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(C) S2, 22 - RICSAPC Commercial Real Estate > Inspection > Flashcards

Inspection 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 property management purposes, what would you be looking out for?

A

Policing the lease -
Occupied: check the lease compliance, statutory compliance, state of the building, requirement for repairs/redecoration, user and details of the actual occupier

Unoccupied: check statutory compliance, state of the building, repair and maintenance issues, security arrangements, landscaping, risk of vandalism and damage to the building

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9
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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10
Q

What are the FOUR common forms of foundation?

A
  1. Trench or strip footings - generally used for residential dwellings, for walls and closely spaced columns.
  2. Raft - a slab foundation over the whole site to spread the load for lightweight structures. Usually used on made-up/remediated land and sandy soil conditions.
  3. Piled - long and slender reinforced concrete cylinders (piles in the ground to deeper strata when less good load-bearing ground conditions/high loads.
  4. Pad - a slab foundation system under individual or groups of columns so that the column load is spread evenly
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11
Q

What determines the type of foundations used?

A
  • Age of the building
  • Ground conditions
  • Size of building and loadings required
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12
Q

What are the TWO types of wall construction used?

A
  1. Solid wall construction
  2. Cavity wall construction
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13
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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14
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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15
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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16
Q

What is a header?

A

Brick laid flat with the short end of the brick exposed

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17
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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18
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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19
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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20
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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21
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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22
Q

Describe an Institutional Office Building:

A

As described by the British Council for Offices Guide to Office Specification, 2019

  • Steel or Concrete frame
  • Slab Height of 3-3.2m
  • Floor to ceiling height of 2.6-2.8m
  • Raised floors, 150mm
  • Suspended ceilings, 350mm
  • Air conditioning
  • Double glazed
  • 1 cycle space for every 10 staff
  • 1 shower for every 100 staff
  • 8-10m² space for every worker
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23
Q

What types of air conditioning units are there?

A
  1. VAV – Variable Air Volume (highest cost but most flexible)
  2. Fan coil – Usually 4 pipes (lower initial cost but higher operating and maintenance cost)
  3. VRV – Variable Refrigerant Volume (lower capital cost but higher operating and maintenance cost)
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24
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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25
Q

What became illegal to use in air conditioning systems from 1st January 2015?

A

Use and replacement of the low-temperature refrigerant R22.

Existing R22 refrigerant systems needed to be modified to become more environmentally friendly

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26
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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27
Q

What is the main method of construction for industrial buildings?

A

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

28
Q

What is the current institutional specification for industrial buildings?

A

You would expect to see features such as:

  • 30KN/sqm minimum loading capacity
  • Steel Portal Frame Structure – comprises column with pitched roof
  • Insulated profiled Steel cladding, (plastic insulated good)
  • Brick or blockwork walls to 2m in height.
  • Minimum 8m clear heights (now more likely 12m)
  • 10% lighting panels in the roof
  • 5-10% office space.
  • Full height loading doors, electric operated
  • Access level loading door always included.
  • Approximate site cover of 40%.
29
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
30
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
31
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.

32
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
33
Q

What are the THREE common causes of defects?

A
  1. Water
  2. Movement
  3. Deteriorating building materials
34
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

35
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

36
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
37
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
38
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
39
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

40
Q

What are the causes of damp?

A
  • Wet rot
  • Dry rot
  • Rising damp
  • Condensation
  • Leaking plumbing/air condition units/pipework
41
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
42
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.

43
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
44
Q

What is the key legislation on contamination?

A

Environmental Protection Act 1990 (as amended)

45
Q

What guidance has the RICS offered on contamination?

A

RICS Guidance Note Contamination, the environment and sustainability, 2010

46
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.

47
Q

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

A

Polluter or the land owner

48
Q

What will a desktop contamination study comprise?

A

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

49
Q

What materials generally cause contamination to exist?

A
  • Heavy metals
  • Radon and methane gas
  • Diesel / oil / chemicals
50
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
51
Q

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

A

Suggest a specialist report

52
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
53
Q

As a developer what can you apply for if you develop a contaminated site?

A

Land Remediation Relief (LRR) is a form of tax relief
Allows companies to claim up to 150% of the cost in cleaning up the site, against their Corporation Tax bill

54
Q

What is the difference between deleterious and hazardous materials?

A

Deleterious: degrade with age causing structural problems

Hazardous: harmful to health

55
Q

Give some examples of deleterious materials?

A

High Alumina Cement (undergoes a crystalline rearrangement known as conversion, which results in a loss in strength),

Woodwool Shuttering (generally used in the 1960s is mix of shredded timber and cement, caused inadequate compaction of concrete, meaning reinforced steel sometimes left exposed).

56
Q

What are some examples of hazardous materials?

A
  • Asbestos
  • Lead piping / lead paint
  • Radon gas
57
Q

How is water disposed of from a site?

A

Surface water runs off into the water course, such as a soak away or storm drain

Foul water drains from soil pipes into a sewerage system

58
Q

What guidance has the RICS issues on Japanese Knotweed?

A

RICS Information Paper on Japanese Knotweed and Residential Property, 2015

59
Q

What does Japanese Knotweed look like?

A
  • Purple/green hollow stem
  • Heart-shaped green leaves
  • Clusters of white flowers
60
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
61
Q

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

A

The Wildlife and Countryside Act 1981.

62
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

63
Q

What documents might your request before undertaking an inspection?

A
  • Operation & Maintenance (O&M) manual
  • Asbestos register
  • Title plan
  • Floorplans
64
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
65
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
66
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
67
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

(C) S2, 22 - RICSAPC Commercial Real Estate (21 decks)

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