What does CU3 cover in RES Paper 2?
A salesperson needs to know more than how to attract a buyer. They must understand whom they represent, what information they should verify and how the property may be marketed. CU3 connects those responsibilities to the practical decisions made during estate agency work.
This guide follows all 14 CU3 topics in the 2027 RES syllabus. Pay particular attention when using older notes: professional practice, PMLPFTF obligations, and green buildings and leases now have their own dedicated topics in the revised syllabus.
The unit starts with industry regulation and the salesperson’s role, then moves into marketing principles, listings, sale methods and advertisements. It also examines how marketing differs across residential, commercial, industrial and conservation properties. Read the conduct requirements alongside the marketing topics so that a proposed action is considered in both contexts.
Official unit title: Regulation of Real Estate Agency Industry & Real Estate Marketing.
All 14 CU3 topics, explained
The headings and numbers below follow the 2027 syllabus. Use the chapter links to plan a focused revision session.
- 3.1Regulation of real estate agency industry
- 3.2Professional practice, ethics and conduct
- 3.3Role and functions of salespersons and their requisite knowledge and skills
- 3.4Prevention of Money Laundering, Proliferation Financing and Terrorism Financing (PMLPFTF) obligations
- 3.5Principles of real estate marketing
- 3.6Types of listing
- 3.7Methods of sale
- 3.8Regulations on advertisements
- 3.9Green buildings and leases
- 3.10Marketing of residential properties
- 3.11Marketing of commercial properties
- 3.12Marketing of industrial properties
- 3.13Marketing of conservation properties
- 3.14Consumer Protection (Fair Trading) Act 2003
3.1 Regulation of real estate agency industry
Understand the regulatory framework for estate agents and salespersons, including licensing, registration and CEA’s role. Distinguish the requirements for the agency business from those that apply to the individual carrying out estate agency work.
Practise topic 3.13.2 Professional practice, ethics and conduct
Connect professional duties to client care, conflicts of interest, disclosure and dealings with other salespersons. Use the Code of Ethics and Professional Client Care and relevant practice guidance to understand how those duties operate.
Practise topic 3.23.3 Role and functions of salespersons and their requisite knowledge and skills
Follow the salesperson’s role across a transaction: understanding the client’s needs, obtaining relevant information, communicating advice and keeping records. Identify the knowledge and checks needed for the particular property and parties.
Practise topic 3.33.4 Prevention of Money Laundering, Proliferation Financing and Terrorism Financing (PMLPFTF) obligations
Study customer due diligence, risk assessment, record keeping and the response to suspicious circumstances. PMLPFTF covers money laundering, proliferation financing and terrorism financing; do not reduce the topic to identifying a client from a single document.
Practise topic 3.43.5 Principles of real estate marketing
Apply segmentation, targeting, positioning and the marketing mix to a property and its likely audience. Connect a marketing choice to the client’s objectives and evidence about the market, rather than selecting a channel by habit.
Practise topic 3.53.6 Types of listing
Compare listing arrangements and the relevant estate agency agreements. Identify whom the salesperson represents, the scope of the appointment and the agreed terms before considering marketing activity or commission.
Practise topic 3.63.7 Methods of sale
Distinguish private treaty, auction and tender processes. Follow the relevant documents and stages, paying attention to how an offer is made and accepted instead of assuming that every sale method forms a contract in the same way.
Practise topic 3.73.8 Regulations on advertisements
Check an advertisement’s accuracy, authority and required particulars. Include digital listings, photographs, claims and the relevant data protection and marketing requirements in your revision; a compelling advertisement still needs a sound factual basis.
Practise topic 3.83.9 Green buildings and leases
Understand the purpose of BCA’s Green Mark scheme and the role of green clauses in leases. Separate a building’s environmental certification from the contractual commitments that a landlord and tenant may agree to follow.
Practise topic 3.93.10 Marketing of residential properties
Connect residential property features, location and market information to the intended audience. Build a habit of checking the property’s characteristics and approved use before turning them into selling points.
