Topic 6 Flashcards
Which of the following would be a standard condition in all mortgage offers?
a. A retention.
b. Completion of roads and access.
c. Redemption of an existing mortgage.
d. Satisfactory certificate of title.
d. Satisfactory certificate of title.
Which of the following statements is true about the role of an estate agent, in relation to the sale and purchase of a property?
a. An estate agent is not permitted to charge a fee if a sale is not completed.
b. Many estate agents charge a very high rate of commission if they are the sole agent.
c. The estate agent acts as an agent of the vendor and the purchaser.
d. The estate agent acts as an agent of the vendor but not the purchaser.
d. The estate agent acts as an agent of the vendor but not the purchaser.
Which of the following statements is true in relation to the Energy Performance Certificate (EPC)?
a. A property can be marketed for sale as soon as an EPC has been commissioned.
b. A property cannot be marketed for rent until a valid EPC has been received.
c. An EPC is valid for five years from the date of issue.
d. Flats in a block do not require individual EPCs for marketing purposes.
a. A property can be marketed for sale as soon as an EPC has been commissioned.
Parwinder made a successful bid for a property at auction and paid the deposit.
What are the implications if he cannot proceed with the purchase?
a. Either party can withdraw from the agreement without penalty up to 28 days after the auction.
b. The seller can keep the deposit and seek recompense from Parwinder if the seller later sells the property for a lower price.
c. There are no issues as long as Parwinder withdraws before completion.
d. This situation would not occur because Parwinder would have been required to pay the full purchase price on the day of the auction.
b. The seller can keep the deposit and seek recompense from Parwinder if the seller later sells the property for a lower price.
Len is interested in buying a leasehold property at auction. The vendor’s solicitor has prepared a legal pack for prospective purchasers.
Which of the following documents would not usually be included in the pack?
a. A copy of the lease.
b. A survey report.
c. Local searches.
d. Memorandum of sale
b. A survey report.
Nick is selling his house and using estate agent Jennifer, solicitor Mark and surveyor Howard.
Under the principles of agency, who is deemed the principal in the transaction?
a. Howard.
b. Jennifer.
c. Mark
d. Nick.
d. Nick.
Under the principles of agency, what is meant by ‘ratification’?
a. The appointment by an individual of an agent to act on their behalf.
b. The principal signing a document giving powers to an attorney.
c. Where an agent has acted outside their authority but the principal subsequently agrees with the action taken.
d. Where something said by the principal gives the agent the impression they have additional authority.
c. Where an agent has acted outside their authority but the principal subsequently agrees with the action taken.
Annie is buying a brand-new apartment from a developer and has agreed to exchange contracts conditional on completion being set using a long-stop date.
In the event of the apartment not being ready for completion on that date she will be able to:
a. apply to the small claims court for the return of her deposit.
b. cancel the contract and withdraw from the purchase without penalty.
c. claim compensation up to a specified limit.
d. insist on a reduction in the sale price up to a specified limit.
b. cancel the contract and withdraw from the purchase without penalty.
Esteban is interested in buying a property through the modern method of auction. The guide price is £130,000. Assuming that the property sells at the guide price, which of the following is true if his bid is successful?
He will have to:
a. exchange contracts and complete the purchase within 28 days of the auction.
b. pay a non-refundable £13,000 deposit on the day of the auction.
c. pay a non-refundable reservation fee of up to £6,500 on the day of the auction.
d. pay compensation of £13,000 if he fails to exchange contracts within 28 days of the auction.
c. pay a non-refundable reservation fee of up to £6,500 on the day of the auction.
Hazel paid a £5,600 deposit following her successful bid at a property auction. However, due to an unexpected change in her circumstances, she was unable to proceed with the purchase.
How much of her deposit, if anything, would typically be returned to her?
Nil.
£560.
£5,040.
£5,600.
Nil.
Geoff has successfully bid £90,000 for a house at his local property auction and requires a mortgage.
To fully protect Geoff’s interests, what financing arrangements are required?
Geoff must pay an agreed deposit now and exchange contracts when he has arranged the mortgage.
He must have a mortgage offer in place and must pay a £9,000 deposit immediately.
He must pay a £9,000 deposit immediately, and secure a mortgage offer before completion.
He must pay the full £90,000 immediately, so the mortgage funds must be available now.
He must have a mortgage offer in place and must pay a £9,000 deposit immediately.
