Purchase and sale

Question 1

Private treaty

Answer 1

Most common form of sale. openly marketed. no obligation until contracts are exchanged.
Gives the sellers flexibility and control
can lead to withdrawal and lack of certainty

Question 2

Auction

Answer 2

Used for all assets but especially hard to price or property in a state of disrepair.

contracts are exchanged and deposits paid on the fall of the hammer

+ lead to competitive bidding and speed
- prices, fees and not selling

Question 3

Informal tender

Answer 3

not binding until contract. best offers by a date. Can be used to draw a private treaty to a close
could still fall through but could lead to competitive offers

Question 4

Formal tender

Answer 4

Tender pack produced
offers binding and cannot be withdrawn
proof of funds and deposit in a bankers draft sent
used when needed to show accountability
each tender will include the full legal contract for sale

Question 5

Deciding which method of sale to use

Answer 5

clients Objective
market condition
the asset
timings
budget

Question 6

Agency TOE

Answer 6

Name
Property
Agency agreement
Fees
Termination
Withdrawl
Marketing expenses
Method of payment
Solicitors
Complaints
Mandate
Marketing

Question 7

Sales process

Answer 7

Appraisal
Instruction
AML COFI
Particulars
Sign off
Sale board
Launch
enquires and offers
Due dillegance
Sale memorandum
mark property as sold
Liase with solicitors

Question 8

Estates agency act 1979

Answer 8

Defines estate agency work and who is an estate agent

Question 9

Useful pre sale info

Answer 9

Market demand
Yield
Tenure
Location
Spec
Planning
asbestos
epc

Question 10

What RICS publication advises on sales

Answer 10

UK Residential Real Estate Agency
6th edition published September 2017
Commonly known as the blue book.

Covers

Standards and ethics
Before securing instructions
Acting for the seller or landlord: marketing the property
Acting for the seller: implementing the sale or lease
Acting for the buyer
Acting for the landlord: letting the property
Ending the instruction

Question 11

What are sole selling rights

Answer 11

Fee due if contracts exchanged during sole selling rights, even if purchaser found by another agent or client.

Question 12

What is misrepresentation

Answer 12

Misrepresentation of fact during negotiations which is relied upon and induces other party to enter contract

Question 13

why are particulars signed of by client

Answer 13

They sign them off that they are accurate

Question 14

What is a conditional sale

Answer 14

where the sale of land or property is subject to something happening before the deal can proceed to completion.

Question 15

What are development abnormal costs

Answer 15

Abnormal costs are additional or unusual costs that a developer might face when developing a site.

Common examples of abnormal costs are ground remediation works, for instance removal of Japanese Knotweed or remediating underground mine-shafts; the use of specialist foundations, e.g. piling, as a result of ground conditions; retaining walls.

Depending on Hots these could be reduced from the sale figure

Question 16

Misrepresentation act 1967

Answer 16

Protects buyers from being misled into purchasing something that is not as described, including by estate agents

Question 17

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Answer 17

The MLR 2017 sets out the additional obligations of private sector firms working in areas of higher money laundering risk.

They aim to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach.

Firms must put measures in place to identify their clients and monitor how they use their services.

Question 18

Consumer protection from unfair trading regulations 2008

Answer 18

The Regulations prohibit ‘misleading actions’ and ‘misleading omissions’ that cause, or are likely to cause, the average consumer to take a transactional decision they would not have taken otherwise.