Legislation

Question 1

What is the Estate Agents Act 1979?

Answer 1

A piece of legislation governing the process surrounding disposals or acquisitions of interests in land.

Question 2

What are the six key principles of the Estate Agents Act 1979?

Can Honest Traders Practice Making Property

Answer 2

• Clarity of Terms (Fees and liabilities)
• Honesty and Accuracy
• Transparency on personal interests
• Probition of Discrimination
• Mandatory disclosure on all offers
• Proper Handling of Client’s Money

Question 3

What is the purpose of the Consumer Protection Regulations (2008)?

Replaced Misdescriptions Act

Answer 3

An obligation to treat consumers fairly and governs protection for consumers from unfair business practices.

Question 4

What does Section 18 of the Estate Agents Act 1979 require?

Answer 4

Clarity in terms of business, specifying all costs and fees in advance.

Question 5

What does Section 21 of the Estate Agents Act 1979 address?

Answer 5

Declaration of personal interests, requiring agents to declare they are not a ‘connected person’.

Question 6

What are the penalties for violating the Estate Agents Act 1979?

Answer 6

Criminal fine or up to 2 years imprisonment, with each issue dealt with separately.

Question 7

True or False: The Consumer Protection Regulations replaced the Misdescriptions Act.

Answer 7

True

Question 8

What is the penalty for unfair business practices under the Consumer Protection Regulations?

Answer 8

Unlimited fine and up to 2 years imprisonment.

Question 9

Fill in the blank: The Estate Agents Act 1979 includes a principle about _____ and Accurate.

Answer 9

Honesty

Question 10

What must agents do regarding clients’ money according to the Estate Agents Act 1979?

Answer 10

Handle it according to the principles outlined in the act.

Question 11

Give an example of a breach to the Estate Agents Act (1979)

Answer 11

Failing to declare personal interests to the client

This is a specific instance where an agent does not disclose a personal stake in a transaction, violating transparency requirements.

Question 12

What are BPRs?

Answer 12

Business protection regulations

These regulations relate to business-to-business activities and aim to ensure fair practices.

Question 13

What are CPRs?

Answer 13

Consumer protection regulations

These regulations protect consumers from unfair trading practices.

Question 14

What is a caveat emptor?

Answer 14

Let the buyer be aware

This principle emphasizes that the buyer is responsible for checking the quality and suitability of goods before purchase.

Question 15

When do you do AML checks for an agency instruction?

Answer 15

Pre-instruction with a client
Pre-HOT with a purchaser

AML checks must be conducted before agreeing heads with the purchaser.

Question 16

Do you have regard to any RICS material?

Answer 16

Yes

RICS material provides guidelines on ethics, instructions, marketing, disposals, and acquisitions.

Question 17

What does the RICS Property Agency and Management Principles (2025) replace?

Answer 17

The old Estate Agency Statement

This update focuses on openness and transparency for businesses supplying services to clients.

Question 18

What is the main focus of the RICS Property Agency and Management Principles?

Answer 18

Requirements for openness and transparency

These principles are designed to protect consumers in property transactions.

Question 19

What is an offence in marketing according to CPR (2008)?

Answer 19

Misleading a buyer or tenant

This is considered a criminal offence under the Consumer Protection Regulations.

Question 20

What should be checked before agreeing heads with the purchaser?

Answer 20

AML and sanctions list

Compliance with Anti-Money Laundering regulations is crucial before proceeding with a transaction.

Question 21

What are key areas of advice provided by RICS?

Answer 21

• Ethics
• Instructions
• Marketing
• Disposals
• Acquisitions

These areas ensure that RICS members adhere to professional standards.

Question 22

What is the purpose of RICS Property Agency and Management Principles (2025)?

Answer 22

To ensure openness and transparency for businesses supplying clients with services to protect consumers.

It replaces the old Estate Agency Statement.

Question 23

What are the key requirements outlined in the RICS Property Agency and Management Principles?

Answer 23

• Avoid misleading marketing
• Provide realistic pricing advice
• Only act within areas of competence or with appropriate supervision
• Obtain consent before appointing subagents or contractors

Question 24

What types of agency are mentioned in the RICS guidelines?

Answer 24

• Sole Agency
• Joint Agency

Question 25

What should RICS members focus on in their services?

Answer 25

Requirements for openness and transparency to protect consumers. ## Footnote This includes avoiding misleading marketing and providing realistic pricing advice.

Question 26

True or False: RICS members can act outside their areas of competence.

Answer 26

False

Question 27

Fill in the blank: The RICS Property Agency and Management Principles focuses on requirements for _______ and transparency.

Answer 27

[openness]

Question 28

What is a key ethical consideration for RICS members?

Answer 28

To avoid misleading marketing.

Question 29

What is the difference between Sole Agency and Joint Agency?

Answer 29

Sole Agency involves only one agent, while Joint Agency involves two or more agents sharing a fee.

Question 30

What should be done before appointing subagents or contractors according to RICS principles?

Answer 30

Obtain consent.

Question 31

What types of properties do the RICS Property Agency and Management Principles apply to?

Answer 31

* Residential * Commercial * Mixed-use

Question 32

What does RICS stand for?

Answer 32

[Royal Institution of Chartered Surveyors]

Question 33

Tenant Act 2019

Answer 33

Prohibited fees in private rented sector, e.g. administrative charging, referencing, inventory and end-of-tenancy professional cleaning costs