National Federation of Property Professionals Qualifications. MOL Sample Workbook

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1 Nationa Federation of Property Professionas Quaifications MOL Sampe Workbook

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3 Practice Reating to Commercia Property Agency Introduction to the sampe workbook This sampe workbook is a guide to the compete set of workbooks for the Certificate in Commercia Property Agency, written and provided by MOL on behaf of the Nationa Federation of Property Professionas (NFOPP). The fu range of property quaifications avaiabe from MOL/NFOPP is as foows. Award in Introduction to Residentia Property Management Practice (Leve 2) This is an introductory quaification offering basic knowedge in the most important subject areas reated to residentia etting and property management. Unit 1 Genera Law, Heath, Safety and Security in Reation to Residentia Letting and Property Management Unit 2 Customer Service within the Property Sector Unit 3 Introduction to Residentia Property Letting Practice Unit 4 Introduction to Residentia Property Management Practice Technica Award in Residentia Letting and Property Management (Leve 3) This programme is designed as an introduction to the knowedge and understanding required by those working, or aspiring to work, in residentia etting agency. Unit 1 Heath and Safety, Security and Genera Law Unit 2 Lega Aspects of Letting and Management Unit 3 Residentia Property Letting Practice Unit 4 Residentia Property Management Practice Technica Award in the Sae of Residentia Property (Leve 3) The Technica Award in the Sae of Residentia Property is designed as an introduction to the knowedge and understanding required by those working, or aspiring to work, in residentia estate agency or new homes saes. Unit 1 Heath and Safety, Security and Genera Law Unit 2 Law Reating to Residentia Property Saes Unit 3 Practice Reating to Residentia Property Saes Unit 4 Property Appraisa and Basic Buiding Construction/ Defects Certificate in Commercia Property Agency MOL page 3

4 Practice Reated to Commercia Property Agency Technica Award in Commercia Property Agency (Leve 3) The Technica Award in Commercia Property Agency is designed as an introduction to the knowedge and understanding required by those working, or aspiring to work, in commercia property agency. Unit 1 Heath and Safety, Security and Genera Law Reating to Commercia Property Agency Unit 2 Practice and Law Reating to Commercia Property Agency Unit 3 Law Reating to Commercia Property Unit 4 Commercia Property and Business Appraisa and Basic Buiding Construction Technica Award in Rea Property Auctioneering (Leve 3) This programme is designed as an introduction to the knowedge and understanding required by those working, or aspiring to work, in estate agency where auctioneering is an important part of the work of the agency. Unit 1 Heath and Safety, Security and Genera Law Reating to Rea Property Auctioneering Unit 2 Law Reating to Rea Property Auctions Unit 3 Rea Property Auctioneering Practice and Procedures Unit 4 Property Appraisa and the Auction Process Technica Award in Chattes Auctioneering (Leve 3) This programme is designed as an introduction to the knowedge and understanding required by those working, or aspiring to work, in chattes auctioneering. Unit 1 Heath and Safety, Security and Genera Law Reating to Chattes Auctioneering Unit 2 Law Reating to Chattes Auctions Unit 3 Chattes Auctioneering Practice and Procedures Unit 4 Chattes Appraisa and the Auctioneer s Duties and Liabiities Technica Award in Residentia Inventory Management and Practice (Leve 3) This programme covers the aw and practice of etting agency and inventory management in Engand and Waes. Unit 1 Genera Law, Heath, Safety and Security in Reation to Residentia Inventory Management and Practice Unit 2 Lega Aspects of Residentia Inventory Management and Practice Unit 3 Residentia Letting and Property Management Unit 4 Residentia Inventory Management and Practice page 4 Certificate in Commercia Property Agency MOL

