Purchase and Sale Flashcards
What is the global RICS guidance relating to purchase and sale?
RICS Global Real Estate Agency and Brokerage Professional Statement 2016
Is there a UK supplement for REAB?
Yes, the RICS UK Commercial Estate Agency Professional Statement 2016
What are the principles within the UK commercial Estate Agency Professional Statement?
- Act in an honest, fair, transparent and professional manner
- Carry out work with due skill, care and diligence and ensure all staff employed have the needed art skills to carry out their tasks
- Ensure that clients are provided with Terms of Business that’s are fair and clear, with details of the firm’s complaints handling procedure
- Do the upmost to avoid conflicts of interest and where they do arise, deal with them openly and fairly
- Do not discriminate unfairly in any dealings
- All communications with clients are fair, decent, clear and timely
- All advertising and marketing material is honest and truthful
- Any client money is held separately and is covered by adequate insurance
- Hold appropriate PII/ errors or omissions insurance to ensure a customer does not suffer loss because of a negligent act
- Make it clear the identity of your client and ensure all parties are clear of your obligations to each party
- 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
What is the main legislation the covers Estate Agency?
The Estate Agents Act 1979
That are the main principles of the Estate Agents Act 1979?
- Clarity as to the terms of agency (section 18)
- Honesty and accuracy
- Agreement and liability for costs
- Openness regarding personal interest section 21
- Absence of discrimination
- Legal obligation to tell the client about offers received
- Keep clients money separate
What are the regulations in terms of sales particulars?
Consumer Protection from Unfair Trading regulations 2008
Business protection from misleading marketing regulations 2008
Misrepresentation act 1967
What are the three test to decide an agents liability for negligence?
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
When does the misrepresentation act apply?
During pre contract enquires by the vendor
When do CPR’s apply?
During the entire sales and marketing process
When does the Estate Agents Act apply?
During the sale of a leasehold or freehold asset with a capital value
Why was the land registration act 2002 brought about?
To provide a frame work for electronic property conveyancing by allowing formal documents to be executed electronically.
What are the 4 methods of sale?
Formal Tender
Informal Tender
Private Treaty
Auction
What are the principles of the Commercial Real Estate Agency professional standard?
- Act in an honest and professional manner
- Carry out work with due skill, care and diligence and ensure all staff have the necessary skills to carry out their tasks
- Ensure clients are provided with clear and fair terms of business
- Do the upmost to avoid conflicts of interest
- Do not discriminate unfairly in dealings
- All communications with clients are fair decent, clear, timely and transparent
- All advertising and marketing is honest and truthful
- Any client money is held separately and with appropriate insurance
- Hold appropriate PII cover
- Make it clear the identity of your client and ensure all parties are clear of your obligations
- Give realistic assessments of sale prices
- Ensure all meetings inspections and viewings are carried out in accordance with the clients wishes
What are the 7 principles of the estate agents act 1979?
- Clarity as to the terms of business (section 18)
- Honesty and accuracy
- Agreement and liability for costs
- Openness regarding personal interests (section 21)
- Absence of discrimination
- Legal obligation to tell clients about offers recover
- Keep clients money separate
What are the two most important points?
Specify costs and fees in terms of business (section 18)
Disclose personal interest (section 21)
What is a cooling off period?
A period of 14 days allowed for clients to dis-instruct agents should they wish to.
Who police’s the cooling off period?
Trading standards
What are the three tests to decided negligence?
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
Who police’s the estate agents act?
National trading standards
What is the typical punishment when failing to comply with the estate agents act 1979
Prohibition order (stops and agent practicing)
Can agents offer additional services to potential purchasers?
Yes as long as they make their client away when signing terms of business
Who police’s CPR’s?
Trading standards and the local authority
What is the maximum penalties for breach of CPR?
Prohibition order (stop practicing)
Unlimited fine
What does CPR’s say about duty of care?
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”
