Acts

Question 1

Rics Business Plan

Answer 1

1 Trusted by our stakeholders and society

We aim to improve stakeholder trust and confidence in RICS.

2 RICS qualifications in demand

Our primary goal is to ensure RICS qualifications remain relevant for the next, more diverse generations and that increased numbers of members use RICS to meet their knowledge and/or training needs.

3 Influential thought leader

We wish to be the profession’s leadership voice on sustainability, data and technology, and diversity and inclusion.

4 Involved and engaged members

We want to increase member participation in our communities and increase engagement beyond renewal of professional subscription fees.

5 Sustainable 21st century professional body

We aim to improve our financial sustainability and enhance the transparency of our governance, while improving the overall satisfaction of members and the engagement of our people.

Question 2

Bribery Act

Answer 2

2010

Primary anti-corruption law in the United Kingdom

A person is guilty of an offence if they offer, promise or give an advantage, directly or indirectly, to another person, intending that a person is rewarded for, or induced to, perform a relevant function or activity improperly.

Question 3

Rules for Registration of firms

Answer 3

2022

Rules made by standards and regulations board setting out which firms are required or eligible to Register with RICS for regulation, procedure for registration, deregistration, appeal, ROC.

Question 4

Professional Indemnity Insurance Requirements

Answer 4

2022

Firm’s turnover in the preceding year - Minimum limit of indemnity
£100,000 or less - £250,000
£100,001 to £200,000 - £500,000
£200,001 and above - £1,000,000

Limit of indemnity - Maximum uninsured excess
£10m or less - Greater of 2.5% of sum insured, or £10,000
Over £10m - No Limit

Question 5

Money Laundering, Terrorist Financing and Transfer of Funds Regulations

Answer 5

2017

Aims to stop criminals using professional services to launder money by requiring professionals to take a risk-based approach.

Firms must put measures in place to identify their clients and monitor how they use their services.

Question 6

Anti Money Laundering Act

Answer 6

2018

Allows the British Government to demand, through enacting further regulations, that people engaging in relevant business to take applicable steps, including:
* Identifying and assessing risks relating to money laundering, terrorist financing, or other threats to the integrity of the international financial system.
* Having policies, controls, and procedures in place.
* Taking prescribed measures concerning their customers, for example, conducting due diligence in the form of identity and source of funds checks.

Question 7

Rules of Conduct (effective Feb 2022)

Answer 7

2022

The Rules of Conduct are based on ethical principles of honesty, integrity, competence, service, respect and responsibility

These apply globally, although they are designed to complement national legislation and legal requirements. The new Rules of Conduct have been effective since 2 February 2022. They replace the former RICS Rules of Conduct for firms and for members, and the five global professional and ethical standards

Question 8

Lord Bichard Review

Answer 8

2022

The Bichard Review is an independent review of the RICS’ purpose, governance and strategy. It was commissioned by RICS Governing Council in December 2021 following the Levitt Review. 36 Recommendations released in June 2022
Improve technology
Reinvigorate RICS Matrix
Diversity and Inclusion Panel

Question 9

Levitt Review

Answer 9

2018/19

Independent Review was commissioned by RICS to investigate articles in the press that alleged that RICS ‘tried to supress a critical internal report into its finances in 2018/2019 and then unfairly dealt with those who sought to explore the issue - 18 specific recommendations on governance, executive remuneration, whistle blowing and legal advice.

Question 10

RICS Futures Report

Answer 10

2020

Outline a number of areas the global professional body will focus on to ensure it continues to fulfil its mission to deliver confidence, act in the public interest, and support its professionals. Including adapting to technology, sustainability in key market areas.

Question 11

Countering bribery and corruption, money laundering and terrorist financing

Answer 11

2019 - Professional Statement

Money Laundering: Concealing the source of the proceeds of criminal activity to disguise their illegal origin.

PEP’s – Politically Exposed Persons - PEPs are considered high risk from a money laundering and corruption perspective because they hold positions of influence – indeed many jurisdictions specifically legislate for this.

3 Types of Due Diligence:
Customer DD – Collecting standard evidence to verify different types of clients
Simplified DD – A full CDD is not needed
Enhanced DD – More checking and monitoring required to complete the client profile

Question 12

Handling Client Money

Answer 12

2019 - Professional Statement

Regulations and guidance for holding client money, advice, and accounting controls
* client money is kept safe
* client money accounts are used for appropriate purposes only and
* RICS-regulated firms have the appropriate controls and procedures to safeguard client money.