5 Practice Reating to Commercia Property Agency Certificate (Leve 4) The Leve 4 Certificate programmes are designed for more experienced peope working within agency such as senior negotiators, managers and principes. The fu certificate has 8 units, but the first two are carried forward from the reevant technica award. There are four additiona technica units specific to each pathway, and two common office/peope management units. The common management units are Unit 7 Introduction to Office Management Unit 8 Advanced Office Management The three pathways and their technica units are as foows. Certificate in Residentia Letting and Property Management Unit 3 Lega Aspects Reating to Residentia Letting and Management Unit 4 Practice Reating to Residentia Property Management Unit 5 Appraisa and Residentia Property Letting Practice Unit 6 Appied Law Reating to Residentia Letting and Management Certificate in Commercia Property Agency (Leve 4) Unit 3 Lega Aspects Reating to Commercia Property Unit 4 Practice Reating to Commercia Property Agency Unit 5 Market Appraisa, Vaue and Inspection Reating to Commercia Property Agency Unit 6 Buiding Design and Defects for Commercia Property Agency Certificate in the Sae of Residentia Property (Leve 4) Unit 3 Lega Aspects Reating to Residentia Estate Agency Unit 4 Practice Reating to Residentia Estate Agency Unit 5 Market Appraisa, Vaue and Inspection Reating to Residentia Estate Agency Unit 6 Buiding Design and Defects for Residentia Estate Agency Certificate in Commercia Property Agency MOL page 5

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8 Practice Reated to Commercia Property Agency Produced for MOL Cert CPA sampe unit v1 8/2014 A rights reserved; no part of this pubication may be photocopied, recorded or otherwise reproduced, stored in a retrieva system or transmitted in any form by any eectrica or mechanica means, without the prior permission of the copyright owners. page 8 Certificate in Commercia Property Agency MOL

9 Practice Reating to Commercia Property Agency Contents Introduction section 1 The agent s (ega) authority Definition of estate agency Types of agency authority Limits to agent s authority 16 Review exercise 19 Answers to sef check questions 20 section 2 The Estate Agents Act 1979: reguation, enforcement and sanctions The appication of the Estate Agents Act What is estate agency? 25 Review exercises 38 Answers to sef check questions 41 section 3 Estate Agents Act 1979: the estate agent s duties to cients Common aw duties Duties under common aw and egisation Duties under egisation 56 Review exercises 63 Answers to sef check questions 67 section 4 The Estate Agents Act 1979: the agent s duties to third parties Duty to discose persona interests to prospective buyers Duty not to discriminate against prospective buyers Duty not to misrepresent to prospective buyers other offers or the status of other prospective buyers Duty not to make negigent statements to prospective buyers about the property being sod 76 Review exercise 78 Answers to sef check questions 80 section 5 The Property Misdescriptions Act The Property Misdescriptions Act 1991 (PMA) Enforcement and penaties Misrepresentation and misdescription 93 Review exercises 98 Answers to sef check questions 100 section 6 The Consumer Protection from Unfair Trading Reguations The aim of the Reguations Enforcement 105 Review exercise 109 Answers to sef check questions 110 Certificate in Commercia Property Agency MOL page 9

10 Practice Reated to Commercia Property Agency section 7 Financia Services and Markets Act 2000 and Consumer Credit Act Financia Services and Markets Act Consumer Credit Act Review exercise 122 Answers to sef check questions 123 section 8 Board reguations Town and Country Panning Act (Contro of Advertisements) (Engand) Reguations Review exercise 129 Answers to sef check questions 130 section 9 Methods of disposa Private treaty Auction Tender 138 Review exercise 141 Answers to sef check questions 143 section 10 Types of agency instruction Soe agency type instructions Mutipe agency type instructions 148 Review exercises 151 Answers to sef check questions 153 section 11 The marketing process 11.1 Taking instructions 11.2 Measuring commercia property and the Code of Measuring Practice 11.3 Preparation of particuars Property adverts and media types Conduct of the sae 169 Review exercises 171 Answers to sef check questions section 12 Seing or etting the property Buyer/tenant detais Viewings Offers Obtaining andord s consent to assign Heads of terms Deaing with common probems 190 Review exercises 197 Answers to sef check questions 200 section 13 The Commercia Lease Code Landord and tenant code Mode heads of terms 211 Review exercise 214 Answers to sef check questions 215 page 10 Certificate in Commercia Property Agency MOL

