Purchase and Sale Flashcards
Tell me about the key provisions of the Estate Agents Act 1979
Terms of Agency
Honesty and Accuracy
Liability for costs (and agreement of them)
Personal interests must be disclosed
Discrimination (must be avoided)
Offers received must be disclosed to the client
Money (Client’s money must be kept separately)
What is the relevant law on Money Laundering
Money Laundering, Terrorist Financing and Transfer of Funds (information on the payer) 2017 amended 2022
What are the 4 methods of sale?
Private Treaty
Informal Tender
Formal Tender
Auction
Explain Private Treaty?
Private Treaty is when the sale and price is negotiated directly between buyer and seller, with no set time frame and no requirement for the sale to go ahead
Benefits:
Parties are in control
Flexible
Cons:
A party could pull out at any time
Potential for gazumping and gazundering
Explain Informal Tender?
“Best Bids” approach
Bidders are invited to submit their best offer by a set date and time
Buyer is under no obligation to select the best or highest offer
Bidders can be invited to submit a new bid
There can be multiple rounds of this
Explain formal tender
“Sealed Bids” approach
Bidders have to submit offer by set date and time
Terms and conditions have been drawn up prior to this and the offer accepted could potentially go straight to contract stage
Bids are opened in front of client or independent witness
There is no opportunity to change bid
Explain Auction
The property is sold live on the auction floor to the highest bidder
This is a good method if you want a quick sale
Useful for properties that are difficult to value
Agents may advise this if they think the property would see lots of interest
There is certainty of sale (as long as reserve price is achieved)
Disadvantages:
Price paid is not confidential
Buyer pool not so wide
Marketing costs can be expensive
What are the key provisions on the Money Laundering, Terrorist Financing and Transfer of Funds 2017 (as amended 2022)
Risk Assessment on AML - identify the risk of money laundering and terrorist financing that your firm faces
Provide Staff Training
Have internal controls in place
AML checks must be undertaken to confirm purchasers identity and source of funds
Accurate record keeping, policies and procedures
Guidance with regards to Politically exposed Persons must be followed -more monitoring and further checks
What is a bidder selection panel?
A meeting between relevant parties to evaluate the bidders quality questionnaires, rank them and potentially pick the succesfull bidder (but no obligation to do so)
What is a quality questionnaire?
A questionnaire provided to the bidders to assess their care plans and capabilities for the portfolio
Social housing landlords have obligations to the Regulator of Social Housing