Question 13

Conflict of Interest

Answer 13

2019 - Professional Statement

A conflict of interest arises in a situation where there may be an actual, perceived or potential risk that the professional judgement of an RICS-regulated firm or member will be compromised when undertaking an assignment.
* Party Conflict
* Own interest conflict
* Confidential information conflict
Information Barriers and Prior informed consent

Question 14

Complaints Handling

Answer 14

2016 - Guidance Note

A Firm shall operate a complaints handling procedure and maintain a complaints log. The complaints handling procedure must include an Alternative Dispute Resolution (ADR) mechanism that is approved by the Regulatory Board.’

Question 15

Stakeholder Engagement

Answer 15

2019 - Guidance Note

Identifies ten principles to positively impact on the engagement of stakeholders.
* Principle 1: Communicate
* Principle 2: Consult early and often
* Principle 3: Remember they’re only human
* Principle 4: Plan it
* Principle 5: Relationships are key
* Principle 6: Simple, but not easy
* Principle 7: Just part of managing risk
* Principle 8: Compromise
* Principle 9: Understand what success is
* Principle 10: Take responsibility.

Question 16

Health and safety act work act

Answer 16

1974

Places a duty on employers to ensure that that health, safety and wellbeing of employees and other affected persons is not at risk, so far as is reasonably practicable. This includes providing and maintaining equipment, safe systems of work and safe premises.

Question 17

Regulatory Reform (Fire Safety) Order

Answer 17

2005

The Order places the responsibility on individuals within an organisation to carry out risk assessments to identify, manage and reduce the risk of fire.

Question 18

Fire Safety Act

Answer 18

2021

Replaces the Regulatory Reform Order 2005, and instilled from the Grenfell 2017 fire.

Question 19

Approved Doc M

Answer 19

2015/2020

Approved Document M relates to the ‘ease of access to, and use of, buildings, including facilities for disabled visitors or occupants, and the ability to move through a building easily including to toilets and bathrooms’. It is split into Volume 1 Dwellings and Volume 2 Buildings other than Dwellings.

It provides specific guidance on the safe degrees of pitch for ramps and steps, as well as building dimensions and facilities to facilitate wheelchair access.

Question 20

Construction (Design and Management) Regulations

Answer 20

2015

Part 1 - Commencement, interpretation and application.
Part 2 - Client duties.
Part 3 - Health & Safety Duties and Roles.
Part 4 - General requirements for all construction sites.
Part 5 - General.

Question 21

Control of Asbestos Regulations

Answer 21

2012

The Control of Asbestos Regulations 2012 requires the duty holder to manage the risk of asbestos by: Taking appropriate steps to determine if there are any asbestos containing materials (ACMs) present. If any is found, the amount, location and condition needs to be recorded

Question 22

Surveying safely: health and safety principles for property professionals 2nd Edition

Answer 22

2018 - Guidance Note

Sets out personal responsibilities, assessing hazards in different workplaces (offices/construction sites/land) and checks to carry out before during and after visiting a site – including travelling, lone working, assessment of risks (diseases, roofs, weather, wildlife)

Question 23

ASBESTOS: LEGAL REQUIREMENTS AND BEST PRACTICE FOR PROPERTY PROFESSIONALS AND CLIENTS

Answer 23

2021 - Guidance Note

It provides guidance on the dangers asbestos poses to health and businesses.
The different forms (blue, brown, and white), the danger to your body, who is responsible in different scnearios

Question 24

Suzy Lamplugh Case

Answer 24

1986 - Case Study

A 25-year-old, disappeared during the course of her work as an estate agent while showing a client round a house in Fulham.

Question 25

Conflict avoidance and dispute
resolution in construction

Answer 25

2012 - Guidance Note

Project and client management and record keeping.
Negotiation, mediation (conciliation), adjudication (arbitration and litigation)

Question 26

Data Protection Act

Answer 26

2018

Promotes 3 key principles - lawfulness, Fairness and Transparency - The UK’s implementation of the General Data Protection Regulation (GDPR). Replaces the DPA 1998.

Question 27

Freedom of Information Act

Answer 27

2000

A general right of access to information held by public authorities (and those providing services for them), sets out exemptions from that right and places a number of obligations on public authorities.

Question 28

Limitation Act

Answer 28

1980

outlines the time limit within which a creditor can chase a debtor for outstanding debts. (6years)

or 12 years if under a deed

Question 29

General Data Protection Regulations

Answer 29

2018

GDPR is an EU law with mandatory rules for how organisations and companies must use personal data in an integrity friendly way

If there is an infringement of other provisions, such as administrative requirements of the legislation, the standard maximum amount will apply, which is £8.7 million or 2% of the total annual worldwide turnover in the preceding financial year, whichever is higher.

