Purchase and Sale Flashcards
(17 cards)
What are the 4 methods of Sale
- Private Treaty
- Formal Tender
- Informal Tender
- Auction
What legislation governs the sale of Real Estate?
The Estate Agents Act 1979
- set out rules which should be followed when marketing/selling properties
What are CPRs and BPRs?
Consumer Protection Right and Business Protection Rights
- these are to do with misselling products or property
- these are offences in marketing
- replace the property misdescriptions act which was repealed in 2013
What are suspensive conditions?
Conditions laid out in the agreed terms between parties when selling property. These allow the purchaser to resile from the contract if the conditions are not met eg if a development cannot get planning permission
Which RICS documents are relevant to purchase and sale?
Real estate agency and brokerage 3rd edition
Uk commercial real estate agency 1st edition
What is an abnormal?
A unexpected cost associated with development
What can be classed as an abnormal?
- Contaminated ground
- Mineshaft stabilisation
- Mineral Consolidation
- Piled foundations for houses
What are suspensive conditions?
Contractual conditions agreed during heads of terms which allow parties to resile if conditions have not been met.
What are examples of suspensive conditions?
- completion date
- planning permission
Types of funding
SPV - special purchase vehicle
JV - joint venture
REIT - real estate investment trust
Advantages of Auction
- Best price available is secured
- Quick and Transparent
Cons of Auction
- Fees are higher
- All info is disclosed
- Failures to sell can blight the property
Pros of Private Treaty
Increased flexibility
Inexpensive
Obligation until contracts exchange
Confidential
Cons of Private Treaty
Pulling out may mean abortive costs
Asking price may be over or under stated
Can be slower than other methods
Types of Agency
Sole Agency
Joint Sole Agency
Multi Agency
What are sole selling rights
Who ever introduces the purchaser, the agent gets their fee as they have the sole rights to sell
Sole Agency
If purchaser is introduced by agent then they get their fee. If introduced by the seller than the fee is not due.
