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RICS APC Commercial Real Estate S1 2024 > Core - Inspection (L3) > Flashcards

Core - Inspection (L3) Flashcards

1
Q

What are the steps for carrying out an inspection?

A

(1) Before inspection I consider my personal Health and Safety and my firm’s policies on inspection, I then would consider the (2) local area, the (3) external aspects of the property, and then the (4) internal aspects of the property.

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2
Q

What should you take on an inspection with you?

A
  • Mobile phone
  • Tape measure/laser
  • File, plans and other supporting information
  • Personal protective equipment (PPE) such as a fluorescent jacket, steel-toed boots, non-slip soled shoes, ear defenders, gloves, goggles and a hard hat
  • Pen and paper / Dictaphone
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3
Q

What should you consider in the immediate surrounding area of the property when conducting an inspection?

A
  • Location / aspect / local facilities / public transport / business vibrancy
  • Contamination / environmental hazards / flooding / high voltage power lines / electricity substations
  • Comparable evidence / local market conditions / agents’ boards
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4
Q

What should you consider when conducting an external inspection?

A
  • Method of construction
  • Repair and condition of the exterior
  • Car parking / access / loading arrangements
  • Defects / structural movement
  • Check site boundaries with OS map and / or Title Plan
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5
Q

What are the different ways that you could date a building?

A
  • Asking the client
  • Researching the date of planning consent or building regulations approval
  • Land Registry
  • Local historical records
  • Architectural style
  • Architects certificate of practical completion
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6
Q

What are the THREE different purposes of inspection?

A
  1. Valuation - valuation influencers
  2. Property management - policing the lease
  3. Agency - marketability issues
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7
Q

If inspecting a property for valuation purposes, what would you be looking out for?

A

Factors which can influence the valuation of a property such as location, tenure, aspect, form of construction, defects, current condition, occupation details

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8
Q

If inspecting a property for agency purposes, what would you be looking out for?

A

Marketability issues -
The current condition of the building, repair and maintenance issues, statutory compliance, services, presentation and flexibility of the accommodation and its marketability

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9
Q

What are the TWO types of wall construction used?

A
  1. Solid wall construction
  2. Cavity wall construction
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10
Q

What is a solid wall construction?

A

Solid brickwork with headers, normally at least one brick thick, with different bricklaying patterns incorporating headers (e.g. Flemish bond) to tie together the layers of brick

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11
Q

What is cavity wall construction?

A
  • Two layers of brickwork are tied together with metal ties, with a cavity that may be filled with insulation.
  • No headers used
  • Evidence of a cavity tray, air brick or weep holes may be seen
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12
Q

What is a stretcher?

A

Brick laid horizontally, flat with the long side of the brick exposed on the outer face of the wall

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13
Q

What is a header?

A

Brick laid flat with the short end of the brick exposed

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14
Q

What is efflorescence?

A

White marks caused by hygroscopic salts in the brickwork
• Formed when water reacts with the natural salts, by way of a chemical process, contained within the construction material and mortar
• Water dissolves the salts which are then carried out and deposited onto the surface by the natural evaporation that occurs when air meets the surface of the wall

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15
Q

What is spalling?

A

Damaged brickwork where the surface of the bricks starts to crumble because of freeze/thaw action, after it has become saturated in the winter months

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16
Q

What are the institutional specifications for shops?

A
  • Most are constructed either of a steel or concrete frame
  • Services i.e. gas/water/electricity is brought into the unit and capped off at the source
  • Concrete floor and no suspended ceiling
  • Let in a shell condition with no shop front, ready for the retailer’s fitting out works
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17
Q

What are the two main methods of construction for new office buildings?

A
  • Steel frame: have fewer columns and a wider span between the columns
  • Concrete frame: more columns, lower floor heights and a shorter span between columns
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18
Q

What can you refer to if you’re unsure about what form of construction is?

A
  • Architect’s drawings and specification
  • Building Manual
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19
Q

What are a shell and core fit out?

A

Where common parts of the building are completed, and the office floor areas are left as a shell ready for fit out by the occupier

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20
Q

What is the difference between a Cat A fit-out and Cat B, and why might you do Cat B?