The higher maximum amount, is £17.5 million or 4% of the total annual worldwide turnover in the preceding financial year, whichever is higher.

Question 30

Equality Act

Answer 30

2010

Legally protects people from discrimination in the workplace and in wider society. It replaced previous anti-discrimination laws with a single Act, making the law easier to understand and strengthening protection in some situations.
9 Protected Characteristics:
Age, disability, gender reassignment, marriage or civil partnership (in employment only), pregnancy and maternity, race, religion or belief, sex, sexual orientation

Question 31

Bracknell Forest Council SANG SPA SPD

Answer 31

2018

Provision of Suitable Alternative Natural Greenspace (SANG) to attract people away from the SPA and hence reduce pressure on it. Council owned SANGs, Third Party SANGS, distance from the SPA.

Question 32

Lifecycle Costing

Answer 32

2016 - Guidance Note

A single sum representing the sum of capital cost and future cash flows

LCC is a tool to assist in assessing the cost performance of construction work, aimed at facilitating choices where there are alternative means of achieving the client’s objectives and where those alternatives differ, not only in their initial costs but also in their subsequent operational costs.

Question 33

Paris Agreement

Answer 33

2015 - COP 21

During the COP Meeting, the parties agreed to pursue efforts to prevent temperatures rising more than 1.5C above pre-industrial levels to avoid the most dangerous impacts of global warming.

Question 34

Kyoto Principal

Answer 34

2005

an agreement among developed nations to reduce carbon dioxide (CO2) emissions and greenhouse gases (GHG) in an effort to minimize the impacts of climate change.

Question 35

COP 26

Answer 35

2021 - Scotland

COP26 is the most recent annual UN climate change conference. COP stands for Conference of the Parties.

The summit was attended by the countries that signed the United Nations Framework Convention on Climate Change (UNFCCC) – a treaty that came into force in 1994.

Plan to reduced use of coal
Increase money to help developing countries cope with the effects of climate change

Question 36

Climate Change Act

Answer 36

2008

the duty of the Secretary of State to ensure that the net UK carbon account for all six Kyoto greenhouse gases for the year 2050 is at least 100% lower than the 1990 baseline, toward avoiding dangerous climate change.

Question 37

Approved Doc L

Answer 37

2021

Conservation of fuel and power Volume 1: Dwellings

Part L requirements will not apply to homes started before June 2023.

Split into 4 parts: New builds, existing dwellings, extensions, conversions.
Solar panels, underfloor heating, air source heat pumps £9,153 for part L and FHS.

Question 38

Approved Doc S

Answer 38

2021

Infrastructure of the charging of electric vehicles

Question 39

Future Homes Standard

Answer 39

2021

To ensure that by 2025, Newly built houses produce 70-80% less carbon emissions than current.

Question 40

Future Homes Standard

Answer 40

2021

To ensure that by 2025, Newly built houses produce 70-80% less carbon emissions than current.

Question 41

Planning Act

Answer 41

2008

Introduced by the UK government with the intention of reducing the amount of time taken for approving major new infrastructure projects.

Question 42

Town and Country Planning Act

Answer 42

1990

Gave Local Authorities powers to:
Approval of planning proposals.
Redevelopment of land.
Compulsory purchase orders to buy land and lease to new developers.
Powers to control outdoor advertising.
Powers to preserve woodland or buildings of architectural/historic interest.

Question 43

NPPF

Answer 43

2021

Revised July 2021 – it sets out the government’s planning policies for England and how these are expected to be applied. Revisions increased the focus on design quality, not only for sites individually but for places as a whole. Terminology is also now more firm on protecting and enhancing the environment and promoting a sustainable pattern of development.

This revised Framework replaces the previous National Planning Policy Framework published in March 2012, revised in July 2018 and updated in February 2019.

Housing, business, economic development, transport and the natural environment. The NPPF introduced the presumption in favour of sustainable development which means that development which is sustainable should be approved without delay.

