All Competencies Flashcards
What are the 5 rules of conduct?
1 - be honest and act with integrity
2 - Maintain professional competence
3 - Provide good quality and diligent service
4 - Treat others with respect and encourage diversity and inclusion
5 - Act in the public interest and take responsibility
Why do we have rules of conduct?
Set out the standards of professional conduct and practise expected of members and firms registered for regulation by RICS
Define ethics
Having a higher standard than just avoiding a certain behaviour or practise because it is illegal
5 principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
What are the 3 professional obligations for RICS members?
1 - Comply with CPD requirements
2 - Cooperate with the RICS
3 - Provide all information requested by the Standards and Regulation Board
What is a conflict of interest?
A situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.
What is a bribe?
What are the consequences of a bribe?
An inducement or reward offered, promised or provided unethically to gain any commercial, contractual, or personal advantage
- fines
- Imprisonment
- Legal Costs
- Adverse Publicity
What is Money Laundering?
Converting and investing illegally gained money into property
Who is the president of the RICS?
Tina Paillet
Who is the Chairman of the RICS?
Martin Samworth
What does your firm do to ensure the health and safety of its employees?
- Has a H&S hierarchy and policy which is updated regularly
- Training is provided to staff
- Internal Audits
What is the Health and Safety at work act?
What are its basic principles & what penalties are there?
The H&S at Work Act 1974
- UK legislation ensuring health, safety & wellbeing of employees & others
- Safe operation & maintenance of office environment and equipment
- Adequate & appropriate training provided
- Employers must keep H&S policy up-to-date
- Unlimited fines
- 2 years in prison
- Director Disqualified
What is ‘Personal Data’?
Anything that could identify an individual
e.g.
- Name
- ID Number
- Location
- Characteristics
What are the CDM regulations?
Construction, Design, & Management regulations (2015)
Aims to consider H&S throughout entire projects, from conception to demolition
Projects become notifiable if they:
- Last longer than 30 days
- Are more than 20 workers
- Are over 500 person days
What is the difference between a risk and a hazard ?
Hazard - anything that could cause harm
Risk - combination of:
- likelihood of occurrence
- severity of outcome
What are the:
- 7 Key Principles
- 8 Individual rights
of GDPR (General Data Protection Regulation)?
Can you name 3 of each?
7 Key Principles:
1) Lawfulness, fairness, transparency
2) Purpose limitation
3) Data minimisation
4) Accuracy
5) Storage limitation
6) Integrity & confidentiality
7) Accountability
8 Individual Rights:
1) To be informed
2) Access
3) Rectification
4) To erasure
5) Restrict processing
6) Data portability
7) object
8) Automated decision making
What are included in your firms Terms of Business?
- Introduction
- Persons responsible
- Charges
- Payment Procedures
- Confidentiality
- Limitation & Liability
- Data Protection
- Complaints Procedure
- Termination Procedures
What components would you find in a business plan?
Why are they needed?
- Executive Summary
- Marketing Strategy
- Product or service provided
- Management Structure
- Responsibilities & Targets
Help to secure new instructions, expand client base and allows for resource planning
Terms of engagement examples
- Client details
- Staffing details
- Conflict of interest declaration
- Scope of work
- Assumptions
- Fees
- Complaint Handling Procedure
- Liabilities
Why would a firm want to RICS accreditation?
Status shows that the firm
- behaves ethically
- handles client money responsibly
- acts transparently
- has necessary skills and competence
- handles complaints appropriately
What is a safe place?
A place or environment where people feel safe from discrimination, criticism, harassment, and harm.
What are your firms procedures for checking conflict of interest?
Set out in my company’s Conflict of Interest Policy, available on the Integrated Management System (IMS)
- Circulate a quality plan at the start of a new job
- Keep the QP on file
- Manager must raise any conflict of interest with all affected parties
- We must receive client approval in writing before proceeding
What is a balance sheet?
What is a profit and loss statement?
What is a cash flow statement?