A

Category A: a basic level of finish above that provided in shell and core. May include raised floors, suspended ceilings and internal surfaces, along with basic mechanical and electrical services

Category B: fit out complete to the occupier’s specific requirements.

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21
Q

What is the main method of construction for industrial buildings?

A

Steel portal frame building with insulated profiled steel cladding walls and roof

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22
Q

What is the difference between an inherent and a latent defect?

A
  • Inherent defect: defect in the design or a material which has always been present
  • Latent defect: fault to the property that could not have been discovered by a reasonably thorough inspection of the property
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23
Q

What is the purpose of snagging a newly built property?

A
  • Check the newly built property to identify defects in the build
  • Enables you to highlight them to the developer to allow them to fix the issues
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24
Q

What occurs after a new building is completed?

A

You undertake a snagging process, whereby the property is inspected against the construction plans to check that it has been finished correctly and that the construction is of sufficient quality to ensure the building operates as desired and designed. This process is carried out by a contractor under warranty.

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25
Q

What FOUR steps should you follow if you identify any building defects during an inspection?

A
  1. Take photos of the defect
  2. Try to establish the cause of damage whilst on site
  3. Inform your client of your investigations
  4. Recommend specialist advice from a building surveyor or in the case of movement, a structural engineer
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26
Q

What are the THREE common causes of defects?

A
  1. Water
  2. Movement
  3. Deteriorating building materials
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27
Q

What is subsidence?

A

The vertical downward movement of a building foundation caused by the loss of support of the site beneath the foundation. This could be as a result of changes in the underlying ground conditions

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28
Q

What is heave?

A

Expansion of the ground beneath part or all of the building. This could be caused by the removal of trees and subsequent moisture build-up in the soil

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29
Q

What are the common causes of cracks in a property?

A
  • Subsidence
  • Heave
  • Cavity wall tie failure (indicated by horizontal cracking in brickwork)
  • Shrinkage cracking (often occurs in new plasterwork during the drying out process
  • Settlement cracks
  • Thermal expansion/movement
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30
Q

What is dry rot? What are the signs of dry rot?

A

Caused by fungal attack. Can destroy timber and masonry. Signs include:

  • Fungus (mycelium) which spreads across the wood in fine
  • Fluffy white strands
  • Large, often orange mushroom-like fruiting bodies
  • Strong smell and red spores
  • Cracking paintwork and cuboidal cracking / crumbling of dry timber
31
Q

What is rising damp? What are the signs of rising damp?

A
  • Caused by moisture from the ground travelling up through the wall by capillary action. Usually caused by the failure or absence of the damp proof course
  • Signs include tide marks of salts, dark patches on walls that can be damp to touch, damp and a musty smell.
  • Usually stops around 1.5m above ground level
32
Q

What can condensation be caused by? What are the signs of condensation?

A

Caused by lack of ventilation and background heating

Signs include mould and streaming water on the inside of windows / walls

33
Q

What are the causes of damp?

A
  • Wet rot
  • Dry rot
  • Rising damp
  • Condensation
  • Leaking plumbing/air condition units/pipework
34
Q

What are the common building defects associated with period residential / office / shop buildings?

A
  • Dry rot
  • Wet rot
  • Tile slippage on the roof
  • Death watch beetle
  • Damp penetration at roof and ground floor level
  • Water ingress around door and window openings
  • Structural movement / settlement
  • Regent Street disease - water penetrates the building and rusts the steel frame. Can damage the masonry attached to the outside e.g. Portland stone, terracotta or brick
35
Q

What are the common building defects associated with modern industrial buildings?

A

Roof leaks around roof lights, damaged cladding;

Cut edge corrosion - Cut edge corrosion occurs to the sheet laps and sheet ends on a profiled metal roof

Blocked valley gutters – Results in water running down surfaces that are not designed for this to happen.

36
Q

What are the common building defects associated with modern office buildings?

A
  • Damp penetration at roof and ground floor level
  • Water damage from burst pipes or air conditioning units
  • Structural movement
  • Damaged cladding
  • Cavity wall tie failure
  • Efflorescence
  • Poor mortar joints in brickwork
37
Q

What is the key legislation on contamination?

A

Environmental Protection Act 1990 (as amended)

38
Q

What guidance has the RICS offered on contamination?

