Estate Agent – CHAIN FREE® Questions

  1. Can you answer our questions on the telephone?
    • Yes
      • First please read this Q&A.
      • If any questions have not been answered to your complete satisfaction please call our CEO (and Founder), Anthony Apponyi DD: 01491 641 362.
  2. Why do you say CHAIN FREE® is insurance?
    • IMPORTANT POINT: The CHAIN FREE® Home Owners Plan™ is effectively insurance because if your client can’t wait for you to sell their house for their Asking Price we (Albani) guarantee that when your client joins the Plan and signs the Offer Documents they can drawdown (take) our finance (Fall Back Price®) on 5 days notice at any time during their 20 week Facility Period (extendable to 40 weeks).
      • When your client joins the Plan and signs our Offer Documents they:
        • Do not have to take the Fall Back Price®
        • Do not have to sell their house
  3. What is the customer proposition?
    • Albani will provide home owners (your clients selling and applicants buying) with a guarantee (through the Home Owners Plan™) that makes them Proceedable Buyers for 20 to 40 weeks without selling their home or taking our finance.
    • IMPORTANT POINT: The home owner has 4 weeks from the date of Application:
      • To join the Home Owners Plan™ (no point of insurance if they are certain they will quickly sell at their Asking Price)
      • To pay our Administration Fee
      • To confirm to us the name of the high street Estate Agents acting for them (so if the home owner takes our finance we can re-instruct that firm).
    • Your client will only be legally committed to sell their house and to take the Fall Back Price® when their solicitor completes our Drawdown Notice with required documents.
    • Customer Proposition 
  4. What are our Fees?
    • IMPORTANT POINT: You earn Fees at every stage:
      • If your client signs our Offer Documents we will pay your firm a £1,000 Success Fee (in addition to the Sale Fee paid by the home owner to your firm) if you sell their house for them for more than the Fall Back Price®.
      • Signing the Offer Docs does:
        • Not commit your client to sell their house
        • Not commit your client to take the Fall Back Price®
      • If your client takes the Fall Back Price® (because they can’t wait for you to sell their home for their Asking Price) the Plan will instruct your firm to sell their house for a 1.5% Resale Fee.
      • Resource
  5. No home owner will join your Plan and agree to its membership terms and conditions without first taking legal advice?
    • IMPORTANT POINT: The home owners agreement to the Plan Membership Terms is conditional on their signing our Offer Documents which we send to their solicitors for approval.
    • They won’t have to runup unnecessary legal costs:
      • When the home owner’s solicitors receive the Offer Documents the home owner has 2 weeks from our Surveyors or DataSource Valuation to decide if they want CHAIN FREE® with a Fall Back Price® (in those 2 weeks they have time to decide if they want to instruct their Solicitors).
      • Our Documents are in a standard form and cannot be altered.
  6. IMPORTANT POINT: On this website and in all Our Documents “days” mean working days and therefore “weeks” are illustrative (i.e. 1 week = 5 working days).
  7. If the home owner makes their own Application do we know if our firm is chosen by them to sell their house?
    • Yes
      • The Application Approval Email we send the home owner directs them to a webpage on which they must confirm the name of the high street Estate Agents acting for them.
      • We contact the firm in order that it can complete Section 3 of the Application (which requests basic information from the Estate Agent not what they think the property is worth).
  8.  Can we cross-sell?
  9. Does the customer see our Application?
    • Yes
      • And receives an Application Approval Email.
  10. Why would an Application be rejected?
    • If you or the home owner’s answers to our questions are unacceptable (unable to submit).
      • If their house is not in a town where CHAIN FREE® is available, not freehold, worth in excess of £500,000, not in good condition or with risk of flooding etc the Application will be rejected.
  11. Tell me about the Application Approval Email the customer receives?
    • Instantaneous
      • Will contain their Unique Reference Number (URN)
      • A link to a webpage on which they will be asked to confirm the name of the high street Estate Agents selling their house.
  12. What do we receive when the Application is approved?
    • If the home owner has chosen your firm to sell their house you will receive a copy of the Application with an Email containing your Unique Reference Number (URN)
      • Your URN will open a link to our Management Pages.
  13. Why is CHAIN FREE® only available in certain towns?
    • CHAIN FREE® is only available in towns within Local Authority Areas where property prices are stable or rising.
  14. Why don’t you ask for the home owners name on the Application Form?
    • We are only interested in their house not in their financial standing (our finance is non-status, non-recourse and interest-free).
      • Asking for the home owners name on the Application Form (particularly if they are already client’s of your firm) is unnecessary
      • We only ask the home owner to provide their name after they receive our Application Approval Email.
