Client Care

Question 1

Why is client care important?

Answer 1

a. Important to build relationships to ensure future business

b. Also part of being a member of the RICS is to provide good quality diligent service, and you can’t do that without client care

Question 2

What is duty of care?

Answer 2

Legal obligation imposed on an individual to ensure they avoid careless acts that could harm others and lead to claims of negligence

Question 3

What do you do if a third party wants to access your client files

Answer 3

Don’t give access without client’s permission unless legally obliged to i.e. a police investigation

Question 4

What is the Limitation Act 1980?

Answer 4

a. A statute of limitations which provide timescales within which action might be taken for breaches of the law

b. Breach of contract = 6 years from the date of the negligent act

c. Tort = 6 years from the date the claimant suffered the loss

Question 5

3 negligence tests

Answer 5

• Foreseeability
• Proximity
• Fairness

Question 6

8. Tell me about Hart v Large 2020?

Answer 6

a. Residential survey negligence case

b. Surveyor was negligent and didn’t advise the Harts that further damp proofing investigations were required and that they needed an Architect’s certificate for the extension that had been carried out by the vendors

c. They would not have completed had they known this info

d. Court advised that “Surveyors need to consider their duty to recommend a full building survey where it becomes apparent, during an inspection, that the cheaper option of a HomeBuyer report is not suitable”

Question 7

What are the 6 main areas of good practice for handling clients’ money as set out in the RICS Professional Standard: Client Money Handling, 2019?

Answer 7

1. Holding client money
2. providing information to clients
3. Receipts of client money
4. Payments from client accounts
5. Accounting records and controls
6. Compliance

Question 8

What’s included in the Terms of Engagement?

Answer 8

a Identification and status of the valuer

b Identification of the client(s)

c Identification of any other intended users

d Identification of the asset(s) or liability(ies) being valued

e Valuation (financial) currency

f Purpose of the valuation

g Basis(es) of value adopted

h Valuation date

i Nature and extent of the valuer’s work – including investigations – and any limitations
thereon

j Nature and source(s) of information upon which the valuer will rely

k All assumptions and special assumptions to be made
l Format of the report

m Restrictions on use, distribution and publication of the report

n Confirmation that the valuation will be undertaken in accordance with the IVS

o The basis on which the fee will be calculated

p Where the firm is registered for regulation by RICS,
reference to the firm’s complaints
handling procedure, with a copy available on request
IP36
RICS VALUATION – GLOBAL STANDARDS

q A statement that compliance with these standards may be subject to monitoring
under RICS’ conduct and disciplinary regulations

r A statement setting out any limitations on liability that have been agreed

Question 9

What RICS guidance can you refer to for Client Money Handling?

Answer 9

RICS Professional Standard - Client Money Handling 2019