Leasing/Letting

Question 1

What are the 12 principles of the RICS UK Commercial Estate Agency 2016

Answer 1

1. Act honestly and professionally
2. Ensure you are staff are competent
3. Clear terms of business including complaints handling procedure
4. Attempt to avoid conflicts of interest
5. Do not discriminate
6. Clear communication
7. Honest marketing
8. Client money help separately
9. Have appropriate PPI
10. Ensure obligations to parties are clear
11. Provide realistic assumptions on costs and prices
12. Meetings, inspections and viewings carried out to client wishes

Question 2

What is included in the RICS UK Commercial Real Estate Agency 2016

Answer 2

Duty of care
Gifts and incentives
Conflicts of interest
AML checks
Types of agency
Health and safety
Methods of sale
Market appraisal

Question 3

How do you ensure to follow duty of care?

Answer 3

1. Follow ethical codes and marketing rules
2. Do not release confidential information
3. Do not appoint a sub agent without consent
4. Ensure staff are trained
5. Only accept work within your expertise
6. Be reasonable when advising on rent
7. Ensure you are not providing misleading information

Question 4

When might you provide confidential client information?

Answer 4

If a client gives you consent or if legally required to do so

Question 5

What might you include in Terms of Engagement?

Answer 5

1. Property address
2. Client contact details
3. Type of disposal
4. Sub-agent details
5. Type of agency
6. Viewing arrangements
7. Marketing particulars
8. Any personal interest
9. Complaints handling procedure
10. Methods of reporting offers
11. Data protection act 1998
12. Bribery act 2010
13. Right to cancel/withdrawal

Question 6

What year was the Estate Agents Act effective?

Answer 6

1979

Question 7

What year was the RICS UK Commercial Estate Agency Professional Statement?

Answer 7

2016

Question 8

What is the purpose of the Estate Agents Act 1979?

Answer 8

Ensuring that agents act in the best interest of clients. Acting fairly, honestly and promptly.

Question 9

What types of property does the Estate Agents Act 1979 apply to?

Answer 9

1. The disposal or acquisition of land
2. Freehold and leasehold property
3. Land as well as buildings

Question 10

What are the 7 principles of the Estate Agents Act 1979?

Answer 10

1. Terms of business
2. Honesty and accuracy
3. Agreement of costs
4. Transparency regarding personal interest
5. No discrimination
6. Legally required to report offers
7. Keep client money separate

Question 11

What section of the Estate Agents Act discusses Terms of Business?

Answer 11

Section 18

Question 12

What section of the Estate Agents Act covers conflicts on interest?

Answer 12

Section 21

Question 13

What is joint agency?

Answer 13

Two agents who agree to a fee at the beginning of the process and split the fee

Question 14

What is the standard joint agency fee?

Answer 14

15% of first years rent (7.5% each)

Question 15

What is multiple agency?

Answer 15

Three or more agents but only the agent who makes the deal gets the fee

Question 16

What is sole agency?

Answer 16

One agent working to let/sell the property. If they do not, the agent can be replaced.

Question 17

What is the standard fee for a sole agent?

Answer 17

10% of the first years rent

Question 18

What are sole rights?

Answer 18

You appoint an agent but if you find a buyer yourself, you still pay the agent fees

Question 19

What is the cooling off period

Answer 19

14 days

Question 20

What are important points of the Estate Agent Act

Answer 20

1. Specify costs in advance
2. Payments must be itemised
3. Nature of agency
4. Provide offers promptly in writing
5. Disclose personal interests

Question 21

Why might you receive a penalty against the Estate Agents Act?

Answer 21

By acting dishonestly, not informing clients of offers, not disclosing personal interests and not being clear in terms of engagement

Question 22

What is the penalty against the Estate Agents Act?

Answer 22

A warning or fine

Question 23

What is the Misrepresentation Act 1967?

Answer 23

To protect from false statements being made to a party during pre-contract enquiries which effect decision making

Question 24

What different kinds of misrepresentation are there?

Answer 24

Fraudulent, negligent or innocent

Question 25

Does the Misrepresentation Act apply to personal opinion?

Answer 25

Yes

Question 26

When would a penalty apply against the Misrepresentation Act?

Answer 26

When misstatements or fraudulent statements are made by vendors or their agents

Question 27

What is the penalty for the Misrepresentation Act?

Answer 27

Being sued for financial damage and/or the contract being rescinded

Question 28

What act relates to the marketing of commercial property?

Answer 28

Town & Country Planning (control of advertisement) (England) regulations 2007

Question 29

How long can marketing boards stay up?

Answer 29

They must be removed 14 days after completion of transaction

Question 30

Who police’s the Town
& Country Planning Regulations?

Answer 30

The local planning authority

Question 31

When is planning required for marketing boards?

Answer 31

If the are non-residential and over 2sqm, on a listed building or illuminated

Question 32

What limitations are there on the positioning of marketing boards?

Answer 32

They cannot project more than 1m out for the building and not be more than 4.6m about ground level

Question 33

Who is not eligible for VAT?

Answer 33

Financial institutions, charities and medical practitioners