  15. What about regulation?
  16. How long is the process?
    • 4 weeks
      • You or the home owner make an Application (you cannot submit during coronavirus)
      • Your client has 4 weeks from the date of your Application to agree a Sale Fee with you (to join the Home Owners Plan™ and pay our Administration Fee)
        • For you to decide if your client will quickly sell at their Asking Price or if they need the insurance of Fall Back Price® (for up to 40 weeks)
        • For your clients to decide if they want to be a Proceedable Buyer
      • How it Works
  17. Do Estate Agents always have to complete Section 3 of the Application?
    • Yes
  18. Variations on a theme?
    • No
      • CHAIN FREE® is unique:
        • Insurance
        • Makes sellers Proccedable Buyers for a 1% Fee (which they can recoup)
        • Homeowner has no legal obligation to take the LTV (Fall Back Price®)
        • Homeowner has no legal obligation to sell their home
      • An Example
  19. We have seen many chain-mending schemes?
    • CHAIN FREE® is a chain-avoiding solution not a chain-mending one
      • CHAIN FREE® is a unique insurance solution
  20. What is CHAIN FREE®?
    • CHAIN FREE® is a Facility Letter with the guarantee of a Fall Back Price® (for 20 to 40 weeks) for the house your client is selling.
      • Your clients will use CHAIN FREE®
        • To negotiate the price of the property they want to buy
        • To recoup our 1% Fee (Option 1: Payable in up to 1 Year. No Sale – No 1% Fee) without having to take the Fall Back Price® or sell their home
        • An Example
        • If they can’t wait for you to sell their house for their Asking Price (they know they can take the Fall Back Price® on 5 days notice)
    • IMPORTANT PONT: The insurance of Fall Back Price® means you can guarantee the sale price of the house they are selling.
      • Peace of mind for clients selling and applicants buying
  21.  Some of our clients will not want to commit to a Fee?
    • They don’t have to
      • Option 2
        • 85% DataSource Valuation
        • No property inspection
        • No Fee
      • Option 1
        • 90% Surveyors Valuation
        • Property inspection
        • 1% Fee
        • payable in up to one year
        • No Sale – No 1% Fee
  22. What’s the main difference between your proposal and bridging finance?
    • CHAIN FREE® is open-bridge interest-free non-recourse finance
      • No possibility of your client losing their home
      • Option 1: 1% Fee vs. bridging finance costing up to 9 times more
  23. Will our clients have to sell for less than MV?
    • No
      • IMPORTANT POINT: Nobody will have to sell their house for less than its worth.
        • Sellers will use our Fall Back Price® (which they know they can take in 5 days during their 20 to 40 week Facility Period) to negotiate the price for the property they want to buy (recouping the 1% Fee) with no legal commitment either to take the finance or to sell their home
      • If your client decides to take our finance our Fall Back Price® will be MV if after proper marketing during their 20 week Facility Period you have been unable to sell their house for more
  24. Can our client be a Proceedable Buyer if the property they want to buy costs more than their Fall Back Price®? 
    • Yes
      • Most sellers find it more difficult to find their next home than sell their existing one
        • With CHAIN FREE® your client will be able to negotiate the best price for the property they want to buy
        • For 20 weeks (extendable to 40 weeks) your firm will be trying to sell your clients house for their Asking Price
      • An Example
  25. Will developers have to wait 20 or more weeks to sell a new build?
    • No
      • The negotiation when to exchange and what price to pay is between your client and the builder
  26. Catch 22 – any price you offer will be lower than we can recommend they sell for?
    •  No
      • IMPORTANT POINT: In no circumstances will your clients have to sell for less than a price you recommend (MV)
        • If your client decides to take our finance our Fall Back Price® will be MV if after proper marketing during their 20 week Facility Period you have been unable to sell their house for more
      • Helps sellers negotiate the best price for their next property while you are selling theirs for the highest
  27. Sellers won’t want it until they need it, when a sale goes wrong or if they can’t sell for more?
    •  Yes
      • If you think they will not quickly sell at their Asking Price
        • CHAIN FREE®: a chain-avoiding solution
          • Insurance
          • Finance there when the seller needs it
        • CHAIN MENDER®: a chain-mending solution
          • Fast Sale
          • The sellers solicitor must confirm they are holding a current sale contract for the property their client desperately wants to buy
      • The longer your clients house has been on the market before your client makes an Application for CHAIN FREE® the greater the risk of a lower Valuation to determine MV (and the possibility they will instruct another high street Estate Agent to sell their house)
      • Many sellers can’t negotiate a price on their next property until they have sold their own
        • In a flat market CHAIN FREE® will give your clients a safety net while you are selling their property for their Asking Price
