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Purchase and Sale > Methods of Sale > Flashcards

Methods of Sale Flashcards

1
Q

What are the four main methods of sale?

A
  1. Private Treaty
  2. Informal Tender
  3. Formal Tender
  4. Auction
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2
Q

What are the four main methods of sale?

A
  1. Private Treaty
  2. Informal Tender
  3. Formal Tender
  4. Auction
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3
Q

In which method are parties free to negotiate in their own time and without commitment in the open market?

A

Private treaty

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4
Q

In a private treat sale, __________ are confidential.

A

Negotiations

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5
Q

What are four advantages of private treaty sale?

A
  1. Flexibility
  2. Parties control the process
  3. Vendor not under any obligation to sell
  4. Confidential
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6
Q

What are the disadvantages of rivage treaty sale?

A
  1. Gazumping/gazundering potential
  2. Late decisions not to buy
  3. Associated abortive costs
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7
Q

Informal tender requires best _____.

A

Offers

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8
Q

When is informal tender used?

A

When there is a good level of interest in a property, either at the commencement of a marketing campaign or to bring negotiations to a conclusion.

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9
Q

The best bids procedure is not ______ _______ so that either party can withdraw at any point up to contract.

A

Legally binding

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10
Q

All informal tender bids should be opened in front of what?

A

An independent witness

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11
Q

Best and final bids are invited in writing by the agent in accordance with what?

A

A prescribed timescale.

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12
Q

The letter should advise that the vendor reserves what right?

A

Not to accept the highest or any offer.

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13
Q

Formal tender requires ____ bids.

A

Sealed

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14
Q

Formal tender is often used by a statutory body in order to exercise control over the marketing process, to provide a high level of ______ ___________ or when there is likely to be a strong level of interest for the property.

A

Public accountability

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15
Q

What is invited for the property?

A

Tenders, sometimes in excess of a specified figure.

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16
Q

In a formal tender method of sale, the vendor can state that he is under no obligation to accept what?

A

The highest bid

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17
Q

What must be provided in advance of the formal tender process?

A

Full marketing material to include a comprehensive legal pack.

Clear letter to all prospective purchasers setting out information required accompanying the written offer.

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18
Q

Applicants effectively bid _______ during formal tender.

A

Blindly

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19
Q

All formal tender bids should be opened in fort of whom?

A

Client or independent witness

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20
Q

With formal tender, there is no opportunity for the prospective purchase to _______ their bid after submission of their offer.

A

Amend

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21
Q

Usually there is no immediate exchange of contracts, but the client can proceed to contract in accordance with what?

A

Terms and conditions of sale already stated in marketing particulars.

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22
Q

In some instances of formal tender, contracts are exchanged as soon as the best bid is ________.

A

Selected

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23
Q

A formal tender provides a potential purchaser with a ______ ________ to bid for a property.

A

Single chance

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24
Q

Formal tender provides a high level of ___________.

A

Accountability

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25
Q

Detailes _____ and _______ for the sale are prepared by the vendor and published in advance with the offer to bid letter.

A

Terms and conditions

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26
Q

It is possible for the formal tender to lead direct to a ________ __________.

A

Sale contract

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27
Q

In informal tender can be used during private treaty ____________ to obtain a best offer from applicants.

A

Negotiations

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28
Q

What can follow on from the outcome of the informal tender process?

A

Further negotiations

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29
Q

With informal tender, terms and conditions prepared are usually less _______.

A

Onerous

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30
Q

The informal tender will not lead direct to a _______ ____ ________.

A

Contract for sale

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31
Q

Informal tender is sometimes used as a ________ __________ to invite all parties to bid.

A

Negotiating mechanism

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32
Q

Auction has become a popular method of sale due to recent changes in value in the market and resulting _______ _______ during the recession.

A

Valuation uncertainty

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33
Q

Auction sales achieve a relatively ______ timetable for disposal.

A

Short

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34
Q

With an auction sale, there is ______ assuming a reserve figure is placed.

A

Certainty

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35
Q

Auction is a useful method of sale for an ________ property which is hard to accurately value.

