Legal & Regulatory Compliance Flashcards
Name a case law relating to dampness?
Fryer v Bunney 1982- dampness may not have been detected by the human eye but it certainly could have been detected by a protimeter
Name a case law relating to following the trail?
Hart V Large-
High court case.
*Level 2 home buyers report
*dispute between Hart the surveyor and Large-1.2M value
*Hart experienced damp issues/water ingress and initiated a negligence claim against Large
*Large was negligent as his inspection and report failed to identify/advise:
-Damp
-obtain a professional consultants certificate
-advise further investigations
Prior to purchase.
Large should have followed the trail in relation to poor workmanship snd a lack of visible damp proofing-should have been observed leading to further investigations.
Explain case law where something was not carried out as RICS would advise?
Watts V Morrow
Missed defects on a building survey on a farm. The surveyor dictated the report on site where as rics states you should take notes then reflect on this off site. Damages of £15,000 for floor however not as bad as £34,000 as the surveyor didn’t say it was free from any defects
Discuss a case law relating to run off cover?
Merritt v Babb-2001
1.) Surveyor valued a resi home for a mortgage advance
2.) 2 years later the firm went bankrupt. Indemnity insurance was cancelled and the firm had no run off cover.
3.) employee was uninsured
4.) woman brought proceedings to the employee claiming negligence
5.) mother was awarded half damages (she only owned half) and was awarded this from the surveyor personally
Describe a case studying using a follow the trail approach/inspection?
Roberts V J Hampson 19888/1989
Defendant carried out a mortgage valuation in a converted church hall. Found dampness in the external walls/skirtings.
Recommended the property as suitable security to the society and suitable for a full mortgage advance.
Held negligible for not checking if the damp/rot was more widespread.
Judge found the surveyor should have taken longer and carried out a proper inspection-taking reasonable care (follow the trail)
Explain the Mallison Report?
Mallison report carried out in 1994.
Urges steps were needed if the profession was to keep its reputation.
Report was called upon after valuations were showing drastically different figures.
Red book updated following this-mandatory requirements for valuations on all types of properties.
Explain the Carsberg report?
Carried out 2002.
Wide ranging review of regulation.
Found RICS members should continue to be regulated, should be from different regulatory and conduct boards.
Also says RICS should regulate firms as well as individuals, introduce a compliance regime.
Advises-simpler approach to competence monitoring and simpler discipliner proceedings.
RICS welcomes the Carsberg report.
Explain the levitt review?
Independent review by Alison Levitt 2021. Found that RICS surpassed and internal report from 2018/19 and unfairly dealt with those who looked to explore the issue.
Audit and governance principles were not followed.
Made recommendations for the future
Explain the Bichard Review?
Bichard review 2022 -review of purpose, government and strategy.
*review of purpose, governance and strategy
*relationships between councils, committees and boards
*Needs to be better at placing public interest at core of activities
*not enough member support but commercial activity
*poor value for subscriptions for members
*not transparent where members money goes
*people in the uk not happy with global expansion and people around the globe think rics only cares about the uk
*poor quality of service