        • In a rising market the confidence to secure quickly against competition
  28. Home owners will be most interested when you are least willing to make an offer and vice versa?
    • No
      • Introduce CHAIN FREE® as peace of mind
      • The Fall Back Price® is accurate and current
  29. Niche product for a niche market?
    • No
      • Most sellers are not Proceedable Buyers (CHAIN FREE® solves this problem)
      • Generally 62% of annual house sales are in Price Bands up to £500,000 (our market)
      • 28% UK transactions fail after an offer has been accepted
      • 25% UK sellers withdraw their property from the market
  30. How does CHAIN FREE® differ from Part Exchange/Assisted Move?
    • You are selling your clients property for the highest possible price
      • Your clients neither have to sell within a restricted period nor have to sell at all
      • We do not buy your clients house and do not take fees or commissions
      • Your clients do not subjugate buying/selling decisions to third parties
  31. Are there misconnects between valuations?
    •  No
      • We do not require an Estate Agents Opinion of Valuation
      • No reputational risk
  32.  Tell me about your the RICS valuation?
    • Our RICS valuations (Option 2: 90% Surveyors Valuation) are for mortgage purposes (Red book)
      • Valuations that are too optimistic/pessimistic benefit no one
      • Panel Managers work with Valuers to ensure accuracy and consistency
      • In-house Valuation Auditor carries out checks to prove the process if challenged
      • Contemporaneous valuation audits by reference to database records
    • IMPORTANT POINT: Now the government has lifted coronavirus restrictions our Valuation Surveyors inspecting your client’s property for sale (Option 1: 90% Surveyors Valuation) will:
      • Wear a protective mask and gloves
      • Comply with recommended social distancing
      • Follow RICS guidelines
  33. If the seller draws down the Fall Back Price® there will be a mortgage on their house when they make a mortgage application for the next property?

    • Not a problem
      • The new lender will ask them if they already have a mortgage.
        • Your client must answer “Yes” because a lender will ask them on completion “if there are other loans secured against another property?”
        • Because your client has said “Yes” the lender will ask for details.
        • Your client should say that they “have non-recourse finance from Albani and therefore no mortgage or home loan commitment”.
  34. Our agency achieves fast sales?
    • Clients living in houses up to £500,000 will want to be Proceedable Buyers as soon as possible
      • Will not have substantial surplus funds
      • Will want to avoid being caught in a chain
  35.  Are there mortgages for buyers?
    • Yes
      • Clients selling and applicants buying can have VAL FREE® for their buyers
      • Applicants buying a CHAIN FREE® pre-valued house won’t loose the property they want to buy with our Buyers Anti-guzumping Provision
  36. Will sellers who buy their next house before you have sold theirs have to pay a higher rate of SDLT on the second property?
    • No
      • Sellers will only pay the Standard Rate of SDLT
      • The Home Owners Plan™ undertake to pay any Additional Rate of SDLT on the second property the seller buys
  37. What happens when our client takes your finance?
  38. Tell me about the online agent?
    • The Online Estate Agent must provide an agent to attend the property for sale (in the event that the home owner decides to take our finance)
    • The Online Estate will accept (only):
      • Responsibilities at Drawdown Date (to attend the property to verify that the sellers house is empty and vacant so that the CHAIN FREE® Fall Back Price® can be remitted to their clients solicitors)
    • Fees
  39. Why have both online and high street agents?
    • We only work with 1 Online firm
      • So sellers can chose the Estate Agent (Online or high street) that suits them
  40. When will our client have to sell their home?
    • When they want to take our finance
      • Your client will only be legally committed to sell their home when their solicitor completes our Drawdown Notice with required documents
  41.  How long does our client have to consider your Fall Back Price®?
    •  2 weeks
      • Your client will receive CHAIN FREE® with a Fall Back Price® when they have signed the Offer Documents (which they can do on-line).
        • They have 2 weeks from the date of our Surveyors or DataSource Valuation to accept our offer of a finance (the Fall Back Price®).
        • IMPORTANT POINT: Their Facility Period starts on the date of our Valuation of the house they are selling.
  42. Are 2 weeks long enough for my client’s solicitors to review your Offer Documents?
    • Yes
      • After an Application Our Documents (which include the Offer Documents) can be viewed on-lineby their solicitors for up to 4 weeks before your client has to join the Plan.
      • Your client’s solicitors have effectively up to 6 weeks to review the Offer Documents.
  43. When is Albani committed?
    • When your client receives the Offer Documents signed by us
      • Your clients solicitors can obtain verification of our financial credentials from our Legal Department by quoting their URN (on the top of all correspondence from us). Our Legal Department is at legaldepartment@albani.finance or they can Contact Us
  44. What happens if our client is in a chain that has broken?
    • If their chain is broken you can only offer them CHAIN MENDER®
      • Providing their solicitors confirm they are holding a current Sale contract for the property their client wants to buy
  45. How do you protect your integrity?
    • IMPORTANT POINT: We do not take fees or commissions from third parties (this applies to all products and services on our platform including those accessible at SMART MOVE®)
  46. Suggestions for improving the estate agent and customer proposition?

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