Purchase and Sale Flashcards
What are the four methods of sale?
Private treaty, informal tender, formal tender and auction
When would you use a private treaty sale?
What information would you request?
This is when a property is marketed openly, including the use of marketing particulars, paper-based advertising and online website portals, to afford a potential purchaser the opportunity to ‘treat’ with the seller.
Offers are then made and a suitable purchaser is usually selected after recommendations are made to the seller by their agent. This will include consideration of whether the offer is at the right level and whether the potential purchaser is proceedable or not.
information to ask for when considering proceedability includes proof of funding, solicitor’s details and further contextual information on any chain or other related issues.
What is the regulation around letting boards?
Ensuring compliance with the Town & Country Planning (Control of Advertisements) (England) Regulations 2007.
When would you use a informal tender?
Also known as sealed bids. Each party submits their best and final bids at the set date and time. The bids should then be opened in front of an independent witness and the parties informed of the outcome. The process is not legally binding.
You did this on Acton Vale.
What is a formal Tender?
You have not done this, however you know the theory.
Applicants bid blindly and there is no opportunity to withdraw or alter bids after they are submitted. After the closing date, offers are opened in front of an independent witness and the seller’s agent will then make a recommendation on which offer should be accepted.
What is an auction?
Sometimes referred to as a ‘method of last resort’, where it is difficult to accurately assess price in the open market.
Examples: Quick Sale, property in poor repair.
When the gavel falls, contracts are exchanged and the purchaser pays 10% deposit.
What are the 3 basis for agency?
Sole agency: With one agent
Joint sole agency: Two or more agents sharing a fee
Multiple agency: With several agents, where the successful one receives the entire fee.
