Level 2 - Disposal Gloucester Flashcards
Tell me about the Property?
Detached, 10,000 sq ft office over 2 floors
Set on Business Park
Grade B specification - Recessed lighting, double glazing, VRV, open plan and meeting rooms
Brick construction with pitched tile roof
EPC B
44 parking spaces
How did you confirm instruction?
I agreed our terms of business which was to dispose of the asset by either FH or LH
Outlined fee based on outcome
Ensured Terms of Engagement reflected fairly
How did you decide your fee?
Level of service
Seniority of individual undertaking
Minimum fee + Performance outcome - 10% first year rent or 1% of purchase
What did you note on your inspection?
Specification of the asset
Parking
Location and nearby amenities
Local occupiers
EPC
Layout of the premises
DDA compliancy
WCs and changing rooms
How did you measure?
Measured to an NIA basis
Excluded columns, WCs, stairs and lifts, permanent circulation area
Included kitchen
Used a laser distometer
Why did you not use IMPS 3?
My client instructed NIA
Marketing particulars for comparable market on NIA
What were your marketing recommendations?
Simple 4 page brochure produced my designer
Promote on C&W website
Promote on CoStar
Circulate to Bristol and South West agents
LinkedIn post
What was included in your terms of Business?
Agreement of fee basis
Complaints handling procedure
Scope of Services
Basis of appointment - sole agency
Anticipated expenses - Brochure and Board
What should be included in a marketing brochure?
Location
Availability
Accommodation and size
Fixtures and fittings
Physical characteristics (construction)
Price or Rent
Business Rates
What were the key features you included on brochure?
Specification - Good Grade B
Location and amenities
EPC rating
Parking allocation
Size
Why is this key for purchasers? Leasehold instruction?
We were instructed to lease the premises but client may sell if a suitable offer
Did you reflect purchase in terms of business?
Yes, Terms of Business included fee based on leasehold and FH
How was the property MEES compliant?
MEES states a property with new commercial lease must be an EPC C by 2027 and EPC B by 2030
Why is MEES compliancy a selling point?
A purchaser would have comfort that it complies with 2030 regulation’s if they wanted to lease the premises
A occupier - it would align with business objecitves
What does the Misrepresentation Act 1967 highlight?
Misrepresentation or false statement during pre-contractual enquiries
Can be sued for damages
Can eb fruadulent, negligent or inmost
Agent has duty of care to check advice and information
What are 3 tests for Negligence (Misrep 1967)
- Foreseeability - damage is reasonably foreseeable
- Proximity - Relationship characterised in law as being sufficiently proximate
- Fairness - fair, just and reasonable for such a duty of care
What Regulation is there in Estate Agency
Misrepresentation Act 1967
Consumer Protection from Unfair Trading Regulations 2008
Estate Agents Act 1979
What are the Estate Agency Act 1979 7 key points?
- Clarity as to terms of agency (S.18)
- Honest and accuracy
- Agreement and liability for costs
- Openness for personal interest (S.21)
- Absence of Discrimination
- Legal obligation to tell client about offers
- Clients money separate
What are penalties for non-compliance of the Estate Agency Act 1979?
Warning Order
Prohibition Order
Fine
What is a cooling offer period? What regulation is this?
14 days to change their mind on instructing agency
Estate Agents (Provision of information) Regulations 1991
What does the Consumer Protection Regulations highlight? 10 facts
- Regulations apply to all lettings and sales
- Duty of care to clients and interest parties
- declare everything about the property (Misrep Act)
- Not exert undue pressure
- information passed to all parties
- omissions lead to breach in regulations
- Full DD required
- Validated by client
- Policed by Trading Standards Office
- Disclaimers do not apply to criminal offence
What Marketing board did you use?
A 2x2m flat board pinned to the building
Less than 4.6m above the ground
What marketing boarding do you need planning consent for?
Illuminated boards
Remote boards
Listed buildings or conversation areas
Flat Boards over 2sm
V-boards over 2.3sqm
What was the outcome of this instruction?
2 potential purchasers
accepted one
they later pulled out due to budget constraints in their business
Still on the market
