Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Rics MK > Purchase and Sale > Flashcards

Purchase and Sale Flashcards

1
Q

What is the global RICS guidance relating to purchase and sale?

A

RICS Global Real Estate Agency and Brokerage Professional Statement 2016

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Is there a UK supplement for REAB?

A

Yes, the RICS UK Commercial Estate Agency Professional Statement 2016

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the principles within the UK commercial Estate Agency Professional Statement?

A
  1. Act in an honest, fair, transparent and professional manner
  2. Carry out work with due skill, care and diligence and ensure all staff employed have the needed art skills to carry out their tasks
  3. Ensure that clients are provided with Terms of Business that’s are fair and clear, with details of the firm’s complaints handling procedure
  4. Do the upmost to avoid conflicts of interest and where they do arise, deal with them openly and fairly
  5. Do not discriminate unfairly in any dealings
  6. All communications with clients are fair, decent, clear and timely
  7. All advertising and marketing material is honest and truthful
  8. Any client money is held separately and is covered by adequate insurance
  9. Hold appropriate PII/ errors or omissions insurance to ensure a customer does not suffer loss because of a negligent act
  10. Make it clear the identity of your client and ensure all parties are clear of your obligations to each party
  11. Give realistic assessments of selling prices/rents/financial cost having regard to market evidence and using best professional judgement
    12 ensure all meetings, inspections and viewings are carried out in accordance with the clients wishes having due regard to security and personal safety
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the main legislation the covers Estate Agency?

A

The Estate Agents Act 1979

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

That are the main principles of the Estate Agents Act 1979?

A
  1. Clarity as to the terms of agency (section 18)
  2. Honesty and accuracy
  3. Agreement and liability for costs
  4. Openness regarding personal interest section 21
  5. Absence of discrimination
  6. Legal obligation to tell the client about offers received
  7. Keep clients money separate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the regulations in terms of sales particulars?

A

Consumer Protection from Unfair Trading regulations 2008
Business protection from misleading marketing regulations 2008
Misrepresentation act 1967

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the three test to decide an agents liability for negligence?

A

Foreseeability - the damage is reasonably foreseeable

Proximity - the relationship can be characterise in law as being sufficiently proximate

Fairness - a it is regard as fair, just and reasonable for such a duty of care to arise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

When does the misrepresentation act apply?

A

During pre contract enquires by the vendor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

When do CPR’s apply?

A

During the entire sales and marketing process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

When does the Estate Agents Act apply?

A

During the sale of a leasehold or freehold asset with a capital value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Why was the land registration act 2002 brought about?

A

To provide a frame work for electronic property conveyancing by allowing formal documents to be executed electronically.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 4 methods of sale?

A

Formal Tender
Informal Tender
Private Treaty
Auction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the principles of the Commercial Real Estate Agency professional standard?

A
  1. Act in an honest and professional manner
  2. Carry out work with due skill, care and diligence and ensure all staff have the necessary skills to carry out their tasks
  3. Ensure clients are provided with clear and fair terms of business
  4. Do the upmost to avoid conflicts of interest
  5. Do not discriminate unfairly in dealings
  6. All communications with clients are fair decent, clear, timely and transparent
  7. All advertising and marketing is honest and truthful
  8. Any client money is held separately and with appropriate insurance
  9. Hold appropriate PII cover
  10. Make it clear the identity of your client and ensure all parties are clear of your obligations
  11. Give realistic assessments of sale prices
  12. Ensure all meetings inspections and viewings are carried out in accordance with the clients wishes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the 7 principles of the estate agents act 1979?

A
  1. Clarity as to the terms of business (section 18)
  2. Honesty and accuracy
  3. Agreement and liability for costs
  4. Openness regarding personal interests (section 21)
  5. Absence of discrimination
  6. Legal obligation to tell clients about offers recover
  7. Keep clients money separate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the two most important points?

A

Specify costs and fees in terms of business (section 18)
Disclose personal interest (section 21)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a cooling off period?

A

A period of 14 days allowed for clients to dis-instruct agents should they wish to.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Who police’s the cooling off period?

A

Trading standards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the three tests to decided negligence?