A

Unusual

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36
Q

Auction sales are often used for properties which are likely to generate a _____ level of interest.

A

High

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37
Q

One of the main disadvantages of auction is the cost of ________ and ________.

A

Promotion, publicity

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38
Q

At an auction sale there is a lack of _________ over the price achieved.

A

Confidentiality.

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39
Q

What must be agreed in advance when selling at auction?

A

Terms of engagement

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40
Q

What checks are to be undertaken prior to accepting an auction sale instruction?

A

Conflict of interest

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41
Q

Full ____ _________ should be completed prior to offering the property for sale at auction.

A

Due diligence

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42
Q

All relevant documentation regarding the property to be sold should be available when?

A

In advance of the auction

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43
Q

General Conditions of ____, Memorandum of ____ and any ______ to bidders are to be published by the Auctioneer.

A

Sale, Sale, Notices

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44
Q

A ______ price needs to be agreed with the vendor prior to sale.

A

Reserve

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45
Q

When are contracts exchanged?

A

At the fall of the gavel

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46
Q

Auction particulars in the catalogue must be prepared in accordance with which two pieces of legislation?

A

Consumer Protection Regulations 2008

Misrepresentation Act 1967

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47
Q

When is insurance required by the purchaser?

A

Point of exchange

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48
Q

Before the sale day, a purchaser should view the property and consider a _______ survey.

A

Structural

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49
Q

A purchaser at auction should also take proper ______ advice and complete a ___ _______ exercise prior to the auction.

A

Legal, due diligence

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50
Q

What is the RICS Guidance Note for Auctioneers?

A

RICS Guidance Note for Auctioneers Proposing to Sell Real Estate at Auction in England and Wales 2013

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51
Q

The RICS Help Sheet ‘Clients ______’ is also relevant to auction sales.

A

Money

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52
Q

The RICS Common Auction ______ for Auctions of Real Estate in England and Wales 2009 should also be considered.

A

Conditions

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53
Q

The Auctioneer’s legal and professional responsibilities are defined in many Acts to include the ______ Act 1845, Sale of Land by Auction Act ____ and _______ Agents Act 1979.

A

Auctions, 1867, Estate

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54
Q

Which guidance note provides best practice advice on running an auction?

A

RICS Guidance Note on Auctioneers Selling Real Estate in England and Wales 2013

55
Q

The RICS Guidance Note on Auctioneering provides advice on agreeing _______ of engagement, arranging for all legal documentation and ___ to be available as long as possible before the sale, adopting the RICS _______ Auction Conditions 2009, providing an EPC, choosing a venue of sufficient size, not providing misleading ____ prices, advising applicants if a lot is ________ and confirming the ___ position.

A

Terms, Plans, Common, Guide, Withdrawn, VAT

56
Q

The reserve price should be agreed in writing with the client and must remain ________.

A

Confidential

57
Q

Auction particulars are to be prepared in accordance with the current ______ ________ _________.

A

Consumer Protection Regulations

58
Q

______ Conditions of Sale and _______ of Sale are to be included within the catalogue.

A

General, Memorandum

59
Q

The Auctioneer should disclose any significant what?

A

Rent or service charge arrears

60
Q

During the auction, any amendments to particulars or an addendum should be openly _______ to the room.

A

Disclosed

61
Q

A statement regarding rules for _____ and internet bidding should be available to all bidders.

A

Proxy

62
Q

Identification of the buyer is not currently a requirement under the Money Laundering Regulations 2007 although there is an obligation for the Auctioneer to report __________ ________.

A

Suspicious activity

63
Q

All bids received at auction should be _________.

A

Recorded

64
Q

Auction results must be accurate and only published with the vendor and buyer’s ________.

A

Consent

65
Q

Which Guidance Note sets out Auction Conduct and Sale conditions for use by Auctioneers?

A

RICS Common Auction Conditions for Auctions of Real Estate in England and Wales 2009.

66
Q

The Common Auction Conditions guidance note aims to ensure the contract is as user _______ as possible, strike the correct _______ between the needs of buyer and vendors and reduce legal costs by using a contract that is in _______ usage.