Balance Sheet -
A statement of financial position at a specific point in time (assets, liabilities, equity)
Financial statement -
Statement recording revenue, costs, and expenses (usually quarterly)
Cash flow statement -
Statement showing net cash-flow position to help assess liquidity
Have you dealt with a complaint before & what did you do?
Complaint from a landowner that a surveyor had taken access without consent
- Called client to confirm details
- Logged complaint in the complaint handling log
- notified complaint handling officer
- reviewed practises and held internal meeting to discuss avoiding in the future
- the complaint was resolved and did not escalate
What is the RICS guidance on Health and Safety? Is it mandatory?
RICS Surveying Safely 2018
Guidance - not mandatory
When is it appropriate to use informed consent?
When the member/firm are satisfied that
- proceeding is in all parties best interest
- it is not illegal
- objective, competent, and diligent service can still be provided.
How does your firm ensure it stays profitable?
- timesheet and expenditure records
- project reviews
- Team meetings for resource planning
- Performance reviews / appraisals
What guidance does the RICS offer regarding conflict of interest?
RICS professional statement ‘Conflicts of Interest’ 2017
The RICS ethics tree
If a client wanted to pay you in advance of works, how would you deal with this?
- Create client account
- Provide statement of account
- Agree and inform of drawdowns
- Provide statement rationalising drawdowns
- Provide final statement on completion
How have you agreed an uplift to your fees from a client?
- Met client to discuss change in scope
- Provide cost estimate, in writing, for additional work
- Confirmed new total fee account proposed
- Offered further discussion if required
- Awaited consent before proceeding
Under what Act are audits required?
Companies Act 2006
How does your company guard against money laundering?
- Anti Money Laundering policy
- Conducts AML risk assessments
- Adopt internal controls and procedures
- Provide Staff Training
- Client ID procedures
- Keep good records
What is a client money account and what types are there?
What are our obligations?
An account holding client money under complete control of an RICS firm/member.
Discrete (1 client)
General (more than 1)
- keep client money safe
- use accounts appropriately
- ensure controls & procedures are in place
What must we do when holding Client Money?
- Maintain exclusive control over client accounts
- ensure no other money is held in that account
- ensure ‘client’ and the firms name are specified in the account name
- ensure money is immediately available to the client
- Provide banks operating conditions
What must we do in relation to accounting records & control of client money?
- Keep records of all transactions
- ensure all transactions align with client instructions
- publish money handling procedures on website
- prevent overdrafts & rectify any immediately
- have adequate data protection in place
What are the benefits of an inclusive environment?
- Reduced social inequality
- Reduced cost on adaptations long-term
- Attracts a diverse group of users
- Improved economic development
What is the minimum indemnity cover required for firms?
Depends on previous years turnover -
- less than £100,000 = £250,000
- £100,000 - £200,000 = £500,000
- Over £200,000 = £1,000,000
What would you need if you set up a new practise?
- Insurance
- Business Plan
- H&S Policy
- Complaints Handling Procedure
- Bank details
- Website & Email Address
- Staff Contracts
How long do you keep data for?
Bell Ingram Data Protection Policy
Held for duration of business relationship, + 1 year
Held for up to 6 years to protect against legal risk
What must we do regarding conflict of interest?
1) Identify and manage Conflict of Interest
2) Keep records of decision making & measures implemented to avoid them
How do you determine if a gift is appropriate?
- Consult the RICS ethics tree
- Consult my firms anti-bribery policy
- Consult RICS professional statement ‘Bribery, Corruption, Money Laundering & Terrorist Financing’ Feb 2019
If you accidentally send confidential information to the wrong party, what should you do?
Act Honestly
- Inform Client
- Inform Manager
Act Diligently
- Contact recipient & Ask to delete or destroy information
Take Responsibility
- Learn lessons
- Deal with complaints as appropriate
What is informed consent?
Consent given by any party who may be impacted by a Conflict of Interest that they understand:
- there is a conflict of interest or a risk of one
- The RICS firm knows and understands this
- What it is or may be
- The Conflict of Interest may inhabit the RICS Firm
But remains happy for them to proceed
How is data secured in your firm?
