Regulations

Question 1

What’s the application of Estate Agents Act 1979

Answer 1

Disposal or acquisition of an interest in Land
Freehold property/Leasehold property with a capital value
Land as well as buildings

Question 2

What are the 7 principles of the Estate Agents Acts 1979

Answer 2

1. Clarity as to the terms of the agency (S18)
2. Honesty and Accuracy
3. Agreement and liability for costs
4. Openness regarding personal interest (S21)
5. absence of discrimination
6. legal obligation to tell the clients about offers received
7. Keep clients money separate

Question 3

Most important points of Estate Agency Legislation 1979

Answer 3

Specify all costs/fees in advance
Itemise all payments
Specify nature of agency 
Personal interests (S21)
Misrepresentation of interest/offers 
Handling clients money 
Procedures to follow when offers are received promptly

Question 4

What are the penalties of not adhering to the Estate Agents Act 1979

Answer 4

Negative licensing
Act policed by the National trading standards
Prohibition stops an agent practicing
Costs can also be awarded

Question 5

What key factors included in the consumer protection for unfair regulations 2008

Answer 5

1. Regulations apply to all lettings and sales
2. Agents have a duty of care to clients and to all interested parties
3. Agents must declare everything known about a property
4. Agents must not exert undue pressure on potential buyers
5. If some information is discovered during the agency process, it must be passed on to all interested parties
6. Any omissions can also lead to a breach of the regulations
7. Full due diligence is required for all new instructions
8. Must be validated by the client
9. Policed by the trading standards office
10. Disclaimers do not apply to this criminal offence

Question 6

What is Caveat Emptor

Answer 6

‘let the buyer beware’

The overriding common law principle means that the buyer should satisfy itself on all matters relating to the property

Question 7

What is the Misrepresentation Act 1967

Answer 7

False statements
The vendor/agents can be sued for damages
Civil offence - actionable by tort
Agent has a duty of care to check that the advice, information or opinion is reliable
Relates to liability and negligence

Question 8

What case law misrepresentation act 1967

Answer 8

Hedley Byrne & co v Heller Partners

Question 9

What are the three tests to decide agents liability for negligent statements

Answer 9

1 FORESEEABILITY
2 PROXIMITY
3 FAIRNESS

Question 10

What is the maximum size board for commercial property

Answer 10

2 Sq m/2.3 for a v board

Question 11

What are Capital Allowances

Answer 11

These are an important form of tax relief upon capital expenditure for the construction or purchase of commercial property or business assets
Generate substantial tax savings/relief on the value of plant and machinery fixtures such as air conditioning
Specialist advice required

Question 12

What is the Land Registration Act 2002

Answer 12

Provides a framework for electronic property conveyancing by allowed formal documents to be executed electronically

Question 13

What are the rules of the Land Reg Act 2002

Answer 13

All freeholds and new leases granted for terms over 7 years or exisiting leases sold or assigned with 7 years left to run must now be register with Land Reg with a compliant lease plan