Leasing/Letting

Question 1

What legislation is key for leasing and letting ?

Answer 1

Estate Agents Act 1979

Question 2

What does the Estate Agents Act 1979 consist of?

Answer 2

1. Terms of agency - (clarity)
2. Honest & Accuracy
3. Absence of discrimination
4. Tell clients all offers
5. Agreement and liability of costs
6. Keep clients money seperate

Question 3

Name the core principles of RICS: UK Commercial Real Estate Agency (2016) 912 in total)

Answer 3

Act in an Honest and professional manner
Work with due skill
Fair terms of business
no conflicts
do not discriminate
timely communication
accurate marketing
PII

Question 4

Heads of Terms for a lease include ?

Answer 4

Date
Property
Landlord
Tenant
Agent/solicitors details

Rent
Incentives
Rent Review
Breaks
Repairing
Alterations
Alienation
Conditions

Question 5

What are the 4 requirements of a lease ?

Answer 5

1. Exclusive occupation
2. Payment of rent
3. Duration for a specified term
4. Registered as a deed (more than 3 years)

Question 6

What is a license ?

Answer 6

• Right to enter a property
• Personal arrangement between licensor and licensee
• Licensee acquires no interest in the property
• Can be terminated at any time by any party.

Question 7

What are main the differences between a lease and a license.

Answer 7

A lease cannot be terminated until expiry, whereas a license can be cancelled at anytime.

Lease provides an occupier with estate in the relevant land, whereas a license is just permission to use the land.