Propertymark Level 3 Commercial Property Agency flashcards
Propertymark Level 3 Commercial Property Agency · Build recall with a focused review session.
31 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Option to tax
- An election by a VAT-registered seller or landlord to charge VAT on a commercial property, making supplies standard-rated rather than exempt. It can be revoked in limited circumstances.
- TOGC
- Transfer of a going concern: a VAT-free sale of a business or property where the buyer continues the same business and meets VAT Notice 742A conditions.
- SDLT non-residential rates
- Stamp Duty Land Tax on commercial freehold: nil up to £150,000, 2% on £150,001–£250,000, and 5% above £250,000. Rates and thresholds are set by HMRC.
- Misrepresentation Act 1967
- Statute allowing a buyer to claim damages or rescind a contract where the seller or agent made an untrue statement of fact that induced the purchase.
- Material information
- Required disclosure in property listings split into Part A (price, tenure, council tax), Part B (physical characteristics) and Part C (legal title, flood risk, covenants).
- Estate Agents Act 1979
- Legislation requiring estate agents to disclose personal interests, handle client money properly, and belong to an approved redress scheme.
- Business Asset Disposal Relief
- A capital gains tax relief giving a 10% rate on qualifying gains from disposing of a business or its assets, up to a lifetime limit subject to conditions.
- CPRs 2008
- Consumer Protection from Unfair Trading Regulations 2008: prohibit misleading actions and omissions in property particulars. Breach is a criminal offence with unlimited fine.
- Lease by deed
- Under s.52 Law of Property Act 1925, a lease for a term exceeding three years must be granted by deed to be legally valid.
- 1954 Act security of tenure
- Part II Landlord and Tenant Act 1954 gives business tenants a right to a new lease at expiry unless the landlord proves one of the seven grounds in s.30(1).
- Contracting out
- Procedure under s.38A Landlord and Tenant Act 1954 to exclude security of tenure: serve a warning notice at least 14 days before the lease starts, or use a statutory declaration.
- Upward-only rent review
- A rent review clause where rent can only rise, never fall, at review. Common in commercial leases and usually reviewed every three or five years.
- Conditional break clause
- A tenant break right that only operates if specified conditions are met, typically vacant possession, all rent paid, and no material breach of lease covenants.
- s.18 LTA 1927
- Limits a tenant's dilapidations liability at lease end to the diminution in the value of the landlord's reversion, subject to the lease terms.
- Tenant Fees Act 2019
- Caps tenancy deposits in England at five weeks' rent where annual rent is below £50,000 and bans most tenant fees.
- Qualified alienation
- A lease clause allowing assignment or underletting only with the landlord's consent, which under s.19 LTA 1927 cannot be unreasonably withheld.
- Service charge consultation
- Under s.20 Landlord and Tenant Act 1985, landlords must consult residential tenants on qualifying works over £250 per tenant before instructing contractors.
- Rent deposit deed
- A document under which a tenant pays a sum to the landlord as security, held in a designated account, returnable on performance of lease obligations.
- Sole agency
- An instruction to a single agent to market a property, usually at a lower commission rate. Commission is typically payable on completion of a sale.
- Joint agency
- An arrangement where two agents are appointed and share commission, usually equally, regardless of which one introduces the buyer.
- Multi-agency
- An arrangement where several agents are appointed and commission is payable only to the agent who effectively introduces the buyer.
- Effective cause
- The legal test for whether an agent has earned commission: the agent's actions must be the effective cause of the transaction completing.
- Client Money Protection
- A scheme protecting client funds held by agents. Under the Estate Agents Act 1979 and CMP rules, client money must be held in a separate designated account.
- Money Laundering Regulations 2017
- Place estate agents in the regulated sector, requiring customer due diligence including identity verification and source of funds checks before transactions.
- Suspicious activity report
- A report submitted to the National Crime Agency under the Proceeds of Crime Act 2002 when an agent knows or suspects money laundering. Tipping off is an offence.
- Bribery Act 2010
- Requires commercial organisations to have adequate procedures to prevent bribery. Facilitation payments are prohibited and there is no exemption for small businesses.
- Redress scheme
- A government-approved dispute resolution body, such as The Property Ombudsman, which estate agents must join to handle consumer complaints.
- Professional Indemnity insurance
- Insurance covering claims arising from negligent advice or errors by an agent. Propertymark membership requires adequate PI cover.
- Commission terms in writing
- Propertymark guidance requires commission terms to be agreed in writing before marketing begins, including the term, rate and termination provisions.
- Health and Safety at Work Act 1974
- Places a duty on employers and those in control of premises to ensure the health and safety of workers and visitors, including managed commercial property.
- Anti-money laundering risk assessment
- A documented assessment of money laundering risk by an agent, used to apply proportionate customer due diligence and enhanced checks for higher-risk clients.