11 Practice Reating to Commercia Property Agency section 14 Management issues Instructions to manage Cients money Rent reviews Diapidations Service charges The RICS Code of Practice: Service charges in property 229 Review exercise 235 Answers to sef check questions 236 section 15 Licensing of property The objectives of the Licensing Act Premises icences Persona icences 244 Review exercise 247 Answers to sef check questions 248 section 16 Capita and income taxes affecting property Income tax Corporation tax Capita gains tax (CGT) Inheritance tax Vaue Added Tax (VAT) Stamp duty and tax 266 Review exercise 272 Answers to sef check questions 274 section 17 Uniform business rate Uniform business rate (UBR) Hereditaments and rateabe occupation Empty property rates Reiefs and exemptions Rateabe vaue Antecedent vauation date (AVD) Appeas 287 Review exercise 291 Answers to sef check questions 293 Suggested answers to review exercises 295 Certificate in Commercia Property Agency MOL page 11

12 Practice Reated to Commercia Property Agency page 12 Certificate in Commercia Property Agency MOL

13 Practice Reating to Commercia Property Agency Introduction Ask any person what they think an estate agent is and the answer wi probaby be someone who ses houses. Estate agency per se, however, covers much more than the sae of residentia property. Commercia estate agents activities in particuar wi incude acting for cients in the acquisition and disposa of freehod and easehod interests. It is much more common in the commercia agency sector for an agent to act for cients in the acquisition of and and property than in the residentia sector, athough obviousy many commercia agents are aso invoved in the sae and etting (easing) of commercia units. As many commercia properties are hed on eases, there is as much activity in etting vacant property, or what is known as assigning an existing ease (finding another party to take over the ega responsibiities of that ease to aow them to occupy the property as a tenant), as there is in pure saes. For simpicity, in the rest of this unit we wi assume that the cient is the seer of the property, athough within the commercia property word they coud just as easiy be the buyer, the andord, or an outgoing or incoming tenant. Commercia agents are aso often concerned as much with the seing side of a (trading) business itsef (known as business transfer agents) as they are with the activities associated with the sae and acquisition of property. Others may act for cients in the management of the property, usuay caed managing agents. Some may act for cients in seing or acquiring property hed as an investment as opposed to owner occupation; or they may act for cients in ocating and acquiring and or property for deveopment purposes and their advice may aso incude matters reating to the deveopment itsef. Eary sections of this unit wi focus on the ega framework of commercia estate agency, incuding the agent s ega authority, The Estate Agents Act 1979, The Property Misdescriptions Act 1991, Provision of Financia Services, Business/Consumer Protection, and board reguations. Later sections wi focus on practica aspects of commercia property agency, such as terms of agency instructions, methods of sae, the marketing process and the preparation of particuars. Other issues directy reating to commercia property, such as referencing, preparation of marketing particuars, adverts and heads of terms when a buyer or a tenant has been found wi be covered. Matters such as income tax, corporation tax, VAT, Stamp Duty Land Tax and uniform business rate, as we as management issues incuding rent reviews, diapidations and service charges wi aso be detaied. Certificate in Commercia Property Agency MOL page 13

14 Practice Reated to Commercia Property Agency Learning objectives Having competed this unit you wi know and understand how to 3 expain how an agent/principa reationship can be created (ie an agency contract) 3 detai the scope and enforcement of The Estate Agents Act 1979 and associated Reguations and Orders 3 define your duties as an agent to your cient under the egisation 3 define your duties to third parties, such as tenants, seers, andords and buyers, under the egisation 3 expain the common aw concept of misstatement, misdescription and misrepresentation and the egisative provisions of The Property Misdescriptions Act expain the concepts contained in The Consumer Protection from Unfair Trading Reguations 2008 (business/consumer protection) 3 ist the reguations covering the use of for sae or to et boards 3 describe the constraints paced on agents by reguations covering the provision of financia services 3 conform to the egisation when agreeing the terms of agency instructions 3 expain the advantages and disadvantages of the aternative methods of sae and etting 3 describe the marketing process for saes and ettings, incuding the concept of andord s consent in respect of assignments and subeases, and handing offers 3 prepare marketing particuars, energy performance certificates for commercia property, heads of terms and saes confirmation etters 3 progress saes and ettings, incuding deaing with common probems such as schedues of condition/surveys, tenant referencing, ascertaining tenant covenant strength etc 3 ist what s incuded in the Commercia Lease Code 3 understand management issues, incuding service charges, diapidations and rent reviews 3 understand the ega requirements and processes invoved in the icensing of premises 3 understand the basic principes of capita and income taxes, incuding income and corporation tax, capita gains tax and inheritance tax, iabiity to VAT and stamp duty and tax 3 expain the concept and operation of uniform business rates page 14 Certificate in Commercia Property Agency MOL

