I85PREP
⌘ K
Propertymark L3 Residential Inventory Management study materials
Propertymark L3 Residential Inventory Management study resources

Propertymark L3 Residential Inventory Management practice questions

One question at a time. Build your Propertymark L3 Residential Inventory Management understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Sales

Under the Estate Agents Act 1979, what must an agent do before accepting a client's instruction to market a residential property?

  1. Take a holding deposit from the client
  2. Obtain the client's passport and a utility bill
  3. Publish the listing on a portal within 24 hours
  4. Provide written terms of business setting out fees and charges Correct answer.

Explanation

The Estate Agents Act 1979 and associated regulations require agents to give clients written terms of business before work begins, stating fees, charges and how commission is calculated. Identity checks and portal listings are separate obligations and not the precondition for instruction.

Question 2Sales

A sales agent is preparing particulars for a freehold house. Which detail most directly affects whether the property can be described as 'freehold' in the listing?

  1. The energy performance certificate rating
  2. The seller's asking price
  3. The council tax band assigned to the property
  4. The title register entries held at HM Land Registry Correct answer.

Explanation

Tenure is determined by the registered title (or unregistered deeds) held at HM Land Registry, so the title register is the authoritative source. Council tax band, EPC rating and price do not evidence tenure.

Question 3Sales

Which document must be available for a residential property before it is marketed for sale, under the Energy Performance of Buildings Regulations?

  1. A boiler service record
  2. A structural survey report
  3. A valid Energy Performance Certificate Correct answer.
  4. A buildings insurance schedule

Explanation

Marketing a home for sale requires a valid EPC to be available and the rating stated in the particulars. Insurance schedules, surveys and boiler records are not statutory marketing prerequisites.

Question 4Sales

A prospective buyer asks an agent whether a property has ever suffered from subsidence. What is the most appropriate response?

  1. Confirm the property is sound because the seller said so
  2. Disclose any known material facts and advise the buyer to obtain a survey Correct answer.
  3. Refer the buyer to the council's building control records only
  4. State that the agent cannot comment on structural matters at all

Explanation

Agents must not mislead and should pass on known material information while advising buyers to rely on their own survey. Refusing to comment entirely or repeating the seller's assurance without qualification risks misleading the buyer.

Question 5Sales

An agent is instructed on a leasehold flat with 68 years remaining on the lease. Why is this likely to be a material point for buyers?

  1. Short leases can affect mortgage availability and the cost of extending Correct answer.
  2. It removes the need for a service charge
  3. It automatically prevents the sale from proceeding
  4. It changes the council tax band for the flat

Explanation

Leases below roughly 80 years can make lending difficult and increase the premium for a lease extension, so it is material information. It does not automatically block a sale or alter council tax or service charge obligations.

Question 6Sales

During a viewing a buyer tells the agent they will offer £10,000 above asking if the seller throws in the integrated appliances. What should the agent do?

  1. Accept the offer on the seller's behalf
  2. Wait until the buyer confirms in writing before telling the seller
  3. Advise the buyer to reduce the offer to avoid overpaying
  4. Record the offer and any conditions and promptly relay them to the seller Correct answer.

Explanation

Agents must pass all offers and their conditions to the client promptly and accurately, keeping a written record. Advising on price, accepting without authority, or delaying notification is improper.

Question 7Sales

Which practice best demonstrates compliance with consumer protection law when writing a property description?

  1. Using clear factual statements that can be substantiated Correct answer.
  2. Omitting any mention of a shared access driveway
  3. Using superlatives to attract more enquiries
  4. Describing a room as a bedroom when it is a study

Explanation

Descriptions must be accurate and capable of substantiation to avoid misleading actions under consumer protection law. Superlatives, mislabelling rooms and omitting material features risk breaching those rules.

Question 8Sales

An agent receives two offers on the same day. What is the correct approach?

  1. Inform the seller of both offers and let them decide Correct answer.
  2. Ask the buyers to bid against each other in a live auction format
  3. Accept the higher offer immediately to secure the sale
  4. Hold both offers until a third is received

Explanation

The agent's duty is to present all offers to the client and allow the seller to instruct on which to accept. Accepting unilaterally, stalling, or running an unauthorised bidding process is improper.

Question 9Sales

What is the primary purpose of requesting proof of identity and address from a seller at the outset of an instruction?

  1. To satisfy buildings insurance conditions
  2. To establish the property's market value
  3. To comply with money laundering regulations Correct answer.
  4. To confirm the seller's creditworthiness

Explanation

Customer due diligence under the money laundering regulations requires agents to verify the identity of clients in relevant transactions. It is not about creditworthiness, valuation or insurance.

