P&S

Question 1

What are the 12 principles of the RICS Professional Statement - UK Commercial Estate Agency 2016?

Answer 1

1. Act Honest / Fair / Transparent
2. Carry out work with due skill & care
3. Provide fair ToB w/ CHP
4. Avoid / Manage CoI
5. Not to discriminate
6. Good communication
7. Honest / truthful advertising
8. Client money seperate & insured
9. PII insurance
10. Make identity clear
11. Give realistic values / costs
12. Inspections in accordance with client wishes

Question 2

What areas of advice does the RICS Professional Statement Commercial Estate Agency 2016 cover?

Answer 2

1. Acting ethically - duty of care / gifts / CoI
2. Securing instructions - legal requirements / aml checks / types of agency / H&S
3. Marketing the property - legal requirements / market appraisal / preparing particulars
4. Implementing the disposal - method of sale / legal requirements
5. Acquisition of property - conflicts of interest, client communication, progressing purchases

Question 3

What are the 7 principles of the Estates Agent Act 1979?

Answer 3

1. Clarity to terms of agency (s.18) - specify all costs / fees in advance and nature of agency / selling rights
2. Honesty / accuracy - can only tell truth about offers received
3. Agreement & liability for costs - agree all costs in advance and itemise all payments
4. Openness regarding personal interests (s.21) - disclose / declare on HoT’s as minimum
5. Absence of discrimination
6. Legal obligation to tell client about offers received
7. Keep clients money separate - follow RICS rules

Question 4

What are some of the most important parts of the estate agents act 1979?

Answer 4

1. Specify costs / fees in advance in ToB (s.18)
2. Itemise all payments
3. Specify nature of agency and selling rights
4. Advise clients of services available
5. Disclose personal interests
6. Declare personal interests on HoT’s
7. Do not misrepresent offers
8. Handling client’s money - follow rics rules

Question 5

What are the penalties for breaching the Estate Agents Act 1979?

Answer 5

1. Prohibition Order
2. Warning Order
3. Costs

Question 6

What are the penalties for breaching CPR’s?

Answer 6

1. Unlimited fine
2. Prohibition order
3. 2 years prison max

Question 7

What are the penalties for breaching the misrepresentation act 1967?

Answer 7

1. Contract rescinded
2. Damages

Question 8

What does the misrepresentation act 1967 relate to?

Answer 8

1. Misrepresentation / false statements which cause party to purchase

Question 9

Is misrepresentation act 1967 criminal or civil?

Answer 9

1. Civil - actionable in tort and a form of negligence
2. Disclaimer clauses are effective

Question 10

What case law relates to the misrepresentation act 1967?

Answer 10

Hedley Byrne v Heller & Partners (1964)

Refers to test of reasonableness:

1. Foreseeability
2. Proximity
3. Fairness

Question 11

What do you understand about consumer protection regulations 2015?

Answer 11

1. Regulations apply to all lettings and sales
2. Agents have a duty of care to all interested parties
3. Agents must declare all known and any information discovered
4. Agents cant exert undue pressure
5. Full DD is require for all new instructions