Letting & Leasing 1 Flashcards
1
Q
Tell me about your understanding of legislation relevant to your leasing and letting practice?
A
Estate Agents Act 1979 (EAA 1979)
Landlord and Tenant act 1985
Consumer Protection from Unfair Trading Regulations 2008
Consumer Contracts Regulations 2013
Consumers, Estate Agents and Redress Act 2007
Town and Country Planning (Control of Advertisements) Regulations
Money Laundering Regulations 2017
2
Q
Tell me about your understanding of the Estate Agents Act 1979.
A
Its purpose is to make sure that estate agents act in the best interests of their clients, and that both buyers and sellers are treated honestly, fairly, and promptly.
Estate agents who do not comply with the law, could be banned from working as an estate agent.
3
Q
What are the 6 key principles of the Estate Agents Act 1979?
A
Clarity as to the terms of the agency (Section 18)
Honesty and accuracy
Agreement and liability for costs/fees
Openness regarding personal interest (Section 21)
Absence of discrimination
Legal obligation to tell client about offers received
Keep clients’ money separate
4
Q
How does Section 18 relate to your letting practice?
A
Must specify all costs/fees in advance, in writing in the terms of business
Itemise all payments
5
Q
What are the four agency bases?
A
sole agency
sole selling rights
multiple agency
joint agency
6
Q
What are the differences between the four agency bases?
A
Sole Agent- This is an arrangement where a single estate agent is appointed to market a property for sale. The agent will only be entitled to its fee if it introduces, or (if the contract permits) has negotiations with, the eventual buyer while the agent’s agreement is in force.
Sole Selling Agent- Similar to sole agent except, that estate agent will be entitled to its fee if there is any disposal of the property while the agent’s agreement is in force, regardless of who found the buyer or had negotiations with them.
Multiple Agency- This is an arrangement where a vendor uses a number of estate agents to market a property for sale and the vendor pays only the one who sells the property.
Joint Agency- This is an arrangement where a vendor uses two (or more) estate agents to market a property for sale, and the agents agree to split the fee between them if one of them sells the property.
7
Q
Where are these defined?
A
Estate Agents (Provision of Information) Regulations 1991
8
Q
What is a ready, willing and able purchaser?
A
If someone is ready, willing and able to purchase your property – and even if an exchange of contracts doesn’t happen – then the agent will be entitled to a fee.
9
Q
How does Section 21 relate to your letting practice?
A
Disclose any personal interests - a “connected person” is someone who benefit financially from the transaction such as a relation or business associate
Any personal interest should be declared on the terms of engagement as a minimum and if appropriate not continue to act
10
Q
Tell me about key points of the Consumer Protection / Business Protection Regulations.
A
CPR- Treat customers fairly and not give misleading information.
BPR- prohibit misleading marketing material.
11
Q
What is an average consumer/material information?
A
Average Consumer- a consumer who is reasonably well informed and reasonably observant and circumspect, taking into account social, cultural and linguistic factors.
material information” means—
the information which the average consumer needs, according to the context, to take an informed transactional decision.
12
Q
What are considered to be unfair practices under this legislation?
A
misleading actions
misleading omission
aggressive Behaviour
Lack of professional diligence
13
Q
How does the Misrepresentation Act 1967 relate to your agency practice?
A
Aim- to provide a greater amount of security to parties that enter into a contractual agreement, to ensure that they are not tied to an agreement, or suffer loss, as a result of a misrepresentation.
Agencies should ensure that a disclaimer is included on the marketing particulars they produce, effectively stating that these have been produced in good faith and are believed to be correct.
14
Q
What does the Unfair Contract Terms Act 1977 say?
A
A statute which imposes limits on the extent to which liability for breach of contract, negligence or other breaches of duty can be avoided by means of contractual provisions such as exclusion clauses.
15
Q
Do you need to inform your client if you offer a service to a prospective tenant?
A
Yes under Section 21 of the Estate Agency Act 1979.
16
Q
Tell me three key issues raised in the RICS Real Estate Agency and Brokerage Standards.
A
Ethics.
Securing instructions.
Acting for the seller: marketing the property.
Acting for the seller: agreeing the sale or lease.
Acting for the buyer.
Ending the instruction.
Safety and security.
Agency management
17
Q
Explain what alienation is.
A
Alienation simply means dealing with a leasehold interest in property,
e.g. by way of assignment, sub-letting, sharing occupation or charging.
18
Q
What happens if there is no alienation clause in a lease?
A
If there is no alienation clause in a lease, then the parties are free to deal with the lease as they wish.
19
Q
What is subletting?
A
a sub-lease is granted from the original tenant to a sub-tenant - meaning that the original landlord & tenant relationship remains intact.
20
Q
What is assignment?
A
Assignment is where a third party effectively steps into the shoes of the current tenant, i.e. the lease is transferred to another party who becomes the new tenant.
21
Q
Tell me about the planning considerations you are aware of if you want to install a marketing board.
A
Town & Country Planning (Control of Advertisements) (England) Regulations 2007.
- Deals with installation of marketing boards:
-Placement of boards
-How many boards can be placed - Projection and Board Sizes
-Length Of time - Types of agents signs
- Designs
22
Q
Do you need planning consent to install a marketing board? Of what size?