Question 10Sales

A seller instructs an agent to market a property but refuses to allow any board or online listing, wanting only discreet word-of-mouth marketing. How should the agent proceed?

  1. Market the property online anyway to achieve a sale
  2. Decline the instruction because online listing is mandatory
  3. Agree terms reflecting the restricted marketing and record the client's instruction Correct answer.
  4. List it online but hide the address

Explanation

The agent should agree terms that reflect the client's lawful marketing preferences and document them. Overriding the client's instruction or inventing a mandatory listing rule is wrong.

Question 11Sales

Which item is most likely to be classified as a fixture rather than a fitting when preparing a sales listing?

  1. A potted plant on the patio
  2. A built-in wardrobe fixed to the wall Correct answer.
  3. A washing machine connected by a hose
  4. A freestanding dining table

Explanation

Items permanently fixed to the property, such as built-in wardrobes, are generally fixtures and pass with the property unless excluded. Freestanding or loosely connected items are fittings or chattels.

Question 12Sales

An agent's particulars state 'south-facing garden' but the garden actually faces west. What is the main risk?

  1. No risk because garden orientation is a matter of opinion
  2. A misleading statement giving rise to a claim and regulatory breach Correct answer.
  3. A breach of the EPC regulations
  4. An automatic right for the buyer to rescind after completion

Explanation

A factual misdescription can be a misleading action under consumer protection law and may expose the agent to claims. Orientation is a verifiable fact, not opinion, and the EPC rules are unrelated.

Question 13Sales

Before a property is advertised, which detail about a service charge should a leasehold seller's agent confirm and disclose?

  1. The current annual amount and any known major works liability Correct answer.
  2. The managing agent's personal contact history
  3. The colour scheme of communal areas
  4. The number of other flats the buyer has viewed

Explanation

Service charge levels and known future liabilities such as major works are material to a buyer's decision and should be confirmed and disclosed. The other items are irrelevant to the transaction.

Question 14Sales

A buyer's offer is accepted subject to contract. What does 'subject to contract' signify?

  1. The seller cannot accept other offers
  2. The deposit is non-refundable
  3. The buyer is legally committed to complete
  4. No binding contract exists until formal exchange Correct answer.

Explanation

'Subject to contract' means the parties are not yet legally bound and either may withdraw until contracts are exchanged. It does not create commitment, lock out other offers, or make a deposit non-refundable.

Question 15Sales

An agent is asked by a seller to withhold the fact that a neighbouring property is subject to a planning application for a large development. How should the agent respond?

  1. Explain that known material facts should be disclosed and seek the seller's agreement Correct answer.
  2. Agree to withhold it because the seller is the client
  3. Resign immediately without discussion
  4. Disclose it only if the buyer specifically asks

Explanation

Agents should not participate in withholding known material information and should advise the client accordingly. Withholding, conditional disclosure, or abrupt resignation without discussion are inferior responses.

Question 16Sales

Which statement about an agent's authority to negotiate on a seller's behalf is correct?

  1. Authority is limited to what the agency agreement and client instructions permit Correct answer.
  2. The agent may vary the contract terms without reference to the seller
  3. The agent may agree any price the buyer offers
  4. The agent may accept a deposit as binding on the seller

Explanation

An agent's authority derives from the agency agreement and the client's instructions and is limited accordingly. The agent cannot bind the seller to price, contract terms or deposits beyond that authority.

Question 17Sales

An agent markets a property as having 'off-street parking for two cars', but the second space is on land owned by a neighbour with no legal right of use. What is the key issue?

  1. The claim misrepresents a legal right the property does not have Correct answer.
  2. The council tax band will change
  3. The EPC must be reissued
  4. Parking is never material to a buyer

Explanation

Stating parking that depends on a third party's land without a legal right misrepresents the property's benefits and could mislead buyers. Parking can be material, and EPC or council tax are unrelated.

Question 18Sales

What is the main purpose of an agent keeping written records of viewings, offers and client instructions?

  1. To evidence compliance and the basis of advice if a dispute arises Correct answer.
  2. To satisfy the EPC regulations
  3. To replace the need for terms of business
  4. To calculate the council tax band

Explanation

Contemporaneous records provide evidence of compliance and of the advice and instructions given, which is vital if a complaint or dispute arises. They are not connected to EPC, council tax or a substitute for terms of business.

Question 19Sales

A seller wants to accept an offer but the buyer has not yet provided proof of funds. What is the most prudent advice to the seller?

