Instructions

Question 1

What is the purpose of informal tender?

Answer 1

To facilitate a more flexible approach in the bidding process

Informal tendering allows for negotiations and adjustments before finalizing a deal.

Question 2

What must be included in agency instruction agreements?

Answer 2

The following must be included:
* Agency basis
* Agency rights
* Proposed fee
* Marketing costs and disbursements
* Confirmation of conflict checks

These elements ensure clarity and legal compliance in the agreement.

Question 3

According to the Estate Agents Act (1979) (s 18 - 21), what is a required feature of agency instruction agreements?

Answer 3

A statutory cooling off period of 14 days

This cooling-off period is established to protect consumers’ rights.

Question 4

What must be signed and returned before marketing commences?

Answer 4

Details of complaints handling procedure

This is a procedural requirement to ensure compliance before initiating marketing activities.

Question 5

What is the typical timeline for a sales instruction?

Answer 5

1. Receive instructions
2. Check competence and independence (Estate Agents Act 1979)
3. Issue agency instruction agreement
4. Receive Terms of Engagement (5. 18 of Estate Agents Act 1979)
5. Complete and record AML checks (Money Laundering, Estate Agents Act 1979)
6. Gather information
7. Due Diligence

This outlines the steps involved in processing a sales instruction.

Question 6

What is the first step in the typical process for a property acquisition?

Answer 6

Receive instructions

This initiates the acquisition process.

Question 7

What does the Estate Agents Act 1979 require regarding competence and independence?

Answer 7

Check competence and independence

This is to ensure that agents are qualified to handle the transaction.

Question 8

What is issued after receiving instructions in the property acquisition process?

Answer 8

Agency instruction agreement

This formalizes the relationship between the agent and the client.

Question 9

What must be completed and recorded as part of AML checks?

Answer 9

Complete and record AML checks

This is essential to comply with anti-money laundering regulations.

Question 10

What may be a typical process for a property acquisition?

Answer 10

1. Check for conflicts of interest and competence
2. Undertake AML
3. Agreement of Terms of Engagement
4. Understand the clients objectives and agree search parameters
5. Consider techniques to find properties: cold calling/advertising/websites
6. Measurement and valuation
7. Check planning use/consent/conditions/any proposed developments in the local planning register
8. Undertake due diligence in respect of such matters: asbestos, legal title, contamination, tenants covenant check and flooding
9. Check for any rent or service charge arrears
10. Covenant approval information to be supplied to the landlord/vendor
11. Negotiation and instruction of solicitors
12. Conditional contracts can be agreed for various conditions to be satisfied post exchange of contract and before completion

This comprehensive checklist ensures that all relevant factors are considered before proceeding with a property acquisition.

Question 11

True or False: Conditional contracts can be agreed for various conditions to be satisfied post-exchange of contract.

Answer 11

True

This allows flexibility in property transactions.

Question 12

Fill in the blank: The process of checking for conflicts of interest and competence is part of _______.

Answer 12

[due diligence]

Due diligence is crucial in real estate transactions.

Question 13

What must be signed and returned before marketing commences?

Answer 13

Details of complaints handling procedure

This is a procedural requirement to ensure compliance before initiating marketing activities.

Question 14

What is the typical timeline for a sales instruction?

Answer 14

1. Receive instructions
2. Check competence and independence (Estate Agents Act 1979)
3. Issue agency instruction agreement
4. Receive Terms of Engagement (5. 18 of Estate Agents Act 1979)
5. Complete and record AML checks (Money Laundering, Estate Agents Act 1979)
6. Gather information
7. Due Diligence

This outlines the steps involved in processing a sales instruction.

Question 15

What is the first step in the typical process for a property acquisition?

Answer 15

Receive instructions

This initiates the acquisition process.

Question 16

What does the Estate Agents Act 1979 require regarding competence and independence?

Answer 16

Check competence and independence

This is to ensure that agents are qualified to handle the transaction.

Question 17

What is issued after receiving instructions in the property acquisition process?

Answer 17

Agency instruction agreement

This formalizes the relationship between the agent and the client.

Question 18

What must be completed and recorded as part of AML checks?

Answer 18

Complete and record AML checks

This is essential to comply with anti-money laundering regulations.

Question 19

What may be the typical process in property acquisition?

Answer 19

1. Check for conflicts of interest and competence
2. Undertake AML
3. Agreement of Terms of Engagement
4. Understand the clients objectives and agree search parameters
5. Consider techniques to find properties: cold calling/advertising/websites
6. Measurement and valuation
7. Check planning use/consent/conditions/any proposed developments in the local planning register
8. Undertake due diligence in respect of such matters: asbestos, legal title, contamination, tenants covenant check and flooding
9. Check for any rent or service charge arrears
10. Covenant approval information to be supplied to the landlord/vendor
11. Negotiation and instruction of solicitors
12. Conditional contracts can be agreed for various conditions to be satisfied post exchange of contract and before completion

This comprehensive checklist ensures that all relevant factors are considered before proceeding with a property acquisition.

Question 20

True or False: Conditional contracts can be agreed for various conditions to be satisfied post-exchange of contract.

Answer 20

True

This allows flexibility in property transactions.

Question 21

Fill in the blank: The process of checking for conflicts of interest and competence is part of _______.

Answer 21

[due diligence]

Due diligence is crucial in real estate transactions.

Question 22

What information should you research when selling a property?

Answer 22

• Market Demand
• Yield
• Future Pipeline
• Tenure if leased
• Location
• Specification
• Accommodation
• Planning History
• Risk of Asbestos
• EPC

Question 23

What do you do if an EPC certificate is not available?

Answer 23

Must be obtained within 28 days after going to market

Unless exemptions apply: e.g. low energy use industrial building

Question 24

How do you comply with Town & Country Planning Regulations 2007 with sale boards?

Answer 24

1. Cannot exceed 1.2 sqm
2. Must be removed within 14 days of sale completion
3. No illumination
4. Cannot obscure public transportation or road signs

Question 25

How to comply with Misrepresentation Act 1967?

Answer 25

Include a disclaimer that states everything has been produced in good faith and are believed to be correct

Question 26

What happens with potential purchasers in formal and informal tenders after expressing interest?

Answer 26

Issue tender information and analyse the returns.

Question 27

What happens after potential purchasers have expressed interest in auction sales?

Answer 27

Likely instructed on a joint agency basis and will need to liaise over pricing.

Question 28

What does the surveyor do during the legal process?

Answer 28

Continues after memorandum of sale is agreed until Completion to ensure a smooth journey. ## Footnote Exchange and Completion can sometimes happen at the same time.