Leasing and Letting Flashcards
What RICS guidance is there on Leasing and Letting?
RICS Real Estate Agency and Brokerage, 2016 (3rd edition)
And UK Commerical Real Estate Agency (2019)
professional statements
What principles should be followed for agents involved in leasing/letting?
1) Conduct business in an honest, fair, transparent and professional manner
2) carry out work with due skill, care and diligence, and ensure that any staff employed have the necessary skills to carry out their tasks
3) Ensure that clients are provide with terms that are fair and clear. These should meet all legal requirements and relevant codes of practice, including reference to complaints handling procedures and, where it exists, appropriate redress schemes.
4) do the utmost to r
What are the major lease terms which can impact on value?
Lease length Break clauses Alienation Repairing obligation User clauses Rent review and basis of review Impact of a restrictive lease clause Planning use
What checks should you undertake prior to taking on an instruction?
Conflict of interest check and confirm the identity of your client in compliance with Money Laudering Regulations
What should your terms or engagement include?
UK Commercial Real Estate Agency
Set our scope of work, details of fees and expenses, business terms and duration estimation, copy of complaints handling procedure and appropriate ADR redress scheme.
This should be given to the client before they have any liability towards you
Property address Full name and contact details of the client Type of agency Sub-agents Type of disposal Deposits Commission Method of, and trigger for, payment Expenses/abortive fees Marketing programme Viewing arrangements Sales boards Sale or leasing particulars Basis for reporting floor areas EPC Complaints handling Right to cancel Acceptance of terms
What does the professional statement Real Estate Agency and Brokerage 2016 provide specific advice on?
Ethics Securing instructions Acting for the seller: marketing Acting for the seller: agreeing the sale or lease Acting for the buyer Ending the instruction Safety and security Agency management
What are consumer protection regulations?
These are regulations which are in place to protect customers against unfair contracts.
What is a profits test?
A profits test might be undertaken by a Landlord to assess covenant strength
Principles are - net profit for a business must be 3 x the rent for 3 consecutive years or NWR asset value of a business should be 5 times rent
What are the key headings under RICS Real Estate Agency and Brokerage 2016?
Ethics Securing instructions Acting for the seller: Marketing Acting for the seller:purchase/sale Acting for the buying Ending the instruction Safety and security Agency management
What are the key headings under UK Commercial Real Estate Agency?
Scope Standards and ethics Securing instructions Disposals: marketing the property Implementing the disposal Acquisitions Ending the instruction
What should you include in marketing particulars?
Reference RICS Commercial Real Estate Agency
Property address
Availability and nature of services, facilities or amenities
Proximity to any services, facilities and amenities
Accommodation and sizes
Fixtures and fittings
Physical or structural characteristics
The grant or giving of any awards for construction
Price
Business rates
Leases and licences and liability for service charge costs/common repairs
