Estate Agents Act 1979 (Section 18)?
Requires an agent to provide the client with a written statement of their fees and charges before the client is committed to the instruction.
Estate Agents Act 1979 (Section 21)?
Requires the disclosure of any personal interest the agent (or a relative/associate) has in the transaction.
Agency Bases (Sole vs. Joint)?
Sole Agency: Only one agent is appointed; fee is due if they introduce the buyer/tenant. Joint Agency: Two agents work together and split a higher fee. Multiple Agency: Several agents; only the one who closes the deal gets paid.
Misrepresentation Act 1967?
Prohibits making false statements of fact that induce a party to enter a contract. It is why agents use “disclaimers” in brochures, though these don’t offer total protection against negligence.
CPR & BPR (2008)?
Consumer/Business Protection Regulations. Replaced the Property Misdescriptions Act. They prohibit unfair practices, misleading omissions, and require the disclosure of “material information” (e.g., structural issues).
Purple Book (Commercial Agency)?
The RICS Professional Standard: Real Estate Agency and Brokerage. It sets out mandatory requirements for ethics, client care, and transparency in agency.
What is an AGA?
Authorised Guarantee Agreement. Under the L&T (Covenants) Act 1995, an outgoing tenant (assignor) may be required to guarantee the performance of the incoming tenant (assignee).
Use Classes (September 2020)?
Most commercial uses (Retail, Office, Cafe, Gym) were merged into Class E (Commercial, Business and Service) to allow for greater flexibility without needing planning permission for changes of use.
MEES Compliance in Agency?
You cannot lawfully let a property with an EPC rating of F or G. As an agent, you must check the EPC rating before marketing begins.
Money Laundering (AML) Checks?
For agency, you must perform “Know Your Customer” (KYC) checks on both the client (at instruction) and the purchaser/tenant (at the point of offer/heads of terms).
Marketing Strategy
I advised a client to opt for Informal Tender for a high-demand asset to create a competitive “bidding war” and a fixed deadline for offers, rather than a traditional “Private Treaty” sale.
Tenant Covenant Strength
I advised a landlord to request a 3-month rent deposit and a parent company guarantee after my analysis of the prospective tenant’s accounts showed a low “acid test” ratio and limited net assets.
Pandemic Clauses
Following the WH Smith case, I advised a client that including a pandemic rent suspension clause was now a market necessity to attract blue-chip tenants, but I negotiated that the “trigger” must be a government-mandated closure.
Strategic Letting
I advised an owner of a shopping parade to reject a higher-paying betting shop in favor of a lower-paying independent café to improve the tenant mix and increase the long-term capital value of the whole parade.
