Methods of Sale Flashcards
1
Q
What are the four main methods of sale?
A
- Private Treaty
- Informal Tender
- Formal Tender
- Auction
2
Q
What are the four main methods of sale?
A
- Private Treaty
- Informal Tender
- Formal Tender
- Auction
3
Q
In which method are parties free to negotiate in their own time and without commitment in the open market?
A
Private treaty
4
Q
In a private treat sale, __________ are confidential.
A
Negotiations
5
Q
What are four advantages of private treaty sale?
A
- Flexibility
- Parties control the process
- Vendor not under any obligation to sell
- Confidential
6
Q
What are the disadvantages of rivage treaty sale?
A
- Gazumping/gazundering potential
- Late decisions not to buy
- Associated abortive costs
7
Q
Informal tender requires best _____.
A
Offers
8
Q
When is informal tender used?
A
When there is a good level of interest in a property, either at the commencement of a marketing campaign or to bring negotiations to a conclusion.
9
Q
The best bids procedure is not ______ _______ so that either party can withdraw at any point up to contract.
A
Legally binding
10
Q
All informal tender bids should be opened in front of what?
A
An independent witness
11
Q
Best and final bids are invited in writing by the agent in accordance with what?
A
A prescribed timescale.
12
Q
The letter should advise that the vendor reserves what right?
A
Not to accept the highest or any offer.
13
Q
Formal tender requires ____ bids.
A
Sealed
14
Q
Formal tender is often used by a statutory body in order to exercise control over the marketing process, to provide a high level of ______ ___________ or when there is likely to be a strong level of interest for the property.
A
Public accountability
15
Q
What is invited for the property?
A
Tenders, sometimes in excess of a specified figure.
16
Q
In a formal tender method of sale, the vendor can state that he is under no obligation to accept what?
A
The highest bid
17
Q
What must be provided in advance of the formal tender process?
A
Full marketing material to include a comprehensive legal pack.
Clear letter to all prospective purchasers setting out information required accompanying the written offer.
18
Q
Applicants effectively bid _______ during formal tender.
A
Blindly
19
Q
All formal tender bids should be opened in fort of whom?
A
Client or independent witness
20
Q
With formal tender, there is no opportunity for the prospective purchase to _______ their bid after submission of their offer.
A
Amend
21
Q
Usually there is no immediate exchange of contracts, but the client can proceed to contract in accordance with what?
A
Terms and conditions of sale already stated in marketing particulars.
22
Q
In some instances of formal tender, contracts are exchanged as soon as the best bid is ________.
A
Selected
23
Q
A formal tender provides a potential purchaser with a ______ ________ to bid for a property.
A
Single chance
24
Q
Formal tender provides a high level of ___________.
A
Accountability
25
Detailes _____ and _______ for the sale are prepared by the vendor and published in advance with the offer to bid letter.
Terms and conditions
26
It is possible for the formal tender to lead direct to a ________ __________.
Sale contract
27
In informal tender can be used during private treaty ____________ to obtain a best offer from applicants.
Negotiations
28
What can follow on from the outcome of the informal tender process?
Further negotiations
29
With informal tender, terms and conditions prepared are usually less _______.
Onerous
30
The informal tender will not lead direct to a _______ ____ ________.
Contract for sale
31
Informal tender is sometimes used as a ________ __________ to invite all parties to bid.
Negotiating mechanism
32
Auction has become a popular method of sale due to recent changes in value in the market and resulting _______ _______ during the recession.
Valuation uncertainty
33
Auction sales achieve a relatively ______ timetable for disposal.
Short
34
With an auction sale, there is ______ assuming a reserve figure is placed.
Certainty
35
Auction is a useful method of sale for an ________ property which is hard to accurately value.
Unusual
36
Auction sales are often used for properties which are likely to generate a _____ level of interest.
High
37
One of the main disadvantages of auction is the cost of ________ and ________.
Promotion, publicity
38
At an auction sale there is a lack of _________ over the price achieved.
Confidentiality.
39
What must be agreed in advance when selling at auction?
Terms of engagement
40
What checks are to be undertaken prior to accepting an auction sale instruction?
Conflict of interest
41
Full ____ _________ should be completed prior to offering the property for sale at auction.
Due diligence
42
All relevant documentation regarding the property to be sold should be available when?
In advance of the auction
43
General Conditions of ____, Memorandum of ____ and any ______ to bidders are to be published by the Auctioneer.
Sale, Sale, Notices
44
A ______ price needs to be agreed with the vendor prior to sale.
Reserve
45
When are contracts exchanged?
At the fall of the gavel
46
Auction particulars in the catalogue must be prepared in accordance with which two pieces of legislation?
Consumer Protection Regulations 2008
Misrepresentation Act 1967
47
When is insurance required by the purchaser?
Point of exchange
48
Before the sale day, a purchaser should view the property and consider a _______ survey.
