Case Study Questions Flashcards
What did you do in respect to Terms of Engagement, Anti Money Laundering Checks and Conflict of Interest checks?
In respect to Terms of Engagement, my director drafted them and I reviewed before issuing to the client. Our ToE included our fee and how this was calculated, a copy of our PII levels, a copy of my firms CHP and the details of the instruction.
In respect to Anti Money Laundering checks, I carried out Customer Due Diligence ensuring that I had a copy of all the directors passports and proof of address.
Conflict of Interest checks involved me writing to the firm requesting if anyone had any conflict of interests with this Client and whether we had an COI with our clients which we did not.
What is your view of efficient management ?
In my eyes, efficient management is to ensure the day-to-day running of the property is carried out to the highest standards and me as the property manager ensure daily tasks are carried out professionally.
As well as ensuring the property is safe for its occupiers and visitors.
“Efficient management should involve preparing a building for a potential sale”
What do you mean by “SME”?
Small to medium sized enterprises.
What is your knowledge of RICS Service Charge handover procedures?
In accordance with the RICS Professional Standard Service Charges in Commercial Property (Effective April 2019):
The onus should be on the seller or managing agents to provide the buyer or their managing agents all the necessary information about the service charge in a timely manner including:
- The reconciliation of any outstanding closed service charge years.
- The handover of any credit balance on the service charge account.
- The recovery of any shortfall or arrears, including specifically which party (buyer or seller) can pursue the arrears.
- Adequate records and information to provide continuity in the management.
How frequently was the rent demanded?
Quarterly unless specifically stated otherwise, some tenants had agreed previous to pay in monthly instalments.
Did you deal with any disputes?
Yes, one tenant had disputes with the service charge under the previous managing agents and thus did not pay service charge demands for a time period during my management. I met with the tenant face to face to resolve this. The main dispute was over the cleaning of the property.
How is the service charge proportioned?
Allocated fairly across three schedules from floor areas.
Did you undertake the same floor areas from the previous managing agents in terms of service charge budget?
No - to ensure its validity, I undertook my own measurements in conjunction with my director to ensure the information we had been provide was accurate.
What arrangements did you make prior to inspecting the property and how did you ensure your safety as well as the safety of others?
I carried out a dynamic risk assessment, took with my the necessary PPE equipment, analysed the notes of the building given to me by the previous managing agents and I was always aware of my firm’s lone working policy when inspecting by myself.
What is your understanding of the new use classes?
Classes A1, A2, A3, D1, D2 are now under Use Class E
Certain uses do not fall within any use class are considered ‘Sui Generis’ examples include nightclub & theatres.
What use class did the sub-tenant come under, was it in line with the use provision in the original lease?
Yes the use class was in line with the original lease, which was under A1
What was the outcome of Faiz v Burnley County Council 2021?
Lewison LJ decided that it would waive the right to forfeit for that breach.
What was the rateable value of both 5 & 6 Station Parade?
5 Station Parade - £32,750
6 Station Parade = £34,250
What was the size of both units ?
5 Station Parade = 548 sq.ft
6 Station Parade = 581 sq.ft
Can a Licence become a Lease?
Yes, if not administrated properly.
