General PM Q's Flashcards
PM responsibility when managing vacant building?
- Building Insurance - inform them it is vacant and comply with insurers’ obligations
- Inspections - regularly for insurance purposes
- Arrange for security in line with insurers’ vacant unit requirements (letter boxes sealed, weekly inspections)
- Repairs - maintain fabric of building
- Inform Council - Empty Rates
- Isolate utilities and power supplies (drain down of water) - meter readings
- Health and safety - GRA, FRA, WRA
- Ensure asbestos management is in place if required.
Implication of Insurance Act 2015?
- Key law introduced giving more liability to insurers
- Introduced responsibility of all policy holders to provide all relevant information in aim to reduce claims
What is the tax on insurance premiums?
Insurance Premium Tax
Options for LL when T not fulfilling their repairing obligations?
- Serve S146 under Property Law Act 1925, tenant must remedy breach otherwise risk being terminated (forfeiture)
- Claim for damages
- Apply to the court to compel tenant to act
- Repair themselves and recharge tenant
- J vs H clause - Lease may allow landlord to enter property and carry out repairs and recover cost
What must be included in notice to repair?
- outline breach
- Offer reasonable timescale to remedy
- Proposed action if T fails to remedy
What is the leading case law for LL right to re-enter property to undertake repairs?
- Jervis vs Harris
- Gives landlord right to pursue defaulting tenant to keep premises in good state of repair
In what circumstances can Jervis and Harris clause be used?
- When a tenant is solvent
- When the LL wants the lease to continue
- When the LL wants to carry out repairs themselves
- Threat of entry may compel tenant to repair
Difference between covenant being absolute/qualified/fully qualified?
Absolute - prohibits
Qualified - with LL consent
Fully qualified - With LL consent, not to reasonably withheld (most common)
How do you hand over SC account upon sale or change of managing agents?
- Interim SC reconciliation (sale to reconciliation)
What is a cost undertaking?
- Undertaking by one person to pay the costs of another
What is warranty?
Written guarantee to repair/replace item in a given time period
What is TUPE?
- Transfer of Undertakings Protection of Employers Rights (2006)
- Law protects employees and their benefits when employment changes hands
- TUPE regulations govern employees transfer from one company to another
What is a duty of care deed?
- Provides lenders greater protection for their loans when lending in relation to properties that are rented out or managed by agents
What is the aim of the Commercial Property Management in England and Wales, 2nd edition
- Summarises best practice in property management of commercial properties and highlights the key aspects should bear in mind to mange successfully
- Main roles; Collection of rent, Sc & other sums and manage teh property
How can you pass on costs of insurance to tenants?
- It will be stated in the lease if there is a insurance premium which is directly recharged to the tenant
- refer to RICS guidance note - Insurance for Commercial Property Manager’s 1st edition 2011
