Purchase and Sale Flashcards
What are the different methods of purchase and sale and how do they differ?
Private Treaty (60%) method of land sale, the land is marketed initially for an open ended period of time. During the sale process a written “Expression of Interest” or an invited viewing may be requested so as to filter the prospective buyers.
Auction (35%) - With this method of land Sale, the public bid for the land (with or without a reserve). Exchange takes place at the fall of the hammer.
Informal Tender (5%) - the land is generally marketed with a date for sale by which purchasers must have submitted an open or a sealed bid. Offer envelopes are opened as they are received. Bidders may be invited to increase their bids, after being informed that a higher bid has been received following the closing date for initial bids.
Formal Tender (1%) - invites offers by a firm closing date. Prospective buyers are supplied with a comprehensive legal pack with a specified exchange date on decision. Offers are returned in a sealed envelope, stating the contract to which they relates, but unmarked as to its sender. The offer envelopes are then opened together at the published date/time.
Why is the RICS real estate agency and Brokerage standards 2016 important?
Covers the following topics: Ethics Securing instructions Acting for the seller: marketing the property Acting for the seller: agreeing the sale or lease Acting for the buyer Ending the instruction Safety and security Agency management
What role does the EA79 play on purchase and sale
The Estate Agents Act 1979 regulates work as an estate agent. Its purpose is to make sure that an agent works in the best interests of your clients, and that both buyers and sellers are treated honestly, fairly and promptly.
What role does CPfUT regs 2008 play within purchase and sale
The Consumer Protection from Unfair Trading Regulations 2008, protect consumers from unfair or misleading trading practices, and ban misleading omissions and aggressive sales tactics
What are overage agreements and how do they work?
an overage is an agreement that the buyer will pay extra, on top of the original purchase price, if and when certain events happen. For example, if the buyer increases the value of the land by obtaining planning permission.
sales overage or planning overage
What are the 6 principals of the EA 1979?
Honesty and accuracy Clarity on TOE Open and transparent No discrimination Pass on all offers in writing Keep clients money separate
Governed by the office fair trading
Warning order is first offence
Then prohibition order
What is s18 and s21 of the EA 79?
18 agree TOE
21 disclosure of interest
Describe the MLR 2017?
the surveyor should look out for red flags from the client, source of funds and the instructions.
under these regs it is a criminal offence to act as beneficial owner of an estate without being approved by HMRC
should undertake simple or in this case enhanced DD
the regulations requires a firm wide risk assessment
