MG - Purchase and sale Flashcards
What are 7 of the 12 core principles in the RICS professional statement: UK commerical estate agency 2016? (First 4 are quite closely linked to the rules of conduct)
- HONEST FAIR AND TRANSPARENT
- EXPERTISE to carry out the role diligently
- Clear and fair terms of business which detail firm’s complaint handling procedure
- Avoid conflicts where possible - if there is one be open and fair
- Do not discriminate unfairly within any dealings
- Communicate transparently and timely with the client
- Honest and truthful MARKETING MATERIAL
What guidance do the RICS provide in terms of estate agency?
RICS GLOBAL REAL Estate agency and brokerage professional statement 2016 - BUT note that this is being reviewed currently and no publication date has been announced yet
What is informal tendor and what are advantages/ disadantages?
- Informal tendor invites parties to bid at the bid deadline for the property - the bids are then sent to the seller as soon as practicable and they will decide
Advantage
- Can get the best value in a competitive market - bidders are asked to bid based on what the property is worth - they may also be asked to best and finals
Disadvantage
What is formal tendor and what are advantages/ disadvantages?
Formal tendor is a sealed bids process where the bids are opened by the seller - often used by a statutory body
Advantage
- fair and transparent
- ACCOUNTABILITY - not sharing offers to drive up bids
vendor can state they are under no obligation to accept highest bids and there is no immediate contract if they open the highest bid
What is private treaty and what are pros and cons?
Parties can negotiate in own time and without commitement in own market
- Commonly used in eng and wales
- think about resi sales
Pros
- flexiible
- arties in control
- vendor is not under obligation to sell
What is auction and what are pros and cons?
What might you consider when deciding on the appropriate method of sale?
Clients objects
Public accountability
Current / future market conditions
Likely level of demand / target market
Timing requirement
What are 2 key sections of the estate agents act 1979?
S 18 - Terms of business effectively - need to detail particulars including fees
s21 - to declare a personal interest and only act if this is appropriate
what is an example of an offence under the estate agents act 1979?
- ACTING DISHONESTLY
- not providing clear terms of engagement
Not reporting offers
Not declaring a personal interest
What are the penalties for committing an offence under the estate agents act?
Policed by the national trading standards estate and letting agency team - they can take away right to be an estate agent, can set a warning order to prohibit the agent from practicing
How can you behave ethically when carrying out estate agency?
I refer to the rics uk commerical estateagency 23 ptinciples and the 7 key points of the estat agency act
What cpd have you undertaken?
Internal compliance training to keep up to date with firms policies e.g.
What is estate agency work defined as under the estate agents act 1979?
] introducing and/ or negotiating with people who want to buy or sell freehold or leasehold property (including commercial or agricultural property) where this is done in the course of a business pursuant to instructions from a client.
what are the key points you should confirm in WRITING before entering into a contract?
TYPE OF AGENCY (Joint, sole multiple)
Commission - fixed fee, % fee (inc or ex VAT)
If you will charge client for things such as floorplans or photos
*attach terms of business
GET SIGNED TERMS
What are the differences between the misrepresentation act 1967 and the Consumer protection regulations 2008?
MISREP ACT - Relates to misreprensetion or making a false statement about the property at a pre-contractual stage which may influence the party to purchase - A CIVIL OFFENCE and form of negligence