A
Only is the board does not comply with the regulations.
Size- 0.5 sq/m
23
Q
Tell me about the requirement surrounding letting property and EPCs.
A
From 1st April 2020, the Minimum Energy Efficiency Standards apply to all existing tenancies – not just new ones or renewals.
If your property doesn’t have a valid EPC rating of ‘E’ or above by this date, it cannot be legally let.
24
Q
What buildings are exempt from having an EPC?
A
Listed Buildings
Places Of Worship
Owner Occupied Houses
Temporary Buildings
25
Can you charge a tenant for a copy of an EPC?
No, Landlords must provide a valid EPC free of charge.
26
Where does the EPC have to be shown?
Marketing info/ brochure/ Online
27
How long do you have to produce the EPC after a property is put on the market?
A copy of the EPC must be provided within seven days or the person to whom the request was made may be liable to a penalty charge notice for failing to comply.
28
Tell me about how MEES affects your leasing practice.
Any properties below E rating cannot be rented out or re-let.
29
What will happen in 2018?
Landlords cannot renew a tenancy or rent out a property if EPC is less than E rating.
30
What will happen in 2023?
landlords must not continue to let any buildings which have an EPC rating of less than E
31
How can MEES risk be reduced?
Future planning and increase EPC rating as high as possible in case of future changes.
32
What would you do if you were asked to let an F or G rated property?
I would inform the landlord that they couldn't let the property at this rating however if they were to make improvements and they reached the E EPC rating then I could market the property for let.
33
How can you improve an EPC rating?
Installing energy efficient lighting,
Improving thermal insulation
Improving heating
Installing solar panels
Installing photovoltaic panels
Wind turbines
Upgrading the windows.
34
How could onerous lease clauses / macro / micro economic conditions impact upon tenant confidence and demand?
Onerous Lease Clause- Would restrict tenants ability to do certain works or changes. Or even require them to carry out works as part of the contract.
Macro- Inflation can mean cost of living increases and reduces tenants ability to spend. Population growth.
Micro- Location and amenities. Building style and layout.
35
How does VAT affect residential property lettings?
VAT is normally an expense that businesses can claim back form the government however this is not something that landlords are allowed to claim back due to recent changed in government legislation.
36
Tell me about your understanding of RICS Residential Real Estate Agency (6th Edition) (Blue Book).
Sets out clearly the responsibilities of residential property agents to ensure they are working to the highest ethical and professional standards.
37
When was this last updated?
2017
38
What changes were made?
- Real Estate Agency Code
- Real estate agency and brokerage and real
- estate management: RICS professional statement
- Standards and ethics
- Before securing instructions
- Acting for the seller or landlord: marketing the property
- Acting for the seller: implementing the sale or lease
- Acting for the buyer
- Acting for the landlord: letting the property
- Ending the instruction
39
What other bodies support the Professional Statement?
NAEA Propertymark
ARLA Propertymark
40
Is it advisory or mandatory?
Mandatory
41
What are the key principles?
Part 1
- Real estate agency and brokerage and real estate management: RICS professional statement
Part 2
- Standards and ethics
- Before securing instructions
- Acting for the seller or landlord: marketing the property
- Acting for the seller: implementing the sale or lease
- Acting for the buyer
- Acting for the landlord: letting the property
- Ending the instruction
42
What regulatory requirements must you comply with?
* Consumer Protection from Unfair Trading Regulations 2008 (when dealing with consumers)
* Business Protection from Misleading Marketing Regulations 2008 (when dealing with businesses).
* Provision of Services Regulations 2009.
* Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
* Estate Agents (Provision of Information) Regulations 1991).
43
What statutory requirements must you comply with?
* Bribery Act 2018
* Equality Act 2010
* Estate Agents Act 1979
* Health and Safety at Work etc. Act 1974
* Data Protection Act 2018
44
What is your duty of care as a real estate agent?
You must always ensure that you carry out all services with reasonable care and skill.
45
What is your duty of care when acting for the sell/buyer/tenant?
Seller- Your duty of care exists throughout the period of your instruction [and extends through the conveyancing process to completion].
This includes exercising reasonable care and skill in advising on an appropriate asking price or rent for the property … through employing the marketing strategy and your advice to your client on whether or not to accept a particular offer.
Buyer/Tenant- Where you are instructed by a potential buyer to seek a suitable property for them you must take reasonable care to ensure that information which you pass on to your client is not misleading.
46
How do you comply with the Equality Act 2010?
By ensuring I do not discriminate others due to the characteristics or disabilities. I treat everyone openly, with honesty and fairly.
47
What is a vulnerable customer?
Vulnerability can include anything that may have an impact on a person’s ability to make a sound and reasoned decision.
48
How should you act differently when a vulnerable customer is involved?
You must ensure that you do not discriminate against vulnerable customers – either explicitly or implicitly – by your actions.
You should ensure that each individual is given all the relevant information necessary to make as informed a decision as possible in the circumstances.
Safeguards should include identification of vulnerable or forced sellers or landlords who are exceptionally dependent on you for advice.
