Client Care (L2) Flashcards
How do you manage clients’ expectations?
- Try not to get their hopes
- Be realistic with any opinions of value and conservative
- State opinions of value are not Red Book valuations
- Ensure they are aware of the risks
- Maintain regular contact
What must be included within Terms of Engagement?
- Agency basis (sole/joint)
- Agency rights (sole selling or ready, willing and able purchaser)
- Proposed fee
- Timescale for payment of fees/disbursements
- Marketing costs/disbursements
- AML requirements
- Confirmation of no conflict of interest
- Details of firms’ complaints handling procedure
What do you need to do prior to accepting an instruction?
- Conflict of Interest check
- Check whether competent
- Check no personal conflict of interest
- Receive signed terms of engagement & Complaints handling procedure
What is contained within the RICS Complaints Handling Guidance Note 2016?
- Provides advice on how to deal with complaints and details guidance from RICS
- Refer to Rule 7 of RICS Rules of Conduct for firms: ‘A firm shall operate a CHP and maintain a complaints log. The CHP must include an Alternative Dispute Resolution (ADR) mechanism that is approved by the regulatory board’
- Not a substitute for taking independent legal advice
- Notify PII insurers ASAP if there is a complaint as could lead to a claim of negligence
- A complaints log must be maintained to show the details, progress and outcome of any complaints
- ToE help to define circumstance/context in which complaints may be made or managed
What is the ‘initial notification stage’ of the Complaints Handling procedure?
- Inform broker/insurer straight away
- Preliminary notice must be acknowledged in writing within 21 days.
What are the RICS minimum procedures for CHP?
- [In-house stage]
- Acknowledge a written complaint within 7 days
- Respond within 28 days
- Log in a complaints log - [ADR - Third party resolution]
- If the complainant is not happy with the review, then complain reviewed by an independent redress provider (approved by RICS)
* Name of appropriate redress mechanism must be provided to the complainant eg. the Centre for Dispute Resolution, the Property Redress Scheme and the RICS Dispute Resolution service.
- The RICS only become involved if a member fails to respond to a complaint to act as their complaints handling officer.
- A sole practitioner must nominate an external surveyor
What is crucial to understand from the outset of an instruction?
- Understanding my client’s objectives. I can ascertain these from their brief.
How do you calculate your fee?
- Percentage of price (0.5% - 2%) - depends on size and value of asset and likely amount of time and effort required.
- Often includes minimum fees & abortive fees
- Could also be a fixed or hourly fee
What is your company’s complaint handling procedure?
BNP CHP:
• Put in writing details of complaints to the Chief Operating Officer, Mark England
• BNP will write back to client within 7 days of receipt of letter to confirm and clarify any outstanding points
• BNP’s legal team undertake review of complaint, including:
- Review of internal file of the matter
- Interview the surveyor concerned
- If required, interview other relevant BNP employees with expertise in field
• BNP’s legal department report back to COO (provide a response within 21 days of receipt of complaint)
• If client remains dissatisfied, refer complaint to:
- Consumer complaints = property redress scheme
- Commercial clients = the Centre for Effective Dispute Resolution (CEDR)
What are some consumer redress mechanisms?
- Centre for Effective Dispute Resolution (CEDR)
- The Property Ombudsman - free (Approved by RICS ADR)
- The property redress scheme
- Financial ombudsman service and the Local Government Ombudsman
What is a complaint?
“A statement that something is unsatisfactory or unacceptable” or “any expression of dissatisfaction”
- They generally arise when expectations are not met eg. timing of work, scope of work, misunderstandings and delays
How can you avoid complaints?
- Set out clear expectations in terms of engagement (refer to CHP and key performance indicators)
- Communicate clearly and effectively with your client and other stakeholders
- Seeking feedback and resolving issues efficiently as they arise
When is it suitable to make a phone call rather than an email?
Phone calls build more of a rapport and are best for relaying bad news such as an unsuccessful offer. I would then follow it up by an email so there was a paper trail.
And your Newbury Farm example, you used a different online communication platform. Because of this, you say that you kept backup copies of all correspondence. Did you check this beforehand with your clients? What regulation must you be conscious of in this example? How were you conscious of it?
I gained consent from my client in writing to keep backup copies so I had a paper trail.
I was conscious of the Data Protection Act 2018.