- Paper Files in lockable cabinets
- Folders, documents & external storage devices are encrypted
- Two-Stage Authentication
- Limited access to SharePoint
You are offered tickets to Ascott by a client. Do you accept? What do you do?
Gifts must be proportionate and not used as a reward to gain an advantage
I would politely decline, log this in the firms gifts & hospitality register and if I was concerned about bribery, report to the manager.
Prior to working with a new client, what checks would you undertake?
I would ensure I am sufficiently knowledgeable, skilled and competent to carry out the work
I would check for any conflicts of interest
I would ensure the sufficient PII insurance was in place to cover the value of the instruction.
On receipt of a formal complaint, what would you do?
I would -
- Notify them that the complaint has been received and that we are working to rectify this.
- Issue a copy of my firms complaint handling procedure
- Report the complaint to the designated complaints handler
- Meet the client to receive feedback and address any areas of concern
- And if I was unable to resolve the complaint, I would refer this to the RICS.
If 2 separate departments within your firm were working for 2 rival companies, how would you ensure client sensitive data was managed?
I would -
- Inform clients of the conflict of interest and the risks associated with this
- Request a letter of instruction from them to continue
- Put measures in place to minimise potential risk, such as NDA’s, separate working locations, and secure storage of data.
What is work place diversity?
Diversity in the work place relates to the acceptance and inclusion of employees of all backgrounds.
When did the Rules of Conduct change?
February 2022
What are the CPD requirements for MRICS members?
Record 20 hours of CPD every year, where a minimum of 10 have to be formal.
What is a Red Book Valuation and why do we need it?
The RICS Valuation – Global Standards, the red book, provides a global framework of standardized valuation procedures and standards that are necessary for installing consistency, high standards and public trust in valuation.
What should be included in a Red Book Valuation Report?
- Introduction
- Purpose & Basis of Valuation
- Assumptions & Special Assumptions
- Property Description
- Valuation Date
- Market Commentary
- Evidence
- Signatures
When is a Red Book Valuation compulsory?
Legal and accounting procedures such as:
- Probate
- Capital Gains Tax
- CPO’s
- Divorces
- Property Disputes
- Sales by Charities or NPO’s
- Valuation of Bank, Mortgage or Lending Securities
When is a Red Book not required?
- Advice given during negotiations or litigation
- Internal use with no liabilities
- Performing statutory functions
- When acting as an expert witness
What is included in a Red Book Valuation Terms of Engagement?
- Valuer & Client Details
- Valuation date & subject
- Basis and Purpose of Valuation
- Assumptions & Special Assumptions
- Fees
- Complaints Handling Procedure
Before accepting a valuation, what should you do?
- Establish the purpose of the valuation
- Identify if it is a Red Book valuation or not
- Check for conflicts of interest
- Check for legal requirements
- Check for 3rd Party Interests
- Ensure the sufficient PII is in place.
If I had arrived for the inspection & circumstances had changed or appeared unsafe, what would I have done?
I would have carried out a dynamic risk assessment
- continually re-evaluate to determine competence and safety.
- If there was unsafe conditions, I would immediately stop, seek assistance and rearrange.
What due diligence did I undertake before the inspection?
- Carried out a Desk Top Review
- Studied the lease / agreement
- Carried out a risk assessment
- Printed out plans
- Ensure I have the appropriate PPE.
What measures did I put in place to ensure safety when inspecting?
- Carried out Desk Top Due Diligence & A Risk Assessment
- Planned Travel Routes
- Checked the weather forecast
- Charged my mobile phone
- Kept colleagues informed of my whereabouts
- Asked the client / tenant of any potential risks, e.g. livestock
What did I include within my risk assessment prior to inspection?
- Identified hazards and risks
- Who may be harmed and how
- Mitigation strategy
- Who is responsible
- Actions required
- dates
- location
- contact details
What are the 5 methods of valuation?