15 section 11 The marketing process So far you have ooked at how both statute and common aw can affect commercia estate agency in terms of what can and cannot be done by an agent, and other practica matters such as types of agency arrangement and methods of disposa. This section wi focus on more day-to-day practica issues and wi ook at the ways in which commercia estate agents respond to instructions they receive to pace properties on the market to rent or se. You wi ook at matters such as taking instructions, how to measure commercia property, when and how to provide an energy performance certificate (EPC), the preparation of particuars and advertisements and the conduct of the sae. The foowing section (Section 12) wi consider how to dea with offers from buyers or potentia tenants, the need to obtain andord s consent for assignments or subeases, how to ascertain covenant strength (how suitabe potentia tenants are ikey to be) and the preparation of heads of terms and sae confirmation etters. Learning objectives Having competed this section you wi know and understand how to 3 compy with existing egisation when taking instructions to dispose of a commercia property 3 measure a commercia property and outine the Code of Measuring Practice 3 specify what shoud be incuded in property particuars 3 state who is responsibe for providing an EPC, and how and when these shoud be made avaiabe 3 create adverts, keeping in mind basic advertising principes 3 choose appropriate media types for different forms of advertising and promotion 3 expain the differences between deaing with a sae and a etting/assignment 3 expain why andord s consent is required in respect of assignments or subeases 3 dea with offers 3 draw up heads of terms 3 take instructions Certificate in Sae of Residentia Property MOL page 15

16 Practice Reating to Commercia Property Agency 11.1 Taking instructions question 1 sef check From your studies of earier sections, can you remember what the common aw and statutory requirements are that are paced on you as a commercia agent? Compare your answer with the one given at the end of this section. page 16 Certificate in Commercia Property Agency Sampe Workbook MOL

17 Section 11 The marketing process Initia stage The start of the process of marketing a commercia property wi be a vauation or market appraisa of the unit which is to be sod or et (or the ease assigned). It woud be usua to not ony measure the premises in order to cacuate the capita or renta vaue but aso, if a ease assignment, to ask for a copy of the existing ease, together with detais of the andord and/or their agent, so they can eventuay be approached for forma consent to assign the ease. The foowing matters shoud aso be discussed with the cient at the initia inspection and appraisa stage method of sae and reasons for sae/etting/assignment asking price/rent fixtures and fittings viewing arrangements for sae or to et boards vacant property the commissioning of a commercia energy performance certificate Let us ook at each of these in more detai. Method of sae and reasons for sae/etting/assignment You wi remember from Section 9 that we ooked at the three main methods of sae and when they tend to be used. The cient s reason for the sae may determine the advice given about the method of sae, and so it is good practice to find out the exact needs of the cient and exacty why they want to move. This appies equay to properties to et. Whie these tend to be deat with by and arge by private treaty, the andord/owner or existing tenant may have specific timescaes in mind and so, on a new etting, this may affect your advice as to asking rent for exampe a quick etting wi be achieved best by adopting a ower asking rent, which you know to be highy competitive with what ese is avaiabe on the market at that time. Asking price/rent An initia vauation/appraisa is required to determine the asking price or rent. The figure recommended wi in part be determined by the method and reasons for a sae/etting, as we as by the comparabe evidence which the vauer shoud have obtained before carrying out the initia inspection. Fixtures and fittings Where business premises are being sod, fixtures and fittings tend to be treated as a norma part of the sae price. These wi often reate to pant and machinery, dispay fixtures, etc as we as more moveabe items. Again, it is important to estabish and document which of these items are to be incuded to avoid possibe probems ater in the sae process. Certificate in Commercia Property Agency Sampe Workbook MOL page 17

