Dealing with the Client

Question 1

What did you do when you received the instruction?

Answer 1

• Ensured I was competent to undertake the instruction
• I conducted a conflicts of interest check to ensure my impartiality with the client and the instruction
• Drafted the Terms of Engagement

Question 2

How did you conduct a conflicts of interest check?

Answer 2

I use a platform called sales force which checks an online database of every job my firm has done for the specific client and property raising any concerns to do with both

Question 3

Is there any Guidance you could use to help determine a conflict of interest?

Answer 3

RICS Professional Statement on Conflicts of Interest 2017

Question 4

What scope of work did you verify?

Answer 4

1) The style of the valuation report
2) How the inspections would be conducted (Limited use valuation, 10% internals)

Question 5

What did you include in your Terms of Engagement?

Answer 5

1) - Client name and address
2) - Work to be carried out
3) - Time scale for the work
4) - PII limit
5) - Fees payable
6) - When the inspections are to be carried out
7) - Extent of investigations
8) - Basis of value to be used
9) - Identification and status of the valuer
10) - Any assumptions or special assumptions
11) - State that a copy of the firms CHP is available on request

Question 6

Why is a signed copy of the Terms of Engagement important before an instruction commences?

Answer 6

Sets out in writing the clients agreement to the terms held within
- Gives a method
- timeline
- Establishes that you will be paid the set amount
- Limited Liability to the PII cover

Question 7

How do you establish you fees?

Answer 7

Worked out based on;
- Portfolio size and spread (is it regional or compact)
- Difficulty of the work (full valuation report or desktop)
- Level of PII required

Question 8

How do you establish your PII limit?

Answer 8

Based on the estimated value of the portfolio and the lenders specific PII requirements

Lender requirements
- 25% of the reported market value
- up to £10m = 50% of value / £10-100m = £5m + 25% of value

Question 9

How did you ensure compliance with ethical and professional standards?

Answer 9

• I checked I was competent to deliver the work
• I check to see if there were any conflicts of interest
• I kept the client and the borrower up to date on the progress of the valuation