Leasing & Letting Flashcards

1
Q

How would you deal with a new letting?

A
  • conflict of interest/money laundering checks on client
  • agree ToE
  • agree strategy
  • site visit, measure, arrange works/stat comp/EPC (dilaps if outgoing tenant?)
  • valuation, approval
  • marketing particulars
  • viewings
  • tenant selection (due diligence)
  • HoTs (Code for Leasing Business Premises PS 2020)
  • agree, approval, instruct solicitors
  • liaise with solicitors to completion (SoC?)
  • handover (meter reads, stat comp, SoC)
  • update records, diarise milestone
  • check rent paid!
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2
Q

What are different methods of letting?

A
  • by private treaty
  • by tender (informal/formal)
  • recommended method, alternatives, risks, pros and cons
  • costs for both buyer and seller and implications for stamp duty
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3
Q

What market trends affect the value of leasehold interests?

A
  • supply and demand
  • location
  • sector
  • type of property
  • economic uncertainty
  • social changes inc technology
  • interest rates and inflation
  • performance of alternative asset classes (if investment)
  • government policy
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4
Q

What lease terms affect the value of leasehold interests?

A
  • length of term
  • flexibility i.e. breaks
  • contracted out
  • repairing obligations
  • user clause
  • frequency of RR
  • ability to assign
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5
Q

What does customer due diligence entail under Money Laundering Regs 2017?

A
  • identify client and verify identity
  • assess and where appropriate obtain info on the purpose and intended nature of the business rel or transaction
  • identify and verify a person who purports to act on behalf of a client
  • where client is a corporate body, must verify:
    name;
    company no.;
    reg office and place of business;
    its constitution/other governance docs;
    names of boards of directors
  • keep data for 5 years
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6
Q

How would you select a tenant?

A
  • due diligence
  • research (Companies House)
  • tenant application form
  • accounts
  • references
  • credit check
  • guarantor / deposit
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7
Q

What is relevant legislation relating to leasing and letting property?

A
  • Bribery Act 2010
  • Equality Act 2010
  • Consumer Protection from Unfair Trading Regs (CPR) 2008
  • Business Protection from Misleading Marketing Regs (BPR) 2008
  • Estate Agents Act 1979
  • Money Laundering Regs 2017
  • Data Protection Act 2018
  • Misrepresentation Act 1967
  • L&T Acts
  • Late Payment of Commercial Debts Act 1998
  • Supply of Goods and Services Act 1982
  • Unfair Contract Terms Act 1977
  • Cancellation of Contracts Regs 2013
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8
Q

Code for Leasing Business Premises PS 2020

NEED TO ADD DATE AND EFFECTIVE DATE

A
  • outlines the kinds of terms RICS expects
  • states that negotiations must be approached in a collaborative and constructive manner
  • must advise of code and to obtain professional advice
  • agreement must be recorded in HoTs, minimum terms
  • negotiation should aim to produce terms that achieve a fair balance between parties having regard to their respective commercial interests
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9
Q

Who is an estate agent according to the Estate Agent Act 1979?

NEED TO ADD DATE AND EFFECTIVE DATE

A
  • you deal with people who want to buy or sell FH or LH property
  • you do this as part of a business
  • and you act on instructions from a client
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10
Q

What are the requirements on handling clients’ money under the Estate Agents Act 1979?

A
  • 2 types of deposit:
    pre-contract (before exchange), contract (on exchange)
  • must put in a client account separate from rents etc.
  • pay interest of over £10 for deposit over £500 to client
  • keep detailed records of all transactions related to a client account including receipts
  • accounts must be audited
  • must keep records for 6 years
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11
Q

What do the Money Laundering Regs 2017 aim to do?

NEED TO ADD DATE AND EFFECTIVE DATE

A
  • set out additional obligations of private sector firms working in areas of higher money laundering risk
  • aim to stop criminals using pro services to launder money by requiring pros to take a risk-based approach
  • firms must put measures in place to identify their clients and monitor how they use their services
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12
Q

Real Estate and Agency Brokerage PS 2016

NEED TO ADD DATE AND EFFECTIVE DATE

A
  • gives guidance on ethics, securing instructions, acting for the seller, acting for the buyer, ending the instruction, safety, security, agency management
  • duty of care and conflicts of interest
  • ToE, sub-agents
  • advising on price, market advice, records, marketing, reporting, communicating offers with client and buyer
  • property search, reporting, purchases, holding money
  • written confirmation, invoice
  • confidentiality, data protection, H&S
  • advertising services, complaints, debts, insurance, training
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13
Q

Real Estate Agency and Brokerage PS 2016 communicating with clients

A
  • clients must be provided with ToE which are fair and clear (services, duration, fees, sub-agents)
  • comms should be fair, clear, timely and transparent
  • all marketing material should be clear, fair and transparent
  • reporting on property price/rent and confirm offers in writing with sufficient detail
  • must seek to avoid and disclose conflicts of interest
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14
Q

UK Commercial Real Estate Agency PS 2016

NEED TO ADD DATE AND EFFECTIVE DATE

A
  • gives guidance on standards and ethics, securing instructions, marketing and implementing disposals, acquisitions, ending instructions, UK regulatory requirements
  • duty of care and conflicts of interest
  • ToE, sub-agents
  • inspection, measurement, appraisal, viewings, reporting
  • methods of sale/letting, offers
  • property search, reporting, purchases inc LH
  • written confirmation, invoice
  • reference to Real Estate and Agency Brokerage PS 2016
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