Case Study Flashcards
How did the client hear about your firm?
Online presence – the client wrote to a number of local firms and invited to tender for the work.
How did you undertaken your conflict of interest check?
Impey kept a database of clients currently/recently being advised. I also advised other colleagues of the client to confirm they had no dealings/interest.
Were you competent to undertake the instruction? Why?
Yes – I had handled a number of agency transactions prior and had supervision.
What is a long leasehold interest?
Ownership of property under a lease (125 years initially). Tenant can operate property how they like within the covenants of the lease and statute (planning etc). Ground rent sometimes payable and other sums (s/c). Wasting asset – value decreases (and FH premium likely increases) as lease runs down.
What was in your Terms of Engagement? Why are these important?
Identification of parties, identification of property, agency definition, scope of work (inc. exclusions), itemisation of fees, payment triggers, request for AML documentation, reference to CHP.
What is joint agency? What are other types of agency?
Joint agency on a sole agency basis: “You will be liable to pay remuneration to us, in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the property are exchanged:
• with a purchaser introduced by us during the period of our sole agency, or with whom we had negotiations about the property during that period
or
• with a purchaser introduced by another agent during that period.”
Why is joint agency used?
Provides a wider marketing campaign - potentially access to more contacts.
What is client due diligence?
Required under AML 5TH Directive and RICS PS Countering Bribery (etc) – verify client identity prior to instruction. Certified proof of ID and address; run AML check via Veriphy.
What is money laundering?
The recycling/cleaning of funds obtained through criminal means.
What does the RICS PS Countering Bribery & Corruption (etc) say?
Mandatory obligations and best practice dealing with bribery, AML and terrorist financing. Stringent ID checks required of all clients. Members to not facilitate ML activity and to report suspicions to authorities. Sits alongside EU 5th AML Directive and Money Laundering Regulations 2019.
Why did you undertake a H&S risk assessment?
To understand the hazards that might be present on site and the risk (likelihood of hazards causing harm) and prepare adequately.
What is a H&S risk assessment?
Assesses hazards likely on site and likelihood of those hazards causing harm. Identifies method of eradicating/minimising risk.
What were the risks?
Moving vehicles as a working site, trip hazards. Lone working policy required for all appointments.
Why did you decide to wear a hi-vis? What else could you have considered?
Inspecting when no vehicles on site (out of hours = less daylight and therefore less thorough inspection.
What is a title register?
Document showing who owns land, what interest and any restrictions (ground lease etc).
What is the Land Registry?
Non ministerial department who register the ownership of land and property.
What was the use of the premises?
B8 – storage and distribution.
What other uses could have been obtained without planning permission?
Nothing – over 500m2.
Why did you inspect in the order you did?
Logical and thorough methodology – helps ensure nothing is forgotten (force of habit).
Was the location good for the use of the property?
Yes – workforce; no – motorway network far away, poor roads (B8 use).
What constitutes a good location for industrial property?
Combination of good road access and workforce.
How old was the property?
Client informed early 1970s. No headers so cavity wall. Internal course brickwork rather than block.
Are full height brick elevations normal?
Not in modern construction – c.2m brick/block then plastic coated profile cladding.
Was the brick solid or did it have a cavity? How can you tell?
Cavity – no headers.
What is a portal frame?
Steel columns supporting double pitched roof.
What legislation governs asbestos?
Control of Asbestos Regulations 2012.
What does RICS Property Measurement (2nd Ed) say about industrial?
Not incorporated into IPMS so Code of Measuring Practice 6th Ed. Measure to GIA (measured to internal face of perimeter wall at each level)
What is a mezzanine?
Intermediate/partial storey, usually open at one or more sides.
Was the office/amenity block an appropriate proportion to the warehouse?
Higher than normal (institutional spec c.10%) but not so high that demand/value affected.
Is 59% a usual site density?
Higher than normal today (poss due to larger vehicles today so more turning required?) but again not so much so that value adversely affected. Contrast with Wimpory Street.
