Case Study

Question 1

Explain the Fall back position (Blackawton), including reference to relevant case law

Answer 1

Fallback position was established in Mansell V Tonbridge and Malling Court of Appeal Case 2017

Decision establish that where there is a realistic prospect of a permitted development scheme being implemented, the potential for the fallback position must be considered by the local authority (material planning consideration).

Where the alternative new-build proposal offers either an enhancement to the setting or a reduction in density when compared to the fallback, the development could (and perhaps should) be allowed to proceed.

Question 2

Talk me through a development appraisal

Answer 2

work out the total income (GDV)
then work out the total development cost- including build costs, contingency, abnormal, garaging, professional fees, finance, acquisition costs, disposal costs, finance costs, profit margins to then arrive at a residual land value

Question 3

What are the various stamp duty thresholds (non-residential/ commercial rates)

Answer 3

Up to £150,00 = £0

The next £100,000 (the portion from £150,001 to £250,00) = 2%

The remaining amount (the portion above £250,000) = 5%

Question 4

Talk me through the AML due diligence you conducted

Answer 4

Referred to the RICS Professional Statement Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2017) and Money Laundering Regulations 2017.

Carried out normal due diligence, unless a Red Flag Occurs.

Taking the appropriate steps to ascertain who the customer or client is and, if relevant, their ultimate beneficial owner is . These can be relatively simple checks to verify the identity
of the customer/client or may entail deeper investigations.

Enhanced DD = two proofs of ID, Two proofs of address.

monitoring, notifying Money Laundering officer etc.

Question 5

What is included in a normal terms of business

Answer 5

Must state in writing:

• clients agreement to the proposed fee basis
• payment of expenses (and how calculated)
• a copy of the firm’s complaints handling procedure, is available upon request.

you calculate fee by working out resources requires, timescales etc

Question 6

What are the Stamp Duty Thresholds for UK Residential Property

Answer 6

Up to £250,000 = £0

The next £675,000 (the portion from £250,001 to £925,000) = 5%

The next £575,000 (the portion from £925,001 to £1.5 million) = 10%

The remaining amount (the portion above £1.5 million) =12%

Question 7

what do you do prior to engagement

Answer 7

Check professionally competent
check no conflict
confirm terms of engagement

Question 8

what are the 3 codes of measurement

Answer 8

code of measurement practise 2015 guidance NIA GIA GEA

measuring property - 2018 professional standard - what is the IMPS and how surveyors adopt it

Internal Property Measurement standards - IMPS

Question 9

what is self regulation

Answer 9

RICS self-regulates, meaning that it operates within it’s own published regulatory framework, rather than being legislated by Government. RICS regulation is led by an independently-chaired Regulatory Board and regional sub-boards.

Question 10

what is article 4 within pd

Answer 10

LPA can override permitted development rights

Question 11

how is a local plan formed

Answer 11

1. LPA carries out initial evidence gathering and consultation (Reg 18)
2. Publication for at least 6 weeks to allow representations to be made (Reg 19)
3. Submission to planning inspector for independent review
4. Found Sound - Planning inspector write a report setting out the in the plan is sound
5. Adoption

Question 12

what are the 3 types of comps and what RICS standards are there

Answer 12

RICS Professional Standard Comparable Evidence in Real Estate Valuation (2019), which sets out the Hierarchy of Evidence, sets out 3 main types.

Category A - direct comps (completed transaction of near-identical property, full and accurate data available)

Category B - general market data

Category C - other sources e.g. interest rates and stock market movements

Question 13

why did you not set a guide price? was this a good idea and would you do it again

Answer 13

National Trading Standards updated their guidance in Feb 2022 that POA in unlawful and does not comply with CPR (2008)

We used price on application as every interest party can then make up their own mind on how to factor in certain elements of risk and quantified risk

would mean that we may exceed our price expectation as buyers may ‘take a view’ on certain elements of their appraisals in arriving at their own opinion of market value

Question 14

what is the law of property act 1925

Answer 14

The programme was intended to modernise the English law of real property. The Act deals principally with the transfer of freehold or leasehold land by deed.
sets out principles of freehold and leasehold. sets out the conveyancing and transfer if these interest

Question 15

what is market value

Answer 15

Market Value is the amount for which an asset should be sold for, on set date, between a willing buyer and a willing seller, in an arms length transaction, after proper marketing, where all the parties had acted knowledgeably, prudently and without compulsion

Question 16

what is a conditional sale

Answer 16

A conditional sales agreement is a financing arrangement where a buyer takes possession of an asset, but its title and right of repossession remain with the seller until the purchase price is paid in full.

The purchaser can take possession of the property as soon as the agreement is in force, but does not own the property until they have fully paid for it, which is usually done in installments. If the business defaults on its payments, the seller will repossess the item.

Conditional sales agreements are often put in place during the financing of machinery and equipment, as well as various forms of real estate.