49
What is discrimination?
The unjust or prejudicial treatment of different categories of people, due to their differences.
50
What must you not do in relation to discrimination?
You must not discriminate against any existing or potential party to a transaction. You must not:
* discriminate on the basis of gender, age, race, creed, religion, disability, sexual orientation, or national origin or
* favour any party because they are likely to instruct you on other property matters, or use services offered by you or your related parties.
You must ensure that you do not discriminate unfairly against any party:
* in the terms on which a property is offered
* by refusing to sell or lease the property or
* in your treatment of persons in need of property for occupation or investment purposes.
51
What information should you provide to consumers?
You should ensure that each individual is given all the relevant information necessary to make as informed a decision as possible in the circumstances.
52
What are right-to-rent checks and under what legislation do these apply?
Right to Rent Checks- Private landlords and agents are legally required to check the immigration status of all tenants, lodgers and any other adults who will be living in the property.
Immigration act 2014
53
What information do you have to provide to consumers and under what legislation?
You must provide information about an agency business as set out in the Provision of Services Regulations 2009.
Your advertising must not be misleading or make any misleading omissions (Consumer Protection from Unfair Trading Regulations 2008)
If you make any sort of comparison with other businesses in advertising you must ensure such comparisons are suitable for comparison, not misleading, objective and substantiated (Business Protection from Misleading Marketing Regulations 2008).
You must belong to an approved redress scheme (Consumers, Estate Agents and Redress Act 2007).
You must refer to the RICS guidance on complaints-handling procedures: www.rics.org/regulation and to the Estate Agents Act 1979.
You must ensure that all clients’ money held for any purpose is covered by adequate insurance.
You must appoint an anti-money laundering reporting officer (MLRO) and deputy (Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017).
RICS Bribery, corruption, money laundering and terrorist financing 2022.
You must have ‘adequate procedures’ to prevent bribery (Bribery Act 2018).
You must comply with the requirements of the Health and Safety at Work etc. Act 1974
You must take account of the requirements of the Data Protection Act 2018.
54
What should you do prior to securing an instruction?
Conflict of Interest Checks- Conflicts of interest (1st edition),
Confirming the identity of your client- RICS Bribery, corruption, money laundering and terrorist financing 2022
55
Tell me about the requirements of the RICS around advertising and marketing your services.
Before letting, you must obtain any consent needed- You should also ensure that the landlord has the legal right to let the property.
You must also comply with the obligations and requirements of the various safety legislation, standards and regulations that apply to rented property.
If asked to let a leasehold property, you must ask the leaseholder for full details of all covenants or obligations that may apply to the tenant and that must be incorporated in any tenancy agreement.
You should explain all the possible tenancy options to the prospective landlord and tenant, including any potential for longer term lets.
56
What guidelines must you comply with?
RICS Health and Safety for residential property managers (1st edition)
Private Rented Sector Code of Practice (1st edition)
RICS Rules Of Conduct
57
Tell me about what you must confirm to clients in relation to itemised costs.
‘If you intend to charge a client anything over and above the basic fee you must provide the client with details of those charges.
You must identify each item to the client at the outset, together with the actual or estimated charge for it.
This must then be itemised in the final account.
Although an estimate is not the same as firm particulars of the amount to be charged, if the estimated figure might be exceeded you must immediately give the clients the revised estimates.
Your client’s approval must be obtained before further expenditure is incurred.
You must make clear whether your commission or fee is exclusive or inclusive of value added tax (VAT), and state that expenses are subject to VAT at the appropriate rate (Estate Agents Act 1979, Consumer Rights Act 2015).
58
What does the Consumer Rights Act 2015 say about your terms of engagement?
specifies the consumer's cancellation rights (during so-called “cooling off periods”) for goods, services and digital content contracts concluded at a distance or off premises; and. introduces various measures aimed at protecting consumers from hidden charges once they have entered into a contract.
59
What is a cooling off period?
A client may have a legal right to cancel an agency contract within a certain period of signing.
This legal right can be exercised within 14 days of signing, if that signature is obtained anywhere other than at your firm’s premises
60
What is a dual fee liability?
Where a property has been marketed with another agent or a buyer or tenant client has used another agent you should make clear any circumstances where they may be required to pay a fee to both yourself and to any other agent and advise of this in writing.
61
What should you include in your terms of engagement?
*property address
*full names and contact details of client (with legal right to sell property)
*type of agency (definitions in section 2.4.1.1 and in the Glossary)
*subagents
*deposits
*commission
*method of payment and trigger for payment
*expenses
*marketing programme
*sale or letting boards
*sales or letting particulars
*personal interest
*services to prospective purchasers or tenants
*unoccupied premises
*Energy Performance Certificate (EPC)
*complaints handling
*retention of documents
*right to cancel
62
Can you offer your services to other parties?
You should advise your client in writing if you intend to offer services to buyers [or tenants] and what these services would be.
63
What do RICS say about this?
You should notify your client in writing at the time when communication commences between you and the client or as soon as is reasonably practicable.
64
What do the RICS say about advising on the property price/rent for marketing / providing market advice?
property price/rent-
This advice is not a formal valuation of the property.
