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

24 sample cards from the Agency Practice and the Sales Progression deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. As a sales progressor, what is the agent's role in managing the conveyancing chain?

   To monitor each link's progress (searches, mortgage offers, surveys, signing), chase solicitors and other agents, identify and resolve bottlenecks, and keep all parties informed to reach a coordinated exchange and completion.

2. Why is regular communication with all parties essential during sales progression?

   It maintains momentum, manages expectations, surfaces problems early, reduces anxiety-driven withdrawals, and improves the likelihood of a successful exchange and completion.

3. What is a 'fall-through' in a property transaction and name two common causes.

   A sale that collapses before exchange. Common causes: the buyer's mortgage application being declined or down-valued, an adverse survey, chain collapse, gazumping/gazundering, or a party withdrawing.

4. What practical steps should an agent take immediately after a sale falls through?

   Establish the reason, inform the vendor promptly, re-assess the asking price/marketing, re-market the property quickly, and revisit previous interested buyers and the buyer database.

5. What is the difference between 'gazumping' and 'gazundering'?

   Gazumping: the seller accepts a higher offer from another buyer after already accepting one. Gazundering: the buyer lowers their offer shortly before exchange, pressuring the seller to accept less.

6. Name the main types of residential mortgage by interest structure.

   Fixed-rate, variable-rate (including the lender's standard variable rate, SVR), tracker (follows the Bank of England base rate by a set margin), and discounted-rate mortgages.

7. Distinguish between a 'repayment' mortgage and an 'interest-only' mortgage.

   Repayment (capital and interest): each payment covers interest plus part of the capital, so the loan is fully repaid by the end of the term. Interest-only: payments cover only interest; the full capital remains owing at the end and must be repaid via a separate repayment vehicle.

8. What is 'loan-to-value' (LTV) and how is it calculated?

   The loan as a proportion of the property's value: $$\text{LTV} = \frac{\text{Loan amount}}{\text{Property value}} \times 100\%.$$ A lower LTV usually secures better interest rates.

9. A buyer purchases a £250,000 home with a £50,000 deposit. What is the LTV of the mortgage?

   Loan $= 250{,}000 - 50{,}000 = 200{,}000$, so $$\text{LTV} = \frac{200{,}000}{250{,}000} \times 100\% = 80\%.$$

10. Outline the main steps of the mortgage process for a buyer.

    Agreement in principle → full application with documents → property valuation/survey by the lender → underwriting/affordability assessment → formal mortgage offer → funds released to the solicitor on completion.

11. What is the difference between a 'tied' mortgage broker and a 'whole-of-market' broker?

    A tied broker can only offer products from one or a limited panel of lenders, whereas a whole-of-market (independent) broker can recommend mortgages from across the entire market.

12. What is the role of a mortgage broker (mortgage adviser) for a buyer?

    To assess the buyer's circumstances, search and compare mortgage products, advise on suitable deals, and handle the application with the lender — providing regulated mortgage advice.

13. What is the distinction between a mortgage 'lender' and a mortgage 'broker'?

    The lender (bank or building society) actually provides the loan funds and sets the lending criteria; the broker is an intermediary who advises the borrower and arranges the mortgage with a lender but does not lend money themselves.

14. What is 'shared ownership' and what proportion of a property can typically be bought initially?

    A scheme where a buyer purchases a share of a property (commonly between $25\%$ and $75\%$) and pays rent on the remaining share owned by a housing association, with the option to buy further shares ('staircasing') over time.

15. What does 'staircasing' mean in a shared ownership scheme?

    Buying additional shares in the property over time, increasing the owned percentage (potentially up to $100\%$) and correspondingly reducing the rent paid on the remaining share.

16. Name two UK government schemes designed to help buyers, other than shared ownership.

    Help to Buy (equity loan) and the First Homes scheme (discounted homes for first-time buyers/local people); also Lifetime ISA savings bonus and (historically) the Help to Buy ISA.

17. How did the Help to Buy equity loan scheme broadly work for buyers of new-build homes?

    The buyer put down at least a $5\%$ deposit, the government lent an equity loan (up to $20\%$, or $40\%$ in London) interest-free for the first five years, and the buyer took a mortgage for the remaining balance.

18. What is a 'referral arrangement' in estate agency, and give an example.

    An arrangement where an agent recommends a third-party service (e.g. a conveyancer, mortgage broker, surveyor or removals firm) and receives a referral fee or other benefit for the introduction.

19. What must an estate agent do regarding referral fees under consumer protection rules and Propertymark guidance?

    Disclose the existence and, where required, the amount/nature of any referral fee clearly to the client, ensuring transparency so the consumer can make an informed choice and the omission is not a misleading practice.

20. Under which consumer protection regime could undisclosed referral fees be considered a misleading omission?

    The Consumer Protection from Unfair Trading Regulations 2008 (CPRs), which prohibit misleading actions and omissions of material information that affect a consumer's decision.

21. Why is disclosure of referral fees considered a matter of professional conduct for Propertymark members?

    Because non-disclosure risks a conflict of interest and misleads the consumer; transparency upholds fairness, consumer trust, and compliance with the member's code of practice and consumer protection law.

22. What is the difference between 'exchange of contracts' and 'completion'?

    Exchange of contracts is the point at which the sale becomes legally binding and the agreed completion date is fixed (the buyer's deposit is paid). Completion is when the balance of funds is transferred, ownership passes, and the buyer gets the keys.

23. At what point can either party normally withdraw from a property sale without legal penalty in England and Wales?

    At any time before exchange of contracts. Once contracts are exchanged the agreement is legally binding and withdrawal can lead to loss of deposit and liability for damages.

24. Why should an agent confirm the position of a buyer in the chain before recommending acceptance of their offer?

    A buyer's position (first-time buyer, chain-free, or in a long chain) affects the speed and security of the sale; recommending the offer with the best combination of price and proceedability reduces fall-through risk for the vendor.

What this deck covers

Agency Practice and the Sales Progression flashcards FAQ