9 - Managing Conflict Flashcards
What three step process should you undertake when a conflict arises / may arise?
- Conflict Avoidance
- Written Advice to Both Parties
- Conflict Management
What should you consider when writing to both parties?
- Disclose nature of conflict and how your firm intends to deal with the conflict
- Be clear - inform them to seek independent advice if needed
- Request written confirmation from both clients
How might a conflict of interest be managed if you receive written consent and proceed with an instruction?
Implement information barriers:
- keep all related information securely
- physical separation
- virtual IT barier
- maintain clear audit trail - the firms compliance officer must oversee all actions
In what circumstances might a conflict of interest not cause you to decline an instruction?
If you identify a conflict but believe it is in the best interests of all involved to proceed with the instruction, and you have informed consent from your client.
What is ‘RICS Professional Statement Conflicts of Interest – UK Commercial Property Market Investment Agency, 2017?
Professional statement relating to UK commerical investment agency work only.
What does ‘RICS Professional Statement Conflicts of Interest – UK Commercial Property Market Investment Agency, 2017’ say about dual agency?
This is where an agent has a contracual agency relationship with both the seller and buyer.
It should not happen under any circumstances for RICS members, as of the 1st January 2018.
What does ‘RICS Professional Statement Conflicts of Interest – UK Commercial Property Market Investment Agency, 2017’ say about Multiple Introductions?
Relationships simultaneously with several buyers.
This can happen, and the agency agreement (Terms of Engagement) must state whether the instruction is on an exclusive or non-exclusive basis.
What does ‘RICS Professional Statement Conflicts of Interest – UK Commercial Property Market Investment Agency, 2017’ say about incremental advice?
Advice can only be provided where there is written informed consent and information barriers are created internally.
Incremental advice example: agent acting for the seller in relation to a disposal is approached by the buyer, or its lender, to provide a valuation.
What does ‘RICS Professional Statement Conflicts of Interest – UK Commercial Property Market Investment Agency, 2017’ say about Personal Interests?
Where there is a connected person, full transparency is required.
Declare facts promptly and in writing before you accept the instruction.
Can you give an example of where a conflict of interest has been managed in your firm?
My firm’s valuation team were approached by the lending bank of a prospective purchaser for a valuation.
As the agency team was selling the property, the bank was advised to search for another firm of surveyors as a conflicy was identified.