You must never deliberately misrepresent the potential price of a property (Estate Agents Act 1979).
You must exercise reasonable care and skill in advising on an appropriate asking price or rent for the property.
market advice-
You should provide realistic and justifiable advice in regard to the likely selling price or rent based on your best professional judgment.
When advising on a suitable asking price or rent for a property you should obtain comparable data, details of sales or lettings of other similar properties in the area.
Ask the client questions on their motivation and requirements. i.e. quick sale or top price.
65
Tell me about what you include in property particulars.
- Location or address
- Aspect, view, outlook or environment
- Availability and nature of services, facilities or amenities
- Proximity to services, places, facilities or amenities
- Accommodation, measurements or sizes
- Fixtures and fittings
- Physical or structural characteristics, form of construction or condition
- Fitness for any purpose or strength of any buildings or other structures on land or of land itself
- Treatments, processes, repairs or improvements
- Conformity or compliance with any scheme, standard, test or regulations, or the existence of any guarantee
- Conformity or compliance with any scheme, standard, test or regulations, or the existence of any guarantee
- The length of time during which land has been available for sale either generally or by or through a particular person
- Price
- Tenure
- Council Tax and Rates
66
When should accompanied viewings be carried out?
Accompanied viewings should be carried out when:
* you hold the keys to a property (unless you agree otherwise, in writing, with the client)
* the property is empty
* the seller or landlord is, or may feel, vulnerable (see section 1.7) or
* you feel this will increase the prospect of a sale or letting.
67
How do you communicate with clients about viewings?
You should keep records of all viewings of a property.
You should advise your client of the details of viewings and, in particular, feedback received, within a reasonable time. This would generally be within three working days of the viewing.
68
How do you hold keys for clients?
All the keys you have are coded and kept secure.
A key record of when you issue keys and to whom, and when they are returned. These records should be kept secure and separate from the actual keys.
69
What records do you keep relating to viewings?
* date and time of the viewing
* duration of the viewing
* name of the estate agent who accompanied the potential buyer or tenant on the viewing
* buyer’s or tenant’s circumstances (e.g. personal, financial)
* any feedback provided by the buyer or tenant
* whether you or another agent accompanied the buyer or tenant on the viewing and
* whether the key was released to the buyer or tenant (or anyone else).
70
Tell me about how you would respond to a tenant/buyers request for information.
I advise them of all relevant issues and do not make any material omissions from the information you provide.
71
Tell me about how you take account of the provisions of the Protection from Eviction Act 1977.
I ensure and prescribed notices are date stamped and hand delivered as well as all keys are returned at the end of the tenancy so the tenants can claim their deposit.
72
How do you assess offers for a property?
You must tell clients about all offers as soon as is reasonably possible until contracts have been exchanged or tenancy agreements signed.
Take reasonable steps to find out from the prospective buyer his or her source and availability of the funds for buying or renting the property and other information that may affect his or her ability to buy or lease the property and pass this information to your client.
You should keep appropriate records of all offers you receive.
73
Can you carry out viewings after an offer has been accepted?
You must ensure that you have your client’s instructions before carrying out any further viewings once an offer has been accepted.
74
How do you accept an offer?
When your client agrees to accept an offer and any related conditions you should record these details accurately and inform the buyer.
This should be confirmed in writing to both parties.
You should also advise the legal advisers of the details of the terms of the sale.
75
What does the Estate Agents Act 1979 say about deposits?
You must pay any deposit, without delay, into a statutory client account (Estate Agents Act 1979).
76
What is a pre-contract deposit and when does it have to be returned?
A Pre-Contract Deposit is where an estate agent will demand a deposit from buyers in order to take the property off the market, even when an offer has been accepted.
You must return a pre-contract deposit to the buyer on demand.
77
What does the Housing (Tenancy Deposits Scheme) Order 2007 say?
It requires a landlord to give the tenant information as may be prescribed relating to a tenancy deposit that has been paid and how it is protected?
78
What does the Consumer Credit Act 1974 say about tenant credit checks?
- You should also ask tenants to agree to a credit check- Consumer Credit Act 1974.
79
What documentation do you need to provide at the point of marketing / during the marketing process / on completion?
This must include an Energy Performance Certificate (EPC) and,
where gas is provided at the property, a current Gas Safety Certificate (CP12)
80
Tell me about the PRS Code of Practice (2015) and how it impacts upon your practice.
Intended to promote best practice in the letting and management of private rented sector housing in England.
It provides a guideline for best practise.
81
What consents might you need prior to letting?
joint owner, lender, insurance company, superior landlord, freeholder and local authority
82
What advice must you give about tenancy options and to whom?
You should explain all the possible tenancy options to the prospective landlord and tenant, including any potential for longer term lets.
83
What charges might tenants be liable for?
Local Property Taxes - The lease should define who is responsible for local property tax, but this should be drawn to the prospective tenants’ attention to enable them to include it in their calculations.
84
Tell me about references and credit checks you might carry out.
References should be obtained in writing, by letter or email, from individual referees. You should inform your client of the outcome of the references. I.e landlord or employment references.
Credit Checks are carried out to see if the perspective tenant has a secure income to afford the rent. This can be carried out by a third party. I used Homelet.
