What is meant by ‘Good route of title’?
It is yours to sell.
What does the Local Land charges and local authority search include?
Includes town planning and road changes.
What is search indemnity insurance?
Protection when carrying out the searches.
What’s included in a ‘sellers property information form’?
- Boundaries, neighbours and services
- Changes, planning, fittings & fixtures
What’s a fixture?
Anything included in the sale price = permanent additions.
What is a fitting?
Includes personal belongings.
What is a ‘long stop date’ clause?
Often on new builds and allows the buyer to abort the contract even after exchange.
What document is signed before completion?
The mortgage deed.
What is the mortgage deed?
The binding contract between the borrower and the lender.
What happens with the money on completion?
Money goes to the purchasers solicitor who then transfers it to the seller’s solicitor.
What is included in MCOB 3A (Marketing)?
- Includes persuasion into a mortgage contract
- Financial promotions
What is a non-real time promotion?
- Letters, email, TV etc
- Must show APRC
- Held on record for 12 months
What is a real time promotion?
- Face to face
- Cold calling is not allowed
- Clear, fair and misleading
What are the 3 Levels of service you can provide to a customer?
- Unlimited
- Limited
- Single lender
What is Unlimited Service?
- Represents whole of market
- Comprehensive range of products
What is limited advice?
- Recommends and selects from a limited no of lenders.
What is a regulated mortgage?
Qualified advice, if no product is suitable, no recommendation should be made.
- Kept on record for 3 years after recommendation
What is execution only service?
Where the customer provides specific instruction
- Must be no interactive dialogue between firm and customer
If there is interactive dialogue between the firm and customer for execution only, what does it mean?
- High net-worth clients
- Professional customers
- Business customers
What allows someone to be a high net worth client?
- Annual income of £300,000 or 3m in assets in their own right.
What is the criteria to be a professional customer?
Someone who has worked in the sector for 12 months.
What document must be given at recommendation?
A KFI (Esis)
How long must illustrations be kept for?
1 year
