7 - Fees / ToE Flashcards
What documents should you be considering when negotiating fees?
Bribery Act 2010 and the RICS Rules of Conduct 2021.
These should be specifically considered when granting or accepting referral fees.
How should your fees be negotiated?
- avoid: price fixing, aggressive fee cutting
- Fees should be market based
- Fee negotitions can be entered after initial fee proposal
- Consider the amount of time and resources and ensure you have the appropriate expertise
- Not be seen to be undercutting another firm
- You must be transparent and ensure client’s are aware of any referal fee - should be stated in ToE
What must you include in Terms of Engagement prior to starting work on an instruction?
These must state in writing the client’s agreement to the proposed fee basis, payment of expenses (and how calculate) and that a copy of the firm’s complaint handling procedure will be available on request.
What 3 things should you do prior to undertaking an instruction?
- Check professionally competent
- No conflicts of interest or personal interests
- Confirm ToE in writing and get written approval from the client BEFORE you start work on the instruction
How does the consumer rights act 2015 impact instructions?
A client has a 14 day “cooling off period” to cancel without giving a reason.
What are some reasons why you may decline an instruction?
What document has the RICS set out when considering whether to acct for a client?
RICS Ethics Decision Tree
What should you include in Terms of Business?
Include the fee, scope of works, completion time, level of professional indemnity cover, and details on the complaints handling procedure.
