Topic 6 Buying a Property: An Overview Flashcards
(56 cards)
The typical property buying process is in what order?
- Establish a budget
- Find a property
- Make an offer
- Formal mortgage application
- Exchange of contracts
- Completion
What principle of a contract is this?
An agreement between 2 or more people to enter into a legal agreement
Agreement
What principle of a contract is this?
- One party will make an offer the other will accept
- Both offer & acceptance put legal obligations on both parties
Offer & Acceptance
What principle of a contract is this?
- A Consideration must be given.
Buyer gives a consideration (money)
Vendor gives a consideration (property)
Consideration
What principle of a contract is this?
All parties must have capacity to enter a contract
- Age 18 or over (16 Scotland)
- Legally able to buy or sell property (either as principal or agent with authority)
- Of sound mind
Capacity
What principle of a contract is this?
- Must be clear that both parties intended to enter into a legal binding contract
Intention
What principle of a contract is this?
- Once a contract has been agreed and put in place both parties are bound by its terms
- Can be sued if they breach a contract by the other party
Bound by terms/Legally binding
The Agent does what?
Acts on behalf of the principal who grants the agent powers to act for them
What is “Apparent Authority”?
Agent acts outside their authority but claims the principle gave them authority to act in this way
What is “Ratification”
Where the Principal agrees with the actions an agent has made that is outside of the agents authority
Who is required to fill out a “Law Society Property Information Form” (TA6)?
Buyer or the Vendor?
Vendor
What happens if a Vendor does not accurately complete a “Law Society Property Information Form” (TA6)?
They could be prosecuted
How is the Principal-Vendor process for an estate agent different from most Principal-Vendor relationships?
Vendor makes decisions on whether to accept a offer to buy a property. The agent has less authority
These factors determine a buyer’s what when a look a buying a property?
- Price range of the property they can afford
- Can afford associated purchasing costs
- Whether they can fund the deposit required
Buyers budget
An estate agent is normally appointed by who?
Buyer or Vendor
Vendor
The asking price is what relation in to a property sale with an estate agent?
The price at which the property will be marketed
Once a provisional offer has been made on a property through an estate agent. Who will the estate agent liaise with to make the sale process official?
Vendor’s solicitor
An estate agent’s fees are paid on commission but at what percentage of the sale price are they traditionally based?
1 - 3.5%
What rights are these that an estate agent has?
- Agent has exclusive rights to sell the property
- Will receive a fee even if the vendor or 3rd party finds a buyer
Sole selling rights
What rights are these that an estate agent has?
- Have exclusive rights to sell the property
- Will not receive a fee if the vendor finds a buyer
- May charge less if they are given this arrangement
Sole agency
What rights are these that an estate agent has?
- Two agents agree to market the property exclusively
- Split the commission when a sale is made
- Commission is likely to be higher
Joint sole agency
What rights are these that an estate agent has?
- A number of agents market the property
- Agent who sells the property will receive the fee
- Fees nowadays are standard
Multiple agency
These are what in relation to Estate agents?
- Auctioneering
- Property Listings
- Removals
- Property management & letting agency services
Services an Estate agent could offer
These are what in relation to Estate agents?
- Arranging mortgages & associated financial advice
- Insurance services
- Relocation services
- Survey & Valuation services
Services an Estate agent could offer