  1. Ask the agent to obtain evidence of the buyer's ability to proceed before exchange Correct answer.
  2. Instruct the agent to exchange contracts immediately
  3. Increase the asking price to compensate for the risk
  4. Refuse to deal with the buyer entirely

Explanation

Confirming the buyer's ability to proceed, such as proof of funds or a mortgage agreement in principle, reduces the risk of a failed transaction before exchange. Exchanging immediately or refusing to deal are disproportionate.

Question 20Sales

Which of the following best describes the agent's duty when a seller gives instructions that would breach consumer protection law?

  1. Follow the instruction because the seller is the client
  2. Decline to act on the unlawful instruction and explain the reason Correct answer.
  3. Ask the buyer to agree to the approach
  4. Follow the instruction but note it in the file

Explanation

An agent must not carry out instructions that would involve misleading buyers or breaching consumer protection law, and should explain why. Client instruction or file notes do not legitimise unlawful conduct.

Question 21Sales

A property is being sold with a tenant in situ. What should the agent confirm before marketing?

  1. That the tenant has agreed to leave before completion
  2. The tenancy type and terms and that the sale can proceed with the tenant remaining Correct answer.
  3. That the rent will increase on sale
  4. That the buyer will not need a mortgage

Explanation

Marketing with a tenant in situ requires clarity on the tenancy type, its terms and whether the sale proceeds with the tenant remaining. Assumptions about the tenant leaving, rent changes or buyer finance are not for the agent to impose.

Question 22Sales

What does 'gazumping' refer to in the sales process?

  1. An agent withdrawing a listing without notice
  2. A buyer reducing their offer after a survey
  3. A seller refusing viewings during the first week
  4. A seller accepting a higher offer after previously accepting another, before exchange Correct answer.

Explanation

Gazumping occurs when a seller accepts a higher offer from another party after having accepted an earlier offer, before contracts are exchanged. It is distinct from a buyer renegotiating after survey or from listing or viewing decisions.

Question 23Sales

An agent is preparing a listing and the seller claims a loft conversion was completed with building regulations approval but has no certificate. How should the agent describe it?

  1. Describe it as fully compliant because the seller said so
  2. Omit any mention of the loft conversion
  3. Describe it as a formal bedroom with guaranteed consent
  4. State what is known and avoid asserting approval that cannot be evidenced Correct answer.

Explanation

The agent should describe the position accurately and not assert approvals that cannot be substantiated. Repeating unverified claims, omitting the feature entirely, or guaranteeing consent would mislead buyers.

Question 24Sales

Which of these is the most appropriate way for an agent to handle a conflict between two clients, a seller and a prospective buyer, both wanting the agent's advice?

  1. Explain the agency relationship and recommend independent advice where needed Correct answer.
  2. Advise both parties fully on price and negotiation strategy
  3. Keep the conflict secret from both parties
  4. Act for whichever party pays the higher fee

Explanation

The agent acts for the seller and should be transparent about that relationship, recommending independent advice where a party needs it. Advising both sides, fee-driven loyalty or concealment would be improper.

Question 25Sales

A seller asks the agent to include the phrase 'no chain' in the particulars. What should the agent verify first?

  1. That the buyer has a mortgage agreed
  2. That the property has an EPC
  3. That the seller's own sale is not dependent on another transaction Correct answer.
  4. That the council tax band is correct

Explanation

'No chain' means the seller's sale is not dependent on another linked transaction, so the agent should verify the seller's position before stating it. Buyer finance, EPC and council tax do not determine whether a chain exists.

Question 26Sales

Which document should an agent check to confirm a seller's legal right to sell a property?

  1. The property information form
  2. The mortgage statement
  3. The title register Correct answer.
  4. The energy performance certificate

Explanation

The title register, held by the relevant land registry, records the legal owner and any restrictions on the title. It is the primary document for verifying the seller's authority to sell.

Question 27Sales

What is the primary purpose of an energy performance certificate (EPC) when marketing a property for sale?

  1. To set out the annual cost of utilities for the property
  2. To confirm that the property meets current building regulations
  3. To provide a rating of the property's energy efficiency and recommendations for improvement Correct answer.
  4. To certify that the heating system has been serviced recently

Explanation

An EPC gives an energy efficiency rating and suggested improvements. It is a legal requirement when marketing a property for sale.

Question 28Sales

Which of the following is a 'fixture' rather than a 'fitting' when preparing property particulars?

  1. A wall-mounted television bracket
  2. A fitted wardrobe Correct answer.
  3. A curtain rail
  4. A free-standing cooker

Explanation

Fixtures are items permanently attached to the property and are included in the sale unless specifically excluded. Fitted wardrobes are generally treated as fixtures.

Question 29Sales

What does 'exchange of contracts' mean in a property sale?

