RC. APC. Leasing and Letting

Question 1

What is the main Agency Act

Answer 1

The Estate Agents Act 1979

Question 2

what are the six principles of the Estate Agents Act 79?

Answer 2

1. Honesty and accuracy 2. Clarity on TOE (s18 on fees,m in advance and itemised etc.) 3. Open and transparent (s.21 on disclosure including ‘connected person’) 4. No Discrimination 5. Pass on all offers in writing 6. Keep client’s money separate. - follow RICS rules

Question 3

What have the RICS produced for compliance on Leasing and Letting?

Answer 3

RICS Real Estate Agency and Brokerage Prof. Statement. 2016 RICS Commercial Estate agency Professional Statement 2016 -

Question 4

What does the RICS Commercial Estate Agency and Brokerage Prof., Statement replace

Answer 4

The purple book

Question 5

What are the core 12 principles that agents must observe in the CREAB

Answer 5

1. Act in an honest, fair, transparent and professional manner 2. Carry out work with due skill care and diligence (and ensure that all staff do as well) 3. Ensure that clients have terms of business -= clear and fair, and with CHP. 4. Avoid Conflicts of Interests and manage them 5. Do not discriminate 6. All communications with clients are fair, clear and timely. 7. Advertising is honest 8. Client’s money held separately 9 Hold appropriate PII 10. Clearly ID client and obligations 11. Give realistic assessments of selling price/rents and costs 12. Carry out viewings and inspections with the clients’ needs - security etc. in mind. `

Question 6

Under the Estate Agents Act 1979 - what are the penalties?

Answer 6

1. Trading Standards enforces. 2. Warning order for first offences 3. Prohibition order.

Question 7

What are the basis of Agency?

Answer 7

1. Sole letting rights 2. Sole agency 3. Joint Agency 4. Multiple Agency - s.18 Estate Agents Act and Misrepresentation act 2967 govern this agreement.

Question 8

what part of the Estate Agents Act is re. TOE and which Disclosure of interest

Answer 8

s.18 - fees etc. s.21 - disclosure

Question 9

How have you regard to the Estate Agency Laws when drafting a set particulars

Answer 9

1. EA 1979 - honest and accurate with regards to size and description. Clarity on TOE - fee specific - 10 % of the passing rent or av. 2. Misrep. Act ‘67 - no mistatements. 3. Consumer Protection Regs. - Criminal offence to provide misleading info, - unlimited fine, prison for >2yrs.

Question 10

What is the cooling off period and under what is it granted

Answer 10

14 days in accordance with consumer protection orders.

Question 11

Summarise the Legislation relating to Agency

Answer 11

1. Estates Agency Act 1979 - on sale. s.18, disclosure, s.21 Personal interests. honest, clarity of terms, offers. 2. Misrepresentations Act 1967 - tort of false statements during pre-contract that induce the purchase - can disclaim if reasonable, - do not confuse with Property Misdescriptions Act 1991 (which was replaced by) - 3.

Question 12

What are the rules that relate to signage?

Answer 12

Town and Country Planning (control of advertisement) Regs. 2007

Question 13

What are restrictions on signage

Answer 13

1. Commercial <2 sqm flat or 2.3sqm V-board (less for resi) 2. Not to project more than 1m 3. Not above 4.6m 4. planning for - illluminated/remote/listed buildings and in conservation area. 5. removed after 14 days of sale/letting 6. owners approval 7. not hide traffic signs. 8. LPA can remove and charge.

Question 14

what is the Act that covers basic reasonable care performance

Answer 14

Supply of Goods and Services Act 1982

Question 15

What are the Consumer Protection Regulations

Answer 15

Consumer Protection from Unfair Trading Regs. 2008 - they replace Prop. Misdescriptions Act

Question 16

What do the CPRs cover

Answer 16

Both under the Enterprise Act. Unfair Trading Regulations for estate agency Misleading Marketing Regs. (Business Protection Regulations)

Question 17

What is the purpose of CPRs

Answer 17

Broader, non-specific consumer protection.

Question 18

How do the CPRs work

Answer 18

Principle based. Extend the duty owed beyond the client to - ‘consumers’ Prohibit unfair business to consumer commercial practice - any misrepresentation, omission.

Question 19

How do the main estate agency laws relate to Unit 6, Draycott - or Unit 9 Crown Courtyard

Answer 19

Crn Crtyrd was particularly interesting as ‘consumers’ are defined as the reasonably well informed. - this wan’t the case with the tenants, it was necessary to consider this and increase the duty owed to them to try and explain the consequences of taking on a lease, the contract, the Rates etc.

Question 20

What is the penalty for breaching CPR

Answer 20

up to £25k

Question 21

Summarise the CPR -

Answer 21

1. Apply to all lettings and sales 2. Duty of care to all consumers 3. Declare everything known about the prop. 4. Not exert undue pressure 5. info. gained during the instruction to be passed on 6. Omissions can be a breach 7. Full due diligence required on new instructions 8. Must have the info. validated by the client. 9. Policed by Trading Standards Office 10. Disclaimers do not apply - this is a criminal offence to breach.