L2 Purchase & Sales Flashcards
What are your two Level 2 examples for Purchase and Sales
Process of appraising and selling flat in Ambassador building
&
Sales Process Haines House
Property Characteristics (Appraising and Selling S.O. flat)
- 6th Floor
- East facing (single aspect)
- Views of American Embassy
- Original Shared ownership flat
What is the process of a Market Appraisal?
Provides a Potential Guide Price (not Red Book) & (for free)
Before Inspection
- Research local prices for similar units
- Research local achieved rents for similar units
- Printed with own comments on spec of each flat and taken with me to the inspection
During Inspection
- Made note of any factors that would help or limit value
- S.O. block so poor communal areas
- No access to schemes amenities
- Aspect / views
- Floor level
- Condition
Spoken Recommendations
- Made them aware of the limitations of the flat
- Gave them a rough understanding of the marketing approaches we could use
- Understanding of our fee
Post inspection
- Find more direct comparables
- Take into account the sellers individual requirements
- Decide on an appropriate sales value
- Detail marketing Approach
What are the Key components of your proposed Marketing?
How we will market the property
- Use our own internal data base of investors I know are keen in the area
- Online portals
Shop front displays
How do you handle situations where property features harm value?
Honesty
Open and transparent with the vendor
Why is it important to conduct AML?
In this case it is important to ensure that the property is owned in a legal sense and will not be sold turning previously illegal funds into legal
i.e. Money cleaning
What does Smart Search do?
Automate AML check
Requires;
- Date of birth
- Full name
- Address
Completes full AML check including worldwide Sanction and PEP screening
Can you take me through what you would do in the case of needing enhanced due diligence?
Enhanced due diligence checks can be carried out by SMARTSearch
- RCA (Relatives and Close Associates) Screening - Dow Jones Watchlist of PEPs and Sanctions - KYC (Know Your Client) Process
What factors can effect a Vendors sales value?
- Time scale
- Onward chain
- Students / family obligations
How did you inform both parties of the agreement? (Sales Process Haines House)
I firstly informed the vendor of the offer directly after the viewing (in writing), the client has stated verbally that they would like the flat and would offer a particular price, marginally under asking.
Once the Vendor agreed I informed the applicant that their offer had been accepted and that we could move onto the next stages of the sales process, I then details the information I need from the applicant;
- Full Name
- Date of birth
- Address (on a utility bill or such dated within the last three months)
- Solicitor details
- Mortgage broker details
What AML checks did you conduct?
I used SMARTsearch which checks;
- Politically Exposed Persons
- Sanctions
- Relatives and Close Associates
What are some common challenges that arise during finalization?
Communication
- Between vendor and purchaser solicitors
- Change in mind of purchaser / vendor
- Requirements from purchaser on vendor (flat cleanliness / condition)
Why did you take a deposit?
This was agreed with the vendor and explained to the purchaser during the preliminary marketing
Due to a large number if applicant offering going through early sales processes and pulling out it was a way in which we could with some degree of assurance keep a purchaser in the sales process
Comes into effect once buyer and seller are legally committed
How did you handle the client money?
Money Handling Procedure
- Can be found on the JLL website
- Account set up with name JLL and client account stated
- Must be audited within 6 months
- Audit trail of transactions
- Advise in writing of the bank account details
- Agree the terms of the account handling, including agreements for
interest and charges
