Securing Instructions Flashcards
What legislation must you comply with when securing an instruction?
-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
What must agents have in place prior to handling a job?
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.
When you issues terms of engagements, what should be made clear?
That you operate a complaints handling procedure. Should also state when fee’s will be payable.
What should you do if someone verbally complains to you?
Draw their attention to the companies complaints-handling procedure. This will require a formal written complaint, this should be acknowledged in three working days.
Explain the two stages of a complaint handling procedure
- Consideration of complaint by a senior member of the firm or firms designated complaints handler
- If cannot be resolved, referral to an independent 3rd party with the authority to award redress. Deadlock letter to be issued (limits redress period)
How should clients money be handled?
-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
Name the five cases where money can be withdrawn from a clients account
- 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
- For the transfer to another client account 5. When non-client money was used to open & maintain account
Define money laundering & what must a company do?
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
How should you handle data?
-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
Define health & safety
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.
What should be included in the Terms of Engagement?
-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
What must you do before taking instructions from a client?
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.
What do you do in practice to confirm a clients identity
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.
What advise should you provide to landlords prior to undertaking a letting
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.
What do you need to state to the client in regards to fees, charges & taxes?
-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