A

Forseablity - was it resonantly foreseeable
Proximity - the relationship can be characterised in law as being sufficiently proximate
Fairness - it regarded as fair, just and reasonable for such duty of care to arise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who police’s the estate agents act?

A

National trading standards

20
Q

What is the typical punishment when failing to comply with the estate agents act 1979

A

Prohibition order (stops and agent practicing)

21
Q

Can agents offer additional services to potential purchasers?

A

Yes as long as they make their client away when signing terms of business

22
Q

Who police’s CPR’s?

A

Trading standards and the local authority

23
Q

What is the maximum penalties for breach of CPR?

A

Prohibition order (stop practicing)
Unlimited fine

24
Q

What does CPR’s say about duty of care?

A

That the duty is extended to clients, viewers and buyers and must be accurate so that it is understood by a “reasonably well-informed person”

25
Q

What are the key principles of CPR’s?

A
  1. Regulations apply to all Lettings and sales
  2. Agents have a duty of care to clients and all interested parties
  3. Agents must declare everything know about a property
  4. Agents just not exert undue pressure on buyers
  5. If some information is found during the process, this must be passed onto all interested parties
  6. Any omissions can also lead to a breach of the regulations
  7. Full due diligence is required for all new instructions
  8. Must be validate by the client
  9. Policed by the Trading Standards office
  10. Disclaimers to not apply to the criminal offence
26
Q

What is “Caveat Emptor”

A

It essentially means “let the buyer beware”
This prinocle means that the buyer should satisfy itself on all matters relating with on the property.

27
Q

What are the other legislation policing Estate Agency?

A

Consumer rights act 2015
Misrepresentations act 1967

28
Q

When does the misrepresentations act apply?

A

During the pre contractual enquires by the vendor or their agents to the proposed purchaser.

29
Q

When does the estate agents act apply?

A

During the sale or purchase of freehold or leasehold properties with a capital value

30
Q

When does the CPRs apply?

A

During the entire agency sales and Lettings process

31
Q

What regulation is in places for marketing signage?

A

Town and country planning (control of advertisement) (England) regulations 2007

32
Q

Is a planning consent required for a non residential sales board?

A

Yes if it is over 2 sq m for a flat board or 2.3 sq m for a v board

33
Q

Is there a restriction on residential sales boards?

A

Yes 0.5 m2 for a single board or 0.6 m2 for a double board it also just not be above 4.6m from the ground

34
Q

When else might you need a planning consent for a sales board?

A

If it’s is illuminated
If it is on a listed building or in a conservation area

35
Q

When must sales boards be removed?

A

14 days following completion

36
Q

What is the fine for leaving a sales board up over 14 days from completion?

A

£2000 per board

37
Q

Who policies sales boards?

A

The local planning authority

38
Q

What are other relevant legislations relating to purchase and sale?

A

Bribery act 2010
Control off asbestos regulation 2012
Uk GDPR 2016
Land Registry Act 2002
Money Laundering, terrorist financing and transfer of funds regulation 2017
Energy Act 2011
MEES 2015

39
Q

Can anyone register for VAT?

A

No typically charities, financial institutions and medical practitioners cannot register for VAT

40
Q

Why would someone elect VAT?

A

If it is owned by a business they may elect vat to claim back tax on money spent on upkeep

41
Q

What are capital allowances?

A

These are a form of tax relief upon capital expenditure for the construction or purchase of commercial property or business assets.

42
Q

What was the land registration act 2002 put in place for?

A

The act proves a framework for electronic property conveyancing by allowing formal documents to be executed electronically.
All freehold’s and new leaseholds granted over 7 years or existing leases sold or assigned with 7 years must now be registered on Land registry

43
Q

What is considered a compliant plan when used for a freehold transaction?

A
  1. Metric scale
  2. Scale bar
  3. Scale noted on the plan
  4. 1:1250 location plan
  5. Full address including post code
  6. North point
  7. Demise outlined in red
44
Q

Why would you choose a certain method of sale?

A

Based on clients objectives
Public accountability
Current and likely market conditions
Likely level of demand
Timing requirements

45
Q

Why would you approach a short list rather than openly marketing a site?

A

Because my client wanted a level of confidentiality

Rics MK (16 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions