Estate Agency Flashcards
(33 cards)
What are the principles of the Professional Statement ‘RICS UK Commercial Real Estate Agency’?
1) Do not discriminate
2) Honesty & accuracy
3) Honesty in terms
4) CHP
5) PII cover
6) Inspections in accordance with client wishes
7) Client money handling
8) Clear communication
9) Act with due care & skill
10) Realistic values
11) Make client identity clear
12) Honest marketing material
What are the principles of the Estate Agents Act 1979?
1) Honesty & accuracy
2) Clarity on terms
3) Manage/avoid CoI
4) Do not discriminate
5) Client money handling
6) Clarity on fees
7) Pass on all offers
Who polices compliance with the Estate Agency Act 1979?
Trading Standards
What action can Trading Standards take against estate agents?
1) Negative licensing
2) Warning Order
3) Prohibition Order
What is a warning order?
A warning not to do it again
What is a prohibition order?
Agent can no longer practice
What is negative licensing?
The right to be an estate agent can be taken away, and not granted.
What is the Estate Agents (Undesirable Practices) Regulations 1991?
Order under Estate Agents Act 1979.
When issuing terms of business, the agent is required to tell the client about any services they could offer to the purchaser, unless FOC.
What is the Estate Agents (Provision of information) Regulations 1991?
Order under the Estate Agents Act 1979
Agent is required to tell the client about the service to be provided and renumeration.
In estate agency terms, what is the cooling off period? and what is this?
14 days
Client can change their mind about instruction.
What is the purpose of the Consumer Protection from Unfair Trading Regulations 2008?
To prohibit unfair business to consumer commercial practices
Under the CPRs, what is an ‘average’ person?
A reasonably well informed person
What do the CPRs protect against?
- False / misleading information
- Failure to provide information
- Exert undue pressure on consumers
- Failure to show professional diligence
What are the penalties for breaching CPR/BPRs?
Criminal offence
Unlimited fine and / or prohibition order
Up to 2 years imprisonment
May be liable to pay up to £25k in compensation to complainant
What does the Business Protection from Misleading Marketing Regulations do?
Prohibits misleading business to business activities (polices how businesses compare their products to other business’)
What does ‘Caveat Emptor’ mean?
‘Let the buyer beware’
The buyer should satisfy themselves before proceeding further.
What are the main facts of the CPRs?
- Applies to all lettings and sales
- Agents have a duty of care to clients and all interested parties
- Agents must disclose everything - good and bad
- Disclaimers do not apply to this offence
- If anything changes during the instruction, the agent has a duty to disclose.
- Full due diligence is required for new instructions
What does the Misrepresentation Act 1967 cover?
Misrepresentation or mis-statement during pre-contractual negotiations, that induces a party to enter into a contract
What are the consequences under the Misrepresentation Act 1967?
Civil offence, actionable under tort
Can be sued for damages
What are the 3 types of misrepresentation?
Negligent
Fraudulent
Innocent
What is the leading misrepresentation case law?
Hedley Byrne v Heller
Created test of reasonableness
What are the 3 tests to decide an agent’s liability for negligent statements, as established in Hedley Byrne v Heller?
Proximity
Fairness
Foreseeability
What are the permitted marketing rights relating to signage under the Town and Country Planning Act?
Flat board - max 2 sq m
V board - max 2.3 sq m
No more than 4.6 m off ground
Must not protrude more than 1m from building
1 board per property
Planning required for illuminated signage
How long do agents have to arrange removal of marketing boards following completion of a transaction?
14 days
