Purchase and sale Flashcards
(58 cards)
What is Japanese knottweed?
invasive plant species that is native to East Asia, It is highly invasive and can spread rapidly, causing damage to properties, infrastructure, and local ecosystems.
Bamboo like steams, red/purple
green heart or shield shape leaves
summer small white flowers
expensive
roots damage foundations
Size of resi board?
0.5m2 flat
0.5m2 V
Could you explain the difference between sole selling rights and sole agency, and why you would recommend one over the other in this case?
Sole agency - Agent gets selling fee if they introduce or negotiate with buyer and contracts exchange
2 – Sole Selling Agency – Agent gets selling fee if contracts exchange regardless of agent’s introduction or negotiation
3 – Joint sole Agency– Two agents or more sharing fee
4 – Multiple Agency – Two agents or more, successful agent gets fee
6 – Dual agency or double dipping – The practice of acting for multiple parties, usually when undertaking investment agency, often for both which is the buyer and the seller. Since you cannot usually act in the best interests of both parties, it is not permitted by the RICS.
- Could you describe the process for conducting Anti-Money Laundering checks and how you ensure they comply with current legislation?
CDD- ID, proof of address 3 month
enhanced DD - establish source of funds, further ID check, monitor,
How do you handle any potential conflicts of interest?
-assess if can should proceed
-info parties to extent and measuremnets
-written approval
-monitor
How did you determine the appropriate asking price for the office, and what factors did you consider when advising the client on the marketing strategy?
comps method
factors: budget, his preferene on tenant and timescales
Can you provide an example of how you’ve handled a situation where the property didn’t attract as much interest as expected, and how you adjusted the strategy accordingly?
Tideway, lack of interest. I got CGI done, advertised it in local paper and socials
Can you walk me through the process of drafting the Heads of Terms for the office leasehold? What specific key elements did you ensure were included in the document?
demise
Contact details and solicitors
Size
Conditions
Date
Price
Additional costs eg SC
How do you ensure a smooth communication process between you, the client, and the solicitor during the transaction? Could you provide an example where you had to overcome a challenge in this area?
You applied the comparable method for the residential flat valuation. Could you explain why you chose this method, and how you made sure the comparables you used were accurate and relevant?
How does a tenant’s notice to vacate influence the timing and strategy for selling a residential property, especially in a situation like this?
In the case where you received an offer below the asking price, what steps did you take to address the offer and negotiate with the potential buyer while maintaining the client’s interests?
Could you explain the key steps you took to ensure the pre-contract enquiries were accurate and in compliance with the Misrepresentation Act 1967? Were there any challenges during this process?
How do you assess the impact of a high service charge on the sale of a residential property, and how did you manage this issue with the potential buyer?
SC was eating into rental profit, made buyers aware from onset however ensuring to inform them it included heating
What is an overage clause?
contractual agreement where the seller of a property is entitled to receive additional payment from the buyer after the sale has completed, if certain future events occur that increase the value of the land or property. eg if get planning
What does caveat emptor
let the buyer beware
common law
What is capital allowance?
tax relief eg on plant such as AC
Name the 3 types of conflict
1-own interest
-confidential info
-party conflict
Talk me through the sales process?
Agency Timeline
1 – CIMT
2 – Gather lease (and deeds) and licence information
3 – Due diligence (13)
4 – Check VAT position and TOGC (Transfer of Going Concern) status
5 – Inspect and measure
6 – Confirm what fixtures and fittings are included in the sale
7 – Obtain comparables
8 – Undertake valuation report
9 – Prepare marketing report
10 – Obtain written approval of marketing particulars (MA 1967)
11 – Undertake marketing campaign
12 – Negotiate sale, draft HoTs or MoS and instruct lawyers, conducting legal due diligence, exchanging contracts, and transferring ownership
What is the role of the solicitor?
what is the title plan and title register?
Plan shows boundary
Title register - describes property, tenure, owner, price paid, charges
Basis of agency?
sole agency
sole selling rights
joint sole agency
multiple agency
RICS UK commercial estate agency professional statement, 2016
Mandatory professional statement, sets out 12 core principles
Currently being updated*
Refers to fairness and transparency in agency and covers:
- Act with integrity, honestly, transparent, professional manner
- Conduct work with due skill, care, and diligence
- provide ToE, CHP
- avoid conflict of interest
- do not discriminate
- communicate clearly and transparently
- advertising and marketing material is honest, decent, and truthful
- hold client money separate
- insurance
- clear on obligations
- realistic assessment of selling
- have regard to clients wishes and personal safety
4 methods of sale
-private treaty
-informal tender
-formal tender
-auction
