Agency Law Flashcards
(21 cards)
6 documents relating to agency practice
- RICS Professional Statement: UK Commercial Estate Agency 2016
- RICS Professional Statement Code for Leasing Business Premises 2020
- Estate Agency Act 1979
- Misrepresentation Act 1967
- Consumer Protection from Unfair Trading Regulations 2008 (CPR) & Misleading Marketing Regulations 2008 (BPR)
- Consumer Rights Act 2015
CPR Purpose
To protect the average customer during the entire agency process from unfair practices.
What is an unfair practice?
- Misleading information
- Hiding info
- Undue pressure
- Lack of due diligence
Who polices CPR/BPR?
Trading Standards Office and Local Authority
CPR/BPR remedy
Max penalty is unlimited fine and/or prohibition order
Compensation up to £25k
Key facts CPR/BPR
(5)
- apply to all lettings and sales
- agents have doc to all interested parties
- agents must declare everything known about the property
- agents must not exert undue pressure on potential buyers
- if info is discovered in the agency process it must be told to all
Do disclaimers apply to CPR/BPR?
NO
Caveat Emptor
Let the buyer beware
-the buyer should satisfy itself on all matters relating to the property
Consumer Rights Act 2015 purpose
Amends existing consumer protection law and gives new rights and remedies
- must display summary on website and in office in regards to management of a property
- must publish a statement as to whether they are protected by the Client Money Protection Scheme
Misrepresentation Act
(year and purpose)
1967
Misrepresentation or false statement made by a party during pre-contractual enquiries (fraudulent, negligent or innocent)
What type of offence is breaching CPR/BPR?
Criminal –> unlimited fine, prohibition order and up to £25k compensation
What type of offence is breaching the misrep act?
Civil –> vendor and/or agent could be sued for damages and/or the contract rescinded.
When can an exclusion clause protect against an agent/vendor in the misrep act?
Fair and reasonable
Test of reasonableness
Hedley Byrne & Co v Heller & Partners 1954 (FPF)
1. FORSEEABILITY
2. PROXIMITY
3. FAIRNESS
RICS Professional Statement: Commercial Estate Agency 2016
PURPOSE
To ensure transparent and fair communication in the agency process and ensure agents are working to the highest ethical standards.
Also outlines the agency process and scope of work to improve awareness and accountability.
RICS CEA16 12 Core Principles
- Fair, honest and transparent during the agency process
- Carry out work with the appropriate dd and skill
- ensure clients have fair and clear terms of business and details of the chp
- don’t discriminate with dealings
- Honest and truthful advertising
- handle clients money correctly
- hold appropriate PII
RICS Professional Statement: Code for leasing business premises 2020
PURPOSE
Improve the quality and fairness of negotiations and ensure all parties have a clear understanding of the lease commitments they are entering in to
Unambiguous and Equal
CFLBP 2020 Structure
- Into
- Mandatory Requirements
- Unambiguous lease terms - constructive and collaborative
- Must advise unrepresented party to get representation or look at PS
- HoT things to advise - Specific advice on lease terms
- Appendix –> A1 is a HoT template. A2 is a HoT checklist
Estate Agents Act 1979
PURPOSE
To ensure agents act in a fair and transparent manner and that consumers are protected from unfair/unethical practices
Estate Agents Act 1979
7 Key Principles
S18 = clarity of agency terms (e.g. sole/joint agents, selling rights, clarity on fees)
Honesty and accuracy
S21 = disclose personal interest
client money separate
legal obligation to tell the client about offers received
Estate Agents Act is policed by
and penalties for non-compliance
National Trading Standards Estate and Letting Agency Team
fine
prohibition
negative licensing