Structural
49
A purchaser at auction should also take proper ______ advice and complete a ___ _______ exercise prior to the auction.
Legal, due diligence
50
What is the RICS Guidance Note for Auctioneers?
RICS Guidance Note for Auctioneers Proposing to Sell Real Estate at Auction in England and Wales 2013
51
The RICS Help Sheet 'Clients ______' is also relevant to auction sales.
Money
52
The RICS Common Auction ______ for Auctions of Real Estate in England and Wales 2009 should also be considered.
Conditions
53
The Auctioneer's legal and professional responsibilities are defined in many Acts to include the ______ Act 1845, Sale of Land by Auction Act ____ and _______ Agents Act 1979.
Auctions, 1867, Estate
54
Which guidance note provides best practice advice on running an auction?
RICS Guidance Note on Auctioneers Selling Real Estate in England and Wales 2013
55
The RICS Guidance Note on Auctioneering provides advice on agreeing _______ of engagement, arranging for all legal documentation and ___ to be available as long as possible before the sale, adopting the RICS _______ Auction Conditions 2009, providing an EPC, choosing a venue of sufficient size, not providing misleading ____ prices, advising applicants if a lot is ________ and confirming the ___ position.
Terms, Plans, Common, Guide, Withdrawn, VAT
56
The reserve price should be agreed in writing with the client and must remain ________.
Confidential
57
Auction particulars are to be prepared in accordance with the current ______ ________ _________.
Consumer Protection Regulations
58
______ Conditions of Sale and _______ of Sale are to be included within the catalogue.
General, Memorandum
59
The Auctioneer should disclose any significant what?
Rent or service charge arrears
60
During the auction, any amendments to particulars or an addendum should be openly _______ to the room.
Disclosed
61
A statement regarding rules for _____ and internet bidding should be available to all bidders.
Proxy
62
Identification of the buyer is not currently a requirement under the Money Laundering Regulations 2007 although there is an obligation for the Auctioneer to report __________ ________.
Suspicious activity
63
All bids received at auction should be _________.
Recorded
64
Auction results must be accurate and only published with the vendor and buyer's ________.
Consent
65
Which Guidance Note sets out Auction Conduct and Sale conditions for use by Auctioneers?
RICS Common Auction Conditions for Auctions of Real Estate in England and Wales 2009.
66
The Common Auction Conditions guidance note aims to ensure the contract is as user _______ as possible, strike the correct _______ between the needs of buyer and vendors and reduce legal costs by using a contract that is in _______ usage.
Friendly, Balance, Common
67
The Clients Money help sheet provides advice on _____ handling and maintaining a _____ system.
Account, Records
68
Auctions overcome valuation uncertainty and offer some ________ of sale.
Certainty
69
In which method are parties free to negotiate in their own time and without commitment in the open market?
Private treaty
70
In a private treat sale, __________ are confidential.
Negotiations
71
What are four advantages of private treaty sale?
1. Flexibility
2. Parties control the process
3. Vendor not under any obligation to sell
4. Confidential
72
What are the disadvantages of rivage treaty sale?
1. Gazumping/gazundering potential
2. Late decisions not to buy
3. Associated abortive costs
73
Informal tender requires best _____.
Offers
74
When is informal tender used?
When there is a good level of interest in a property, either at the commencement of a marketing campaign or to bring negotiations to a conclusion.
75
The best bids procedure is not ______ _______ so that either party can withdraw at any point up to contract.
Legally binding
76
All informal tender bids should be opened in front of what?
An independent witness
77
Best and final bids are invited in writing by the agent in accordance with what?
A prescribed timescale.
78
The letter should advise that the vendor reserves what right?
Not to accept the highest or any offer.
79
Formal tender requires ____ bids.
Sealed
80
Formal tender is often used by a statutory body in order to exercise control over the marketing process, to provide a high level of ______ ___________ or when there is likely to be a strong level of interest for the property.
Public accountability
81
What is invited for the property?
Tenders, sometimes in excess of a specified figure.
82
In a formal tender method of sale, the vendor can state that he is under no obligation to accept what?
The highest bid
83
What must be provided in advance of the formal tender process?
Full marketing material to include a comprehensive legal pack.
Clear letter to all prospective purchasers setting out information required accompanying the written offer.
84
Applicants effectively bid _______ during formal tender.
Blindly
85
All formal tender bids should be opened in fort of whom?
Client or independent witness
86
With formal tender, there is no opportunity for the prospective purchase to _______ their bid after submission of their offer.
Amend
87
Usually there is no immediate exchange of contracts, but the client can proceed to contract in accordance with what?
Terms and conditions of sale already stated in marketing particulars.
88
In some instances of formal tender, contracts are exchanged as soon as the best bid is ________.
Selected
89
A formal tender provides a potential purchaser with a ______ ________ to bid for a property.
Single chance
90
Formal tender provides a high level of ___________.
