Extra Extra questions Flashcards
(18 cards)
What does the estate agents act cover
7 principles:
1. Clarity as to the terms of engagement
2. Honesty and accuracy
3. Agreement and liability for costs
4. Openness about personal interests (s21)
5. Absence of discrimination
6. Legal obligation to tell the client about offers received
7. Keep client’s money separate
What are the most important points of the estate agents act
- Specify all costs and fees in advance, in writing
- Itemize all payments
- Specify nature of agency and rights to be agreed (joint or sole agency)
- Disclosure of personal interests (s21)
What are the penalties associated to breaching the estate agents act
- Policed by the National Trading Standards Estate & Letting Agency Team (NTSEAT) who work with local authorities.
- Negative licensing – right to be an estate agency can be taken away.
- The Act allows for a prohibition or warning order
- Prohibition order = stops an agent practicing
- Warning order = less punitive, written warning not to do action again
What is set out in the RICS professional standard: code for leasing business premises
Part 1: Introduction
Part 2: Mandatory requirements - negotiations and heads of terms
1.1 negotiations over the lease must be approached in a constructive and collaborative manner
1.2 a party that is not represented by an RICS member or other property professional must be advised by the other party or its agents about the existence of this Code
1.3 the agreement as to the terms of the lease on a vacant possession letting must be recorded in written heads of terms, stating that it is ‘subject to contract’ and summarizing the following:
1.4 at a lease renewal or extension, the heads of terms must comply with the above except for any terms that are stated to follow the tenant’s existing lease subject to reasonable modernisation
1.5 negotiations should aim to produce letting terms that achieve a fair balance between the parties having regard to their respective commercial interests.
Part 3: Lease negotiations best practice
Part 4: Appendix
Model heads of terms
What does the RICS Professional Statement: UK Commercial Estate Agency state
Provides a set of mandatory standards
1. Act in an honest, fair, transparent and professional manner
2. Carry out work with due skills, care and diligence and ensure all staff employed have the necessary skills to carry out their tasks
3. Ensure that clients are provided with terms of business that are fair and clear with details of the firm’s complaints handling policy
Also gives advice:
1. Acting ethically – duty of care, gifts and incentives, dealing with COI
2. Securing instructions – legal requirements, AML checks, H&S
3. Marketing the property – legal requirements, market appraisal, particulars
4. Implementing the disposal – methods of sale and legal requirements
5. Acquisition of the property – COI, client communication.
What are the principles in RICS Professional Statement: Real Estate Management
- Act in an honest, fair, transparent and professional manner
- Carry out work with due skills, care and diligence and ensure all staff employed have the necessary skills to carry out their tasks
- Ensure that clients are provided with terms of business that are fair and clear, with details of the firm’s complaints handling procedure.
- Do the utmost to avoid conflicts of interests and where they do arise, deal with them openly and fairly
- Not to discriminate
- Any client money is held seperately and is covered by adequate insurance
- Hold appropriate PII to ensure a customer does not suffer loss because of a negligent act.
What does the RICS Professional Statement: Real Estate Management state
Outlines the principles that shape the culture of fairness and transparency that underpin all activities undertaken by real estate professionals
What is unconscious bias
The associations we hold, outside our conscious awareness and control.
What is the profits method
- Annual Turnover – Costs/Purchase = GROSS PROFIT
- Gross Profit – Reasonable Working Expenses = UNADJUSTED NET PROFIT
- Unadjusted Net Profit – Operators Renumeration = ADJUSTED NET PROFIT or Fair Maintainable Operating Profit (FMOP)
What is a Jervis v Harris clause
When the landlord enters to do repair works and then recharges the tenant
What was the cost for renting furniture for the property in Borough
80-100k
What was the cost for buying the furniture in borough
170-200k
What RICS documentation is there on WELL standard
RICS Practice information: the design, delivery and management of healthy buildings
what were the comparables used in your case study
Unit 1C The Chandlery
Maidstone Building Mews
179 Southwark bridge road
136 Southwark Bridge road
Tell me about Unit 1C the Chandlery
The property was leased in Aug 2023 at £38.80 psf
Les advantageous location
Greater weight
Tell me about Maidstone Building Mews
Relatively similar condition but much better located as it was next to London Bridge Station
Better condition
Leased in Aug 2023 at £48
Tell me about 136 Southwark Bridge Road
Self contained building
Poor layout
Second hand office space
Leased in July 2023 at £35.71
Tell me about 179 Southwark Bridge Road
Similar spec
Similar location
Less weight applied as it was ground and lower ground so less natural light
Leased in May 2024 at £31.35
