Purchase & Sale Flashcards
When would a home report be exempt from a property sale?
New-Build Homes
Private Sales
Unsafe or Derelict Properties
Portfolio Sales
Right to Buy Sales
What are the CGT rates for Scotland?
Basic rate tax payer - 18% / Higher rate - 24%
What is rollover relief?
Available when the sale of an asset used in your business is reinvested to replace assets also used in your business i.e. farmland. CGT payment is deferred until the sale of the replacement asset.
What is ADS and what is the current rate and when did it take affect?
Additional Dwelling Supplement for second homes Current percentage is 8% as of 5th December 2024
- Why do you need to undertake AML on clients? What legislation requires this to be undertaken?
RICS members are required to comply with the Money Laundering Regulations 2017 (or the relevant local regulations), which set out requirements for verifying clients, keeping records, and reporting suspicious activity.
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
What are the penalties for failing to comply with these acts?
Proceeds of Crime Act and Terrorism Act – up to 14 years prison sentence and/or fine
Money laundering/terrorist financing etc regulations – unlimited fine and/or imprisonment up to 2 years
What is a regulated business under the 2017 regulations?
Estate agents are a regulated business for the purpose of the regulations. Regulations require regulated businesses to register with their supervisory body. Estate Agency businesses are regulated by HMRC.
What does your firm do to comply with the regulations?
Use First AML to verify identity.
Client due diligence and monitoring
Complete risk assessments in relation to the purpose and nature of business relationship with the firm.
What do potential clients need to provide for AML purposes?
Proof of identity/ proof of address/ in some cases employment and / or business info
What is Anti Money Laundering? (AML)
Money Laundering is the process by which criminally obtained money or other assets are exchanged for clean money or assets which have no obvious links to their criminal origins. Also includes money which has been obtained from any source which is used to fund terrorism.
What are some forms of Money Laundering?
Handling the proceeds of crime
Being directly involved with any criminal or terrorist property
Investing the proceeds of crime into other financial products or into the acquisition of property or assets
What is your firms process for anti-money laundering?
We use First AML which requires clients to provide documentation and biometric scanning and background checks which flag up any concerns.
Do you just carry out checks on your clients?
No we also carry out checks on the purchasers to ensure that money is from legitimate sources.
You acted as the lead for the sale of Taiglim Farm. Can you please talk me through the initial process to getting your clients instruction:
Initial inspection, Marketing report, Conflict of interest, signed terms, AML.
Can you give me 5 pieces of information that a marketing report provides?
Terms of Business / marketing proposal for selling the subject / offers over or guide price / costs and our fee for undertaking the work / details of the subject
What are some key points of the Estate Agents Act 1979?
Estate agents must act honestly, fairly, and in the best interests of their clients while avoiding conflicts of interest.
Commission & Fees - clearly stated in writing before client agrees to services
Misrepresentation - Agents must not give false or misleading information about a property or the buying process.
Offers -All offers must be promptly and accurately communicated to the seller.
Any client money held by an estate agent must be safeguarded and properly managed.
The National Trading Standards Estate Agency Team (NTSEAT) can ban individuals from acting as estate agents if they engage in misconduct.
Agents who breach the Act may face fines or prohibition orders.
Can you walk me through a property transaction where you provided strategic advice on marketing and pricing? How did you ensure the best outcome for your client?
Describe a time when you had to negotiate a sale or purchase on behalf of a client. What were the key challenges, and how did you overcome them?
How do you ensure compliance with legal and regulatory requirements in property transactions? Can you give an example where this was particularly important?
If multiple buyers had been interested in different sections of the farm, how would you have managed the legal and logistical complexities of a split sale?
How did you manage client expectations throughout the sales process, particularly regarding pricing, marketing, and potential challenges?
If Barward Farm had remained unsold after the marketing period, what alternative disposal strategies would you have recommended to your client?
Can you tell me the different parts to a home report?
When are home reports exempt?
What are the key principles within the Estate agency act 1979?
What factors did you consider when marketing the land at Straiton? How did you establish a premium?
Burrowland Farm - How did you ensure the value of the steading was realised?
CM - Did your terms of business differ when it was a retained client?
What did your TOB include for Catrine Mains?
CM - Did the home report not pick up on services?
What is the Consumer rights act 2015?
2 weeks after - cooling off period- come out of the agreement without penalty
How long must you keep AML docs?
5 Years
What are some key points of the Estate agents act?
Inaccurate boundaries
What are some stipulations of the Consumer protection regs 2008?
