Questions asked in Savills Mock Flashcards
You stated you checked you were competent – how did you confirm that you were competent?
I had sold similar sites in the area and had a strong knowledge of the local market.
What is a restrictive covenant?
A restrictive covenant is a clause in a contract, agreement, or other legal document that prevents an individual, group, or company from taking (or failing to take) a specific action.
You mention your site had outline planning permission - what are the different kinds of planning permission?
Full planning permission, there are the two I mainly have experience in, but I am also aware of resolution to grant.
What are the five reserved matters? (LALAS)
-Layout
-Access
-Landscape
-Appearance
-Scale
Did you run an appraisal / provide a new guide when you went back out to the previous parties?
Yes new appraisal with increased build costs and reduced resale £/sq ft. This was not provided to previous parties but used to sense check developer’s appraisals.
What was the cost of the survey?
Around £1.5k
Did you obtain a letter reliance on that survey before selling this site?
Yes we needed a letter of reliance so this could be transferred to the buyer after they purchased the site.
What are the four methods of sale?
- Private Treaty
- Informal Tender
- Formal Tender
- Auction
What are some differences between the consumer protection from unfair trading regs vs misrepresentations acts?
CPR relate to dealing with the consumer and not misleading through the marketing and The Misrepresentation Act exists to protect consumers from false or fraudulent claims that induce you into buying something or entering into a contract.
What other legislation would you consider on an agency instruction?
Anti-Money Laundering
What is the difference between Dual and Joint Agency?
Joint Agency is where two agents act for a instruction whereas Dual is where you act on both sides selling and buying a site and is illegal.
Is it ever appropriate to act as a Dual Agent? / What governs this?
No – it is illegal – at most different offices same company but with informed consent and information barriers.
What is the length of time for a cooling off period for an agency instruction?
14 days
Why did you advise Private Treaty?
It was a strong market at the time and it enabled to set a deadline after assessing the market and the seller could remain strong control over the sale.
What sort of conditions were on the offers?
-Cash funding
-Any surveys needed prior to completion
-Selling an existing property prior
When you undertook the best and final deadline, was this then still private treaty?
This would then be informal tender, as sealed bids and deadline
What do you include within your marketing materials?
-Property Address
-Guide Price
-Location
-Description
-Planning/ Planning Potential
-Boundaries, Rights etc.
-AML info
-Data Room link
-Plans/ Title Information
-Agents
What are some key client considerations and requirements during your process of providing market appraisal advice?
-Speed of sale
-Control eg. who to sell to
-Privately
If a site was let, how would this influence the value?
Dependent on the length of notice needed, I would have to attribute value to the rental period and also increase timings for redevelopment etc.
In your level 2 you state that all appraisals are to be sent with relevant TOE – so do you send unsigned TOE with advice?
NO - to clarify TofE sent and signed prior to starting instruction
What do you include within TOE when providing market appraisal advice?
Agency Terms of Engagement.
What is BCIS?
Building Cost Information Service
What are the series of events that have to have occurred for a negligence claim to be made?
Breach of duty of care AND a loss
Under the Limitation Act 1980 what are the current limitation periods for negligence ?
15 years
What are the three types of asbestos?
White
Brown
Blue
- When is an EPC Required?
- How long is an EPC valid for?
Must have an EPC before you put your property on the market. Valid for 10 years.
You say within your case study that you carried out a coi and received signed terms was there anything else you did prior to accepting the instruction?
I checked I was competent to undertake the work.
Why did you not obtain proof of funds before selecting the preferred purchaser – did this demonstrate good client care?
Yes I did.
You included the material uncertainty clause due to macroeconomic factors for what other reasons may you include an uncertainty clause?
limited info, particular characteristics make it difficult to value regardless of method
You valued the site in Harston using the residual method and comparable method why?
Under the RICS Guidance Note Valuation of Development Property it states it is best practice to value using two methods.
You valued a site in Sandy adopting hope value, what is hope value and how did you quantify it?
Hope value is an element of market value in excess of the existing use value, reflecting the prospect of some more valuable future use.
Where is the basis of value for inheritance tax purposes set out and how does it vary from market value as defined within the red book?
In section 160, Inheritance Tax Act 1984
What is a deleterious material?
Prohibited for use in a project - change over time eg. asbestos
