Purchase and Sale Flashcards
tell me about the estates agent’s act 1974 - what are the 6 key principles
applications - purchase and sale of any property (freehold or leasehold)
offence for not complying - warning order or prohibited from acting
6 key principles:- The hot Client plays darts on monday
1) clarity in terms of agency
2) honesty and accuracy
3) agreement and liability of costs
4) openness regarding COI personal
5) absence of discrimination
6) legal obligations to tell client about offers received
7) keep client’s money separate
policed by the National Trading Standards
what is the blue book
RICS UK Residential Real Estate Agency Pofessional Statement (2017).
AMLR what are you doing
Looking to understand who the ultimate beneficial owners of a company is and checking for any Red Flags.
Is the informal best bids process a binding tender?
No its isnt if the following statement is made:
the vendor reserves the right to not acceot the highest or any offers made.
Without this it becomes a binding tender
What is the RICS guidance on estate agency?
Professional Statements:
UK Residential Real Estate Agency (2017) (The Blue Book).
Global Real Estate Agency and Brokerage (2016).
RICS UK Commercial Estate Agency (2016).
Key principles of the RICS Global Real Estate Agency and Brokerage Professional Statement (2016)?
All RICS members involved in the sale, letting and leasing of real estate must follow.
Includes:
- Ethics
- Securing instructions
- Acting for the seller
- Acting for the buyer
It is similar to the UK-specific professional statement - RICS UK Commercial Estate Agency (2016).
What are the key principles of the RICS UK Commercial Estate Agency Professional Statement (2016)?
has 12 core principles:
Act in an honest, fair and transparent manner
Ensure clients are provided with Terms of Business
Do your utmost to avoid conflicts
Have adequate PII
Do not discriminate unfairly in any dealings
Also, advice on key agency matters i.e. acting ethically, securing instructions, marketing, gifts etc.
What are the main differences between CPR (2008) and Misrepresentation Act (1967)?
CPRs are a criminal offence.
Misrepresentation is a civil offence.
Misrepresentation Act relates to misrepresentation during the pre-contractual enquiries by the vendor and their agent to potential purchasers.
CPRs relate during the entire agency sales & lettings process.
what is the CPR and BPR
The Consumer Protection from Unfair Trading Regulations 2008 (the CPRs) -The CPRs prohibit unfair marketing to consumers, including misleading or aggressive advertising -
Business-to-business marketing communications are subject to the Business Protection from Misleading Marketing Regulations 2008 (the BPRs).
Consumer protection regulations - set out duty to buyers to disclose any material information regarding a property
in short - have to act fairly and disclose anything that would alter transactional decisions
what are the main types of agency instruction
sole agency - only one agent
joint agency - two or more agent sharing a fee on a pre-agreed basis
multiple agency - any number of agents but only the successful agent gets the fee
A Sole Selling Rights Agreement normally describes a clause where an estate agent would be owed a fee even if they were not involved in introducing the buyer. In extreme terms this could mean they would charge a full fee if a sale is agreed to a friend or family member of the owner, or if another agent introduces a buyer. This only applies during the term of the contract.
Sole agency
This is an arrangement where a single estate agent is appointed to market a property for sale. The agent will only be entitled to its fee if it introduces, or (if the contract permits) has negotiations with, the eventual buyer while the agent’s agreement is in force.
Sole selling rights agency
This is an arrangement where a single estate agent is appointed to market a property for sale. That estate agent will be entitled to its fee if there is any disposal of the property while the agent’s agreement is in force, regardless of who found the buyer or had negotiations with them.