  1. The date the mortgage offer is issued
  2. The point at which the seller accepts an offer
  3. The date the buyer moves into the property
  4. The point at which the sale becomes legally binding Correct answer.

Explanation

Exchange of contracts occurs when the buyer and seller sign and swap identical contracts, making the transaction legally binding. Completion usually follows on an agreed date.

Question 30Sales

Which of the following is a required disclosure by a seller about the property that the agent should confirm before marketing?

  1. The seller's reason for moving
  2. The amount of the seller's mortgage
  3. The seller's preferred completion date
  4. Any known disputes with neighbours Correct answer.

Explanation

Sellers are required to disclose any known disputes or complaints about the property. This is part of the property information form and is material to a buyer's decision.

Question 31Sales

When marketing a property, which detail about a restrictive covenant should the agent check and disclose?

  1. Whether the covenant has an expiry date
  2. Whether the covenant is insured
  3. Whether the covenant restricts use of the property Correct answer.
  4. Whether the covenant was registered by the original builder

Explanation

Restrictive covenants can limit how a property is used or altered. The agent should confirm and disclose any restrictions that could affect a buyer's plans.

Question 32Sales

What is the purpose of an anti-money laundering (AML) check when taking on a new seller client?

  1. To verify the client's identity and source of funds Correct answer.
  2. To assess the client's creditworthiness
  3. To confirm the property's market value
  4. To check the property's energy rating

Explanation

AML checks are required to verify identity and, where relevant, source of funds. This helps prevent money laundering and is a legal obligation for estate agents.

Question 33Sales

Which of the following best describes the agent's duty regarding a seller's instruction to exclude a particular group of buyers from viewings?

  1. The agent must refuse all instructions that limit viewings
  2. The agent should follow the instruction if it is lawful and recorded in writing Correct answer.
  3. The agent should report the seller to the relevant authority
  4. The agent should ignore the instruction and market to all

Explanation

Agents should act on lawful instructions from the seller and keep a written record. Instructions that would breach equality law must be refused.

Question 34Sales

An agent is preparing a sales listing and the seller mentions that a conservatory was built without planning permission. How should the agent handle this?

  1. Omit the conservatory from the listing
  2. State that the conservatory has full planning permission
  3. Advise the seller to obtain retrospective permission before marketing
  4. Disclose the lack of planning permission in the particulars Correct answer.

Explanation

The agent must not misrepresent the property's status. Disclosing that planning permission is absent allows buyers to make an informed decision.

Question 35Sales

A buyer asks the agent whether the property has any known structural problems. The seller has told the agent about some historic subsidence. What is the agent's most appropriate response?

  1. Refer the buyer to the seller without comment
  2. Say that the property has no known issues
  3. Disclose the known subsidence to the buyer Correct answer.
  4. Tell the buyer to rely on their own survey

Explanation

The agent should not withhold material information about the property's condition. Disclosing known subsidence is necessary to avoid misrepresentation.

Question 36Sales

When taking a property onto the market, which of the following should the agent confirm about a leasehold property?

  1. The name of the freeholder's solicitor
  2. The service charge for the previous year
  3. The ground rent payment method
  4. The length of the lease remaining Correct answer.

Explanation

The remaining lease length is critical information for buyers and lenders. It should be confirmed and disclosed in the particulars.

Question 37Sales

An agent is marketing a property with a shared driveway. What should the agent confirm and disclose?

  1. The legal right of way and maintenance responsibilities Correct answer.
  2. The surface material of the driveway
  3. The number of vehicles that can park on it
  4. The width of the driveway

Explanation

Shared driveways often involve rights of way and maintenance obligations. These should be confirmed and disclosed to avoid disputes.

Question 38Sales

What is the agent's role regarding a buyer's request for a property survey?

  1. To arrange and pay for a structural survey
  2. To advise the buyer that a survey is unnecessary
  3. To provide a survey report from the seller
  4. To recommend that the buyer obtains their own survey Correct answer.

Explanation

The agent should recommend that the buyer commissions their own survey. The agent does not act as a surveyor or pay for surveys.

Question 39Sales

Which of the following is a key difference between a sole agency and a multi-agency agreement?

  1. In multi-agency, the seller must use the same solicitor
  2. In sole agency, the seller pays no commission
  3. In sole agency, the agent can refuse all offers
  4. In sole agency, only one agent is instructed, while in multi-agency several agents compete Correct answer.

Explanation

Sole agency appoints one agent, whereas multi-agency appoints two or more agents, often with different fee structures. The key difference is the number of agents instructed.

Question 40Sales

An agent is asked by a seller to advertise a property at a price higher than the agent's valuation. What is the most appropriate action?

