Inspection Flashcards
What is the contents of your inspection checklist?
Set of things you might want to consider:
- Immediate area - location, flooding, local market, occupiers, facilties, contamination
- External Inspection - construction method, parking, access, loading, repair and condition, structural movements, defects, vegatation, site boundaries, date of construction
- Internal Inspection - layout, spec, maintenance, repair, asbestos, fixtures, fittings, services
In your liverpool street example, what were the differences in specification?
My unit was the 2nd floor - Cat II lighting, good natural lighting, floor to ceiling height, cat A assumed fit out.
Basemnt unit - relatively good natural lighting, access to rear courtyard, LED lighting, own entrance, demised toilets
Demised parts - right to use end of trip facilities, demised vs right to use
What made you pursue a nil increase in you Liverpool street example?
Hurdle rent for my unit was around £55 psf. The basement was on the market at £50 psf headline, and I felt that it was in many ways better specified than the 2nd floor. Therefore, a nil should be expected.
What did you note down during your Bedford inspection?
Recorded on a GOAD plan the current occupiers, agents boards etc.
Noted difference in footfall and type of occupier on goad.
Specification of the property, had a display staircase so example although wasn’t being used.
Also had a corridor out the back that allowed access to rear bins, not worth anything.
One of the comparables was set back and so when confirming comps I asked whether this was incorporated into the deal - confirmed 3% discount for set back.
What factors did you look out for when addressing whether the units in Hailsham could be occupied separately?
- Access (two separate accesses from road)
- Layout of the suites (if split to rear wouldn’t be possible because no access)
- Power (separate electricity meter)
- Drainage (capped off)
- Water supply (capped off)
What is RAAC? Tell me a bit about it.
Reinforced Autoclaved Aerated Concrete.
used in 50s-70s, it was low cost, its a deleterious (deh-li-terious) material, need an engineer if you suspect to have RAAC.
What are some other deleterious materials?
high alumina cement, calcium chloride, wood wool shuttering.
What is an inherent defect?
a defect that has always been there
What is a latent defect?
A defect that couldn’t have been discovered by a reasonably thorough inspection
What are the signs of wet rot?
wet wood, high damp meter reading, fungal growth, musty smell
What are the signs of dry rot?
white strands of fungus with orange fruiting bodies, cuboidal cracking
What can cause cracking in buildings?
- Subsidence
- Heave
- Cavity tie wall failure
- Drying plaster
- Settlement
- Thermal expansion
What is rising damp?
Rising damp is the process of water below ground level entering a property by travelling up through the pores in brickwork. This is known as capillary action. This usually results in a visible “tide-mark” around 1.5m high.
Groundwater also contains salts that travel up through the bricks and cause white marks to form on the internal wall - another common sign of rising damp.
What are the three main types of damp?
- Disrepair such as pluming issues
- Rising Damp
- Condensation
What is the RICS guidance on Japanese Knotweed?
RICS professional standard to Japanese Knotweed and Residential Property 2022
What happens if you let Japanese knotweed spread?
£5,000 fine or 6 months in prison if in a magistrates court, unlimited fine and 2 years in prison if crown court
What is the act surrounding contamination?
Environmental Protection Act 1990
What is the rics guidance on contamination?
“Contamination. the environment and sustainability 2010” - still a guidance note currently
What is the main principle of the Environmental Protection Act?
Polluter pays
What are some examples of contamination?
Heavy metals, radon gas, chemicals, methane, animal excrement
What are the phases of contamination reports?
- Phase 1 Report - desktop study into the history, an inspection and investigation
- Phase 2 Report - Identify nature and extent - Soil samples etc
- Phase 3 - Remediation report outlining options, design requirements and monitoring
What do you need to consider if valuing land subject to contamination?
- Give no advice until a specialist report is done
- Caveat all advice and highlight of any special assumptions
- Deduct remedial costs from the gross site value
Can you give me an example of where you have encountered a patent defect?
Inspecting an industrial unit and there were clearly problems with the valley guttering and drainage, as there was water egress into the property. I recommended a specialist survey of the gutter and drainage to be conducted.
How would your inspection technique change depending on the asset you were valuing?
- Retail - goad plan, looking at zoning, other occupiers, footfall, depth to frontage
- Industrial - looking at turning circles, japanese knotweed, clear internal height, other users on the estate (car mechanics)
- Offices - specification, air con, lighting type, proximity to transport or parking provision
4 Land - Looking at livestock, crops, security, highway sight lines, soil type.
If you spotted a defect what would you do?
I would take photos, obtain as much information as I could from the people in site (how long its been there etc) and would discuss with a building surveyor. If they felt it was serious, I would recommend a specialist come out to inspect and produce a report.
