Purchase And Sale

Question 1

4 methods of sale

Answer 1

Private treaty

Formal tender

Informal tender

Auction

Question 2

Key readings on accurate marketing

Answer 2

Consumer Protection Regulations (2018)

Misrepresentation Act (1967)

Question 3

Types of agency

Answer 3

Sole agent

Joint agency

Multiple agency

Question 4

What act governs agency agreements and what must be included

Answer 4

Act = Estate Agents Act 1979

Include:

• agency bases (sole, joint, etc)
• agency rights (sole selling vs agency)
• proposed fee agreement
• marketing costs and disbursements
• no conflict of interest confirmed
• money laundering regs required
• timescales for payments of fees
• complains handling procedure

Question 5

Agency case law

Answer 5

Wells vs Devanagari 2019 - ‘sketchy oral agreement’ over the phone was legally binding

Question 6

Agency rights: sole selling vs sole agency rights

Answer 6

Sole selling = whoever finds the eventual buyer, the agent gets a fee

Sole agency = agent only gets fee if they introduced the buyer

Question 7

What is the ‘ready able and willing purchasers’ clause

Answer 7

If vendor pulls out of a sale late, the agent still gets a fee

Question 8

What is a ‘Notice to Complete’

Answer 8

Selling sets buyer a date to finalise a sale

Buyer covers legal fees

If date missed, the vendor can rescind contract and re-market

Question 9

What act governs leasehold and freeholds

Answer 9

Landlord and tenant act 1987

Right to first refusal

Question 10

How right to first refusal is qualified

Answer 10

Eligible premises - at least 2 flats and max 50% non resi

Tenants eligible - leaseholder or reg

Question 11

Types of S5 notice and legislation

Answer 11

Landlord and Tenant Act 1987

5A - sale by contract

5B - by auction

5c - by granting an option or right of pre-exemption

5d - some land disposals

Question 12

Key changes to landlord and tenant

Answer 12

Leasehold and Freehold Reform Act 2024

Question 13

Proposed changes under LAFRA

Answer 13

• ban leaseholds on new homes
• cap ground rents - e.g. 0.1% of market value
• abolish 2 year ownership rule to extend lease
• Abolish marriage value
• set standard cap rate
• raise deferment rate
• new standard 990 year leases
• collective enfranchisement easier e.g. up to 50% non resi

Question 14

Does there have to be terms of engagement for an agent to be appointed

Answer 14

No - implied actions are enough for an implied agreement based on behaviours

Question 15

Lease vs license

Answer 15

Lease gives occupier part of the land in an estate

License gives a permission to use land

Question 16

What was the Leasehold Reform Act 1967

Answer 16

Gave leaseholders the right to buy (enfranchise) or extend their lease

Leaseholder must have been in for 2 years

Question 17

Misrepresentation vs misdescription

Answer 17

Misrepresentation is an incorrect fact

Misdescription is about false or misleading statements and description of the property.

Question 18

What must sales particulars include (material information)

Answer 18

Council tax band
Tenure
Purchase price