  1. Report the seller to the relevant authority
  2. Market at the seller's price but advise on the likely impact Correct answer.
  3. Refuse to market the property
  4. Market at the agent's valuation without informing the seller

Explanation

The agent should respect the seller's instruction while providing professional advice on pricing. Overpricing can lead to reduced interest.

Question 41Sales

What is the purpose of a property information form (TA6) in a residential sale?

  1. To confirm the buyer's mortgage offer
  2. To record the agent's commission
  3. To provide the buyer with details about the property's condition and boundaries Correct answer.
  4. To certify the property's energy rating

Explanation

The TA6 is completed by the seller and gives the buyer information about the property, including disputes and boundaries. It helps the buyer make an informed decision.

Question 42Sales

An agent learns that a buyer is purchasing the property as a buy-to-let investment. What should the agent confirm with the buyer?

  1. Whether the buyer has a survey arranged
  2. Whether the buyer intends to live in the property
  3. Whether the buyer has a solicitor
  4. Whether the buyer has the necessary mortgage finance for a rental property Correct answer.

Explanation

Buy-to-let purchases often require specialist mortgage finance. The agent should confirm the buyer's financial position to avoid delays.

Question 43Sales

What is the agent's obligation under the Estate Agents Act 1979 regarding a conflict of interest?

  1. To report the matter to the police
  2. To disclose the conflict in writing to all affected clients Correct answer.
  3. To continue acting without disclosure
  4. To resign from the instruction immediately

Explanation

The Estate Agents Act requires agents to disclose any conflict of interest to clients. This allows clients to make informed decisions.

Question 44Sales

When marketing a property with a tenant in situ, what should the agent confirm before listing?

  1. The terms of the tenancy and the tenant's rights Correct answer.
  2. The tenant's length of residence
  3. The tenant's intention to buy the property
  4. The tenant's employment status

Explanation

The agent should confirm the tenancy terms, including notice periods and rights, as these affect the buyer's obligations and the property's marketability.

Question 45Sales

Which of the following best describes the agent's duty when a seller provides information that the agent knows to be inaccurate?

  1. To publish it as provided by the seller
  2. To publish it with a disclaimer
  3. To correct the information and not publish it Correct answer.
  4. To ignore the inaccuracy

Explanation

The agent must not publish information they know to be inaccurate. Correcting it prevents misrepresentation and complies with consumer protection law.

Question 46Sales

An agent is instructed to sell a property that has been adapted for a disabled occupant. What should the agent consider when preparing the particulars?

  1. Avoiding mention of the adaptations to appeal to all buyers
  2. Describing the adaptations factually without discriminatory language Correct answer.
  3. Stating that the adaptations must be removed by the buyer
  4. Highlighting the adaptations as a negative feature

Explanation

The agent should describe adaptations factually and avoid discriminatory language. This complies with equality law and consumer protection.

Question 47Sales

What is the primary purpose of a lock-up agreement in a property sale?

  1. To allow the agent to hold the keys
  2. To set the completion date
  3. To confirm the buyer's mortgage offer
  4. To commit the seller to sell only to a particular buyer for a set period Correct answer.

Explanation

A lock-up agreement, also known as an exclusivity agreement, binds the seller to deal only with a specific buyer for a defined period. It is often used in new-build or investment sales.

Question 48Sales

An agent discovers that a seller has not obtained building regulations approval for a loft conversion. What is the most appropriate action for the agent?

  1. Market the loft as a habitable room without qualification
  2. Ignore the issue as it is the buyer's responsibility
  3. Remove the loft from the property description
  4. Advise the seller to obtain a regularisation certificate and disclose the current status Correct answer.

Explanation

The agent should advise the seller on regularisation and ensure the current status is disclosed. This prevents misrepresentation and protects the buyer.

Question 49Sales

When acting for a seller, which of the following best describes the agent's duty regarding a buyer's ability to proceed?

  1. To verify the buyer's financial position before recommending acceptance Correct answer.
  2. To rely on the buyer's verbal assurance
  3. To ask the buyer's solicitor to confirm funds
  4. To accept any offer without verification

Explanation

The agent should verify the buyer's financial position, such as mortgage agreement in principle or proof of funds, to advise the seller properly.

Question 50Sales

What is the significance of the 'consumer protection from unfair trading regulations' for an agent's marketing activities?

  1. They mandate the use of a particular contract
  2. They require all properties to be sold at a fixed price
  3. They apply only to online listings
  4. They prohibit misleading omissions and aggressive practices Correct answer.

Explanation

The regulations prohibit unfair commercial practices, including misleading omissions and aggressive sales tactics. They apply to all marketing activities.