Terms of engagement

Question 1

What steps should you follow when you receive instructions from a client?

Answer 1

CCT:
Competence
Conflicts of interest check
Terms of Engagement

Question 2

What must your Terms of Engagement comply with if you’re undertaking agency work?

Answer 2

Section 18, Estate Agents Act 1979

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, 2017

Question 3

What is the cooling off period following the establishment of Terms of Engagement?

Answer 3

Consumer Rights Act 2015 allows a cooling off period of 14 days from the date of the agreement

Question 4

Where can you find your Firm’s Terms of Engagement?

Answer 4

On our CBRE intranet there is a page under ‘Operating Platform’ called ‘Legal’, if you open up this page you can view and download all of CBRE’s policy and legal documents, including our Standard Terms of Business.

These get updating frequently which is why it is important to always download straight for the web page each time and not download and save versions.

We are currently using version 12 of our Standard Terms of Business.

We add the latest version of the Standard Terms of Business into our Terms of Engagement letter to a client, which will also include the free proposal basis, details regarding the instruction, the scope of instruction, our CHP, and contact details.

Question 5

When would it be appropriate to decline an instruction?

Answer 5

1. Not competent to undertake the work
2. Do not have sufficient facts
3. Proposed client will not sign TOE or complete AML checks
4. Conflict of Interest or personal interest
5. Professional Indemnity Insurance cap cannot be agreed
6. Potential client included in Gov’s sanctions list