Conflict Avoidanec, Management And Dispute

Question 1

What is a conflict?

Answer 1

A serious disagreement between 2 or more opinions, principles or interests

Question 2

What is a conflict of interest?

Answer 2

A situation where your impartially and objectively impacted

Question 3

What is a Conflict of Interest check?

Answer 3

Where you check your impartiality and objectivity prior to accepting an instruction

Question 4

Why do you carry out Conflict of Interest checks prior to accepting an instruction?

Answer 4

To ensure I can be impartial and objective throughout the instruction

Question 5

How would you carry out a Conflict of Interest Check in your work?

Answer 5

• I would check our internal AIMs system to find out if any work has been done for the client before and who/which department carried out any previous work
• if it’s a new client then gather basic information prior to accepting instruction (name, business details, company house)
• failing these email others in the firm to ensure there has been no prior involvement

Question 6

Can you tell me about any RICS guidance relating to Conflict of Interest?

Answer 6

• RICS Global Professional Statement: Conflict of Interest 1st Edition (2017)
• RICS UK Professional Statement- Conflicts of Interest- UK Commercial Property Market Investment Agency 1st Edition (2017)

Question 7

What does RICS say regarding conflicts?

Answer 7

Members cannot act if there is a conflict unless it can be managed and informed consent given

Question 8

What does the RICS Rules of Conduct say about conflicts?

Answer 8

Rule 1 (honest, act with integrity) and the example behaviour

Question 9

What are the 3 types of conflict?

Answer 9

1. Party Conflict (work on same instruction for 2 parties)
2. Own Interest
3. Confidential Information

Question 10

What is conflict avoidance?

Answer 10

Where you avoid an instruction where there is a conflict

Question 11

How do you avoid a conflict?

Answer 11

1. Clear and concise ToE’s, contracts etc
2. Accurate record keeping
3. Proactive conflict checks
4. Information Barriers
5. Competence

Question 12

What is conflict management?

Answer 12

• Where you can accept an instruction and provision have been put in place to manage the conflict
• eg.) Information barriers or if client has provided informed consent

Question 13

What is an information barrier?

Answer 13

Where 2 surveyors are separated and files kept separate and secure during a conflict so work can continue

Question 14

What is informed Consent?

Answer 14

• Written confirmation from parties to proceed work regardless of the conflict
• only if you can still act and it is in the best interest of both parties

Question 15

What are the Principles of the Conflict of Interest-UK Commercial Property Market- Investment Agency 1st Edition (2017)?

DMI

Answer 15

1. Dual Agency:

Agent has contractual relationship with both buyer and seller

2. Multiple Introductions:

Competing contractual relationships with several buyers

3. Incremental Advice:

When agent is asked to give advice to another party. Carried out disposal for seller but asked to value for buyers lender. Can only be done if info barrier or informed consent

Question 16

What is dual agency?

Answer 16

• Where an agent has a contractual agency relationship with both seller and buyer at same time
• Most not be undertaken in any circumstance

Question 17

Can you accept an instruction if you have a personal interest?

Answer 17

• Yes if you believe you can act impartially and objectively
• however this should be declared prior to accepting the instruction as of the Estate Agent Act 1979 section 21

Question 18

What are the 3 ways to conduct situations of dispute?

Answer 18

1. Negotiation:

Problem solving between parties

2. Mediation:

Third Party intervention which is not legally binding

3. Adjudication- Third party intervention which is legally binding eg) litigation, arbitration, ombudsman

Question 19

What is Dispute Resolution

Answer 19

A procedure to resolve conflicts between parties

Question 20

What is alternative Dispute Resolution (ADR) and its advantages?

Answer 20

• Dispute resolution processes that fall outside the scope of court litigation

1. Speed
2. Informal
3. Cost
4. Great opportunity for negotation
5. Confidential

Question 21

What ADR procedures are there?

MAAIE

Answer 21

1. Mediation
2. Arbitration
3. Adjudication
4. Independent Expert Determination
5. Expert Witness

Question 22

What is litigation?

Answer 22

• Process of parties taking legal action through court
• It’s a public process and can have out of court settlements

Question 23

Tell me about Mediation?

Answer 23

• Neutral Mediator
• Confidential Process
• Informal
• Decision not legally binding

Question 24

What is Adjudication?

(Independent Expert is a form)

Answer 24

• 3rd party by Arbitration or Independent Expert
• Decision legally binding

Question 25

What is Arbitration?

Answer 25

• Parties chose arbitrator
• The arbitrator makes the decision
• Cost effective
• Legally binding decision

Question 26

What would you do in the event that a Conflict arose?

Answer 26

1. Conflict Avoidance

• consideration if conflict is unavoidable or if it can be managed through transparency/openness

2. Written Advice to both Parties

• 3 point set out to parties
  1. Nature and circumstance
  2. Be Clear
  3. Informed consent from both parties

3. Conflict Management

• Information Barriers agreed by both clients

Question 27

Tell me about RICS Dispute Resolution Service?

Answer 27

• Service for disputes between business to business
• G&S use for Complaints From other businesses that can be solved

Question 28

What is Independent Expert Witness?

Answer 28

• Specialist in area of the dispute
• Expert opinion can be used in court
• Not bound to any parties