Securing Instructions Flashcards

1
Q

What legislation must you comply with when securing an instruction?

A

-Estate agents act 1979
-Money laundering regulations 2007
-Supply of goods and services act 1982
-Unfair contract terms act 1977
-Cancellation of contracts made in a consumers or place of work etc Regulation 2008

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2
Q

What must agents have in place prior to handling a job?

A

A complaints handling procedure, should be made available to any buyer or seller, potential or actual.

CHP should be in writing & explain how to complain to the organisation, who to & what do if the client doesn’t feel the complaint has been heard.

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3
Q

When you issues terms of engagements, what should be made clear?

A

That you operate a complaints handling procedure. Should also state when fee’s will be payable.

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4
Q

What should you do if someone verbally complains to you?

A

Draw their attention to the companies complaints-handling procedure. This will require a formal written complaint, this should be acknowledged in three working days.

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5
Q

Explain the two stages of a complaint handling procedure

A
  1. Consideration of complaint by a senior member of the firm or firms designated complaints handler
  2. If cannot be resolved, referral to an independent 3rd party with the authority to award redress. Deadlock letter to be issued (limits redress period)
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6
Q

How should clients money be handled?

A

-Held separately & agent must be able to account immediately for all fund held.
-No deductions should be made from clients money without written permission from client
-Have to advise clients that you are not liable to repay lost money through bank failure
-Client account should always be in credit
-Bank charges have to come out of the office account
-Accounts & records must be kept

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7
Q

Name the five cases where money can be withdrawn from a clients account

A
  1. Where it is properly required payment 2. For payment of estate agency services where entitled and the client has agree. 3. In exercise of any lien which agent is entitled
  2. For the transfer to another client account 5. When non-client money was used to open & maintain account
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8
Q

Define money laundering & what must a company do?

A

The way criminals conceal the origin & true ownership of the proceeds of their criminal activities so it appears the ££ comes from legit sources.

-Vital agents have anti money-laundering checks in place
-Must appoint nominated officer
-Must refer to & comply with RICS guidance on handling clients money

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9
Q

How should you handle data?

A

-Fairly & lawfully processed
-Processed for limited purposes
-Adequate, relevant & not excessive
-Accurate & up to date
-Not kept for longer than necessary
-Processed in line with an individual’s rights
-Secure & not transferred to other countries without adequate protection

Must take account of the Data Protection Act 1998, the Freedom of Information Act 2000, the Privacy and Electronic Communications (EC Directive) Regulations 2003 and the Human Rights Act 1998

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10
Q

Define health & safety

A

Sensible, proportionate actions to protect people.

Not taking the necessary action to protect people from avoidable dangers in the workplace could be a legal offence. Employers/employees owe a duty of care to anyone who maybe affected by their actions where the actions are foreseeable.

-Health and Safety at Work etc. Act 1974 and associated Regulations (or for Northern Ireland, the
-Health and Safety at Work (Amendment) (Northern Ireland) Order 1998)
-Control of Substances Hazardous to Health Regulations 2002 (COSHH)
-Workplace (Health, Safety and Welfare) Regulations 1992 and
-Health Act 2006.

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11
Q

What should be included in the Terms of Engagement?

A

-Confirmation to client to buy/sell/let their property on their behalf
-Detailed fees/expenses
-Business terms and duration of instruction
*client has these details prior to any commitment
-Scope of the business agreed to be carried out
-Specify what activities are not included
-Have to be fair and written in plain language
-State a copy of complaints handling procedure is available on request
-Signed & dated by agent

*Must comply with Unfair Contract Terms Act 1977
*Must be fair & reasonable

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12
Q

What must you do before taking instructions from a client?

A

Must check that you have not got any conflict of interests. Should declare any COIs & gain the potential clients written permission to act for them.

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13
Q

What do you do in practice to confirm a clients identity

A

Download properties title, request ID doc and bill of client to run AML check.

RICS states you have to undertake every reasonable effort to confirm a client’s identity.

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14
Q

What advise should you provide to landlords prior to undertaking a letting

A

Issues regarding a property, licences required?, do they require letting only or management too?, the logistics framework around leases, tenant demand & types of tenants, letting procedure, lease terms, service charge, tenant sourcing & vetting, safety checks (gas, electricity & fixtures/fittings), consents including head leases & insurances, inventories, SofC, LL insurance, EPC.

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15
Q

What do you need to state to the client in regards to fees, charges & taxes?