Question 44

Minimum Energy Efficiency Standards

Answer 44

The MEES regulations prohibit landlords from granting any new leases of any building (be it for domestic or commercial use) with an energy efficiency rating as shown on an EPC of below an E (so called ‘sub-standard’ properties) unless the transaction is excepted from the regulations or an exemption applies and that exemption has been registered. The prohibition on granting leases of sub-standard properties also applies to renewal leases and extensions of existing tenancies.
2025 - All newly rented must be C or above
2027 - All non-domestic rented buildings to be C or above
2030 - EPC Grade B

Question 45

S106 / CIL

Answer 45

CIL and S106 planning obligations are separate infrastructure funding sources. S106 agreements address site-specific mitigation required to make a new development acceptable in planning terms. Whilst CIL addresses the broader impacts of the development.

A section 106 agreement is an agreement between a developer and a local planning authority about measures that the developer must take to reduce their impact on the community. A section 106 agreement is designed to make a development possible that would otherwise not be possible, by obtaining concessions and contributions from the developer. It forms a section of the Town And Country Planning Act 1990.

The Community Infrastructure Levy (CIL) is a charge that local authorities can set on new development in order to raise funds to help fund the infrastructure, facilities and services - such as schools or transport improvements - needed to support new homes and businesses.

S106 - Reasonableness:
i) Necessary to make development acceptable in planning terms
ii) Directly related to the development; and
iii) Fairly and reasonably related in scale and kind to the development.

Question 46

Financial Viability in Planning

Answer 46

2023 - Professional Statement

Reissued as a professional standard in April 2023 (released as guidance note in 2019)
inform the practitioner on what must be included within financial viability assessments and how the process must be conducted.

‘Any viability assessment should be prepared on the basis that it will be made publicly available other than in exceptional circumstances.’
Although certain information may need to remain confidential, FVAs should in general be based around market- rather than client-specific information.

Question 47

RICS Red Book Valuation

Answer 47

2022 - Global Standard

Market Value: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Question 48

NMDC

Answer 48

2021

Provides detailed guidance on the production of design codes, guides and policies to promote successful design. A new national design code meaning areas are beautiful, well-designed and locally-led is being tested across 14 areas in England.

Question 49

Agricultural Holdings Act

Answer 49

1986

Setting out the legislation for Agricultural Tenancies - Agricultural tenancies agreed before 1 September 1995 are known as 1986 Act Tenancies. They’re also sometimes referred to as Full Agricultural Tenancies (FATs) or Agricultural Holdings Act tenancies (AHAs).

These tenancies usually have lifetime security of tenure and those granted before 12 July 1984 also carry statutory succession rights, on death or retirement. This means a close relative of a deceased tenant can apply for succession to the tenancy within 3 months of the tenant’s death.

Applying for succession stops any notice to quit given by the landlord on the tenant’s death.

Question 50

Agricultural Tenancies Act

Answer 50

Farm Business Tenancies - no renewal rights and relatives have no succession rights. The majority of new agricultural tenancies created after 1 September 1995 will be FBT’s. FBTs provide greater flexibility for both landlord and tenant, giving them the freedom to agree specific terms between themselves with less statutory restraints. In order for a tenancy to be regarded as an FBT, it must:

satisfy the “business condition”; and either
(1) the “notice conditions”; or
(2) the “agriculture condition”.
To satisfy the business condition, at least some of the land must be farmed commercially throughout the term of the FBT.
The notice conditions require the landlord and tenant to exchange Section 1(4) notices stating that the FBT is to be and remain an FBT. If the notice condition is not followed then the agriculture condition must be satisfied.
The agriculture condition requires that the character of the FBT be primarily or wholly agriculture.

Grazing License:
A grazing licence offers very little security to the licensee and generally either party can terminate the licence on very short notice. A licence is often used in more short term and informal arrangements.

Question 51

Landlord and Tenant Act

Answer 51

1954

The rights and obligations of landlords and tenants of premises which are occupied for business purposes.

Contracting out’ is where the landlord and tenant make an agreement prior to entering into the lease to exclude the statutory rights under the 1954 Act and the tenant therefore loses their automatic right to renew their lease at the end of the lease term.

Question 52

Street V Mountford

Answer 52

1985 - (Lease v License)

Mr Street granted what he considered a license, but Mrs Mountford having the below, actually had possession of a lease.

1. Exclusive possession; 2.Fixed term; and 3. Consideration, usually in the form of rent.

Question 53

Animals Act

Answer 53

1971

landowners faced with the problem of fly-grazing had very limited powers. If the owner did not come forward to claim the horses within 14 days, the landowners would have been responsible for ensuring that the animal was properly identified and microchipped in accordance with the Horse Passport Regulations 2009, before being forced to sell the horse at public auction.
Large cost implications for the rightful landowners.