Practise topic 3.103.11 Marketing of commercial properties
Study how office, retail and other commercial properties are assessed and marketed. Relate the premises, permitted activities and lease considerations to the needs of a business occupier or investor.
Practise topic 3.113.12 Marketing of industrial properties
Distinguish industrial property types and the controls relevant to their use. Check the particular site, proposed activity and applicable authority requirements instead of relying on an industrial label alone.
Practise topic 3.123.13 Marketing of conservation properties
Consider conservation status alongside the property’s use and physical features. Marketing a conservation property requires an understanding of the controls affecting works and use, as well as the features that make it attractive.
Practise topic 3.133.14 Consumer Protection (Fair Trading) Act 2003
Understand the purpose and scope of the Consumer Protection (Fair Trading) Act. Check which transaction or service is involved and whether the Act applies before analysing a potentially unfair practice.
Practise topic 3.14Three checks behind responsible property marketing
Use these three questions to connect regulation with a listing. Each has its own purpose; completing one does not answer the others.
| Check | What you are establishing | Related topics |
|---|---|---|
| Representation and conduct | Who is the client, what is the appointment, and are there conflicts to address? | 3.2 Professional conduct · 3.6 Listings |
| Customer due diligence | What identity, ownership and risk information is required under the PMLPFTF framework? | 3.4 PMLPFTF obligations |
| Property and advertising claims | Is the information verified and suitable for the proposed advertisement? | 3.8 Advertisements · 3.10–3.13 Property sectors |
CEA’s PMLPFTF guidance requires due diligence on clients and unrepresented counterparties before an agreement to buy, sell or lease is entered into. Read the timing and scope requirements in the official guidance.
Read the official guidance: CEA: Codes of conduct · CEA’s PMLPFTF requirements
How to study CU3
Learn the duty behind the rule
For each conduct requirement, identify the interest it protects and the action expected of the salesperson. This gives you a reason to remember it.
Revise by property sector
Compare the checks needed for a home, a shop, an industrial unit and a conservation property. Separate shared marketing principles from requirements specific to the premises.
Check the 2027 additions
Give topics 3.2, 3.4 and 3.9 a place in your revision plan. Match older chapter notes to the new topic numbers before using them as a checklist.
Put the chapter into practice.
Work through Paper 2 by topic, then bring the concepts together in case studies and mock practice.
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RES CU3 FAQs
Is RES CU3 part of Paper 2?
Yes. Paper 2 covers CU3, on regulation and real estate marketing, and CU4, on property transactions. CU3 provides the conduct and marketing context for the transactions studied in CU4.
What are the new CU3 topics in the 2027 syllabus?
The revised syllabus adds dedicated topics 3.2 Professional practice, ethics and conduct; 3.4 PMLPFTF obligations; and 3.9 Green buildings and leases. Their inclusion changes the topic numbering used in older CU3 outlines.
What does PMLPFTF stand for?
It stands for Prevention of Money Laundering, Proliferation Financing and Terrorism Financing. For RES revision, study the required checks, risk assessment, record keeping and handling of suspicious circumstances, using CEA’s official guidance alongside the syllabus.
Are Green Mark certification and green leases the same thing?
They address different things. Green Mark concerns the environmental performance of buildings. Green lease clauses concern commitments relating to the leased premises, such as agreed practices for energy, water or waste. CU3 topic 3.9 asks you to understand both.
Sources & further reading
This is an overview to support revision. Read the official syllabus for the full learning outcomes, and check the relevant authority’s guidance for the rules and effective dates.
- Official CEA RES syllabus 2027 · Version 1.0 (PDF)
- CEA: RES examination preparation and syllabus changes
- CEA: Codes of conduct
- CEA: Preventing money laundering, proliferation financing and terrorism financing
- CEA: Practice guidelines and circulars
- BCA: Green Mark and Green Lease Toolkit
Written by RESU. Independent study material based on the published CEA syllabus.