A

RICS Guidance Note Contamination, the environment and sustainability, 2010

39
Q

What Does the RICS say about Contamination, the Environment and Sustainability?

A

The RICS has published a Guidance Note: Contamination, the Environment and Sustainability (2010). This remind surveyors of their obligations to obey the law, typical signs of contamination, and:

Three typical phases of investigation:

(1) Review site history (desktop study)
(2) Investigation to identify nature and extent of contamination.
(3) Remediation report setting out remedial options with design requirements and monitoring standards.

40
Q

Who will generally pay for the remediation of a contaminated site?

A

Polluter or the land owner

41
Q

What will a desktop contamination study comprise?

A

Consider the previous use of the site, local history and planning register

42
Q

What materials generally cause contamination to exist?

A
  • Heavy metals
  • Radon and methane gas
  • Diesel / oil / chemicals
43
Q

What are signs of contamination that you should look out for?

A
  • Evidence of chemicals and oils
  • Oil drums
  • Subsidence
  • Underground tanks
  • Bare ground
44
Q

What should you do if there are concerns that a site has some contamination?

A

Suggest a specialist report

45
Q

What approach should be taken if you’re instructed to value a site with contamination / hazardous materials?

A
  • Do not provide any advice until a specialist report is commissioned
  • Caveat the advice provided with an appropriate disclaimer highlighting the issue / use of a special assumption
  • Deduct the remediation costs from the gross site value
46
Q

What is the difference between deleterious and hazardous materials?

A

Deleterious: degrade with age causing structural problems

Hazardous: harmful to health

47
Q

Give some examples of deleterious materials?

A

RAAC Reinforced Aerated Autoclave Cement

48
Q

What are some examples of hazardous materials?

A
  • Asbestos
  • Lead piping / lead paint
  • Radon gas
49
Q

What guidance has the RICS issues on Japanese Knotweed?

A

RICS Information Paper on Japanese Knotweed and Residential Property, 2015

50
Q

What does Japanese Knotweed look like?

A
  • Purple/green hollow stem
  • Heart-shaped green leaves
  • Clusters of white flowers
51
Q

Why is Japanese Knotweed an issue?

A
  • Invasive plant that can damage hard surfaces such as foundations and tarmac
  • Not easy to control, costly to eradicate and a specialist company must remove and dispose of it
  • Property lenders may refuse loans
52
Q

Under What Act is it a Criminal Offence to Allow the Spread of Japanese Knotweed?

A

The Wildlife and Countryside Act 1981.

53
Q

What did the landmark Japanese Knotweed case of Williams v Network Rail Infrastructure Ltd 2018 find?

A

Network Rail was liable for the cost of treating the invasive plant plus damages for the loss of use and enjoyment of their neighbour’s property (but not the reduced value of the property

54
Q

What documents might your request before undertaking an inspection?

A
  • Operation & Maintenance (O&M) manual
  • Asbestos register
  • Title plan
  • Floorplans
55
Q

If remediation works are required at a property, how could you estimate the cost of these?

A
  • Speak to contractors to get quotes to carry out the works
  • Verify these estimates with building surveyors
56
Q

How would you inspect the roof of a property?

A
  • Avoid inspecting the roof if possible
  • Ask a specialist contractor to undertake an inspection of the roof
  • Need to have regard to the Work at Height Regulations 2005
  • Would be conscious of roof lights when inspecting an industrial unit
57
Q

What characteristics would you look for to determine the quality of a retail unit?

A
  • Configuration and layout of the unit - preference for rectangular shape as otherwise makes it difficult to fit out and merchandise
  • Masking - areas not visible from the shop frontage command a rental discount
  • Frontage - typically apply a rental discount for hard frontage and rental premium for a return frontage
  • Access arrangements - allow loading and unloading of goods
  • Ancillary space
58
Q

What can you look at as an indicator of the quality of the retail pitch?

A
  • Proportion of retail tenants vs. non retail tenants (e.g. estate agents, banks).
  • Local vs. national tenant mix
  • Architecture of the buildings
  • Proximity to key footfall generators
59
Q

Submission: Level One

Can you briefly outline VPS2 in the Global Standards Red Book?

A

Requirements for inspections, investigations and records:
- state limitations and assumptions
- detailed inspection notes

60
Q

Submission: Level One

What is a pro-forma, what is it used for and can you outline the contents?