Question 54

Control of Horses Act

Answer 54

2015

amends the Animals Act 1971 and, when it came into force on 25 May 2015, will enable local authorities, owners and occupiers of land to deal more quickly and effectively with fly-grazing horses.

Landowners are able to remove horses from their land immediately rather than keeping them in situ for 14 days as was previously the case. They must notify the Police and the horses’ owner (if known) within 24 hours of doing so. horses can be disposed of 96 hours after detention (rather than 14 days)

Question 55

Countryside and Rights of Way Act

Answer 55

2000

The Countryside and Rights of Way Act 2000 ( CROW Act ) normally gives a public right of access to land mapped as ‘open country’ (mountain, moor, heath and down) or registered common land. These areas are known as ‘open access land’.

There are five parts to the Act:
* Part 1 is concerned with open access land - often referred to informally as ‘the right to roam’.
* Part 2 makes changes to the way in which rights of way are recorded and to the maintenance and enforcement of Public Rights of Way and their management and promotion. It includes measures relating to:
o Restricted Byways;
o completing the Definitive Map by 2026;
o Rights of Way Improvement Plans; and,
o Guide to problems and protocol
* Part 3 strengthens nature conservation measures and wildlife protection.
* Part 4 relates to Areas of Outstanding Natural Beauty (AONBs).
* Part 5 provides for the setting up of Local Access Forums and draws together various pieces of miscellaneous and supplementary material.

Question 56

Land Registration Act

Answer 56

2002

Its purpose is to modernise land registration so that the register provides a complete and accurate reflection of the state of the title of the land at any given time.

It sets out voluntary and compulsory applications for first registration of land.

Question 57

Compulsory Purchase Act

Answer 57

1965

It contains provisions as to the compulsory purchase of land by acquiring authorities. In addition, it indicates where someone may be entitled to compensation when land is compulsorily purchased.

Question 58

Law of Property Act

Answer 58

1925

Part I sets out certain general principles as to legal estates, equitable interests and powers- The main object of the 1925 legislation was, therefore, to “facilitate and cheapen the transfer of land”

Question 59

Estates Agents Act

Answer 59

1979

regulates estate agency work. Its purpose is to make sure that estate agents act in the best interests of their clients, and that both buyers and sellers are treated honestly, fairly, and promptly

18: Information that the agent must give to the client before entering into an agency contract in writing. When the client will become liable to remuneration fees, amount of remuneration, anything not forming part of the Agents remuneration (additional costs). Nature of the instruction (joint agent, sole agent, joint sole agent)

21: Declaration of personal interests

Question 60

Consumer Protection from Unfair Trading Regulations

Business Protection from Misleading Marketing Regulations

Answer 60

2008

Office of Fair Trading provides guidance on how to comply with the Consumer Protection from Unfair Trading Regulations (CPRs) and Business Protection from Misleading Marketing Regulations (BPRs) in relation to property sales.
Agents will need to examine their processes, as the implications of the CPRs and BPRs mark a significant departure from previous ways of working. Agents can no longer rely upon compliance with the Property Misdescriptions Act 1991

Question 61

Misrepresentation Act

Answer 61

1967

The Misrepresentation Act 1967 provides a party who has relied upon a misrepresentation, an action by way of contract law, which may also be able to run concurrently with an action under tort for deceit, to enable them to be in the same position they would have been in, had the contract not become valid.

Question 62

Unfair Contract Act

Answer 62

1977

Regulates contracts by limiting the extent to which one party can avoid liability through use of exclusion clauses such as disclaimers. It applies to exclusion terms within the majority of contracts, including notices that would bring into existence contractual obligations.

Question 63

Ellenborough Park

Answer 63

1955

The necessary requirements for granting an easement: (4 reasons)

There is a dominant and a servient tenement,

The easement must accommodate the dominant tenement (this accommodation must go beyond raising the value of the dominant tenement and the easement must be linked to the use of the dominant tenement),

The dominant and servient tenements must have different owners

The right must be capable of being the subject matter of a grant (this is necessary as easements do not physically exists and thus cannot be passed by possession, leaving a grant as the only option. Further, the right must not be purely for recreation – it must have utility.

Question 64

Stokes vs Cambridge

Answer 64

1961

iI a parcel of land would allow access to develop a neighbouring property, in a compulsory purchase of the land its owner is entitled to one-third of the resulting property value.

Question 65

Merrit vs Babb

Answer 65

2001

Importance of run off cover

Surveyor sued for negligence by a former client since the firm was no longer in existence