Complaints Handling Procedures

Question 1

Where are details of CHPs set out?

Answer 1

RICS Help Sheet 2007 (updated 2012)

Question 2

Who must approve a firm’s CHP?

Answer 2

The RICS

Question 3

Who should be notified in the event of a complaint?

Answer 3

PII Insurers

Question 4

Why should PII Insurers be notified of a complaint>

Answer 4

It could lead to a claim for negligence

Question 5

When should details of the CHP be issued to a client?

Answer 5

The same time as Terms of Business

Question 6

What must firms include within their CHP?

Answer 6

An RICS approved ADR nechanism

Question 7

Where should complaints be recorded?

Answer 7

A complaints log

Question 8

What is stage 1 of the CHP?

Answer 8

In house response.

Complaint must be made in writing.
Details of The Complaints Handling Officer should be provided.
Acknowledge within 7 days and investigate within 28 days

Question 9

What is stage 2 of the CHP?

Answer 9

ADR - independent redress scheme

Question 10

When would the RICS become involved?

Answer 10

If a member fails to respond or prevents access to an independent redress scheme.

Question 11

What are approved redress mechanisms?

Answer 11

The Property Ombudsman

Ombudsman Services: Property and the RICS Dispute Resolution Service

Question 12

What duty of care exists to clients and third parties?

Answer 12

‘Reasonable care and skill’

Question 13

What can result in a loss and claim for damages?

Answer 13

Breach of duty of care - reasonable care and skill

Question 14

What did Scullion v Bank of Scotland (2010) show relating to a breach of duty of care?

Answer 14

A Surveyor who provides advice on value to a lender in respect of a buy to let purchase does not owe a duty of care to the borrower seeking funding.

Question 15

Which case illustrates the importance of run off PII cover?

Answer 15

Merrett v Babb (2001) - individual surveyor successfully sued for negligence after form became insolvent and PII cancelled.

Question 16

What case appears to set limits on Merrett v Babb (2001)?

Answer 16

Matthews v Ashdown Lyons and Maldoon (2014)

Question 17

Why would surveyors have more power tp fight negligence claims for a higher value property?

Answer 17

Foreseeable that borrower would arrange own survey.

Question 18

What is the usual permissible margin of error allowed by the courts in relation to valuations?

Answer 18

10–15%

Question 19

What is the leading case relating to margin of error?

Answer 19

Singer and Friedlander v Wood (1977).

Narrower margin for relatively straightforward case. Can be varied.

Question 20

Which case confirmed a margin of error at 5% for standard residential valuations?

Answer 20

Webb Resolution v ESurv (2012)

2 negligent valuations. One not inspected once construction works complete, other used borrower’s figure rather than valuing independently.

Question 21

What are the current limitation periods for negligence in accordance with the Limitation Act 1980?

Answer 21

Contract:
6 years from date of negligent act, breach of contract or omission

NB Section 14A provides alternative limitation period of 3 years from date of knowledge of damage subject to the 15 year long stop from the negligent act/omission.

Tort
6 years from date claimant suffered loss.

Question 22

How can negligence claims be avoided?

Answer 22

1. Clearly understand instructions - confirm in writing in terms of engagement.
2. Check competent and have necessary information.
3. Undertake work in accordance with relevant RICS standards.
4. Make detailed file notes and take photos.
5. Keep up to date with market knowledge and legislation and undertake CPD.
6. Cap professional liability excess in Terms of Engagement.

Question 23

What is mandatory sir surveyors working in practice to protect from negligence claims when there is a duty of care breached?

Answer 23

PII

Question 24

Where are details of PII set out?

Answer 24

RICS Help Sheet 2012

Question 25

What are the current minimum PII requirements?

Answer 25

Turnover:

£100,000 or less
Min £250,000 each and every claim

£100,001 to £200,000
Min £500,000

£200,001 and above
£1,000,000

Question 26

PII policies work on a ‘claims made’ basis. What does this mean?

Answer 26

The policy covers claims first made during period of insurance regardless of when negligent act occurred.

Question 27

What is the minimum run off period that should be covered?

Answer 27

6 years of cover at £250,000, but RICS recommends up to 15 years.

Question 28

What is available for members who cannot arrange cover?

Answer 28

RICS Assigned Risks Pool and Low Earners Scheme for retired/PT.