85
Do you have to ask a tenant to agree to a credit check?
Yes.
86
What legislation relates to this?
Consumer Credit Act 1974.
87
Tell me about the preparation of a tenancy agreement.
Prospective tenants should be given adequate time to read the agreement before signing and should also be given a copy of the How to Rent Guide
88
What could you do if you can’t fully reference a tenant?
you should consider:
* asking for six months’ rent in advance, although this may have other legal implications
* seeking a higher deposit
* granting a six-month tenancy only and then re-referencing at its expiry or
* seeking a guarantor for whom you should also take up references. Seek legal advice when choosing this course.
89
Tell me about residential tenure and the different forms it takes.
There are a number of different types of tenancy agreement available that may be appropriate, depending on the specific requirements of your landlord client and the potential tenant. These include:
* assured shorthold tenancy (AST)
* assured tenancy
90
What is an AST?
Assured Shorthold Tenancy.
91
What are the 2 types of AST?
Fixed or periodic
92
What is an assured tenancy?
you can normally live in your property for the rest of your life
93
How do these differ?
The main difference between an assured shorthold tenancy and an assured tenancy is that the landlord (for an AST) can use section 21 of the Housing Act 1988 to regain possession without giving a reason.
94
What would you expect to find in a tenancy agreement?
Property Name and Address
Rental amount
Deposit amount
Rental Dated
Start and end of tenancy date.
Tenants names and addresses
Landlords names and address
Inclusions or exclusions in tenancy.
95
Should prospective tenants be given any guidance before signing a tenancy agreement?
How To Rent Guide.
96
Does the tenant need to be given the landlord's name and address for serving notices?
Yes.
97
How do company lets differ to individual lets?
Where residential properties are let to a company rather than an individual, the company is responsible for all the tenant’s obligations under the terms of the lease in the same way as an individual tenant would be.
98
What does the Housing Act 1988 say about tenancies?
Split tenancies into AST's and assured tenancies.
99
Should an AST be used for a company let?
ASTs should not be used for company lets. Company lets have their own tenancy agreements and, in many cases, the company has its own form of agreement.
100
What is a Rent Act 1977 tenancy?
regulated tenancies are lets agreed before the 1988 act came into force.
There are few grounds for gaining possession of the property and you should seek legal advice before taking any action.
As well as security of tenure, there are limits on the rent that can be charged and certain rights of succession.
101
How does this differ to other forms of tenancy?
This tenancy can be passes down through family.
I.e. if the parents died the tenancy would pass onto the adult children.
102
What other forms of tenancy exist?
* agricultural dwellings
* farms
* business premises
* public houses
* holiday lets
* student housing
* social housing.
103
Tell me about tenancy deposits.
Tenancy Deposit Protection Schemes require that for certain types of tenancy the deposit must be protected and prescribed information given to tenants.
104
What Schemes can you use?
Custodial Tenancy Deposit Scheme
Insurance Tenancy Deposit Scheme.
105
Why must deposits be kept safely?
The scheme keeps your money safe and makes sure you get back what you're owed at the end of your tenancy.
106
Who holds the deposit and how is interest dealt with?
The landlord.
Any surplus interest is then repaid to the landlord or tenant depending on who is entitled to it
107
When is the deposit returned and under what circumstances?
- meet the terms of your tenancy agreement
- do not damage the property
- pay your rent and bills
108
What prescribed information is provided to the tenant?
Specific details of the deposit protection and a leaflet explaining how TDS works
109
What must be included on rent demands?
Tenancy Name & Address
Rent amount and date
Landlord Name & Address
Signature of who supplied notice.
110
When is rent deemed lawfully due from a tenant?
Rent becomes due on the morning of the day specified for payment in the lease or tenancy agreement, but is not overdue and the landlord does not have cause of action, until midnight on that day.
111
When do you need to provide a rent book?
Where rent is payable weekly, and the payment does not include a substantial amount for meals, the landlord must provide a rent book or equivalent.
112
Tell me about legislative requirements around smoke detectors/carbon
monoxide detectors.
Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022
All relevant landlords must:
1. Ensure at least one smoke alarm is equipped on each storey of their homes where there is a room used as living accommodation.
2. Ensure a carbon monoxide alarm is equipped in any room used as living accommodation which contains a fixed combustion appliance.
3. Ensure smoke alarms and carbon monoxide alarms are repaired or replaced once informed and found that they are faulty.
Local Authorities can impose a fine of up to £5,000 where a landlord fails to comply with a remedial notice.
113
Tell me about electrical safety requirements.
Require landlords to have the electrical installations in their properties inspected and tested by a person who is qualified and competent, at an interval of at least every 5 years.
Landlords have to provide a copy of the electrical safety report to their tenants, and to their local authority if requested.
114
How often must electrical testing be carried out and by whom?
Every 5 Years and by a Certified Electrical Engineer.
115
How do building regulations relate to electrical installations?
the homeowner or landlord must be able to prove that all electrical installation work on their property meets the requirements of Part P.
116
What is PAT testing?
Portable Appliance Testing- the examination of electrical appliances and equipment to ensure they are safe to use.