18 Practice Reating to Commercia Property Agency Viewing arrangements These need to be discussed with the cient at the initia appraisa stage. It is usua in commercia agency for any viewer to be accompanied by the agent, as the agent is the expert in the sae/etting process and shoud be abe to contro this more successfuy if viewers are aways accompanied. Couped with the viewing process is the need to have a good system to contact viewers as soon as practicabe after the viewing to obtain their feedback. Carefu questioning shoud aow an agent to identify what the viewer iked and disiked about the property, and aso offer aternative properties to be considered. It is aso usefu during the viewing itsef to ask the direct question Is this property one you woud consider?. If nothing ese, it then gives the opportunity for diaogue as to whether the property is suitabe, or if any other property you are deaing with may be an aternative proposition. For sae or to et boards Whie it is a ciché, the use of a for sae or to et board is an exceent 24/7 means of bringing to the attention of interested parties that a particuar property is on the market. You shoud, of course, bear in mind the specific requirements of the panning aws in respect of boards. There are some circumstances where a board wi not be required by the cient, such as the confidentia sae of a business, where the use of a board may be totay inappropriate. Where an investment property is being sod, subject to the ease of an existing business, a sip on the board indicating business unaffected may aso be appropriate. Vacant property If the property being marketed is empty, then suitabe precautions shoud be discussed with the cient regarding matters such as security, maintenance, the draining down of water and heating systems in winter, etc. If the property is aarmed, codes need to be obtained, and recorded securey in the office. Energy performance certificates (EPCs) A commercia buiding which is either constructed, sod or et, now requires an energy performance certificate (EPC). A buiding is defined under the egisation as a roofed construction having was, for which energy is used to condition the indoor cimate, and a reference to a buiding incudes a reference to a part of a buiding which has been designed or atered to be used separatey The reference to conditioning the indoor cimate means that the buiding wi have to have fixed services for heating, air conditioning and mechanica ventiation. As the provision of hot water or eectric ighting does not condition the indoor cimate, if the buiding contains ony these two fixed services, there wi be no requirement for an EPC. page 18 Certificate in Commercia Property Agency Sampe Workbook MOL

19 Section 11 The marketing process An EPC is not required for paces of worship temporary buidings with a ife expectancy of ess than two years stand-aone buidings with a foor area of ess than 50m 2 industria buidings, workshops and non-domestic agricutura buidings with no indoor cimate conditioning An EPC must be made avaiabe free of charge by the seer or andord, usuay via their agent, to prospective buyers or tenants. The Reguations state the EPC shoud be made avaiabe at the eariest opportunity. This is not specificay guided, but in practica terms this shoud be no ater than when any written information is provided in response to a request for information from a potentia buyer or tenant, or when a viewing is being conducted, or in any event, before a contract to se or et is entered into You shoud note that an EPC does not have to be made avaiabe if the seer or andord has reasonabe grounds for beieving the prospective buyer or tenant is not genuiney interested in acquiring the buiding, or is unikey to have sufficient funds to do so the seer or andord is unikey to se or et the buiding to the prospective buyer or tenant With commercia property, with effect from 6 Apri 2012, the agent wi be jointy responsibe with the seer/andord/assignor for ensuring the EPC is produced. Prior to this date, this was not the responsibiity of the agent, just that of the seer/andord/assignor, but TSOs, under changes to the Energy Performance of Buidings Reguations 2007, have, after 6 Apri 2012, the power to require persons acting on behaf of, eg commercia agents, to produce copies of the EPC. The EPC wi have a shef ife of 10 years and wi be entered onto a centra register. The information wi be kept for 20 years. Again, as from 6 Apri 2012, the time to produce an EPC from the date of first marketing (for sae or to rent) has been reduced from 28 to 7 days. In addition to this, it wi no onger be acceptabe from this date to just put a graph on a set of written particuars, but the front page of the EPC wi aso be required. ICBA/NAEA etc made many representations to the government regarding these changes, foowing which the Housing Minister agreed that the part of the EPC going with the particuars coud be in back and white and not coour, and coud be of any size, as ong it was egibe. Agreement was aso obtained that the front page of the EPC did not have to be physicay attached to the particuars. Business transfer agents in particuar are concerned that stating the fu address of a property on an EPC might breach confidentiaity issues in respect of business saes, and again the minister has recognised this possibe breach of confidentiaity with business saes, so discussions are sti ongoing between the government and ICBA/NAEA as to how this might be achieved. Certificate in Commercia Property Agency Sampe Workbook MOL page 19

