Purchase and Sale Lv1 Flashcards
(44 cards)
Tell me about the four methods of sale.
Private Treaty, Informal tender, formal tender and auction
Tell me about an advantage/disadvantage of sale by private treaty
“Advantages
- Flexibility
-Parties in control of the process
-No obligation until exchange contracts
Disadvantages
-Gazumping
-Late decisions not to proceed and associated costs
- Can be slow, no defined closure “
Tell me about an advantage/disadvantage of sale by auction
“Advantages
-short timescale to disposal
-Certainty
-usefulness for unusal
-transparency
Disadvantages
-Expensive for vendor compared to private treaty
-cost of promotion
-lack of confidentiality
-Intensive marketing
-public may create stigma if fail to sell”
Tell me about an advantage/disadvantage of sale by formal tender
“Formal is a single bid
-High level of accountability
-Detailed terms provided prior
- May lead to direct contract”
Tell me about an advantage/disadvantage of sale by informal tender
” Can be used durng private treaty to obtain the best offer and bring to a close
- Further negotatiations Can follow
-Less onerous terms
-Will not lead to direct contract
-Vendor is not under any obligation to accept best offer, as long as this is stated”
“Tell me about your understanding of legislation relevant to your agency
practice.”
Estate Agents Act 1979, Bribery Act 2010, Misrepresentation Act 1967 and the Consumer Protection from Unfair trading regulations 2008
Tell me about your understanding of the Estate Agents Act 1979.
“Important sections s.18 agree TOE (fees, agency basis and defintition, services, marketing
s.21 Disclosure of interest”
What are the 6 key principles of the Estate Agents Act 1979?
“1) Clarity on TOE
2) Open and transparent
3) No discrimination
4) Pass on all offers in writing
5) Keep client’s money separate”
How does Section 18 relate to your agency practice?
Important sections s.18 agree TOE (fees, agency basis and defintition, services, marketing
What are the four agency bases?
Sole letting rights, Sole Agency, Joint agency, multiple agency
What are the differences between the four agency bases?
“Sole letting rights - Fee due if [let during agency agreement. Private introductions included
sole Agency- Exc right to introduce tenant in agency period but NOT inc. private introductions
Joint agency- split fee
Multiple agency- first to get sale gets fee”
Where are these defined?
Estate Agents Act 1979
How does Section 21 relate to your agency practice?
Disclosure of interest
What 3 things do you need to make a contract?
The offer, The acceptance, exchange of value i.e cash
Can a verbal contract be legally binding?
No
What is capacity in relation to contract law?
Individulas who enter into a contract must have the capacity to enter into a contract, otherwise it is voidable
“Does the sale of land have to be in writing and what Act defines this
point?”
Yes, Estate agents Act 1979
“Tell me about key points of the Consumer Protection / Business
Protection Regulations”
“Must not mislead ““average consumer”” no caveat emptor
- Particulars must be accurate
- Mind what you say! - no omissions”
What is an average consumer/material information?
The information which the average consumer needs, according to the context, to take an informed transactional decision
What are considered to be unfair practices under this legislation?
If a seller makes a false statement of fact about the property and the buyer relies on this. The buyer may have a claim against the seller
How does the Misrepresentation Act 1967 relate to your agency practice?
If a seller makes a false statement of fact about the property and the buyer relies on this. The buyer may have a claim against the seller
What does the Unfair Contract Terms Act 1977 say?
Act to impose further limits on the extent under law civil liability for breach of contract, of for negligence or other breach of duty can be avoided by means of contract terms
“Tell me three key issues raised in the RICS Real Estate Agency and
Brokerage Standards / RICS Commercial Real Estate Agency (Purple Book)”
“Outlines principles for fairness and transaparency in agency
-Acting for the buyer
-Ending the instruction
-Safety and security
-Agency management
-Ethics
-Securing instructions
-Acting for the seller: marketing the property
-Acting for the seller: agreeing the sale or lease “
Tell me about a factor which drives property markets.
Demographics of the area
