Purchase and Sale Flashcards
Included in your Pitch Letter
- Agency Basis and rights
- Marketing costs
- Marketing price
- the fee
- scope of work
- client objectives
Why advise an informal tender basis
- most common method for land disposals
-defined bid deadline - best bids deadline
- flexibility
- no obligation to sell
Included within HOTs for an uncon sale?
- sellers details
- purchasers details
- both solicitors details
- agreed purchase price
- any conditions
Timescales for a uncon purchase?
From agreeing HOTs, 6 weeks to exchange and 4 week to completion
Timescales for a STP
6-8 weeks to exchange, 18 months (12+6) to completion, long stop of 24 months
Selling rights?
Sole selling rights - fee is payable upon exchange within the agreed contact period, regardless of buyer introduction
Sole Agency - fee is only due if the agent introduces the purchaser within the contractual period
What are the 7 key principles of the EA Act 1976
- clear ToB (s.18)
- honestly and accuracy
- agreement and liability for costs
- personal interests (s.21)
- no discrimination
- tell of all offers received
- client money separate
4 methods of disposal
-private treaty
-informal tender
-formal tender
-auction
What is an overage?
An arrangement made for the sharing of any extra receipts received over and above the expected profits
What types of overage?
- Planning permission
- GDV
- Anti embarrassment
What was the overage arrangement?
It was a Planning overage.
The overage would be exercised on the implementation of planning permission.
My client would receive 30% of the uplift in value, determined by an independent valuer
Why did you extend the overage time scales?
I spoke to the planning department who advised the site may take 10 plus to obtain a planning permission taking into account the emerging local plans timescales
What factors would affect the bids for Fair Oak?
- Rising build costs
- Contamination. Additional surveys and risk associated.
How did you present the offers?
I provide an offer summary analysis of each offer, detailing the conditions etc.
I did not recommend any offers
How did you inform parties of the contamination?
In line with the Consumer Protection Regulations 2018, I informed all parties within the particulars and provided a copy of the survey in a data room.