20 Practice Reating to Commercia Property Agency key points > On taking instructions, the agent must find out the cient s reason(s) for sae/etting/assignment > The method of sae, asking price/rent, fixtures and fittings incuded, for sae / to et board, viewings and provision of an EPC need to be discussed question 2 sef check Wi an EPC be required in the foowing situations if the property in question is to be either sod or et? a) You have been asked to market a shop with a separate fat above which has its own access via a side door. b) A warehouse has a mezzanine foor used as offices. The warehouse has no heating, but does have a hot water suppy for the kitchen and toiets. The offices have a wet gas heating system. c) You are seing a carpet shop property for a cient who has stated they wi not se to a certain Mr Smith, who is a direct competitor. Mr Smith has seen your board and wishes to view. He has asked to see a copy of the EPC. What shoud you do? Compare your answers with those given at the end of this section. page 20 Certificate in Commercia Property Agency Sampe Workbook MOL

21 Section 11 The marketing process 11.2 Measuring commercia property and the Code of Measuring Practice One of the specified matters of the Property Misdescriptions Act 1991 (PMA) is accommodation, measurements or sizes, so by defaut it requires agents to be accurate with their measurements and what is dispayed on property detais, so this does not give a miseading impression of the accommodation being offered. Many peope new to commercia agency do not reaise that different types of property are measured differenty. For exampe, a shop wi be measured to what is known as a net interna basis, whie a factory or warehouse wi be measured to what is known as a gross interna basis. Commercia vauers, much more than their residentia counterparts, tend to vaue on a rate per square metre (or square foot) basis. As a consequence, consistency in measurement is required, which brought about the RICS Code of Measuring Practice, now in its 6th edition. This sets out the accepted way to measure both commercia and residentia property, it is generay accepted as the measure of best practice and woud be the benchmark when deaing with queries to measurements under the Property Misdescriptions Act In many commercia properties, areas to be measured are roughy square or rectanguar, and the measuring process is reativey simpe. However, not a commercia property is reguar in shape or size, and may incude staircases, coumns and piers, ift shafts, pant room, etc. For most commercia property, the area is stated as we as room dimensions, and so if you are inaccurate with your measurement this can be compounded when working out areas. The areas you wi come across in deaing with the Code of Measuring Practice are gross externa area (GEA) the area around the externa was of the property gross interna area (GIA) the area within the externa was of the property net interna area (NIA) the area within the externa was, but excuding interna non-structura was and partitions Certificate in Commercia Property Agency Sampe Workbook MOL page 21

22 Practice Reating to Commercia Property Agency The definitions, the parts of the buiding incuded and excuded from measurements and the main uses of these areas are shown in figure Definition Incuded Excuded Appication Gross Externa Area (GEA) Thickness of externa was Externa projections Party was measured to their centre ines Open baconies Open fire escapes Open parking areas and terraces Buiding cost estimation Site coverage Pot ratio Panning Insurance reinstatement cacuations Gross Interna Area (GIA) As for GEA except for excusions Externa wa and party wa thickness Externa projections Industria and warehouse agency Rating of industria and warehouse premises Net Interna Area (NIA) Usabe area of the buiding Toiets, bathrooms and ceaners' cupboards Lifts and pant rooms Offices and shops for agency and rating Service charge apportionment Stair and ift wes Common areas of entrances, atria Landings and baconies used for essentia access Space occupied by air conditioning apparatus Interna structura was and those encosing excuded areas, for exampe coumns, piers and chimney breasts Areas with ess than 1.5 m headroom Figure 11.1 page 22 Certificate in Commercia Property Agency Sampe Workbook MOL

23 Section 11 The marketing process question 3 sef check Figures 11.2 and 11.3 show two commercia properties, Unit A and Unit B, with measurements and interna detai. Unit A is to be measured to GIA and Unit B to NIA. What measurements woud you give for each unit? WCs e WCs e f f b Support stanchions Unit A b Support stanchions Unit B c c d d Figure 11.2 Unit A a Figure 11.3 Unit B a Compare your answer with the one given at the end of this section. key point > Property shoud be measured using the RICS Code of Measuring Practice Certificate in Commercia Property Agency Sampe Workbook MOL page 23

