Purchase & sale Flashcards
Tell me about the legal processes to complete a purchase/sale.
How do exchange and completion work in an auction transaction?
Purchaser is legally bound to purchase property at the fall of the hammer. Deposit is paid and them completion will occur at agreed completion date.
Tell me about factors which drives property markets.
- Demographics - age, race, income, migration patterns and population growth
- Interest rates - low interest rates creates demand for property but drives prices up and conversly high interest rates it lowers demand
- Economy - overall health of the economy
- Government policies and subsidies
Tell me about supply and demand in a property market you are familiar with
- Increased demand and lower supply drives prices up
- Increased supply and lower demand drives prices down
- Equilbrium markets means prices should be stagnent
- Example would be flats in Aberdeen - high supply and low demand means prices are heading downwards
Tell me about government incentives which impact demand in relation to your purchase & sale work.
What are the different types of interest in land?
Absolute ownership in Scotland
Why would you use online marketing for a purchase/sale transaction?
You can reach a wide audience and in turn increase sale oppurtunities
Why would you use a marketing board for a purchase/sale transaction?
Increase brand awareness in areas that matter
Tell me about an information pack you have prepared for a purchase/sale transaction.
Particulars for a property at Hardgate. Contained various details such as type, accomodation, size, amenities and EPC rating. Contained price and selection of photographs.
Tell me about the relationship between VAT and residential property sales.
- Not payable if buying or selling property but if using an agent their fees will incorporate VAT
- When demolishing the entire residential property the costs of demolishing and rebuilding are exempt from VAT. If demolishing part, it may be open to retention of a facade.
- VAT is payable when renovating a residential property
- If converting commercial to residential it can be VAT exempt if certain conditions are met
What other taxes may be payable upon sale of a residential property?
Tell me about the need for sales progression.
What 3 things do you need to make a contract?
Can a verbal contract be legally binding?
What is capacity in relation to contract law?
Does the sale of land have to be in writing and what Act defines this point?
Tell me about the OFT guidance you abide by in relation to the CPRs/BPRs.
Are UK estate agents regulated?
Tell me about your understanding of the Consumers, Estate Agents and Redress Act 2017.
Tell me about approved redress schemes in relation to your estate agency practice.
What other bodies govern / regulate estate agents?
How do these differ from RICS?
What is your opinion about the RICS’ call for a professional regulation scheme for estate agents?
Tell me about the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.
Talk me through the legislative/regulatory requirements relating to auctions.
Talk me through the auction process.
When is an auction sale legally binding?
What due diligence should be carried out pre-auction?
What are the advantages/disadvantages of buying/selling at auction?
What are the RICS Common Auction conditions?
What are the key principles?
Under these, when is completion set for?
How do you find out about an auction property?
Should you view an auction property before buying?
What is/are an Important Notice to Bidders/Memorandum of
Sales/general conditions of sale?
What would the legal pack contain?
What might be a special condition of sale?
What is a guide price?
What is a reserve price?
Which of these are confidential?
How do these differ?
What is an addendum?
What fees are typical for an auctioneer?
Can you sell a property before or after auction?
How does finance work for auctions?
What deposit is typically payable and when?
How can you bid at auction?
What is a proxy bid?
When is insurance required for in relation to an auction purchase?
Is VAT payable on auction properties?
What are the key principles of RICS Guidance Note Auctioneers Selling Real Estate (6th Edition)?
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What are the EPC requirements at auction?
Do you have to check anything in relation to an auction venue?