Lettings and leasing Flashcards
What does RICS stand for?
Royal Institution of Chartered Surveyors
True or False: RICS provides guidelines for best practices in lettings and leasing.
True
Fill in the blank: RICS emphasizes the importance of _____ in the lettings and leasing process.
transparency
What is one key principle that RICS promotes in property leasing?
Fair treatment of all parties involved.
Which document does RICS recommend to be used as a standard lease agreement?
RICS Lease Code
What does RICS stand for in the context of the lease code?
Royal Institution of Chartered Surveyors
True or False: The RICS lease code is a mandatory document for all commercial leases.
False
Fill in the blank: The RICS lease code aims to promote _____ and transparency in lease negotiations.
fairness
Which of the following is a primary objective of the RICS lease code? A) Increase rental prices B) Standardize lease terms C) Eliminate all lease agreements
B) Standardize lease terms
What type of properties does the RICS lease code primarily apply to?
Commercial properties
What is the primary purpose of the Landlord and Tenant Act 1954?
To regulate the rights and obligations of landlords and tenants in commercial leases.
True or False: The Landlord and Tenant Act 1954 applies only to residential tenancies.
False
Fill in the blank: The Landlord and Tenant Act 1954 provides tenants with the right to __________ their lease.
renew
Which section of the Landlord and Tenant Act 1954 deals with the renewal of business leases?
Section 24
What must a landlord provide to a tenant if they wish to oppose the renewal of a lease under the Landlord and Tenant Act 1954?
Valid grounds for opposition as specified in the Act.
What is the primary purpose of the carbon monoxide alarm regulation 2022?
To ensure the safety of residents by requiring the installation of carbon monoxide alarms in certain properties.
True or False: The carbon monoxide alarm regulation 2022 applies only to new buildings.
False
Fill in the blank: The carbon monoxide alarm regulation 2022 requires alarms to be installed in any property that has a __________.
fuel-burning appliance
Which of the following is NOT a requirement of the carbon monoxide alarm regulation 2022? (A) Regular testing of alarms, (B) Installation in kitchens, (C) Annual professional checks
C) Annual professional checks
Short answer: What should landlords do to comply with the carbon monoxide alarm regulation 2022?
Landlords must ensure that carbon monoxide alarms are installed in properties with fuel-burning appliances and that they are in working order.
What is the primary focus of the red book regarding leasing?
The primary focus of the red book regarding leasing is to provide guidelines and best practices for structuring lease agreements.
True or False: The red book states that leasing can be beneficial for cash flow management.
True
Fill in the blank: The red book emphasizes the importance of __________ in lease agreements.
clearly defined terms and conditions
Which of the following is a key advantage of leasing mentioned in the red book? (A) Ownership of the asset (B) Flexibility in asset management (C) Higher upfront costs
B) Flexibility in asset management
What specific factor does the red book suggest should be carefully evaluated before entering into a lease?
The total cost of leasing versus purchasing the asset.
What does a FRI entail?
An FRI lease (Full Repairing and Insuring lease) is a type of commercial property lease where the tenant is responsible for:
Repairs – The tenant must maintain and repair the property, including structural elements like the roof and walls (unless specific exclusions are agreed).
Insurance – The tenant typically reimburses the landlord for the cost of insuring the building.
Tell me about the changes to leaseholders and freeholders in relations to the renter reform act?
The Leasehold and Freehold Reform Act 2024, enacted on 24 May 2024, introduces significant changes aimed at enhancing the rights of leaseholders in England and Wales. Key reforms include:
House of Commons Library
Lease Extensions: The standard lease extension term has been increased to 990 years for both houses and flats, with ground rent reduced to zero.
Elimination of Ownership Period Requirement: Leaseholders no longer need to have owned their property for two years before they can extend their lease or purchase the freehold. This change took effect on 31 January 2025
Ban on New Leasehold Houses: The sale of new leasehold houses is prohibited, except in exceptional circumstances, ensuring most new houses are sold as freehold.
Right to Manage: Leaseholders in buildings with up to 50% non-residential floorspace can now collectively take over the management of their building, an increase from the previous 25% threshold
Service Charge Transparency: The Act mandates greater transparency in service charges, requiring landlords to provide detailed breakdowns to leaseholders
Insurance Commissions: The Act addresses concerns about excessive insurance commissions by banning opaque and excessive buildings insurance commissions, ensuring leaseholders are not overcharged.
