Purchase and Sale – Level 2

Question 1

• Which types of sale have you had experience in?

Answer 1

• Sale by Private Treaty.
• Sale by informal tender.

Question 2

• When would you recommend auction?

Answer 2

• If a person needed to sell quickly as the process can take weeks rather than months.
• If the property has a short or defective lease (a badly drafted lease)
• If the property has structural damage.

Question 3

• What vendor and purchaser checks do you carry out when agreeing a sale?

Answer 3

• ID Documents are obtained.
• Confirmation of funding or mortgage obtained from the purchasers.
• Financial checks for mortgages etc.

Question 4

• What key documents would you prepare when agreeing a sale?

Answer 4

• Letter to all parties agreeing the sale.
• Sales memorandum with buyers and sellers’ details including solicitor details.

Question 5

• What effects can lease terms have on the sale of residential property?

Answer 5

• Short leases can make the property hard to sell
• Short leases may make the property unsuitable for lending purposes and therefore only be available for investors (cash buyers).
• Defective leases will not be mortgageable.

Question 6

• Describe a time you have advised a vendor on the appropriate method of sale?

Answer 6

• The majority of vendors that I deal with will be advised by sale by private treaty.
• Some of my other clients may be recommended to sell by auction or informal tender but it will be property specific.

Question 7

• When progressing a sale, talk me through an example where you facilitated the transaction?

Answer 7

• In most sales I will liaise with both solicitors to see what each party is waiting for. I may have to recommend that either the purchaser and vendor gives their solicitors a chase up.

Question 8

• Give me an example of when you have advised a vendor when negotiating a sale.

Answer 8

• I can think on several occasions where an offer received has in my opinion been a fair offer which I have recommended them to accept.

Question 9

Tell me about the purchase of 86 Upper Luton Road – Chatham?

Answer 9

I inspected 86 Upper Luton Road for purchase for my client MHB. A two-bedroom flat with 52 years remaining on the lease.

I advised that there was £10,500 worth of refurbishment works to the property based on my client’s own schedule of rates .

I advised to submit an offer of £90,000 subject contract based on the short remaining lease and I recommended that a Section 42 notice in accordance with the Leasehold Reform Housing and Urban Development Act 1993 was served to the freeholder by the current vendor (leaseholder) so that my client would benefit from agreeing a new 90-year lease extension at a peppercorn ground rent without having to have owned the property for two years.

Question 10

Tell me about the marketting recomendation and sale of George Green Almshouses

Answer 10

• A parade of terraced houses which were in poor state of repair and not habitable.
• I advised the client that the best sales option was by way of Informal Tender.
• I suggested a period of marketing with an open house to be on a specified date.
• Several offers were received by sealed bids.
• I received a few offers that were very close to each other and I recommended to my client that we go back to the interested parties and ask for them to submit their best and final offers within a week’s time.