Questions asked in Savills Mock

Question 1

You stated you checked you were competent – how did you confirm that you were competent?

Answer 1

I had sold similar sites in the area and had a strong knowledge of the local market.

Question 2

What is a restrictive covenant?

Answer 2

A restrictive covenant is a clause in a contract, agreement, or other legal document that prevents an individual, group, or company from taking (or failing to take) a specific action.

Question 3

You mention your site had outline planning permission - what are the different kinds of planning permission?

Answer 3

Full planning permission, there are the two I mainly have experience in, but I am also aware of resolution to grant.

Question 4

What are the five reserved matters? (LALAS)

Answer 4

-Layout
-Access
-Landscape
-Appearance
-Scale

Question 5

Did you run an appraisal / provide a new guide when you went back out to the previous parties?

Answer 5

Yes new appraisal with increased build costs and reduced resale £/sq ft. This was not provided to previous parties but used to sense check developer’s appraisals.

Question 6

What was the cost of the survey?

Answer 6

Around £1.5k

Question 7

Did you obtain a letter reliance on that survey before selling this site?

Answer 7

Yes we needed a letter of reliance so this could be transferred to the buyer after they purchased the site.

Question 8

What are the four methods of sale?

Answer 8

1. Private Treaty
2. Informal Tender
3. Formal Tender
4. Auction

Question 9

What are some differences between the consumer protection from unfair trading regs vs misrepresentations acts?

Answer 9

CPR relate to dealing with the consumer and not misleading through the marketing and The Misrepresentation Act exists to protect consumers from false or fraudulent claims that induce you into buying something or entering into a contract.

Question 10

What other legislation would you consider on an agency instruction?

Answer 10

Anti-Money Laundering

Question 11

What is the difference between Dual and Joint Agency?

Answer 11

Joint Agency is where two agents act for a instruction whereas Dual is where you act on both sides selling and buying a site and is illegal.

Question 12

Is it ever appropriate to act as a Dual Agent? / What governs this?

Answer 12

No – it is illegal – at most different offices same company but with informed consent and information barriers.

Question 13

What is the length of time for a cooling off period for an agency instruction?

Answer 13

14 days

Question 14

Why did you advise Private Treaty?

Answer 14

It was a strong market at the time and it enabled to set a deadline after assessing the market and the seller could remain strong control over the sale.

Question 15

What sort of conditions were on the offers?

Answer 15

-Cash funding
-Any surveys needed prior to completion
-Selling an existing property prior

Question 16

When you undertook the best and final deadline, was this then still private treaty?

Answer 16

This would then be informal tender, as sealed bids and deadline

Question 17

What do you include within your marketing materials?

Answer 17

-Property Address
-Guide Price
-Location
-Description
-Planning/ Planning Potential
-Boundaries, Rights etc.
-AML info
-Data Room link
-Plans/ Title Information
-Agents

Question 18

What are some key client considerations and requirements during your process of providing market appraisal advice?

Answer 18

-Speed of sale
-Control eg. who to sell to
-Privately

Question 19

If a site was let, how would this influence the value?

Answer 19

Dependent on the length of notice needed, I would have to attribute value to the rental period and also increase timings for redevelopment etc.

Question 20

In your level 2 you state that all appraisals are to be sent with relevant TOE – so do you send unsigned TOE with advice?

Answer 20

NO - to clarify TofE sent and signed prior to starting instruction

Question 21

What do you include within TOE when providing market appraisal advice?

Answer 21

Agency Terms of Engagement.

Question 22

What is BCIS?

Answer 22

Building Cost Information Service

Question 23

What are the series of events that have to have occurred for a negligence claim to be made?

Answer 23

Breach of duty of care AND a loss

Question 24

Under the Limitation Act 1980 what are the current limitation periods for negligence ?

Answer 24

15 years

Question 25

What are the three types of asbestos?

Answer 25

White
Brown
Blue

Question 26

• When is an EPC Required?
• How long is an EPC valid for?

Answer 26

Must have an EPC before you put your property on the market. Valid for 10 years.

Question 27

You say within your case study that you carried out a coi and received signed terms was there anything else you did prior to accepting the instruction?

Answer 27

I checked I was competent to undertake the work.

Question 28

Why did you not obtain proof of funds before selecting the preferred purchaser – did this demonstrate good client care?

Answer 28

Yes I did.

Question 29

You included the material uncertainty clause due to macroeconomic factors for what other reasons may you include an uncertainty clause?

Answer 29

limited info, particular characteristics make it difficult to value regardless of method

Question 30

You valued the site in Harston using the residual method and comparable method why?

Answer 30

Under the RICS Guidance Note Valuation of Development Property it states it is best practice to value using two methods.

Question 31

You valued a site in Sandy adopting hope value, what is hope value and how did you quantify it?

Answer 31

Hope value is an element of market value in excess of the existing use value, reflecting the prospect of some more valuable future use.

Question 32

Where is the basis of value for inheritance tax purposes set out and how does it vary from market value as defined within the red book?

Answer 32

In section 160, Inheritance Tax Act 1984

Question 33

What is a deleterious material?

Answer 33

Prohibited for use in a project - change over time eg. asbestos