Flashcards in Case Study Deck (50)
Who are Townhus? What type of business?
Developer - JV between TOWN and Trislehus (Swedish Housing manufacturer) Registered company
What is the Real Estate Agency Code?
Sets out core principles that agents must observe when undertaking agency work. Uk Residential Real Estate Agency 2017 'blue book'
Acting ethically - duty of care, avoid conflicts, and gifts
Securing instructions (terms) - AML checks and types of agency
Marketing the property - market appraisal and marketing particulars
Disposal - method of sale
What is the process when considering a new instruction?
Competence - SUK to undertake the work
Independence - no conflict to act for the client or on property
Terms - Provide clear ToEs for signatures.
How did you carry out a conflict check?
I inputted the client and property address into our internal conflict check system. This outlined no conflict with either, I printed out the results for my director to sign, I scanned and kept on the instruction file.
What AML checks did you undertake? Which legislation>
In accordance with Money Laundering Regs 2017, I conducted customer due diligence on the client. I checked on companies' house the name, number, and register office. I established the beneficiaries/ directors (25% stake) and gathered ID information and proof of address on each. I also obtained the intended nature of the business relationships and proposed funding.
What was included in your ToEs?
Agency basis - Sole agency
Agency rights - sole selling rights
Costs & charges - 1% + £500 per handling transaction
Agent duties - advice on price, marketing and manage sales ( 2 pages of local marketing per month)
Payment of accounts - 100% on completion
Clients responsibilities - Consumer code & marketing
Outline no conflict
Complaints handling procedure
Indemnity insurance - on request
What was the location of the property like?
2.6 miles to City centre
2.1 miles to Cambridge North train station
1 mile to A14 junction
On the guided busway which connects- city with st ives
Largely residential area, a mix of local amenities Education - (Cambridge Regional College, King Hedges Primary School)
What were the construction methods? External considerations?
Construction is fully prefabricated with a
closed panel timber frame for the houses,
and a CLT frame for the apartment block/
common house. The prefabricated wall
panels are made in Sweden and
transported to site for assembly.
- Strip foundations, slate pitched roof, brick veneer with roof and wall insulation between brick and plasterwork.
Single vehicular access / parking on site (1perhouse), three electric car charging, bike and bin storage.
What were the internal conditions of the properties
Good condition, high specification including:
MHVR system, triple glazed
U/F heating GF - (wet), Rads FF
Air-source heat pump connected to Daikin boiler
Electric heating system
AEG appliances & no washer/dryer
Common defects in these properties (new build)
Shrinkage - cracking plaster from drying out.
Settlement cracks - foundations settling
Superfical defects - paintwork, scuffs
Faulty systems - poor workmanship/installation
Who maintains the ancillary facilities?
Cambridge Cohousing Ltd is the management company for ML, therefore facilities are managed by the group. Each household is charged a service charge estimated to be £350pa.
Who was the contractor?
Local Cambridge based builder.
What is galvanised zinc?
Metal cladding used for decorative purposes. More energy-efficient production than steel or aluminium cladding. Decided by group.
What are the service charges with the property?
• Annual service charge levied by Cambridge Cohousing Ltd estimated to be £350pa.
• £1000 first year – start up cost.
• Apartments extra £400pa for building insurance (leaseholders)
Are you aware of how the 31 units exchanged?
Solicitors treated like a typical off-plan sale, undertook searches, and responded to queries. 10% sum of monies of exchange of contracts.
What did the handover/completion consist of?
A home demonstration following a checklist for each purchaser, signatures and date on the plans & handover documents. Any snagging issues reported to the client immediately.
What were the ancillary facilities?
Common House (inc. a shared kitchen & playroom), shared launderette, studio space, library, guest rooms & bathroom, gym, workshop, veg patch.
A shared electric car for the group.
Who was the builder (contractor)? Build programme?
Local builder called Coulsons. The Build was 18 months, completion in December 2018
What are the cost implications of MMC?
MMC - Setup costs are expensive, with machinery and warehouse space. Quick site assembly, means faster delivery which reduces the finance period & reduced numbers of site staff.
-Reduction in site preliminaries, site storage requirements and welfare facilities
Traditional method - Resources and workforce readily available to build, longer build period, increased chance of defects due to weather.
What did you do prior to your inspection?
1. Desktop Study - Internet search on the planning portal, google, and Rightmove.
2. Arranged access - confirmed with client and site manager access and timings for inspection.
3. Organised equipment - PPE, Inspection proforma checklist, plans, camera, pen and paper, disto, mobile.
What did you take with you on your inspection?
Mobile, camera, laser disto, plans, PPE, Pen & Paper
What did you do to ensure you health & safety?
Consider my lone working procedures. Wear PPE
Sign in at the site office, have a site briefing from the SM. Accompanied by site manager. Sign out when leaving the site.
What was the architectural style?
Various stylings of brick veneers. Contemporary design, full-length windows and doors for natural light.
Method of sale - What were your client's objectives?
To achieve best price for each unit in a reasonable agency period (24 months).
Why did you immediately discount auction?
Informal tender & Formal tender?
It's a short and intense marketing period which I felt wouldn't fetch the best value. I also had sufficient comparable evidence to value each unit accurately.
FT - complex method for apps, deter offers and not suitable in slow market.
My client outlined a marketing period which would have been inappropriate for both these methods.
Method of sale - How did you present your recommendations?
I outlined my recommendations in a sales and marketing report which was discussed in a client meeting.
Why did you recommend the use of a reservation form and fee?
Form - ensures I have all information verified and on record to mitigate delays with sale. Signed and dated to share with respected solicitors.
Fee - ensures that all purchasers are genuine and incentivizes purchasers to cooperate with the sale.
Cohousing is an intentional community of private homes clustered around shared space. It originated from Denmark and there are around 20 schemes in the UK (10 in London).
PS1 (Red Book) - other exceptions to red book compliance?
Agency / Brokerage
For Statutory purposes
Internal Purposes, without liability
Negotiations or litigation