Purchase and Sale L2 and L3 Flashcards

1
Q

How did you ensure safety for the inspection of the Darley Street property?

A
  • Water ingress and pooling on the floor
  • Undertook a risk assessment of the property
  • Provided required PPE including boots and hardhats for the inspection
  • Property purchased by special purchaser with prior involvement in the property
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2
Q

How did you reach an asking price for the Darley Street property?

A
  • Assessed comparable evidence nearby
  • Was provided with quotes for the repair works by the client
  • Make a reasonable assessment of the cost of the works and their affect on value
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3
Q

How did you reach the asking price for the Wakefield property?

A
  • Analysed comparable evidence and let in line with MR
  • Assessed the tenancy
  • 5 years unexpired
  • Adopted a NIY of circa 9% to the £30,000 p.a.
  • Produced an Asking Price of £350,000
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4
Q

How did you reach the asking price for the Dudley property?

A
  • Analysed comparable evidence
  • Assessed the tenancy
  • Liaised with the Birmingham office
  • Vacant following former tenant
  • Assessed potential for letting and selling as an investment but would have taken too long
  • Capital rate of £115 psf
  • Asking Price of £250,000
  • Local shop operator purchased
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5
Q

How did you joint agency element of the Dudley property work?

A
  • Liaised with Birmingham office at different stages of the instruction
  • Agreed an asking price with them
  • They held the keys and undertook most viewings
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6
Q

How did the joint agent instruction work at the mixed use Leeds property?

A
  • Joint sale board and particulars
  • Both agreed to these elements
  • Share of fee 0.75% each
  • Block viewings
  • Both liaised with client
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7
Q

Why did you proceed to informal tender at Leeds property?

A
  • High levels of interest
  • Way of encouraging competition and higher bids
  • No responsibility to accept the highest bid
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8
Q

What was the investment opportunity in Leeds?

A
  • 4 retail units
  • 16 studio apartments
  • 3 years remaining on commercial
  • Residential ASTs
  • Passing rent £135,000 p.a.
  • NIY of 9%
  • Asking Price £1.5M
  • Sold for £1.6M (8.5% NIY)
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9
Q

How did you reach the asking price for the Bradford property?

A
  • Vacant possession
  • Poor condition
  • Analysed vacant comparables
  • Assessed the quotes for repairs and made an assessment
  • Liaised with the client
  • £100,000 Asking Price
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10
Q

How did you ensure the security of the unit in Dudley?

A
  • Birmingham team holding the keys and undertaking viewings
  • Vendor had management company who checked on the property periodically
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11
Q

Is there any legislation surrounding joint agency?

A
  • RICS UK Commercial Real Estate Agency
  • Must clearly state what type of agency
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12
Q

What are the risks of an empty property?

A
  • Inform insurer
  • Regular inspections for insurance purposes
  • Empty rates
  • Secure the property
  • Squatters
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