Purchase and Sale Flashcards
What is the Estate Agents Act 1979
The act regulates estate agency work
Its purpose is to make sure that estate agents act in the best interests of their clients, and that both buyers and sellers are treated honestly, fairly, and promptly.
Disposal or acquisition of an interest in land
What is the property misrepresentation act 1967
-False statement made which induces a party to purchase
- can sue for damages or have contract re-scinded
What is market rent
leasor and lesee
What is an occupational lease
Lease which is occupied
What is covenant strength
tenants ability to pay rent
-good track record
-can check strength via Dunn and Bradstreet
Talk me through the purchase you undertook at Netherton
-Submitted a bid for a council owned site
-Pior to this i undertook my due dilligence
–Nothing stood out in the title - no exisiting Rights of Way, restrictions
-Sought planning advise and desktop surveys to see if a scheme could work here
-
What are pre-bid clarifications and why did you seek this at Netherton
-To seek clarifications on building condition as Lidl were required to demolish
You mention bids were via informal tender. What are the benefits of informal tender for a client.
-Can have more than 1 round of best bids
-if you receive a bid late you can report to client and ask for instructions
Talk me through the disposal at Great Homer Street
Off-market sale to Tim Hortons via private treaty as the offer was so strong
(private treaty?)
What is private treaty
Most common method of sale
Property is marketed openly, including marketing particulars
Allows a potential purchaser to “treat” with the seller
Recommendations of offers are made to seller via agent
Typical info to provide includes proof of funding
-Seller not obliged to sell
-flexible and inexpensive
-Advertising can be limited or extensive to suit clients requirements
Disadvantages
-Late withdrawals and associated abortive costs
Tim Hortons on 15 year FRI leae
tenant only break at 10th yr
87k
9 months rent free
Talk me through the purchase you undertook at Moreton
-JV between Wirral Growth Company and Council
-Masterplan had changed during legals which naturally altered contract
How and why did the contract alter at Moreton
-Masterplan changed as a result of public consultation from Lidl foodstore and care home to extension of library and residential properties.
- AFL altered Overflow Car Park
-RoW
Contractor Compound
-Boundary treatments
-Stopping up order
Talk me through the sale of land at Tiverton
Informal tender
Data room was set up
Offers received
And proceeded with highest unconditional bidder
What are the different methods of sale
Private treaty- target purchasers, negotiate
Formal tender - closed bids, can go straight to contract on best bids date
Informal Tender - best bids, can have more than 1 best bids date. Can receive late offers
Auction - hammer falls its binding. Must have deposit on the day.
Pros and cons of selling at auction
-quick
-Transparent (used for mortgage repossessions)
BUT
-higher fees 2..5%
-and failure to sell can blight property
What is sole agency
Single agent is appointed to market a property
No sale, no fee
What is sole selling rights
Same as sole agency.
But if you find your own buyer, then you will still have to pay the agent
What are the 3 types of agency
Sole
Joint-shared fee on a pre-agreed basis
Multiple agency - winner takes all
What are the stamp duty bands
Commercial
Up to £150,000 = 0%
£150-250 = 2%
Above £250 = 5%
What is VAT
Charge on the sale of all goods and services
What does the Property Misdescriptions Act 1991 cover
Everything
What is the punishment for a breach under the Estate Agents Act 1979
Can prohibit an agent from practicing
Or issue warning notice
What is without prejudice?
Information/evident Cannot be used in a court of law
What is subject to contract
Neither party bound unless a formal contract is made
What is an overage
seller will be paid extra by the buyer if the specified events happen within a specified timescale e.g. if land sold is later developed and therefore the value increases significantly.
What is memorandum of sale
heads of Terms
What do you do if you have an unregistered titile
Get defective title insurance
What was included in your agreed heads of terms at Netherton
-vendors details, solicitor details
-Conditions
-Timings
-Demise
-Price
-Date
What is a right of way
A legal right to pass along a specific route or ground of a property belonging to another
aka easement
What was your role in sale at Tiverton and what did you come across
- instructing agent
- reviewing sale brochure
-setting BAFO deadlines
-instructing and liasing with solicitors
-Came across a range of bids
Why did you chose informal tender
-price is not the only consideration as lidl want to protect their own interests
-still able to test market
-flexibility
What is a phase 1 report
Phase 1 Environmental Assessments provide detailed information about the current state of an environment within the proposed area.
What is a phase 2 report
Phase 2 Environmental Assessments involve more rigorous investigation into potential environmental contaminants or hazards on site
Where can you find information on a right of way
-public records shown on definitive maps
-highway authority has a statutory duty to maintain
-rights of access are included in your title deeds
What are the different typs of easements
Express grant - in title deeds
Implied - rather than in deeds, its implied
Prescription - using land over 20 years
