Bastard Questions Flashcards
What are the 3 main roles of the RICS
- To maintain high standards of education and training
- To protect consumers through strict regulations of professional standards
- To be a leading source of information and independent advice on land, property construction and associated environment issues.
What are the seven pieces of information are required to be registered firm?
- Type of business and staffing details.
- Name of the “responsible principal”.
- Statutory regulated activities.
- Nature of the clients.
- Complaints handling, procedure details and records.
- Professional indemnity insurance details.
- Whether the firm holds client money.
What penalties are there for individuals under the Bribery Act 2010?
10 years imprisonment / and unlimited fine
What penalties are there for firms under the Bribery Act 2010?
An unlimited fine / expulsion
What are the key facts if the Limitation Act 1980?
The Act sets limits for bringing legal claims to trial.
- 6 years from when the service was provided
- 6 years from when a loss was suffered
- Long-stop date of 15 years if the claimant wasn’t aware of the loss / 12 years depending on the type of claim and instruction.
What are the 6 key areas of Handling Client’s Money?
- Holding client money
- Providing info to clients
- Receipts of client money
- Payments from client accounts
- Accounting records and controls
- Compliance
What 5 areas of statutory compliance are required to start a new firm?
- Must disclose the businesses name
- Bribery Act 2010 compliance
- Disability Discrimination Compliance (Equality Act 2010)
- Health & Safety Compliance (Health & Safety at Work Act 1974)
- Appoint an AML Officer (Money Laundering Register 2017)
What are the 6 basic principle of the Bribery Act 2010?
- Proportionality
- Top level commitment
- Risk Assessment
- Due Diligence
- Communication6.
Monitoring & Review
What is the definition of ‘Fair Value’?
‘The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date’
- RICS view is that this value is generally consistent with Market Value
Name 5 of the 9 provisions of Money Laundering, Terrorist Financing and Transfer of Funds Regulations, 2017?
- Requirement to have written ML & TF risk assessment
- Implement systems and procedures to address ML and TF risks
- Adopt appropriate internal controls
- Provide staff training
- Comply with new customer DD requirements
What is the definition of ‘Investment Value’?
‘The value of an asset to a particular owner, or prospective owner for individual investment or operational objectives’
- Often used as a measure of worth to reflect the value against the client’s own investment criteria
What are the 5 exemptions under PS1?
- Providing agency or brokerage services in the acquisition of disposal of one or more assets
- Providing valuation advise in preparation of negotiations or litigation
- Acting as an expert witness
- Performing statutory functions
- Providing valuations toa client purely for internal purposes without communication to a 3rd party
What is VPS 1?
How many minimum matters are required under VPS 1? (Name 5)
Terms of Engagement
1) Identification and status of the valuer
2) Identification of client
3) Identification of any other intended users
4) Asset to be valued
5) Currency
What is VPS 6?
How many requirements are there under VPS 6? (Name 5)
Valuation Reporting
17.
- Identification and status of the responsible valuer
- Client and any other intended users
- Purpose of the valuation
- Identification of the asset(s) to be valued
- Basis of value
What are the 12 core principles of property agency? (Name 5)
- Act in honest, fair, transparent and professional manner
- Any client money is held separately and is covered by adequate insurance
- Any client money is held separately and is covered by adequate insurance
- All communications with clients are fair, decent, clear and timely and transparent
- All advertising and marketing material is honest and truthful
What must agency disposal Instruction Agreements state? 7 key areas, think of the whole process
- Agency basis (Sole or Joint)
- Proposed fee
- Marketing costs / disbursements
- Confirmation of no conflicts of interest
- AML requirements
- Timescale for payment of fee and disbursements
- Details of the firms complaints handling procedure
What are the 7 key points of the Estate Agency Act 1979?
- Clarity in terms (Section 18)
- Honesty & Accuracy
- Agreement and liability costs
- Conflicts of Interest (Section 21)
- Absence of discrimination
- Legal obligation to tell the client about offer received
- Keep clients money separate
What does the Consumer Protection from Unfair Trading Regulations 2008 cover?
That businesses must act with professional integrity and not distort information provided to a consumer?
What must agency disposal Instruction Agreements state? 7 key areas, think of the whole process
- Agency basis (Sole or Joint)
- Proposed fee
- Marketing costs / disbursements
- Confirmation of no conflicts of interest
- AML requirements
- Timescale for payment of fee and disbursements
- Details of the firms complaints handling procedure
How many parts does the Code for Leasing Business Premises have?
What are they?
4
1. Intro
2. Mandatory requirements
3. Lease negotiation best practice
4. Appendices
Under the Code for Leasing Business Premises what must Lease HoT’s state?
HoTs must be in written form.
Key points:
1. Must be subject to contract
2. Identity of the property
3. Length of the term
4. Inside of outside the Landlord and Tenant act 1954
5. Options for renewal / break rights
6. Guarantor / deposit information
7. Rent amount and payment dates
8. Whether exclusive of business rates
9. Whether inclusive or exclusive of VAT
10. Rent free period
11. Service charge liability
12. Ability to assign / sublet / charge or share the premises
13. Repairing obligations
14. Use of building
15. Rights to make alterations
16. Any initial alterations or fit out
17. Any conditions to the lease (surveys, board approvals or planning permission).
What is excluded in NIA for Offices?
- WC’s
- Stairwells
- Areas less than 1.5m in height
- Cleaners rooms
- Plant rooms
What is an Internal Dominant Face?
The main inner wall surface of a room or space
What is the difference between an inherent and a latent defect?
An inherent defect is present by nature of the material or design itself e.g. RAAC
A latent defect is hidden and only becomes apparent after a period of use or exposure e.g. a crack in the foundations
What is the difference between a Balance Sheet and a Profit and Loss Account?
A Balance Sheet is a ‘statement of financial position’. Shows assets & liabilities at a given date.
A Profit and Loss account is an ‘Income Statement’ shows a business income and expenditure.
What are the UK GDPR Principles?
That data must be:
1. Stored and processed lawfully
2. Collected for specified purposes
3. Accurate and up to date
Who is the UK GDPR regulator?
Information Commissioner’s Office (ICO)
Name 5 of the 8 individual rights under UK GDPR?
- Right to be informed
- Right to access
- Right to rectification
- Right to erasure
- Right to restrict processing
- Right to data proportionality
- Right to object
- Rights to Automated Decision Making and profiling
What’s the difference between UK GDPR and the Data protection Act 2018
UK GDPR provides the overarching framework, while DPA 2018 tailors and enforces it in the UK.
Who is the Savills Compliance Officer?
Melissa Shaw
Who is the Savills Responsible Principal?
Nicola McGuinnis
Who is your firms Complaints Handling Officer?
Charlotte Fairman
What does the Fire Safety Act 2021 require?
Requires for a “responsible person” to assess, manage and reduce fire risks.
Requires regular lift inspections which are reported to fire & rescue services.
What would you do if a client tried to pay your fee in cash? What is your firms cash policy?
What is the RICS cash payment limit?
Turn down such payment as my firm have a ‘no cash policy’, we require payment of fees through certified bank transfer.
The RICS regulations state that cash payments over £10,000 are considered ‘high risk’ and require further checks.
