Leasing/Letting Flashcards
What are the 12 principles of the RICS UK Commercial Estate Agency 2016
- Act honestly and professionally
- Ensure you are staff are competent
- Clear terms of business including complaints handling procedure
- Attempt to avoid conflicts of interest
- Do not discriminate
- Clear communication
- Honest marketing
- Client money help separately
- Have appropriate PPI
- Ensure obligations to parties are clear
- Provide realistic assumptions on costs and prices
- Meetings, inspections and viewings carried out to client wishes
What is included in the RICS UK Commercial Real Estate Agency 2016
Duty of care
Gifts and incentives
Conflicts of interest
AML checks
Types of agency
Health and safety
Methods of sale
Market appraisal
How do you ensure to follow duty of care?
- Follow ethical codes and marketing rules
- Do not release confidential information
- Do not appoint a sub agent without consent
- Ensure staff are trained
- Only accept work within your expertise
- Be reasonable when advising on rent
- Ensure you are not providing misleading information
When might you provide confidential client information?
If a client gives you consent or if legally required to do so
What might you include in Terms of Engagement?
- Property address
- Client contact details
- Type of disposal
- Sub-agent details
- Type of agency
- Viewing arrangements
- Marketing particulars
- Any personal interest
- Complaints handling procedure
- Methods of reporting offers
- Data protection act 1998
- Bribery act 2010
- Right to cancel/withdrawal
What year was the Estate Agents Act effective?
1979
What year was the RICS UK Commercial Estate Agency Professional Statement?
2016
What is the purpose of the Estate Agents Act 1979?
Ensuring that agents act in the best interest of clients. Acting fairly, honestly and promptly.
What types of property does the Estate Agents Act 1979 apply to?
- The disposal or acquisition of land
- Freehold and leasehold property
- Land as well as buildings
What are the 7 principles of the Estate Agents Act 1979?
- Terms of business
- Honesty and accuracy
- Agreement of costs
- Transparency regarding personal interest
- No discrimination
- Legally required to report offers
- Keep client money separate
What section of the Estate Agents Act discusses Terms of Business?
Section 18
What section of the Estate Agents Act covers conflicts on interest?
Section 21
What is joint agency?
Two agents who agree to a fee at the beginning of the process and split the fee
What is the standard joint agency fee?
15% of first years rent (7.5% each)
What is multiple agency?
Three or more agents but only the agent who makes the deal gets the fee
What is sole agency?
One agent working to let/sell the property. If they do not, the agent can be replaced.
What is the standard fee for a sole agent?
10% of the first years rent
What are sole rights?
You appoint an agent but if you find a buyer yourself, you still pay the agent fees
What is the cooling off period
14 days
What are important points of the Estate Agent Act
- Specify costs in advance
- Payments must be itemised
- Nature of agency
- Provide offers promptly in writing
- Disclose personal interests
Why might you receive a penalty against the Estate Agents Act?
By acting dishonestly, not informing clients of offers, not disclosing personal interests and not being clear in terms of engagement
What is the penalty against the Estate Agents Act?
A warning or fine
What is the Misrepresentation Act 1967?
To protect from false statements being made to a party during pre-contract enquiries which effect decision making
What different kinds of misrepresentation are there?
Fraudulent, negligent or innocent
Does the Misrepresentation Act apply to personal opinion?
Yes
When would a penalty apply against the Misrepresentation Act?
When misstatements or fraudulent statements are made by vendors or their agents
What is the penalty for the Misrepresentation Act?
Being sued for financial damage and/or the contract being rescinded
What act relates to the marketing of commercial property?
Town & Country Planning (control of advertisement) (England) regulations 2007
How long can marketing boards stay up?
They must be removed 14 days after completion of transaction
Who police’s the Town
& Country Planning Regulations?
The local planning authority
When is planning required for marketing boards?
If the are non-residential and over 2sqm, on a listed building or illuminated
What limitations are there on the positioning of marketing boards?
They cannot project more than 1m out for the building and not be more than 4.6m about ground level
Who is not eligible for VAT?
Financial institutions, charities and medical practitioners