- Comparable method
- Depreciated Replacement Cost Method
- Investment method
- Profits method
- Residual method
What happened in Stokes vs Cambridge (2008) ?
Stokes v Cambridge (1961)
- A claim for compensation for land under a CPO
- Access to the land was a ransom strip
- Court held that an appropriate purchase price was to be attributed to the ransom strip
- 33% of the increase in value of the subject land attributable to the acquisition of the ransom strip
What is a ransom strip?
A ransom strip is a piece of land that must be crossed to enable adjoining land to be developed.
What is 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.
What are assumptions? What are special assumptions?
Assumptions are conditions or situations affecting the property which (by agreement) are assumed to be true.
Special assumptions assumes facts that differ from actuality, are true.
What makes a good comparable?
A comparable which is similar in -
- Size
- Nature
- Ownership
- Location
- Disposal method
As close to the valuation date as possible.
What is the residual method of valuation?
The residual method of valuation establishes how much a developer should pay for a site with development potential.
The residual method of valuation calculates the gross development value, minus the associated development costs and the developers profit.
What are the Valuation Technical and Performance Standards?
VPS1 - Terms of engagement
VPS2 - Inspection, investigation and records
VPS3 - Valuation reports
VPS4 - Bases of Valuation, assumptions, special assumptions
VPS5 - Valuation approaches and methods
What is a special purchaser?
A buyer for whom an acquisition has special value not available to others in the open market.
What are assumptions?
What are special assumptions?
Assumptions -
Conditions or situations affecting the property which (by agreement) are assumed to be true
Special Assumptions -
Assumes facts that differ from actuality, are true
What are the bases of value?
Where are they defined?
- Market Value
- Market Rent
- Investment Value
- Equitable Value
- Synergistic Value
- Liquidation Value
Red Book VPS4 & IVS 104
What makes a good comparable?
Similar in:
- Size
- Nature / Condition
- Ownership / Tenure
- Geographical distance / Location
- Disposal method
As close to the Valuation Date as possible
What is the comparable method of valuation?
The comparable method of valuation provides an indication of value through obtaining comparable evidence.
What is the Profits method of valuation?
How does it work?
The profits method of valuation establishes the trading potential of a business in trade related properties, such as a cinema or hotel.
The profits method calculates the gross annual income, minus all associated costs, and them multiplies by the relevant multiplier.
What is the Depreciated Replacement Cost Method of Valuation?
How does it work?
The depreciated replacement cost method of valuation provides an indication of value based on a buyer paying no more or less than the cost to obtain the asset based on the current equivalent.
It is often used to value properties where this is no active market, such as a mosque.
The depreciated replacement cost method of valuation is calculated by identifying the cost of building the equivalent building, plus the cost of purchasing the land.
What is hope value?
Hope Value is a term used to describe the market value of land based on the expectation that planning permission will be granted to develop on it.
What is marriage value?
Marriage value is the extra value that arises from the merger of 2 physical or legal interests.
What is special value?
Special value is an extraordinary element of value over and above market value.
What is a S.168 Notice and what is the notice period?
A notice which allows access for site investigation works. 7-day notice period.
Heads of terms included in a purchase r.e. access and rights
- Consideration
- Access rights
- Works/Usage
- Vacant Possession
- Fees
- Premises with a plan reference
What is a s.159 Notice and what is the notice period?
Gives access to either construct new apparatus - 3 month notice period
or
access for maintenance or replacement of apparatus - 42 day notice period
What powers are in a s.158?
Powers to lay pipes in the street
Powers to compulsorily acquire land in the different utility industries
Water = Water Industry Act 1991, s.155
Electricity = Electricity Act 1989, schedule 3
Gas = Gas Act 1986, schedule 3
What is a wayleave?
- A terminable agreement linked to the owners or occupiers, rather than the land itself.
- right of access across the land to install or maintain apparatus.
- Not binding on successors.
What is an easement?
- Also referred to as a Deed of Grant, a permanent agreement linked to the land itself rather than the owner or occupier.
- Grants permission for specified activities, such as rights of way, rights to construct, maintain, replace and repair.
