marketing, buying and selling property

Question 1

what is tenure

Answer 1

The basis upon which property is held

Question 2

what are the four different types of tenure

Answer 2

*Free hold - with VP – vacant possession i.e. empty
*Freehold – investment – when its sold with tenants currently in
*Long leasehold – 99 – 125 years can be as long as 999 years
*Leasehold – lease granted usually for 3-25 years

Question 3

what are the types of disposal

Answer 3

*Private treaty:
o Most common method of disposal.
o An agent places a property on the open market with a view to negotiating a sale with ANY interested party
*Auction:
o A sale in which property is sold to the highest bidder
o Usually a much quicker but often for struggling secondary or tirtary properties
*Formal tender:
o Potential buyers are invited to submit best bids at a prescribed place, time and date
o As a disposal agent you don’t know who will bid. Not always the highest bidder. E.g 14 mill cash could be better than 15 mill with a 7 mill loan
o Prestige assets sold this way
*Informal tender:
o Mix of private treaty and formal tender
o Not as common

Question 4

what are the 4 P’s

Answer 4

*Product – what is it, could include a service
*Price – how much will it be cold
*Place – where is it going to be sold. Can be physical or virtual
*Promotion – how to promote