Purchase and Sale Flashcards
Name the pieces of RICS guidance which cover Estate Agency
1) RICS Global Real Estate Agency and Brokerage Professional Statement 2016
2) RICS UK Commercial Real Estate Agency 2016
The statement sets out 12 core principles, what are they?
1) Act in an honest, fair, transparent and professional manner
2) Carry out work with due skill, care and diligence and ensure all staff employed have the necessary skills to carry out their tasks
3) Ensure that clients are provided with terms of business that are fair and clear, with details of the firms complaints handling procedure
4) Do the upmost to avoid conflicts of interest and where they do arise, deal with them openly and fairly
5) Not to discriminate unfairly in any dealings
6) All communications with clients are fair, decent, clear and timely and transparent
7) All advertising and marketing material is honest and truthful
8) Any client money is held separately and is covered by adequate insurance
9) Hold appropriate PII/errors or omissions insurance to ensure a customer does not suffer loss because of a negligent act
10) Make it clear the identity of your client and ensure all parties of your obligations to each party
11) Give realistic assessments of selling prices/rents/financial costs having regard to market evidence and using best professional judgement
12) Ensure all meetings, inspections and viewings are carried out in accordance with the client’s wishes having due regard to security and personal safety
The statement gives advice to 5 key areas
1) Acting ethically
2) Securing instrutions
3) Marketing the property
4) Implementing the disposal
5) Acquisition of property
What is the key piece of legislation?
Estates Agency Act 1979
What are the key principles of the Estate Agents Act?
1) Clarity as to the terms of the agency (Section 18)
2) Honesty and accuracy
3) Agreement and liability for costs
4) Openness regarding personal interests (Section 21)
5) Absence of discrimination
6) Legal obligation to tell the client about offers received
7) Keep clients money separate
The statement gives advice to 5 key areas
1) Acting ethically
2) Securing instrutions
3) Marketing the property
4) Implementing the disposal
5) Acquisition of property
What is the key piece of legislation?
Estates Agency Act 1979
What are the key principles of this Act?
1) Clarity as to the terms of the agency (Section 18)
2) Honesty and accuracy
3) Agreement and liability for costs
4) Openness regarding personal interests (Section 21)
5) Absence of discrimination
6) Legal obligation to tell the client about offers received
7) Keep clients money separate
What are the penalties for not abiding by the Estates Agents Act?
Act is policed by the Trading Standards Office
Act allows for prohibition or warning order to be made against an agent.
Prohibition order stops the agent from practicing
Warning order is less punitive - just a written warning
What is a cooling off period?
It is a period of 14 days after instruction where the client may change their mind and dis-instruct.