117
Tell me about compliance with gas safety regulations.
By law you must: Repair and maintain gas pipework, flues and appliances in safe condition. Ensure an annual gas safety check on each appliance and flue.
118
How often must gas installations be checked and by whom?
Annually.
119
Are tenants entitled to quiet and peaceable enjoyment of a property?
It is implied.
120
Can you interfere with this right?
Yes, but notification must be given to the tenant. Ideally 24 Hrs with permission given.
I.e. repairs and safety inspections.
121
How can you terminate a residential tenancy?
AST- You must give your tenants written notice that you want the property back (‘notice to quit’) and the date they must leave.
The notice period you give them must be at least 2 months for section 21 notices.
Periodic Tenancy- You can end the agreement at any time by serving a written 'notice to quit'. The notice period will depend on the tenancy or agreement, but it's usually at least 4 weeks.
122
What should you do once the property is vacated?
Check out inspections
Contact utility suppliers and the council
Get your deposit back
No Rent Arrears
123
How and when would you return the tenant’s deposit?
At the end of tenancy
After Check out inspection with no damages
No Rent Arrears
Landlords permission.
124
Can you retain the deposit?
Your landlord or agent is only entitled to keep all or part of your deposit if they can show that they have lost out financially because of your actions.
125
What happens in the event of a dispute?
If the deposit is protected by TDS, the dispute can be referred to us and resolved by a professional, impartial adjudicator.
Or You can go take the landlord to court.
126
Does the RICS provide any guidance to inventory takers?
A Guide to Best Practice for Inventory Providers, published jointly by RICS, ARLA and others.
127
What is the basic process and reason for taking an inventory?
The inventory, with a schedule of condition for the décor, fixtures, furniture, equipment and effects, should be prepared to ensure that prospective tenants know what is included and the condition and cleanliness of the property.
To avoid issues at the end of the tenancy, you should obtain instructions from your client to prepare, prior to the commencement of the tenancy, an inventory and schedule of condition of sufficient detail. Make clear immediately to the potential tenant the extent of items to be included in the inventory.
128
How can you evict a tenant?
- A Section 21 notice if you want the property back after a fixed term ends.
- A Section 8 notice if they’ve broken the terms of the tenancy.
- Apply to the court for a standard possession order if your tenants do not leave by the date specified on the notice and they owe you rent.
- Apply for a warrant for possession if your tenants still will not leave
129
What can you be guilty of if you don’t follow the correct eviction procedures?
You may be guilty of harassing or illegally evicting your tenants if you do not follow the correct procedures.
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What is a S21 / S8 notice?
- A Section 21 notice if you want the property back after a fixed term ends.
- A Section 8 notice if they’ve broken the terms of the tenancy.
131
What is a standard possession order?
A court order that can be used to regain possession of your property if your tenant has failed to pay rent or has breached the terms of their tenancy.
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What is an accelerated possession order?
A method by which a landlord can obtain an order for possession against an Assured Shorthold Tenant following the service of a section 21 notice. But can only be used if not claiming any unpaid rent.
133
What is a warrant for possession?
Is used to enforce a judgment or order for the possession of land if the tenant does not leave when asked to following pervious notices and orders.
134
What is a bailiff and what can they do?
A bailiff or enforcement agent has legal powers to collect a debt.
Only a court can send bailiffs to evict you from your home and give back the empty property to the landlord.
135
What is an excluded tenancy and how can you evict a tenant in this instance?
You do not have to go to court to evict your tenants if they have an excluded tenancy or licence, for example if they live with you.
You only need to give them ‘reasonable notice’ to quit.
136
How do the rules differ for assured and regulated tenancies?
You’ll then have to follow different rules to evict them and they’ll have increased protection from eviction.
I.e. Section 8 notice for Assured Tenancy.
Regulated Tenancies- You can only be evicted from a regulated tenancy if your landlord gets a court order.
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What is a regulated tenancy?
if you pay rent to a private landlord and your tenancy started before 15 January 1989.
138
What should you do if a tenant has left their belongings in your property?
If you cannot find the tenant after they have left possessions in your property, you are allowed to dispose of or sell the items. However, it is absolutely vital to take all possible measures to trace the old tenant and keep accurate logs of how you tried to do so in order to remain compliant with the law.
139
What should you do if your tenant owes rent and receives housing benefit?
If the tenant receives Housing Benefit, if it doesn’t cover your rent you may be able to get some extra money called a Discretionary Housing Payment (DHP).
The landlord could evict the tenant using a section 21 notice for arrears.
140
What changes to management did the Housing and Planning Act 2016 bought in?
Banning orders prohibit landlords and agents who has committed relevant offences from letting or managing residential properties.
141
What happened in the recent case of London Borough of Waltham Forest v Khan?
The Upper Tribunal agreed with the local authority’s decision to grant the landlord a shorter licence on the basis that the planning status of the property needed to be regularised.
142
What did the Montague Review say about the PRS?
It sums up the key barriers to greater
institutional investment into the private rented sector. Such as low yields and lack of profitabliity.
Recommendations:
- Increased flexibility by local authorities in the planning system.