A

Friendly, Balance, Common

67
Q

The Clients Money help sheet provides advice on _____ handling and maintaining a _____ system.

A

Account, Records

68
Q

Auctions overcome valuation uncertainty and offer some ________ of sale.

A

Certainty

69
Q

In which method are parties free to negotiate in their own time and without commitment in the open market?

A

Private treaty

70
Q

In a private treat sale, __________ are confidential.

A

Negotiations

71
Q

What are four advantages of private treaty sale?

A
  1. Flexibility
  2. Parties control the process
  3. Vendor not under any obligation to sell
  4. Confidential
72
Q

What are the disadvantages of rivage treaty sale?

A
  1. Gazumping/gazundering potential
  2. Late decisions not to buy
  3. Associated abortive costs
73
Q

Informal tender requires best _____.

A

Offers

74
Q

When is informal tender used?

A

When there is a good level of interest in a property, either at the commencement of a marketing campaign or to bring negotiations to a conclusion.

75
Q

The best bids procedure is not ______ _______ so that either party can withdraw at any point up to contract.

A

Legally binding

76
Q

All informal tender bids should be opened in front of what?

A

An independent witness

77
Q

Best and final bids are invited in writing by the agent in accordance with what?

A

A prescribed timescale.

78
Q

The letter should advise that the vendor reserves what right?

A

Not to accept the highest or any offer.

79
Q

Formal tender requires ____ bids.

A

Sealed

80
Q

Formal tender is often used by a statutory body in order to exercise control over the marketing process, to provide a high level of ______ ___________ or when there is likely to be a strong level of interest for the property.

A

Public accountability

81
Q

What is invited for the property?

A

Tenders, sometimes in excess of a specified figure.

82
Q

In a formal tender method of sale, the vendor can state that he is under no obligation to accept what?

A

The highest bid

83
Q

What must be provided in advance of the formal tender process?

A

Full marketing material to include a comprehensive legal pack.

Clear letter to all prospective purchasers setting out information required accompanying the written offer.

84
Q

Applicants effectively bid _______ during formal tender.

A

Blindly

85
Q

All formal tender bids should be opened in fort of whom?

A

Client or independent witness

86
Q

With formal tender, there is no opportunity for the prospective purchase to _______ their bid after submission of their offer.

A

Amend

87
Q

Usually there is no immediate exchange of contracts, but the client can proceed to contract in accordance with what?

A

Terms and conditions of sale already stated in marketing particulars.

88
Q

In some instances of formal tender, contracts are exchanged as soon as the best bid is ________.

A

Selected

89
Q

A formal tender provides a potential purchaser with a ______ ________ to bid for a property.

A

Single chance

90
Q

Formal tender provides a high level of ___________.

A

Accountability

91
Q

Detailes _____ and _______ for the sale are prepared by the vendor and published in advance with the offer to bid letter.

A

Terms and conditions

92
Q

It is possible for the formal tender to lead direct to a ________ __________.

A

Sale contract

93
Q

In informal tender can be used during private treaty ____________ to obtain a best offer from applicants.

A

Negotiations

94
Q

What can follow on from the outcome of the informal tender process?

A

Further negotiations

95
Q

With informal tender, terms and conditions prepared are usually less _______.

A

Onerous

96
Q

The informal tender will not lead direct to a _______ ____ ________.

A

Contract for sale

97
Q

Informal tender is sometimes used as a ________ __________ to invite all parties to bid.

A

Negotiating mechanism

98
Q

Auction has become a popular method of sale due to recent changes in value in the market and resulting _______ _______ during the recession.

A

Valuation uncertainty

99
Q

Auction sales achieve a relatively ______ timetable for disposal.

A

Short

100
Q

With an auction sale, there is ______ assuming a reserve figure is placed.

A

Certainty

101
Q

Auction is a useful method of sale for an ________ property which is hard to accurately value.

A

Unusual

102
Q

Auction sales are often used for properties which are likely to generate a _____ level of interest.

A

High

103
Q

One of the main disadvantages of auction is the cost of ________ and ________.

A

Promotion, publicity

104
Q

At an auction sale there is a lack of _________ over the price achieved.

