Level 2 - Disposal Gloucester

Question 1

Tell me about the Property?

Answer 1

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

Question 2

How did you confirm instruction?

Answer 2

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

Question 3

How did you decide your fee?

Answer 3

Level of service
Seniority of individual undertaking
Minimum fee + Performance outcome - 10% first year rent or 1% of purchase

Question 4

What did you note on your inspection?

Answer 4

Specification of the asset
Parking
Location and nearby amenities
Local occupiers
EPC
Layout of the premises
DDA compliancy
WCs and changing rooms

Question 5

How did you measure?

Answer 5

Measured to an NIA basis
Excluded columns, WCs, stairs and lifts, permanent circulation area
Included kitchen
Used a laser distometer

Question 6

Why did you not use IMPS 3?

Answer 6

My client instructed NIA
Marketing particulars for comparable market on NIA

Question 7

What were your marketing recommendations?

Answer 7

Simple 4 page brochure produced my designer
Promote on C&W website
Promote on CoStar
Circulate to Bristol and South West agents
LinkedIn post

Question 8

What was included in your terms of Business?

Answer 8

Agreement of fee basis
Complaints handling procedure
Scope of Services
Basis of appointment - sole agency
Anticipated expenses - Brochure and Board

Question 9

What should be included in a marketing brochure?

Answer 9

Location
Availability
Accommodation and size
Fixtures and fittings
Physical characteristics (construction)
Price or Rent
Business Rates

Question 10

What were the key features you included on brochure?

Answer 10

Specification - Good Grade B
Location and amenities
EPC rating
Parking allocation
Size

Question 11

Why is this key for purchasers? Leasehold instruction?

Answer 11

We were instructed to lease the premises but client may sell if a suitable offer

Question 12

Did you reflect purchase in terms of business?

Answer 12

Yes, Terms of Business included fee based on leasehold and FH

Question 13

How was the property MEES compliant?

Answer 13

MEES states a property with new commercial lease must be an EPC C by 2027 and EPC B by 2030

Question 14

Why is MEES compliancy a selling point?

Answer 14

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

Question 15

What does the Misrepresentation Act 1967 highlight?

Answer 15

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

Question 16

What are 3 tests for Negligence (Misrep 1967)

Answer 16

1. Foreseeability - damage is reasonably foreseeable
2. Proximity - Relationship characterised in law as being sufficiently proximate
3. Fairness - fair, just and reasonable for such a duty of care

Question 17

What Regulation is there in Estate Agency

Answer 17

Misrepresentation Act 1967
Consumer Protection from Unfair Trading Regulations 2008
Estate Agents Act 1979

Question 18

What are the Estate Agency Act 1979 7 key points?

Answer 18

1. Clarity as to terms of agency (S.18)
2. Honest and accuracy
3. Agreement and liability for costs
4. Openness for personal interest (S.21)
5. Absence of Discrimination
6. Legal obligation to tell client about offers
7. Clients money separate

Question 19

What are penalties for non-compliance of the Estate Agency Act 1979?

Answer 19

Warning Order
Prohibition Order
Fine

Question 20

What is a cooling offer period? What regulation is this?

Answer 20

14 days to change their mind on instructing agency
Estate Agents (Provision of information) Regulations 1991

Question 21

What does the Consumer Protection Regulations highlight? 10 facts

Answer 21

1. Regulations apply to all lettings and sales
2. Duty of care to clients and interest parties
3. declare everything about the property (Misrep Act)
4. Not exert undue pressure
5. information passed to all parties
6. omissions lead to breach in regulations
7. Full DD required
8. Validated by client
9. Policed by Trading Standards Office
10. Disclaimers do not apply to criminal offence

Question 22

What Marketing board did you use?

Answer 22

A 2x2m flat board pinned to the building
Less than 4.6m above the ground

Question 23

What marketing boarding do you need planning consent for?

Answer 23

Illuminated boards
Remote boards
Listed buildings or conversation areas
Flat Boards over 2sm
V-boards over 2.3sqm

Question 24

What was the outcome of this instruction?

Answer 24

2 potential purchasers
accepted one
they later pulled out due to budget constraints in their business
Still on the market

Question 25

Tell me about your disposal in Gloucester?

Answer 25

Point 1 – I was responsible for producing marketing materials for a disposal in Gloucester where I arranged for a photographer and brochure
Point 2 – I outlined the properties key factors an occupier would look for, including its EPC and specification, being mindful not to misrepresent the properties features
Point 3 – to boost interest, I organised a flat marketing board to be fixed on to the building.