Purchase And Sale Flashcards
Process of sale/ purchase
- Agree HoTs
- searches/ surveys
- exchange
- completion
What are the searches / surveys
- CPSEs (standard enquiries)
- EPC cert
- planning and building regs docs
- fire risk assessment
- asbestos survey
What was the sale price?
£550k based on comps. Agent valued this as he is a registered valuer
What is a residual valuation? Why did you do one?
- identifies the value of a development site
- to assess if we were overpaying
How do you do a residual valuation?
GDV - costs + profit
What is GDV?
Value of a development once it is completed
How much rateable value compensation was owed and why?
1 x the RV because the T had been in occupation under 14 years
What is rateable value?
Value ascribed to a property based on size, location etc, used to determine rates payable by its owner
How was the lease surrendered given that it was protected by the act?
Under s24 of the LTA 1954, the lease was brought to an end by a s25 notice served by LL
What is a schedule of condition?
Recording of a properties condition along with photos
How much was the SDLT?
The property was over £250k so SDLT was 5%
What are the different methods of sale?
- private treaty
- informal tender
- formal tender
- auction
What are the pros and cons of selling at auction?
PROS
-best price, quick
CONS
- fees are higher 2.5%, failure to sell can blight the property
What to do if you receive two identical bids?
Second round of best bids
How to prepare a marketing report for an empty property?
- clarify client expectations
- look at the market
- look at demand for similar properties
- circulate to potential buyers
