Purchase and sale

Question 1

What is the scope of RICS, UK, commercial real estate agency, 2016, professional statement?

Answer 1

Honest, fair and transparent
Terms of engagement, that are fair and clear
Avoid conflict
Ensure marketing material is honest
Do not discriminate
Regard for safety
Realistic assessment value

Question 2

What legislation do you need to comply with in agency?

Answer 2

Bribery act 2010
Equality act 2010
Estate agency act, 1979
Consumer protection from unfair trading
Is this protection from misleading marketing?

Question 3

What are the six key principles of the estate agency act 1979?

Answer 3

Clarity, on terms of engagement
Open and transparent
No discrimination
All offers in writing
Keep clients money, separate

Question 4

Section 18 of the estate agency act 1979?

Answer 4

Terms of engagement for instruction
Fees, agency, basis, and definition
Service
Marketing costs

Question 5

Section 21 of estate agency act 1979?

Answer 5

Disclosure of interest from agent dealing with property

Question 6

What are the different types of agency instruction?

Answer 6

Sole letting rights - fee due if let during agency agreement. Private intros included.
Sole agency - exclusive rights to introduce tenant in agency period. Not private intros.
Joint agency - split fee
Multiple agency - 1st to get sale gets fee

Question 7

Compensation for compulsory purchase?

Answer 7

5 elements to compensation:
Value of land taken
Severance
Disturbance and losses (not direct to land value)
Home loss payments
Fees

Question 8

Legislation for Compulsory Purchase.

Answer 8

Compulsory Purchase Act 1965

Question 9

RICS Real Estate Agency and Commercial Brokerage 2016

Answer 9

Professional statement - same as RICS Commercial Real Estate Agency 2016
Supports RICS ethical standards
Covers the following -
Duty of care
Instruction
Marketing
Sale/ Lease
Acting for buyer
Ending instruction
Safety and security
Agency management including clients money & complaints

Question 10

RICS Commercial Real Estate Agency 2016

Answer 10

PS - mandatory
Supports RICS Code of Conduct
12 Standards-
Honest, fair and transparent
Care and due diligence
Clear and fair TOEs
Avoid COI
Do not discriminate
Clear & transparent communication
Marketing is honest
Clients money handled correctly
PI cover
Scope of work is clear to all parties
Accurate and truthful advice
Ensure clients lawful instructions are carried out