- Government and public agencies should continue the focus on public sector land
release
- Financial incentives
- Establish a dedicated government task force
- The task force should work with industry to develop voluntary standards to recognise
quality
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What Government proposals were introduced as a result?
An additional 5,000 homes built for rent at market rates in line with proposals outlined in Sir Adrian Montague’s report to government on boosting the private rented sector.
144
Tell me about the Homes (Fitness for Human Habitation) Act 2018.
It was brought in to ensure that, legally, rented properties are fit for human habitation at the start of a tenancy and remain so throughout the term of the lease agreement.
145
When did it come into force?
March 2019
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What are the aims of it?
A standard for properties at the point a tenancy begins, stating that there is an implied agreement between the landlord and tenant, from the outset, that the property will be let and maintained 'in a state of fitness for human habitation'.
147
Are there any new obligations under the Act?
Implied term of a residential tenancy agreement that the landlord shall ensure that the dwelling is fit for human habitation
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What tenancies are covered by the Act?
- Tenancies granted or renewed on or after 20 March 2019
- Tenancies arising on expiry of a fixed term on or after 20 March 2019
- All other periodic or secure tenancies from 20 March 2020
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Are there any exceptions in relation to a landlord remedying unfitness?
- the unfitness was caused by the tenant’s failure to use the premises in a tenant-like manner
- the unfitness arises because of the tenant’s breach of contract, for example the tenant has denied access for repairs
- carrying out works or repairs would cause the landlord to breach other legal obligations, for example breaching of planning permission or listed building consent
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What happens if a landlord breaches the Act?
If the landlord's breach of the term is established, the tenant may take the landlord to court and be entitled to compensation in respect of both:
- General damages
- Special Damages
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What criteria are covered by the Act?
- the standard of fitness is that of ‘the ordinary reasonable man.
- premises must be ‘decently fit for human beings to live in.
- the duty of the landlord is to keep the property fit for human habitation and the unfitness of one room, particularly in a small dwelling, may be a most material detraction from the enjoyment of the tenant
- in considering defects in a property, the correct approach is to consider whether the totality of the defects, taken in the round, means that the property is not reasonably suitable for occupation
152
In what previous Act are these set out?
section 1 of the Defective Premises Act 1972
153
Is a HHSRS assessment required under the Act?
Although it would be good evidence, there is no requirement for a formal inspection and HHSRS assessment with rating report and scoring to show that a hazard exists and that a dwelling is not reasonably suitable for occupation in its present condition
154
How long does a landlord have to fix the breach?
The landlord will then have a reasonable amount of time to deal with this hazard, which will depend on the circumstances.
155
What happens if the tenant will not allow access?
landlords should seek legal advice and keep a record of all attempts they have made to contact the tenant.
156
What are the penalties for non-compliance?
- compulsory improvement to the condition of the property
- compensation to the tenant
157
What is the Decent Homes Standard?
The Decent Homes Standard has played a key role in setting the minimum standards that social homes are required to meet since the early 2000s.
158
What does this apply to?
Social Housing
159
What legislation relates to the ban on letting fees?
The Tenant Fee Act 2019
160
When is it effective from?
1 June 2019
161
Why was it introduced?
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy.
162
Who does it apply to?
tenants
licensees
guarantors
any other person acting on the tenant or licensee’s behalf
163
What are the key changes?
Displays of Fees To Tenants
164
What type of fees are banned?
Bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England.
165
What fees are subject to caps?
Tenancy Deposit Fees
166
What amendments relate to the Consumer Rights Act 2015?
- an individually negotiated as well as a standard term must be fair
- in order to be exempt from the need to be fair, a core term of a tenancy must not only be transparent, it must also be prominent (so that an average consumer would be aware of it)
- a court must consider the fairness of a contract term even if the parties to a case do not raise it as an issue
- the fairness requirement is extended to notices – any form of notification, including verbal announcements, that relate to the relationship between the landlord and tenant, or attempt to limit the liability of the landlord.
167
What are the penalties for non-compliance?
A fine on the letting or management agent of up to £5,000 if non-compliance with the Act is found.
168
How can tenants challenge unreasonable fees?
The Act also makes provision for tenants or relevant persons to be able to recover unlawfully charged fees through the First-tier Tribunal,
169
Tell me about S19 1A of the Landlord and Tenant Act 1927
provides that, in all leases containing a covenant against assigning or underletting without consent, the covenant is deemed subject to a proviso that consent is not to be unreasonably withheld.
170
Tell me about S1 of the Landlord and Tenant Act 1988
provides that, where a tenancy includes a covenant not to assign or under let the premises without the consent of the landlord, consent not to be unreasonably withheld, the landlord owes a duty to the tenant to respond within a reasonable time.
171
What is the difference between an Assured Tenancy and an Assured Shorthold Tenancy?
With and AST the landlord can use section 21 of the Housing Act 1988 to regain possession without giving a reason. Whereas this is not possible with AT.
172
What is a premium?
a non-refundable lump sum that is paid by the tenant (lessee) to the owner (giver) when a rental agreement is concluded.
173
What consents may be required before letting?
