Propertymark / NAEA Qualification (Level 3 Estate Agency) Agency Practice and the Sales Progression Syllabus

Agency Practice and the Sales Progression syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Agency Practice and the Sales Progression in Propertymark / NAEA Qualification (Level 3 Estate Agency), not a summary of it.

1. 1

   Instructions and Agency Agreements

   5 topics

   • Types of agency
     • Sole agency, sole selling rights and multiple agency
     • Ready, willing and able purchaser clauses
   • Terms of business and fee structures
   • Section 18 EAA 1979 fee and charge disclosures
   • Tie-in periods and notice provisions
   • Withdrawal and cancellation rights (Consumer Contracts Regulations 2013)
2. 2

   Viewings and Offers

   5 topics

   • Conducting accompanied viewings safely
   • Qualifying buyers and proof of funds
   • Receiving and communicating all offers in writing
   • Section 21 disclosures and connected persons
   • Negotiation principles and managing expectations
3. 3

   Sales Progression and Chain Management

   4 topics

   • From offer acceptance to memorandum of sale
   • Managing the conveyancing chain
     • Identifying and resolving chain delays
     • Mortgage offers, surveys and down-valuations
   • Communication with all parties in the transaction
   • Handling fall-throughs and re-marketing
4. 4

   Mortgages and Finance

   4 topics

   • Mortgage types and the mortgage process
     • Repayment versus interest-only
     • Loan-to-value and affordability assessments
   • Role of mortgage brokers and lenders
   • Help to Buy, shared ownership and government schemes
   • Referral arrangements and disclosure of referral fees

Agency Practice and the Sales Progression flashcards for Propertymark / NAEA Qualification (Level 3 Estate Agency)

19 of 60 cards from the Agency Practice and the Sales Progression deck — real questions with worked answers.

1. What are the three main types of agency agreement an estate agent can offer a vendor?

   Sole agency, joint sole agency (two named agents share one fee), and multiple agency (several agents, only the seller pays the one who introduces the buyer).

2. How does a 'sole agency' agreement differ from a 'sole selling rights' agreement?

   Under sole agency the agent earns the fee only if they (or another agent) introduce the buyer, so the vendor pays nothing if they find a private buyer themselves. Under sole selling rights the agent is owed the fee on ANY sale during the term, even if the vendor finds the buyer privately.

3. Under sole selling rights, in what situation must a vendor still pay the agent's fee?

   On any sale completed during the agreement period (or after, with a ready/willing/able purchaser), regardless of whether the vendor, the agent, or another party found the buyer.

4. What is 'multiple agency' and how is the fee usually affected compared with sole agency?

   Multiple agency instructs several agents simultaneously; only the agent who introduces the successful buyer is paid. Because of the higher risk to each agent, the commission rate is typically higher than for sole agency.

5. What must Terms of Business set out before an agent is instructed?

   The fee (amount or percentage and whether VAT-inclusive), what triggers the fee, the type of agency, the tie-in period, the notice period, any additional charges, and disclosure of any referral arrangements.

6. What are the two common fee structures used by estate agents?

   A percentage-based commission (a percentage of the agreed sale price, e.g. $1.5\%$) or a fixed/flat fee agreed regardless of sale price.

7. Calculate the commission on a property sold for £350,000 at a rate of $1.2\%$ plus VAT at $20\%$.

   Commission $= 350{,}000 \times 0.012 = £4{,}200$; with VAT $= 4{,}200 \times 1.20 = £5{,}040$.

8. Which Act primarily governs the disclosure of fees and charges to a client by an estate agent?

   The Estate Agents Act 1979 (EAA 1979), in particular section 18.

9. What does Section 18 of the Estate Agents Act 1979 require an agent to disclose to a client?

   Before the client is committed, the agent must give clear information about: the fee or how it is calculated, the circumstances/event triggering the fee, the meaning of 'sole agency' / 'sole selling rights' / 'ready willing and able purchaser', and any additional charges or services.

10. Under Section 18 EAA 1979, when must fee and charge information be given to the client?

    Before the client is committed to liability (i.e. before or at the time the agency contract is entered into).

11. What is the consequence of failing to make Section 18 disclosures of fees before instruction?

    The agency contract becomes unenforceable without an order of the court — the agent cannot recover their commission unless a court permits enforcement.

12. Define the term 'ready, willing and able purchaser' as used in agency agreements.

    A prospective buyer who is prepared and able to exchange unconditional contracts to purchase. Some agreements make the fee payable when such a purchaser is introduced, even if the vendor then withdraws.

13. What is a 'tie-in period' in an estate agency agreement?

    A fixed minimum period during which the vendor is contractually bound to the agent (often the sole agency term) and cannot instruct another agent or end the agreement without potential liability.

14. What does the OFT/Propertymark guidance suggest about reasonable tie-in periods?

    Tie-in periods should be fair and not excessive; lengthy ties (e.g. beyond around 12 weeks) combined with long notice can be challenged as unfair contract terms.

15. What is a 'notice period' in an agency agreement and how does it interact with the tie-in?

    The notice period is the time the vendor must give to end the agreement. It must be reasonable; a notice period that effectively extends a long tie-in (e.g. requiring notice that only takes effect after the tie expires) can be an unfair term.

16. Which regulations give consumers cancellation rights on contracts agreed off-premises or at a distance?

    The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

17. Under the Consumer Contracts Regulations 2013, what is the standard cancellation (cooling-off) period for an off-premises agency contract?

    14 calendar days from the day the contract is entered into.

18. When does the 14-day cancellation period apply to an estate agency agreement under the 2013 Regulations?

    When the contract is concluded off-premises (e.g. in the vendor's home) or at a distance (phone/online), rather than at the agent's business premises.

19. If a consumer asks an agent to begin marketing during the 14-day cancellation period, what can the agent do?

    The agent may start the service only with the consumer's express request (in a durable medium for off-premises contracts) and can then charge for services provided up to cancellation; if not given proper cancellation information, the agent may be unable to charge.

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