Leasing and Letting - L1 Flashcards
What are the different leasing methods?
Leasing (acquisition)
Letting (disposal)
What is a lease?
A legally binding contract between a landlord and a tenant granting exclusive possession and use of a property for a specified period in exchange for rent.
What is a licence?
A legal agreement that grants an individual or entity permission to use land or property for a specific purpose without transferring exclusive possession.
What is an assignment?
The transfer of an existing lease or other interest in property from oe party to another.
What is subletting?
The process by which the tenant leases our part or all of their rented property to a third party while retaining their own obligations under the original lease.
What compliance procedures would you undertake before accepting an instruction?
Competent
Conflict of Interest Check
ToE
What is the Estate Agents Act (1979)?
UK legislation that regulates the activities of an estate agent.
What are the principles of the EAA 1979?
1) Clarify terms of the agency
2) Honesty and accuracy
3) Agreement and liability for costs
4) Openness regarding personal interests
5) Absence of discrimination
6) Legal obligation to tell clients about offers received
7) Keep clients money separate
When does the EAA 1979 apply?
1) Disposal/acquisition of an interest in land
2) Freehold property
3) Leasehold property with a capital value
4) Land as well as buildings
What is the EAA 1979 policed by?
Act policed by the National Trading Standards Estates & Letting Agency Team who enforce the Estates Agents Act and the Tenant Fees Act 2019
What are the penalties for breaching the EAA 1979?
1) Right to be an estate agent can be taken away and not granted
2) Prohibition or warning order to be made against an agent
What is the RICS Professional Statement on Real Estate Agency and Brokerage 3rd edition (August 2016)?
Outlines the principles that underpin all activities undertaken by real estate agents within whichever country they practice.
What is the Misrepresentation Act (1967)?
Relates to a misrepresentation or a false statement of fact made by a party during pre-contractual enquiries which induces a party to purchase
What different types of misrepresentation?
1) Innocent Misrepresentation - when a false statement is made by a party who genuinely believes it to be true.
2) Negligent Misrepresentation - false statement is made by a party who fails to take reasonable care in ensuring the accuracy of the statement.
3) Fraudulent Misrepresentation - false statement is made knowingly without belief in its truth, not caring whether its true or false
What sort of statutory compliance might you do before a letting?
Ensuring that you have the EPC and that is meets the minimum requirements to legally be let.
Competence/COI/ToE
