e.g. marketing exp.
- Nature of instruction (eg sole)
what’s S21?
declaring personal interests and connected parties. This can be quite far reaching and can include spouse, former spouse, partner / relative, employee etc. In the event that such an interest exists then this must be declared in writing. It must be stated on the sales particulars and in the heads of terms.
What legislation protects consumers?
Consumer Protection Regulations and Business Protection Regulations (CPR’s and BPR’s)
These replaced the Misdescriptions Act 1991 which was repealed in October 2013
It has been replaced The Consumer Protection from Unfair Trading Regulations 2008 (CPR) and the Business Protection from Misleading Marketing Regulations 2008.
criminal
what is the misrepresentation act?
a false statement of fact made in the course of pre-contractual negotiations which has the effect of inducing the party to purchase
The agent can be sued for damages and / or the contract rescinded
CIVIL offence (not criminal)
What’s in The Code for Leasing Business Premises?
to improve the quality and fairness of lease terms and to improve efficiency by having a comprehensive set of heads of terms at the outset.
practice statement” which means that parts of it (relating to heads of terms and negotiations) are mandatory for RICS members/regulated firms. The remaining parts are “good practice”
What’s are the mandatory requirements in the Code for Leasing Business Premises?
-approaching lease negotiations in a constructive and collaborative manner;
-advising unrepresented parties about the existence of the Code and recommending
them to obtain professional advice
-providing detailed written heads of terms
Where does it stipulate the size of a marketing board?
Town and Country Planning Advertisement Order 1992
What are the UK Commercial Real Estate Agency Standards?
These standards provide a summary of the relevant legislation that is expressed in terms applying to England and Wales.
12 points;
- Conduct business in an honest, fair, transparent and professional manner.
- Carry out work with due skill, care and diligence, and ensure that any staff employed have the necessary skills to carry out their tasks.
- Ensure that clients are provided with terms of engagement which are fair and clear. These should meet all legal requirements and relevant codes of practice including reference to complaints-handling procedures and, where it exists, an appropriate redress scheme.
- Do the utmost to avoid conflicts of interest and, where they do arise, to deal with them openly, fairly and promptly.
- Not discriminate unfairly in any dealings.
- In all dealings with clients, ensure that all communications (both financial and non- financial subject matters) are fair, clear, timely and transparent.
- Ensure that all advertising and marketing material is honest, decent and truthful.
- Ensure that all client money is held separately from other monies in appropriately designated accounts and is covered by adequate insurance.
- Have adequate and appropriate professional indemnity insurance or equivalent in place that complies with the RICS Rules of Conduct. Having proper cover is a key part of managing your risk.
- Ensure that it is made clear to all parties with whom you are dealing the scope of your obligations to each party.
- Where provided as part of the service, give a realistic assessment of the likely selling, buying or rental price, associated cost of occupancy or of the likely financial outcome of any issues, using best professional judgment.
- Ensure that all meetings, inspections and viewings are carried out in accordance with the client’s lawful and reasonable wishes, having due regard for the security and personal safety of all parties.
What must you do first before issuing ToE?
Check competence / independence / conflicts of interest / money laundering
measuring in terms of?
Measure in accordance with IPMS / the Code of Measuring Practice
What are the UK Commercial Real Estate Agency Standards?
summary of all legislation, covers 12 points such as;
honestly, fair, transparent
skilled
ToE
avoid conflict
dont discriminate
communicate fairly
advertising
client money
Bases of agency instruction?
sole / sole selling rights / joint / multiple