What is the difference between a wayleave and an easement?
A wayleave is a terminable agreement with the owner or occupier, not with the land itself and is not binding on the successors.
An easement is a permanent agreement against the land itself, is on the land title and is binding with the successors.
What are accommodation works?
- measures implemented to reduce the impact of the works carried out.
- This can include passing places, stock-proof fencing, new access roads.
Common rights related to easements?
Right to lay, install, maintain, replace, and repair infrastructure.
What is a licence?
A licence is a personal right to use land and is not transferable.
What is a lease?
A lease is an interest in land. Interests in land are transferable.
What is the difference between a licence and a lease?
A licence is a personal right to use land and is not transferable
A lease is an interest in land, and is transferable
What are restrictive covenants?
A legal agreement which prevents someone from carrying out certain acts on their property.
E.g. They can’t build on it.
What is a Land Title?
A registered interest in the land which incorporates all restrictions on the land, the registered proprietors details as well as the leasehold interests.
Water Industry Act 1991?
Sets out the main powers and duties of the water and sewerage companies,
and,
Gives powers to construct and maintain water/wastewater apparatus by service of notice under the act.
What is a s.155 under the Water Industry Act 1991?
CPO for land acquisition, although this is often purchased by agreement.
What is schedule 12 of the Water Industry Act 1991?
Compensation is assessed in accordance with schedule 12 of the Water Industry Act 1991
Agents fees under Water Industry Act 1991?
- Often based on Rydes Scale
- Also can be based on an hourly rate agreed with by the Client.
Electricity Act 1989?
Governs the supply and distribution of electricity
What is a necessary wayleave?
If they cannot reach an agreement with a landowner voluntarily, an operator can apply for a necessary wayleave.
They must provide evidence as to why it is needed and this must be granted by the Secretary of State.
Schedule 3 and Section 10 of the Electricity Act 1989?
Where an agreement through negotiation can not be reached, Secretary of State has power under schedule 3 and Section 10 of the Electricity Act 1989 to compulsory purchase the rights.
Section 37 of the Electricity Act 1989?
statutory consenting process, granted by the Secretary of State, to install and keep installed overhead electric lines.
Agents fees under the Electricity Act 1989?
Rates are not statutory, they are guidelines.
Based on their own fee scales.
Gas Act 1986 - Brief
Governs the supply and distribution of gas.
I haven’t been involved with any instructions surrounding the Gas Act.
I am aware that statutory powers are limited in comparison to the Water Industry Act 1991.
I am aware that usual practise is to secure rights through voluntary agreement.
I am aware that powers within the Gas Act 1986 to compulsory acquire land or rights is available through schedule 3, which has to be authorised by the Secretary of State.
Section 9 and Schedule 3 of the Gas Act 1986
Powers within the Gas Act 1986 to compulsory acquire land or rights. Must be granted by the Secretary of State.
Level 2 Access and Rights examples are:
National Grid ZP & ZPA
- Painting of towers
- accommodation works and access routes to minimise disturbance and damage
- Maintaining communication with landowners through the scheme
- Negotiating and settling compensation claims
Utkinton WwTW
- Topographical and borehole surveys
- s.168 served to landowners and agents
- Compound area
- Negotiated and agreed licence terms with landowner and agent
Level 3 Access and Rights examples are:
SPEN AG Line:
- Replacement of conductors
- Field had lots of horses and no alternative location for them to go
- Agreed access route along the perimeter of the field
- advised that post and rail fencing would be required for health and safety purposes.
Duddon WwTW:
- purchase for improvement works of an existing asset
- Tight timescales
- I advised that the purchase wouldn’t complete in time, and that a licence would be needed to gain rights to the land until it did.