A

Confidentiality.

105
Q

What must be agreed in advance when selling at auction?

A

Terms of engagement

106
Q

What checks are to be undertaken prior to accepting an auction sale instruction?

A

Conflict of interest

107
Q

Full ____ _________ should be completed prior to offering the property for sale at auction.

A

Due diligence

108
Q

All relevant documentation regarding the property to be sold should be available when?

A

In advance of the auction

109
Q

General Conditions of ____, Memorandum of ____ and any ______ to bidders are to be published by the Auctioneer.

A

Sale, Sale, Notices

110
Q

A ______ price needs to be agreed with the vendor prior to sale.

A

Reserve

111
Q

When are contracts exchanged?

A

At the fall of the gavel

112
Q

Auction particulars in the catalogue must be prepared in accordance with which two pieces of legislation?

A

Consumer Protection Regulations 2008

Misrepresentation Act 1967

113
Q

When is insurance required by the purchaser?

A

Point of exchange

114
Q

Before the sale day, a purchaser should view the property and consider a _______ survey.

A

Structural

115
Q

A purchaser at auction should also take proper ______ advice and complete a ___ _______ exercise prior to the auction.

A

Legal, due diligence

116
Q

What is the RICS Guidance Note for Auctioneers?

A

RICS Guidance Note for Auctioneers Proposing to Sell Real Estate at Auction in England and Wales 2013

117
Q

The RICS Help Sheet ‘Clients ______’ is also relevant to auction sales.

A

Money

118
Q

The RICS Common Auction ______ for Auctions of Real Estate in England and Wales 2009 should also be considered.

A

Conditions

119
Q

The Auctioneer’s legal and professional responsibilities are defined in many Acts to include the ______ Act 1845, Sale of Land by Auction Act ____ and _______ Agents Act 1979.

A

Auctions, 1867, Estate

120
Q

Which guidance note provides best practice advice on running an auction?

A

RICS Guidance Note on Auctioneers Selling Real Estate in England and Wales 2013

121
Q

The RICS Guidance Note on Auctioneering provides advice on agreeing _______ of engagement, arranging for all legal documentation and ___ to be available as long as possible before the sale, adopting the RICS _______ Auction Conditions 2009, providing an EPC, choosing a venue of sufficient size, not providing misleading ____ prices, advising applicants if a lot is ________ and confirming the ___ position.

A

Terms, Plans, Common, Guide, Withdrawn, VAT

122
Q

The reserve price should be agreed in writing with the client and must remain ________.

A

Confidential

123
Q

Auction particulars are to be prepared in accordance with the current ______ ________ _________.

A

Consumer Protection Regulations

124
Q

______ Conditions of Sale and _______ of Sale are to be included within the catalogue.

A

General, Memorandum

125
Q

The Auctioneer should disclose any significant what?

A

Rent or service charge arrears

126
Q

During the auction, any amendments to particulars or an addendum should be openly _______ to the room.

A

Disclosed

127
Q

A statement regarding rules for _____ and internet bidding should be available to all bidders.

A

Proxy

128
Q

Identification of the buyer is not currently a requirement under the Money Laundering Regulations 2007 although there is an obligation for the Auctioneer to report __________ ________.

A

Suspicious activity

129
Q

All bids received at auction should be _________.

A

Recorded

130
Q

Auction results must be accurate and only published with the vendor and buyer’s ________.

A

Consent

131
Q

Which Guidance Note sets out Auction Conduct and Sale conditions for use by Auctioneers?

A

RICS Common Auction Conditions for Auctions of Real Estate in England and Wales 2009.

132
Q

The Common Auction Conditions guidance note aims to ensure the contract is as user _______ as possible, strike the correct _______ between the needs of buyer and vendors and reduce legal costs by using a contract that is in _______ usage.

A

Friendly, Balance, Common

133
Q

The Clients Money help sheet provides advice on _____ handling and maintaining a _____ system.

A

Account, Records

134
Q

Auctions overcome valuation uncertainty and offer some ________ of sale.

A

Certainty

Purchase and Sale (7 decks)

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