What is the process of disposal?
Agree terms of business, fee and written ToE
Meeting with client to understand objectives
Inspect & Measure
Marketing materials
Review tenant pool and Tenant DD
Negotiate Terms - rent, incentives, flexibility
Confirm HOTs
Instruct solicitors and complete
invoice and fee
What is the process of acquisition?
Agree terms of business, fee and written ToE
Meeting with client to understand requirement
Circulate requirement and produce schedule
Shortlist with client
View options
Request for proposal
Negotiate Terms - rent, incentives, flexibility
Confirm HOTs
Instruct solicitors and complete
invoice and fee
What are key factors that landlords consider in office accomodation?
Suitability for occupation
Sustainability - EPC
DDA compliant
Specification - in line with market
Location
Amenities
What are key factors that occupiers consider in office accommodation?
Fit for purpose
Cost
In line with requirements
Sustainability
Parking
DDA
Location and amenities
Are you aware of any RICS Professional Statements? x2
(REA, C)
RICS, UK Commercial Real Estate Agency 2016 Professional Statement
RICS Code for Leasing Business Premises 2020 Professional Statement
What are the 12 core principles of the RICS Professional Statement Commercial Estate Agency 2016?
- Honesty, fair, transparent and professional manner
- Due skill and diligence work
- Ensure terms of business are fair, clear and Compliant Handling included
- Avoid Conflicts of interest
- Not to discriminate unfairly
- All communications are fair, decent, clear and timely
- Advertising and marketing is honest
- Client money held separately
- Appropriate PII cover
- Ensure all parties are clear of obligations
- Realistic assessment of selling prices
- All meetings, inspections in line with client wishes
What is the structure of the Code for Leasing Business Premises?
- Introduction
- Mandatory Requirements
- Lease Negotiations best practice
- Appendices
What are the guidelines within Code for Leasing Business Premises?
To improve quality and fairness of negotiations on lease terms and promote new set of heads of terms
What are the mandatory requirements of the Code? (N, Un-A, StC, LR, F)
- Negotiations - Constructive and collaborative
- Un-advised parties must be advised about the Code and obtain professional advice
- Agreement stated ‘subject to Contract’
- At lease renewal, HOTs must comply with minimum requirements
- Negotiations achieve fair balance between parties
What are the key points in Heads of Terms?
- Identification of parties
- Identify and extent of premises
- Length of Lease
- Inside 1954 Act
- Renewal or break options
- Rent and frequency
- VAT on rent
- Rent-free or incentives
- Assignment, sub-let provisions
- Repairing obligations
- Permitted Use
- Alterations
- Conditions of lease (Subject to survey, board approval)
What is included in the Appendices of the Code?
Model Heads of Terms
Guide for Landlords and Tenants
Who defines the grades of buildings?
British Council for Offices Guide to Office Specification 2023
What is a Grade A office?
Full Access raised floor (150mm)
Ceiling height 2.6 - 2.8m
Ceiling Void (350mm)
LED Lights - LG7
8 - 10m2 per person workspace
Air conditioning and double glazing
What are types of Air Conditions?
VAV - Variable Air Volume
4-pipe Fan Coil
VRV - Variable Refrigerant Volume
HVAC - Heating, Ventilation and AC
What does the Misrepresentation Act 1967 highlight?
Misrepresentation or false statement during pre-contractual enquiries
Can be sued for damages
Can eb fruadulent, negligent or inmost
Agent has duty of care to check advice and information
What Regulation is there in Estate Agency
Misrepresentation Act 1967
Consumer Protection from Unfair Trading Regulations 2008
Estate Agents Act 1979
What does the Consumer Protection Regulations highlight? 10 facts
(R, DoC, MR, P, I, O, DD, V, TSO, C)
- Regulations apply to all lettings and sales
- Duty of care to clients and interest parties
- declare everything about the property (Misrep Act)
- Not exert undue pressure
- information passed to all parties
- omissions lead to breach in regulations
- Full DD required
- Validated by client
- Policed by Trading Standards Office
- Disclaimers do not apply to criminal offence
What is a cooling offer period? What regulation is this?
14 days to change their mind on instructing agency
Estate Agents (Provision of information) Regulations 1991
What are the Estate Agency Act 1979 7 key points?
(ToA, H, C, CoI, D, O, M)
- Clarity as to terms of agency (S.18)
- Honest and accuracy
- Agreement and liability for costs
- Openness for personal interest (S.21)
- Absence of Discrimination
- Legal obligation to tell client about offers
- Clients money separate
What Regulation is there in Estate Agency? (MR, CPR, EA)
Misrepresentation Act 1967
Consumer Protection from Unfair Trading Regulations 2008
Estate Agents Act 1979
What are penalties for non-compliance of the Estate Agency Act 1979?
Warning Order
Prohibition Order
Fine
What marketing boarding do you need planning consent for?
Illuminated boards
Remote boards
Listed buildings or conversation areas
Flat Boards over 2sm
V-boards over 2.3sqm
