*Purchase and Sale to sort out Flashcards
What is a connected person under the Estate Agents Act (1979)?
Someone who could benefit financially from the transaction, such as a family member or a business associate.
Are there any updates to the Estate Agents Act (1979)?
Estate Agents (Undesirable Practices) Order (1991) - Estate agents must inform their clients at the same time they are informed of Terms of Business, as to any additional services to be offered to prospective purchasers, unless they are free.
Estate Agents (Provision of Information) Regulations (1991) - This information must be provided in writing as to the services provided and the remuneration.
Who policies the Consumer Protection Regulations?
Trading Standards Office of a Local Authority
Key principles of the RICS Global Real Estate Agency and Brokerage Professional Statement (2016)?
Professional Statement
All RICS members involved in the sale, letting and leasing of real estate must follow.
Includes:
- Ethics
- Securing instructions
- Acting for the seller
- Acting for the buyer
It is similar to the UK specific professional statement - RICS UK Commercial Estate Agency (2016).
What are the key principles of the RICS UK Residential Real Estate Agency Professional Statement (2017) (The Blue Book)?
Provides a mandatory summary of the code of practice in all aspects of property marketing for residential.
Comprises the following material:
- Relevant estate agency legislation
- Standards & ethics
- Proper marketing
- Acting for the vendor, purchaser and landlord.
What are the key principles of the Misrepresentations Act (1967)?
Relates to the misrepresentation or a fake statement made by a party during pre-contractual enquiries, which has an effect of inducing the party to purchase.
Agent has a duty of care to check the advice and information given.
What are the penalties of the Misrepresentations Act (1967)?
It is a civil offence - a form of negligence.
Three tests to decide whether an agent is liable for negligence:
Foreseeability - damage is foreseeable
Proximity - relationship is sufficiently proximate by law
Fairness - fair and reasonable for a duty of care to arise
Can be sued for financial damages and/or contract recinded.
What is the Regulation of Property Agents?
A working group has made recommendations for the government on a new regulatory framework for property agents.
Published in 2019.
Proposes that all agents be regulated by an independent regulator with mandatory qualifications for agents and code of practice.
All qualifying agencies are to be licensed and abide by the new code of practice.
Transparency of costs and charges now priorities.
No date has been announced for the proposed legislation.
What governs marketing signage?
The Town and Country Planning (Control of Advertisement) Regulations 2007
Only 1 board allowed for commercial properties.
Must remove signs 14 days after completion.
What signage does not need planning permission?
Non-residential boards under:
2sqm (flat)
2.3sqm (v-board)
Residential boards under:
- 5sqm (flat)
- 6sqm (v-board)
What regulations govern AML Checks?
Money Laundering, Terrorist Financing and Transfer of Funds and Regulations (2019)
RICS Professional Statement Countering Bribery, Corruption, Money Laundering & Terrorist Financing (2019).
How do you choose which method to use?
- Client objectives
- Desired timescale
- Public accountability
- Current and likely future market conditions
- Anticipated level of demand
- Likely target market
What are agency instruction agreements?
They are a requirement of the RICS Rules of Conduct (2007) and the Estate Agents Act (1979) (sections 18 & 21)
There is a statutory cooling off period of 14 days.
The agreement must be signed and returned to the agent before marketing can commence.
What is Gazundering?
Where a buyer lowers their offer at the last minute, just before contracts are exchanged.
The seller, conscious of refusing the new lower price means they are back at square one and the chain may fall apart, often feel forced to accept the new lower offer.
What is gazumping?
Gazumping occurs when a buyer has had an offer to purchase a property accepted, but before the sale is completed the seller accepts a better offer from another buyer.