Ethics Flashcards
How would you set a fee?
- Assess resource required
- Assess time needed to complete
- Assess value of property
- Level of PII required
Can you alter your fee?
Yes, you technically can, so long as you behave in a professional manner.
However, fee should have been assessed correctly before, still need to provide a high standard of service.
What must you do before starting work?
- Check Competence
- Confirm no COI
- Cofirm ToE
What do you do prior to acting for a client for agency purposes?
- Assess competence
- No COIs or personal interest
- Issue ToB
- Get signed ToB
- Conduct AML checks
Why might you decline an instruction?
- Not competent
- Not enough resource to complete in timescales required
- There is a COI
- Not enough facts
- Work is for a friend and PII won’t cover for personal interests
- PII can’t be agreed.
- Wouldn’t be happy if it was made public
What does the Consumer Rights Act 2015 allow?
A 14 day cooling off peiod upon the signing of Agency Instruction Agreements.
Why do the RICS Bye Laws state regarding confidentiality?
Client confidentiality must be maintained for all client affairs.
What should you do if you receive confidential information in error?
It cannot be used for their own purposes.
Need to advise client and sender of the error.
Inform compliance officer.
Delete securely.
When may a surveyor be negligent?
Duty of care exists to clients and third parties.
If this is breached and there is a loss, they can claim for damages.
How can a surveyor avoid negligence?
- understanding client’s instruction
- competent
- undertake work in accordance with RICS Standards & Guidance Notes
- make detailed notes and take photographs
- keep up to date with market knowledge
What do you know about the RICS Guidance Note: Complaints Handling (2016)?
A firm’s written CHIP must be approved by the RICS.
Notify PII insurers as soon as possible if a compliant arises.
Details of CHP issued same time as ToB.
Complaints log must be maintained showing details and status.
CHP must include an RICS approved Alternative Dispute Resolution.
What are the RICS minimum procedures for CHP?
- Acknowledge a written complaint within 7 days
- Respond within 28 days
- Refer to independent redress provider if unresolved
- Log in a complaints log
What is Savills CHP?
- Acknowledge within 5 days
- Respond within 10 days
- If unresolved, refer to independent redress provider
If you are a sole practitioner who can you use as your complaints handling officer?
A surveyor from another firm.
What is professional indemnity insurance?
Insurance to protect clients, surveyors and third parties against negligence claims.
What are the minimum PII requirements?
Based on firm turnover:
Less than £100k = £250k min
£100,001 to £200k = £500k min
> £200,001 = £1,000,000
What are the maximum levels of uninsured excess required by the RICS?
You can’t have much uninsured excess.
Limit of indemnity / Maximum uninsured excess
£500k - Greater of 2.5% of sum insured or £10,000
> £500k - 2.5% of sum insured
In relation to PII, what does retroactive mean?
Policy covers claims that are made within the insurance period, regardless of when the negligent act occurred.
If a firm can’t arrange PII cover what is available?
RICS assigned risk pool
What are the RICS rules regarding PII?
Mandatory requirement - Rules of Conduct for Firms
Need RICS approved insurer (list on website)
Need adequate and appropriate level for each instruction.
How long should old files be held for?
Minimum 6 years, then destroyed securely
Why do firms have PII?
One of the Rules of Conduct.
Protects against negligent behaviour.
Protects clients, firm and me.
Is PII needed for pro-bono work?
Yes
Are you aware of any new RICS guidance on insurance?
RICS Guidance Note: Risk, Liability and Insurance 2021
RICS has secured new insurance terms, lifting the 12 month fire safety exclusion from PII.
From May 2021, insurers must provide cover for fire safety claims on a property 4+ storeys
What is run off cover and how long should it last?
For when the firm ceases to exist = need minimum 6 years but claims made up to 15 years
Why is client money handling important?
One of the Rules of Conduct for Firms - client money must be kept safe.
How should you hold client money?
- held separately with an authorised bank
- account needs to be entitled with the client’s name and Client
- money held must be immediately available
- provide written communication of any money movement
Can you accept cash?
Under company policy, I can’t.
However, I am aware that under money laundering regulations, I am permitted to accept cash up to £10k in euros.
However, this needs to be witnessed and ideally take place in the office.