Level 1's Flashcards
4 bases of agency defined by the 1979 Act
Sole Agency
Sole Selling Rights
Multiple Agency
Joint Agency
Sole Agency
A single agent is appointed to market and administer the sale
Sole Selling Rights
Gives the agent a fee even if contracts are exchanged with someone introduced by another
Multiple Agency
Multiple agents are instructed. The agent that introduces the buyer gets the fee
Joint Agency
Two agents are instructed to market the property, usually sharing a cut of the fee
Methods of disposal
Private Treaty
Informal Tender
Formal Tender
Auction
Private Treaty
Openly marketed, can be negotiated once an offer is made. Property then becomes sold STC while legals and contracts are sorted.
Informal Tender
Parties submit “best and final” bids at a time and date, with solicitors details, finance arrangements and conditions.
Highest offer doesn’t have to be accepted.
Formal Tender
Legal pack is prepared before marketing, and bids are invited. Successful bidder may not necessarily be the highest, but is deemed to have exchanged contracts when bid is accepted.
Auction
Public sale where the property is sold to the highest bidder. Terms agreed with auctioneer in advance. 10% deposit is due upon fall of gavel.
Principle law regarding Disposal & Acquisition of land
Estate Agents Act 1979
What are 2 relevant acts of the 1979 Act?
Section 18
Section 21
What does Section 21 of the 1979 Act relate to?
Conflict of Interest. Declare any personal interest in the marketing particulars and terms of engagement.
What does Section 18 of the 1979 Act relate to?
Terms of Engagement. Clear terms of agency to be agreed with itemised costs/fees in advanced, in writing
What RICS principle relates to Sale & Disposal
RICS UK Commercial Estate Agency Standards (Purple book)