- Successfully negotiated 2 licence agreements, 1 for the purchase area and 1 for the compound, and agreed terms for the purchase and HOT’s were issued
Level 3 Access and Rights - Advice Given:
SPEN AG:
- Post and Rail fencing required for health and safety purposes
- lots of horses in the field and no alternative location for them
Duddon WwTW:
- Advised a licence would be required to obtain rights to the land until the purchase completed
National Grid ZP & ZPA overhead electricity line:
National Grid ZP & ZPA
- Painting of towers
- accommodation works and access routes to minimise disturbance and damage
- Maintaining communication with landowners through the scheme
- Negotiating and settling compensation claims
Utkinton WwTW:
Utkinton WwTW
- Topographical and borehole surveys
- s.168 served to landowners and agents
- Compound area
- Negotiated and agreed licence terms with landowner and agent
SPEN AG 132 kV overhead line:
SPEN AG Line:
- Replacement of conductors
- Field had lots of horses and no alternative location for them to go
- Agreed access route along the perimeter of the field
- advised that post and rail fencing would be required for health and safety purposes.
Duddon WwTW:
Duddon WwTW:
- purchase for improvement works of an existing asset
- Tight timescales
- I advised that the purchase wouldn’t complete in time, and that a licence would be needed to gain rights to the land until it did.
- Successfully negotiated 2 licence agreements, 1 for the purchase area and 1 for the compound, and agreed terms for the purchase and HOT’s were issued
How should a notice be served?
Notices must be valid:
- issued to the correct registered owner and occupier at their current address
What year is the Water Industry Act?
1991
What year is the Electricity Act?
1989
What year is the Gas Act?
1986
What is a DCO?
Development Consent Order:
Means of obtaining planning permission for a Nationally Significant Infrastructure Project under the Planning Act 2008.
What interests qualify under S.12 Acquisition of Land Act 1981?
Under Part 1 - Owners, lessees, tenants, occupiers (Book 1)
Under Part 2 - Mortgages, restrictive covenants, trustees (Book 2)
What can be claimed for if impacted by a CPO?
- Land Taken
- Disturbance
- Loss Payments
- Severance & Injurious Affection
What is a CAAD and what is the process?
Certificate of Appropriate Alternative Development
- determines what site could be used for in a no scheme world
- application through local council & can be positive (to prove) or negative (to disprove)
What are the Crichel Down Rules?
Non-statutory arrangements for AA to sell surplus land back to owners if bought using statutory powers.
What rights to compensation are afforded under 1961 & 1973 Acts?
1961 Act establishes the 6 rules of assessing compensation (Land Taken)
1973 Act defines the right to compensation if impacted by the use of the works (No Land Taken)
How did you verify ownership data in relation to the National Grid referencing?
- Checking Land Registry documents
- Issuing questionnaires
- Erecting site notices for unregistered land
What are the MacCarthy rules? When do they apply?
For claims under Section 10 Compulsory Purchase Act 1965
Injurious Affection compensation when land is not taken, but impacted by the execution of the works
1) The Injurious Affection must be the Consequence of lawful exercise of statutory powers
2) The Injurious Affection must arise if done without Statutory powers
3) The value of the land must be directly affected by physical interference with some legal right that the claimant is enititled to make use of in connection with their property
4) Damage arises from execution of the works and not from the use
What is a Notice to Treat?
Notice stating on AA’s willingness to negotiate for a purchase & compensation.
3 steps -
1- a notice to treat
2 - a notice of entry
3- a conveyance
Possible to gain possession and start development earlier than under a General Vesting Declaration.
Usually 21 days to respond
Can be withdrawn, served on whole or part of the property
Entry can be 3 months from the service of a Notice of Entry
Name some potential Heads of Claim following a CPO
- Temporary or permanent loss of profits
- Loss of crop
- Reinstatement of land
- Relocation cost
- Reasonable legal / surveying fees
What is S.14 of the Land Compensation Act 1961?
Taking account of actual or prospective planning permission in valuing land subject to compulsory acquisition.
What is the difference between severance and injurious affection?
Injurious Affection -
- Compensation for depreciation of value of retained land arising from statutory works.
- Claimable under S.10 1965 Act
- Eligibility determined by the McCarthy Rules
Severance -
Severance occurs when the retained land is severed from the rest of the property and therefore loses value.