Consent From:
Lender
Insurance
Home Owner
174
Tell me what you know about Nemcova v Fairfield Rents Ltd
Known as ‘the Airbnb ruling’, the Upper Tribunal gave guidance on the circumstances in which short-term lets might amount to a breach of covenant prohibiting the use of a property for anything other than ‘a private residence’.
175
Tell me some issues surrounding short-term Air BnB-type lets
regulations,
local laws,
parties,
excessive turnovers,
unmanageable guests
Anti-social Behaviour
176
What is an HMO?
House Of Multiple Occupation
177
What is selective licensing?
A licence scheme, which requires all private landlords operating within a designated area to license any privately rented property within that area
178
Tell me about the Private Rented Sector Code of Practice.
a cross-industry code intended to promote best practice in the letting and management of private rented sector housing in England. The aim of the code is to ensure: good-quality homes for rent.
179
Tell me what safety checks should be carried out before a property is let.
Gas Safety Checks
Electrical Safety Checks
Fire Safety Checks.
180
What prescribed information must be provided to a residential tenant before a property is let?
specific details of the deposit protection and a leaflet explaining how TDS works.
How To Rent Guide.
181
What is the effect of failing to provide the correct prescribed information to a residential tenant?
Non-compliance with the Order would have been to repay the deposit and a penalty of up to three times the deposit.
182
When was the Government How to Rent guide last updated and what changes were made?
24th of March, 2023
A report that shows the condition of the property’s electrical installations.
Evidence that smoke and carbon monoxide alarms are in working order at the start of the tenancy
New Advice on Accessibility for Disabled Tenants
183
Does the How to Rent guide form part of the prescribed information?
Yes
184
If so, why?
It is mandatory for Landlords to serve the latest version of the How to Rent Guide at the start of each new tenancy.
185
What is a Right to Rent check?
Private landlords and agents are legally required to check the immigration status of all tenants, lodgers and any other adults who will be living in the property.
186
How has the Right to Rent check process been recently streamlined?
From 01 October 2022, the digital documents element of this process is no longer permitted. An applicant must now provide the original document in person to the agent or landlord to complete the id check, but this can still be done via a video call.
187
When must a tenancy be created by deed?
If the Tenancy agreement is more than 3 years.
188
When does a tenancy not have to be created by deed?
When less than 3 years
189
Tell me what you know about the Tenant Fees Act 2019.
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy.
190
What are the deposit limits under the Tenant Fees Act 2019?
Deposits are capped at 5 to 6 weeks max of the rent.
191
What information are letting agents under a legal duty to display?
Tenancy related Fees including Rent, Deposit and referencing fees.
192
What are the consequences of a failure to protect a deposit?
A landlord can be ordered by the court to return the deposit to the tenant, as well as paying the tenant up to three times the amount of the deposit as compensation.
193
Can you request a holding deposit under the Tenant Fees Act 2019? If so, what is the maximum holding deposit you can collect?
Yes, but they cannot ask you for a holding deposit which is more than one week of the total rent for the property.
194
Can tenancy agreements be signed electronically?
Any tenancy agreement can be signed as a simple contract if it is not for more than 3 years and takes effect immediately.
195
What is a counterpart lease?
counterpart lease is the legal document of the lease which is executed by the tenant. The 'lease' itself is an identical legal document - except that it is executed by the landlord.
196
Explain the requirements of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020.
The Debt Respite Scheme (Breathing Space) will give someone in problem debt the right to legal protections from their creditors.
There are two types of breathing space:
- A standard breathing space is available to anyone with problem debt. It gives them legal protections from creditor action for up to 60 days.
- A mental health crisis breathing space is only available to someone who is receiving mental health crisis treatment and it has some stronger protections.
197
How do these affect the service of Section 8 notices?
A section 8 notice cannot be served until the Debt respite Period has finished.
198
What time frames apply?
Standard Breathing Space: 50 days from date it started.
Mental Breathing Space: will end 30 days after the debtor’s mental health crisis treatment ended
199
Explain recent changes to the provision of carbon monoxide and smoke alarms in social rented housing.
Ensure at least one smoke alarm is equipped on each storey of their homes where there is a room used as living accommodation.
Ensure a carbon monoxide alarm is equipped in any room used as living accommodation which contains a fixed combustion appliance
Ensure smoke alarms and carbon monoxide alarms are repaired or replaced once informed and found that they are faulty
200
Explain the key changes proposed by the A Fairer Rented Sector White Paper.
- The abolition of s.21 so that a tenancy cannot be brought to an end for 'no reason
- Amendments to the current grounds for possession.
- The transition of ASTs to one system of periodic tenancies
- Restrictions on rent increases to once per year.
- All tenants will have a right to request to keep a pet in the property and the landlord cannot unreasonably refuse consent.
- The introduction of a legally binding Decent Homes Standard
201
Tell me about the Landlord and Tenant Act 1985.
It sets minimum standards in tenants' rights against their landlords.
202
Tell me about landlords’ repairing responsibilities under S11 of the
Landlord and Tenant Act 1985.
The landlord must keep in repair the structure and exterior of the dwelling house and keep in repair and proper working order the installations in the dwelling house for the supply of water, gas, electricity, sanitation, space heating, and heating water.
