7 - Fees / ToE

Question 1

What documents should you be considering when negotiating fees?

Answer 1

Bribery Act 2010 and the RICS Rules of Conduct 2021.

These should be specifically considered when granting or accepting referral fees.

Question 2

How should your fees be negotiated?

Answer 2

• Consider the amount of time and resources and ensure you have the appropriate expertise
• Fees should be market based
• Not be seen to be undercutting another firm
• Fee negotitions can be entered after initial fee proposal
• avoid: aggressive fee cutting
• You must be transparent and ensure client’s are aware of any referal fee - should be stated in ToE

Question 3

What must you include in Terms of Engagement prior to starting work on an instruction?

Answer 3

in writing client’s agreement to the proposed:
Fee basis
payment of expenses (and how calculate)
CHP

Question 4

What 3 things should you do prior to undertaking an instruction?

Answer 4

1. Check competence
2. No COI
3. ToE IN WRITING

Question 5

How does the consumer rights act 2015 impact instructions?

Answer 5

A client has a 14 day “cooling off period” to cancel without giving a reason.

Question 6

What are some reasons why you may decline an instruction?

Answer 6

Lack of competence
Insufficient facts
ToE not signed
Conflict
PII cap cannot be reached
Client on sanctions list

Question 7

What document has the RICS set out when considering whether to acct for a client?

Answer 7

RICS Ethics Decision Tree

Question 8

What should you include in Terms of Business?

Answer 8

Fees (“set out in ToE”)
Level of professional indemnity cover
CHP details