Purchase and sale Flashcards
Private treaty
Most common form of sale. openly marketed. no obligation until contracts are exchanged.
can lead to withdrawal and lack of certainty
Auction
Used for hard to price or property in a state of disrepair.
contracts are exchanged and deposits paid on the fall of the hammer
Informal tender
not binding until contract. best offers by a date. Can be used to draw a private treaty to a close
Formal tender
Tender pack produced
offers binding and cannot be withdrawn
proof of funds and deposit sent
used when needed to show accountability
Deciding which method of sale to use
clients Objective
market condition
the asset
timings
procedure following instruction
conflict of interest
Land registry check
liase with solicitors
Agency TOE
Name
Property
Agency agreement
Fees
Termination
Withdrawl
Marketing expenses
Method of payment
Solicitors
Complaints
Mandate
Marketing
Sales process
Appraisal
Instruction
AML COFI
Particulars
Sign off
Sale board
Launch
enquires and offers
Due dillegance
Sale memorandum
mark property as sold
Liase with solicitors
Legislation
Estates agency act 1979
Consumer protection from unfair trading regulations 2008
Estate agents provision of information regulation 1991
Misrepresentation act 1967- particulars have been produced in good faith
What info required before selling
Market demand
Yield
Tenure
Location
Spec
Planning
asbestos
epc
What RICS publication advises on sales
The blue book
What are sole selling rights
Fee due if unconditional contracts exchanged during period of sole selling rights, even if purchaser found by another agent or client. After expiry of sole selling rights, fee due if contracts exchanged with purchaser introduced during period or with whom agent had negotiations.
What is misrepresentation
Misrepresentation of fact during negotiations which is relied upon and induces other party to enter contract