A

-Should provide full & clear written details of your fees and expenses to potential clients.
-Detail clearly when the client will become liable to pay you a fee/commission
-Detail the amount of fee
-Particulars of payments which do not form part of payment for carrying out estate agency work & amount where known
-Should clearly reference where their your commission/fee or expenses are exclusive or inclusive of any relevant taxes

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16
Q

What must you do if charging the client anything over the basic fee?

A

Must provide the client with details of those charges. Figure based on either actual cost or estimate.

17
Q

What must you do if your a joint agent?

A

Highlight to the client they are responsible for dual fees in writing.

18
Q

Do clients have a right to a cooling off period?

A

Yes if law in the country permits, must be stated clearly in the TofE.

Cancellation of Contracts Made in a Consumers Home or Place of Work etc. Regulations 2008

19
Q

Define sole selling rights (from Estate Agents (provision of info) reg 1991

A

‘You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, in each of the following circumstances:
• if [unconditional contracts for the sale of the property are exchanged or, in Scotland, substitute with unconditional missives for the sale of the property are concluded] in the period during which we have sole selling rights, even if the purchaser was not found by us but by another agent or by any other person, including yourself and
• if [unconditional contracts for the sale of the property are exchanged or, in Scotland, substitute with unconditional missives for the sale of the property are concluded] after the expiry of the period during which we have sole selling rights, but to a purchaser who was introduced to you during that period or with whom we had negotiations about the property during that period.

20
Q

Define joint agent with sole selling rights

A

An arrangement where a vendor uses two (or more) estate agents to market a property for sale, and the agents agree to split the fee between them if one of them sells the property

21
Q

Define sole agency

A

You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if at any time [unconditional contracts for the sale of the property are exchanged or, in Scotland, substitute with unconditional missives for the sale of the property are concluded]:
• with a purchaser introduced by us during the period of our sole agency, or with whom we had negotiations about the property during that period or
• with a purchaser introduced by another agent during that period.

22
Q

Define joint agency?

A

Acting in conduction with another agent, this can be sole selling rights or as a joint agent on a sole agency basis

23
Q

What should you do for an introductory fee arrangement (non retained agent)

A

Should agree terms in writing & make clear that if intro leads of letting/sale will entitle a commission to be paid.

24
Q

What should be included in the TofE?

A

property address
• full name and contact details of the client (with legal right to sell property)
• type of agency with definitions
• sub-agents
• type of disposal (e.g. sale, assignment, letting, surrender, assignment)
• deposits
• commission
• method of, and trigger for, payment
• expenses/abortive fees
• marketing programme
• viewing arrangements
• sales boards
• sale or leasing particulars
• basis for reporting floor areas (in accordance with the RICS professional statement, RICS property measurement)
• Energy Performance Certificate (EPC)
• personal interest

methods of reporting offers
• services to prospective purchasers
• unoccupied premises
• complaints handling
• retention of documents
• right to cancel
• Data Protection Act 1998
• electronic communication
• withdrawal
• late payment of fees
• Bribery Act 2010
• cessation of instruction without penalty in the event of money laundering
• additional services and advice and
• acceptance of terms.

25
Q

What should you do if offering services to other party during a transaction?

A

Advise client in writing if offering services to buyers & what they would be.

26
Q

Why must you not carry out a regulated activity as set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

A

Because you are not authorised by the Financial Conduct Authority.

I.e- advising on or arranging the sale of a body corporate.

Breaching this is a criminal offence.

27
Q

What should you do when asked to deal with an off-market transaction?

A

Advise the client in writing of the risks related to the lack of exposure to the market. Should seek written acceptance of this advice from the client before commencing negotiations.

28
Q

How is a building categorised for BREEAM excellence?

A

Points system on buildings impact on
Water
Energy
Waste
Pollution
Transport
Materials
Health
Wellbeing etc

29
Q

Under which act can you not misdescribe a property?

A

Consumer protection regulation

30
Q

Under which act can you not misdescribe a property?

A

Consumer protection regulation

31
Q

What is the purpose of CPR/ BPR?

A

It’s the requirement to give accurate and necessary material information not to make any misdescriptions in the material information. Prohibits unfair business to consumers.

32
Q

What is the purpose of CPR/ BPR?

A

It’s the requirement to give accurate and necessary material information not to make any misdescriptions in the material information. Prohibits unfair business to consumers.

33
Q

What is the maximum penalty for breach of CPR/BPR?

A

Unlimited fine and/or a prohibition order

34
Q

What are title rights and easements?

A

Easement: a right to access or use land or property belonging to someone else in a particular way.
Rights: right to access over neighbouring land i.e drain etc..

35
Q

What qualification should electricians have?

A

No specified body but NICEIC most popular

National Inspection Council for Electrical Installation Contracting