Purchase and Sale Flashcards
Which methods do you have experience in?
Sale - digital village
Purchase - bidding for project x in Manchester city centre
What are the principles of the 1979 act?
Seven principles
Clarity on terms of engagement (section 18)
Honesty and accuracy when describing property
Agreement and liability for costs (s18)
Openness regardless personal transactions (S21)
Absence of discrimination
Pass on all offers in writing
Keep client money separate
What is section 18 and section 21 of the 1979 act?
Section 18 - gives clients information before entering into a contract. Includes items such as fees, scope of services, marketing and the basis of agency
Section 21 - disclosure of interests (be open regarding person interests)
What are the cash limits on the money laundering act? Which act is it?
£10000 / 15000 EUR. money laundering regulations 2007
When does the 1979 act apply?
Disposal or acquisition of an interest in land (FH/LH) or buildings
What is the purple book
Published 2011. “ RICS UK commercial real estate standards”
Sections include ethics, securing instructions, selling and letting properties, regulation and legislation, safety and security”
What are the four methods of purchase
Auction
Tender - formal
Tender - informal
Private treaty
What are the red book requirements for agency work
Red book valuations are not required for all types of agency work. For example in anticipation of instructions to dispose / acquire a property
What is the misrepresentation act?
When you purposely provide fraudulent information which induces someone to purchase the land
What are some requirements of money laundering act?
Audit trail
Identity check - 2 types
Cash limits
What RICS guidance is applicable to purchase and sale?
The purple book 2011
Contains real estate agency code
Incorporates ethics
Other agency guidance
What act covers marketing in purchase and sale?
Estate agents act 1979 - terms of business, personal interests, client money, accurate descriptions, no discrimination, pass on all offers
Consumer protection regs 2008 - applies during the whole sales and letting process. Not treating customers fairly or providing misleading marketing information. Unlimited fine
Misrepresentation act 1967 - false statements made by vendor or agent in pre transaction period
Informal vs. Formal tender?
Informal Not binding until contract Higher multiple bids may be accepted Marketing prepared alongside Not always highest offer
Formal Binding (if not stated vendor is under no obligation to accept highest bid) Used by LA's Single bids Marketing prepared in advance Highest offer usually accepted
