By definition what is a mortgage?
A contract between 2 or more parties.
What happens in order to form a contract?
One has to make an offer and the other needs to accept it. Has to be done with utmost good faith.
What is an agent?
One who acts on behalf of another person.
What is a principal?
The person the agent is acting on behalf.
What is actual authority?
Written on what is expected of each property.
What is Apparent authority?
The seller gave them wider authority outside of the contract.
What is Ratification?
Where the agent does something but the seller accepts what the agent has done.
What does as Estate Agent do?
Acts on behalf of the vendor, not the purchaser and is paid on commission of the sale price.
What is meant by sole selling right?
Exclusive rights to sell the property and will receive a fee when vendor finds a buyer themselves.
What is meant by sole agency?
Has exclusive rights to sell but won’t get fee if vendor finds a buyer.
What is meant by Joint sole agency?
Two agents market the property and then split the commission.
What is meant by multiple agency?
Agents market the property and the one who sells gets the fee.
How long is an EPC valid for?
10 years.
What is an offer?
An offer to buy isn’t legally binding until contracts have been exchanged.
What is Gazumping?
When a vendor accepts an offer from a buyer then excepts a higher offer before exchange.
What is a mortgage offer?
Not a contract, but an invitation to the borrower to enter into a contract with the lender. Can be withdrawn in some circumstances.
What are examples of standard warranty and conditions?
- No warranty to condition of the property
- Property title
- Offer validity
What are examples of special conditions of the property?
- Additional guarantee’s
- Repairs
- Road access
- Conditions to carry out works
- Redeem any existing mortgages
What happens at exchange?
Both parties are committed.
In regards to buying at auction what is the reserve price?
The lowest amount the vendor will accept.
What happens when a bid is accepted at auction?
A deposit of 10% must be paid on the day and contracts must exchange on the same day.
What can the seller claim if the sale falls through when auctioned?
If the sale fails and a resale results in a lower price, they can claim the shortfall from the former buyer.
What is included in the legal pack before an auction?
- MOS
- Searches and land registry
- Proof of title
- Copy of the lease
What is the modern method of auction?
Associated with online transactions and there’s a non-refundable fee of 5% taken on reservation. You have 28 days to exchange and then complete.
