Conflict avoidance, management and dispute resolution procedures

Question 1

Types of interest in a property?

Answer 1

Freehold
Leasehold
Long leasehold

Question 2

How can an interest affect value?

Answer 2

a leasehold interest delays gaining vacant possession over the asset. Thus is discounted, in given situations (T&R)

Question 3

Conflict avoidance VS Conflict avoidance

Answer 3

• Avoidance (NO) - Say no to the instruction.
• Management (Yes) - Say yes, and then steps are agreed and put in place to manage the conflict, such as information barriers/ ethical barriers and written agreement.

Question 4

Three Types of Conflicts

Answer 4

1. ‘Party Conflict’, two different parties working on the same instruction.
2. ‘Own Interest Conflict’, Personal interest.
3. ‘Confidential Information Conflict’, work between two parties that is confidential.

Question 5

RICS guidance on conflict of interest?

Answer 5

RICS Professional (Standard): conflict of interest 2017.

Question 6

RICS Global Professional Statement on Conflicts of Interest 2017

Answer 6

• Adopted 1st Jan 2018.
• It States ‘a member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest, other than where all those who are, or may be affected have provided their informed consent.’

Question 7

3 Main processes for resolving a dispute?

Answer 7

1. Negotiation
2. Mediation
3. Adjudicative process (third party)

Question 8

What an ADR?

Answer 8

Alternative dispute resolution
(outside of the courts scope)

Question 9

What’s Mediation?

Answer 9

Without Prejudice basis
neutral mediator to solve the issue

Question 10

What’s Arbitration?

Answer 10

Form of ADR
Under the Arbitration Act 1996
Bound by decisions

Question 11

What is an Independent Expert?

Answer 11

Appointed by both parties
Bound by Decisions
The investigate the dispute

Question 12

What is an Expert witness?

Answer 12

• Surveyor provides evidence to the court
• Guidance: Surveyors acting as expert witnesses 4th editions 2014 (amended 2023)
• Surveyor provides statement of truth

Question 13

Advantages of ADR?

Answer 13

• Speeds
• Cost
• Negation room
• Informal
• Confidential

Question 14

Whats the RICS Note for expert witness?

Answer 14

‘Surveyors acting as expert witnesses’ (4th edition) 2014