West Ealing - Disposal Flashcards
What were you clients objectives/your client’s brief?
Client requested the following:
- Property to be sold in a reasonable timeframe (3 months)
- Sold to a reputable buyer with a solid track record.
- No offers to be accepted that were conditional upon planning permission.
Talk me through your involvement in the site disposal in West Ealing? How did you determine your proposed method of sale?
- Prior to accepting instruction - SUK.
- No CoI present and AML checks provided comfort to proceed once terms of engagement had been signed.
- Call with client to understand their objectives.
- Undertook due diligence to gather as much information on the property and site as possible.
- Inspected property to assist in producing marketing material.
- Approvals sought by client for marketing materials, which were sent to a targeted list of investors known to my firm.
- Deemed their would be strong interest so recommended informal tender
Can you describe the asset?
- Two detached victorian residential dwellings
- Total 8,000 sq ft (4,000 sq ft each house)
- Held Freehold
- 0.5 acres site
- Good road access
- Close to West Ealing station
What was the specification of the property?
- Presented in poor condition
- Site to be sold as development opportunity
What was your marketing strategy for this particular asset?
I suggested to my client that we approach investors with a known record in this type of asset and determined this would be the best way to gain momentum.
What clause is often included in agency ToE?
The ‘ready able and willing purchasers’ clause i.e. if the client withdraws from a transaction, an abortive fee may be charged by the agent.
Why was the informal method determined the most suitable ?
It would be perceived to generate a good level of interest and therefore a competitive bids process following an active marketing period would be well regarded.
What were your client’s reasons for selling?
Older couple did not require the additional space, family had moved out so other property was surplus to requirements.
What is included in your marketing particulars for a sale?
I assisted in the design and production of a marketing brochure that was sent to my firms mailing list.
- Executive summary
- Location
- Transport
- Description of property
- Development Potential - based on indicative plans produced by architects and contractors.
- Legal title and tenure
- Viewings - viewed externally by the public but inspected internally via prior appointment. Inspections conducted at prospective purchasers own risk (NO LIABILITY ACCEPTED BY VENDOR OR AGENT).
- Method of Sale - Private Treaty via Informal Tender. Offers requested on an unconditional basis.
- Other information - Available via link (site plan, title docs)
Did you put up any physical signage? If so, what is the guidance on marketing signage on buildings
No - Did not feel it was appropriate given the property was located on a relatively quiet. Therefore the sign would not likely generate strong interest.
2sqm flat board, 2.3 sqm V board – only 1 per building
Smaller for residential
Must not project more than 1m from face of building and not above 4.6m from ground
^ Planning is required for anything larger and if illuminated and on a listed building ^
MUST be removed 14 days after completion
What was outlined in the request for offer letter?
Call for Bids Letter outlined the following:
- Best bid submission date
- Completion of bid is (SUBJECT TO CONTRACT)
- Vendor does not undertake to accept the highest nor any offer/proposal put forward.
- All offers to be directed to and marked for the attention of myself/partner in my team
What did the prospective purchasers need to include in their bid?
- Name of Purchaser or Proposed Purchasing Entity
- Purchase Price
- Approval - whether board or third party approval is required to exchange of contracts
- Conditions - is offer subject to further conditions
Timescales - for exchange and completion. Client requires 10% deposit on exchange.
Funding / Proof of Funds - Confirm sourcing of funding, supported by written evidence from any third-party debt or equity providers and /or bank statements
Track record - Overview of past record of completing similar transactions.
Due diligence - confirmation of review of documentation of data room and acceptance of the content.
Solicitors Details
How did you undertake CoI checks?
- Circulated email around my firm to assess whether there were any pre-existing relationships or involvements at the property.
- Reviewing internal database to assess whether my client had previous involvement with my firm.
What did you AML check entail?
Client - Private Individual
- Copy of valid passport / driving licence with photo
- Copy of bank statement, credit card bill, council tax statement or utility bill to demonstrate proof of address, not more than 3 months old.
Why did you think this would command high interest?
- Lack of supply within London residential market.
- Location of the site - close to key transport links (crossrail / overground/ tubes / Heathrow airport).
- Robust sales values in the local housing market.
- Build costs relatively modest
