Purchase and Sale L2 and L3 Flashcards
How did you ensure safety for the inspection of the Darley Street property?
- 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
How did you reach an asking price for the Darley Street property?
- 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
How did you reach the asking price for the Wakefield property?
- 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
How did you reach the asking price for the Dudley property?
- 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
How did you joint agency element of the Dudley property work?
- Liaised with Birmingham office at different stages of the instruction
- Agreed an asking price with them
- They held the keys and undertook most viewings
How did the joint agent instruction work at the mixed use Leeds property?
- Joint sale board and particulars
- Both agreed to these elements
- Share of fee 0.75% each
- Block viewings
- Both liaised with client
Why did you proceed to informal tender at Leeds property?
- High levels of interest
- Way of encouraging competition and higher bids
- No responsibility to accept the highest bid
What was the investment opportunity in Leeds?
- 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)
How did you reach the asking price for the Bradford property?
- Vacant possession
- Poor condition
- Analysed vacant comparables
- Assessed the quotes for repairs and made an assessment
- Liaised with the client
- £100,000 Asking Price
How did you ensure the security of the unit in Dudley?
- Birmingham team holding the keys and undertaking viewings
- Vendor had management company who checked on the property periodically
Is there any legislation surrounding joint agency?
- RICS UK Commercial Real Estate Agency
- Must clearly state what type of agency
What are the risks of an empty property?
- Inform insurer
- Regular inspections for insurance purposes
- Empty rates
- Secure the property
- Squatters