24 Practice Reating to Commercia Property Agency Question 1 Answers to sef check questions The common aw duties of an estate agent incude to act honesty in the best interests of the cient not to aow the duty to the cient and the interests of the agent to confict to carry out a awfu instructions of the cient to exercise reasonabe ski and care in carrying out the instructions to observe confidentiaity with regard to information obtained not to make a secret profit from your position as an agent The statutory requirements are those aid down in the Estate Agents Act 1979 and associated Reguations. In essence, these state that estate agents shoud give a of the terms of their proposed agency to the cient in writing before the cient is committed to the agent. The Estate Agents Act 1979 and the Provision of Information Reguations 1991 are quite specific about some aspects of taking instructions, in particuar that these shoud be in writing, and specific terms commony used by agents need to be expained before there is any commitment by the cient to the agent. In addition, Section 18 of the Estate Agents Act 1979 states that the seer/andord shoud be informed of the circumstances in which commission payment becomes due how this commission wi be cacuated detais of any additiona payments and how and when the seer wi become iabe to pay them an expanation of the agency terms using the prescribed wording (such as ready, wiing and abe ) detais of any tie-in services the agent may offer This information needs to be given to the cient in writing and before a contract of agency comes into being. Question 2 a) The iving accommodation is separate from the shop (it has its own access) and so an EPC wi be needed for the shop, and a further EPC for the fat above. b) The hot water in the warehouse, even though a fixed service, does not contro the indoor cimate and so an EPC is not required for this part of the buiding. An EPC wi be required for the separatey heated offices. c) As your cient has instructed you that he wi not se to a competitor, and specificay named Mr Smith as such, you shoud expain to Mr Smith that the Reguations state you are under no obigation to et him see the EPC. It may be advisabe to refer him to the detai of the Reguations shoud he wish to check this for himsef. page 24 Certificate in Commercia Property Agency Sampe Workbook MOL

25 Section 11 The marketing process Question 3 Unit A, being measured on a GIA basis woud be cacuated. The area is a x b. For Unit B, being measured on an NIA, the answer is a itte more compex. The gross area is again a x b, but from this we need to deduct the area of the stanchions and the WCs to produce the NIA. The area of the stanchions is c x d x 6, and the WCs is f x e, so the NIA is (a x b) [(c x d x 6) + (f x e)] Certificate in Commercia Property Agency Sampe Workbook MOL page 25

26 Practice Reating to Commercia Property Agency page 26 Certificate in Commercia Property Agency Sampe Workbook MOL

27 Why choose MOL for your property programmes? With MOL s onine property programmes, the workbook is just the start.* Make your studies more enjoyabe and effective with MOL s onine support, incuding a study guide mock mutipe choice tests mind maps fash cards S e f c h e c k a c t i v i t y 1 Time guide: 10 minutes ook at the foowing statements and tick the appropriate coumn, dicating whether the statement appies to you fuy, in part or not at. If you wish, use the space provided to write your own comments, hich coud be designed to modify the statement concerned or to xpress a different view atogether on the same subject. his statement appies to me Aways Sometimes Never I do not fee confident when starting a new earning process I ook upon earning as a chore rather than a chaenge I have a bad memory for notes and reading in genera I find note taking arduous or difficut I never seem to have enough time to do the work I understand the materia, but I cannot put it across we in written examinations or assignments I do not have sufficient wipower to stick at it I am beow average academicay. I fee at a disadvantage before I even start I fee disorganised my thought processes and work systems are haphazard 0 I start with good intentions, but usuay ose interest part way through 1 I find textbooks difficut to use it s ike wading through treace 2 I make notes, but I aways fee I need to re-read the origina book before I take an exam or compete an assignment or essay 3 I find my mind wanders when I study 4 I sometimes fai to see the reevance of what I am studying, either to the rest of the programme or to my job * VLE support is currenty avaiabe for the foowing programmes Leve 2 Award in Introduction to Residentia Property Management Practice Leve 3 Technica Award in Sae of Residentia Property Leve 3 Technica Award in Residentia Letting and Property Management Leve 3 Technica Award in Commercia Property Agency CONTACT US FOR A FREE ONLINE DEMO! (CONTACT DETAILS OVERLEAF)

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