Accountability
91
Detailes _____ and _______ for the sale are prepared by the vendor and published in advance with the offer to bid letter.
Terms and conditions
92
It is possible for the formal tender to lead direct to a ________ __________.
Sale contract
93
In informal tender can be used during private treaty ____________ to obtain a best offer from applicants.
Negotiations
94
What can follow on from the outcome of the informal tender process?
Further negotiations
95
With informal tender, terms and conditions prepared are usually less _______.
Onerous
96
The informal tender will not lead direct to a _______ ____ ________.
Contract for sale
97
Informal tender is sometimes used as a ________ __________ to invite all parties to bid.
Negotiating mechanism
98
Auction has become a popular method of sale due to recent changes in value in the market and resulting _______ _______ during the recession.
Valuation uncertainty
99
Auction sales achieve a relatively ______ timetable for disposal.
Short
100
With an auction sale, there is ______ assuming a reserve figure is placed.
Certainty
101
Auction is a useful method of sale for an ________ property which is hard to accurately value.
Unusual
102
Auction sales are often used for properties which are likely to generate a _____ level of interest.
High
103
One of the main disadvantages of auction is the cost of ________ and ________.
Promotion, publicity
104
At an auction sale there is a lack of _________ over the price achieved.
Confidentiality.
105
What must be agreed in advance when selling at auction?
Terms of engagement
106
What checks are to be undertaken prior to accepting an auction sale instruction?
Conflict of interest
107
Full ____ _________ should be completed prior to offering the property for sale at auction.
Due diligence
108
All relevant documentation regarding the property to be sold should be available when?
In advance of the auction
109
General Conditions of ____, Memorandum of ____ and any ______ to bidders are to be published by the Auctioneer.
Sale, Sale, Notices
110
A ______ price needs to be agreed with the vendor prior to sale.
Reserve
111
When are contracts exchanged?
At the fall of the gavel
112
Auction particulars in the catalogue must be prepared in accordance with which two pieces of legislation?
Consumer Protection Regulations 2008
Misrepresentation Act 1967
113
When is insurance required by the purchaser?
Point of exchange
114
Before the sale day, a purchaser should view the property and consider a _______ survey.
Structural
115
A purchaser at auction should also take proper ______ advice and complete a ___ _______ exercise prior to the auction.
Legal, due diligence
116
What is the RICS Guidance Note for Auctioneers?
RICS Guidance Note for Auctioneers Proposing to Sell Real Estate at Auction in England and Wales 2013
117
The RICS Help Sheet 'Clients ______' is also relevant to auction sales.
Money
118
The RICS Common Auction ______ for Auctions of Real Estate in England and Wales 2009 should also be considered.
Conditions
119
The Auctioneer's legal and professional responsibilities are defined in many Acts to include the ______ Act 1845, Sale of Land by Auction Act ____ and _______ Agents Act 1979.
Auctions, 1867, Estate
120
Which guidance note provides best practice advice on running an auction?
RICS Guidance Note on Auctioneers Selling Real Estate in England and Wales 2013
121
The RICS Guidance Note on Auctioneering provides advice on agreeing _______ of engagement, arranging for all legal documentation and ___ to be available as long as possible before the sale, adopting the RICS _______ Auction Conditions 2009, providing an EPC, choosing a venue of sufficient size, not providing misleading ____ prices, advising applicants if a lot is ________ and confirming the ___ position.
Terms, Plans, Common, Guide, Withdrawn, VAT
122
The reserve price should be agreed in writing with the client and must remain ________.
Confidential
123
Auction particulars are to be prepared in accordance with the current ______ ________ _________.
Consumer Protection Regulations
124
______ Conditions of Sale and _______ of Sale are to be included within the catalogue.
General, Memorandum
125
The Auctioneer should disclose any significant what?
Rent or service charge arrears
126
During the auction, any amendments to particulars or an addendum should be openly _______ to the room.
Disclosed
127
A statement regarding rules for _____ and internet bidding should be available to all bidders.
Proxy
128
Identification of the buyer is not currently a requirement under the Money Laundering Regulations 2007 although there is an obligation for the Auctioneer to report __________ ________.
Suspicious activity
129
All bids received at auction should be _________.
Recorded
130
Auction results must be accurate and only published with the vendor and buyer's ________.
Consent
131
Which Guidance Note sets out Auction Conduct and Sale conditions for use by Auctioneers?
RICS Common Auction Conditions for Auctions of Real Estate in England and Wales 2009.
132
The Common Auction Conditions guidance note aims to ensure the contract is as user _______ as possible, strike the correct _______ between the needs of buyer and vendors and reduce legal costs by using a contract that is in _______ usage.
Friendly, Balance, Common
133
The Clients Money help sheet provides advice on _____ handling and maintaining a _____ system.
Account, Records
134
Auctions overcome valuation uncertainty and offer some ________ of sale.
Certainty