A

Pro-forma is a physical prompt for note taking whilst on inspection. It is tailored to suit the type of property we are inspecting and contains sections such as:
- description
- construction
- layout
- condition
- services
- business discussion (staffing, income profile, business hours, recent and planned capex)

61
Q

Submission: Level One

Can you explain to me how you have regard to Surveying Safely to inspect a property safely?

A

The guidance note outlines the concept of a ‘safe person’ and that they assume behavioural responsibility for everyone’s health and safety.

I will consider where I am going, what the likely hazards are, and what equipment I may need to inspect a property safely.

62
Q

Submission: Level Two

When you inspected the first floor retail unit trading as a dentist in Paisley you completed a risk assessment. What risks did you identify?

A
  • Rear external access via stairway. Risk of slipping so wore sturdy footwear
  • Still in the tail end of the pandemic and given the nature of the business still conscious about transmission of coronavirus, so ensured I had facemask PPE
63
Q

Submission: Level Two

When you inspected the first floor retail unit trading as a dentist in Paisley you obtained a copy of the lease beforehand. Why did you do that?

A

For a number of reasons:
1. I wanted to understand the current tenure and how long was left on the lease.
2. The lease contained the title boundary so I could be sure of the boundaries included within the lease agreement
3. Insuring basis of the lease
4. Shell or fit out basis
5. Keep open clause

64
Q

Submission: Level Two

When you inspected the first floor retail unit trading as a dentist in Paisley you made a note of the weather on your inspection pro-forma. Why did you do this?

A

The weather was cloudy. This meant that I couldn’t have reasonably observed any leaks compared to if it was raining. If there was ever a complaint that I had not identified a leak, a good audit trail would be valuable in a case of negligence.

65
Q

Submission: Level Three

When you inspected the pharmacy in Haddington how did you establish that the building had been constructed more than 100 years ago?

A

Several reasons:
1. Photo evidence of the Property being used as a pharmacy in 1930
2. Architecturally it had timber sash and case windows similar to that found in the Georgian era
3. Grade B listed building where Historic Scotland describes it as early 18th century

66
Q

Submission: Level Three

When you inspected the pharmacy in Haddington, you make reference to common defects with a building of this age. What defects do you mean?

A
  • Wet rot and dry rot
  • Damp penetration at roof and ground level
  • Water ingress and windows and doors
  • Structural movement
67
Q

Submission: Level Three

When you inspected the pharmacy in Haddington, you mention you saw evidence of pooling. What could have caused this?

A

Likely due to the joists not being fit for purpose any more. This could be caused by:
* poor design and implementation
* joists sagging over time
* movement caused by settle
* joists sagging due to weight of snow

68
Q

Submission: Level Three

When you inspected the former function led hotel in Edinburgh you were able to ascertain that the business was underperforming. How did you reach this conclusion?

A

We had regard to the accounts and turnover had declined in recent years. We recently sold a similar hotel on the same street which had a much better turnover per bedroom level.

69
Q

Submission: Level Three

When you inspected the former function led hotel in Edinburgh you comment that the tenant was potentially in breach of the lease. Was the tenant in breach of the lease?

A

Our role was to establish the Open Market Rent as an Independent Expert, so we didn’t look to verify this as this was not our remit.

70
Q

Submission: Level Three

When you inspected the former function led hotel in Edinburgh can you recall the passing rent and the open market rent?

A

Passing Rent: £40,000
OMR: £65,000

71
Q

Submission: Level One

How do you check a laser is functioning correctly?

A

Once a year, send to a third party to get tested and calibrated.

72
Q

Submission: Level One

What would you do if you found a structural crack on an inspection?

A

If would investigate more closely to determine if the crack was 3mm+ and if so, recommend that a building surveyor investigates to locate cause and recommend remedial action

73
Q

Submission: Level One

How long does a pitch slate roof last for?

A

100 years. Tiles are usually reusable but it’s nail sickness that causes tile slippage.

74
Q

Level One:

How could you monitor a structural crack in building?

A

Tell tale crack monitor. Attach to a either side of a crack and monitor periodically to assess movement.

RICS APC Commercial Real Estate S1 2024 (20 decks)

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