Legal/regulatory requirements Flashcards
1
Q
What are the 3 types of schedule of dilapidations?
A
Interim (during the lease).
Terminal (last 3 years)
Final (after lease expiry).
2
Q
What is Section 18 (1) of the LTA 1927?
A
Limb 1 - cap on repair costs (landlord’s claim).
Limb 2 - supersession.
3
Q
What is the significance of the Landlord and Tenant Act 1927?
A
- Section 18 (1) - a statutory cap on landlord claims and supersession.
- Landlords can claim compensation if a tenant leaves the property in disrepair at lease expiry.
4
Q
What is qualified compliance when exercising a break clause?
A
When a tenant has complied with more than what is ‘reasonable’ but less than ‘absolute’ compliance to meet the break clause.
5
Q
What are the penalties for not getting Listed Building Consent?
A
- Fine.
- Up to 2 years in prison (consent to make changes to a listed building).
6
Q
What is found within a licence to alter?
A
- Building regs.
- CDM regs.
- Drawings.
7
Q
When is an EPC required?
A
- Selling or letting property.
[- Buildings that are shell only exempt e.g. barn are exempt and some Listed buildings.]
8
Q
What is the purpose of the Dilapidations Protocol?
A
Sets the ground rules for negotiations without going to court.
9
Q
Is the Dilapidations Protocol mandatory?
A
No, but if it’s not followed and the claim goes to court then a judge won’t look favourably on the party that hasn’t followed the Protocol (potential financial penalty against this party).
10
Q
Ash House, Middlesex – you completed a terminal schedule of dilapidations - What should this include to be compliant?
A
- Quantified demand.
- Breaches.
11
Q
When would BCIS not be used?
A
- Listed buildings.
- Unusual building types.
12
Q
What are a Landlord’s responsibilities under the Equality Act 2010?
A
- Don’t discriminate against tenants.
- Make reasonable adjustments e.g. install a ramp to common parts.
13
Q
How wide did the door need to be at Windsor Walk?
A
775mm as it was an existing building, 1000mm for new build.
14
Q
What piece of legislation relates to asbestos?
A
The Control of Asbestos Regulations 2012.
15
Q
Who is a duty holder under The Control of Asbestos Regulations 2012?
A
Person or organization who’s responsible for managing asbestos non-domestic buildings e.g. landlord, client, designer, principal contractor.
16
Q
What are the duty holders’ duties under The Control of Asbestos Regulations 2012?
A
- Assess risk.
- Record the locations.
- Share information about asbestos with others.
17
Q
What counts as non-licensed work?
A
- Drilling through textured coatings.
- Painting over asbestos insulating board (AIB).
18
Q
When is Building Control approval required?
A
Not required for most repair and maintenance work, so most other work where Building Regulations apply will need Building Control Approval.
19
Q
Murdock Road, Bicester – You correctly gave advice regarding current MEES targets. What are the future upcoming targets?
A
MEES: C - 2028, B - 2030, net zero - 2050.
20
Q
Can you explain what the MEES target exemptions are?
A
- If energy assessor determines improvements aren’t possible.
- Or they think improvements would reduce the property’s market value by more than 5%.
21
Q
Gordon Grove, London - under Construction (Design and Management) Regulations 2015 you advised the client needed to submit an F10 – what other responsibilities does the client have under CDM Regulations?
A
- Appoint PD and PC.
- PCI (site conditions, asbestos, structural information).
- CPP (ensure it’s provided).
- Provide welfare facilities.
22
Q
Note: Landlord issues schedule of dilapidations within 56 days of tenancy ending (stated in Protocol). Court may award punitive costs for failure to comply.
A
23
Q
What is Listed building consent and what is the first stage of obtaining it?
A
- Approval to carry out works on a Listed building.
- Have to contact LPA to check if consent is required and to ensure that the proposed works are acceptable.
24
Q
Talk me through a diminution valuation, what does this typically contain?
A
- Schedule of dilaps.
- Scott schedules.
- Alleged breaches.
- Market valuation (before & after breach).
25
What are the limitations of a diminution valuation?
- Only covers repairing covenants.
[- Other covenants are covered by common law.]
26
What is a Scott Schedule? What does it typically include?
- Breakdown of a dilaps claim listing out each item with columns for each surveyor to make comments.
- Includes alleged breaches, costs.
27
When starting a dilapidations negotiation on behalf of the tenant, what do you generally include in your initial conversation with the landlord’s surveyor?
- Inquire about what the landlord's intentions with the property are.
- Request the excel version of the claim.
28
Do you include a claim for loss of rent within your dilapidations claims? When would you include this figure?
- Loss of rent is typically only applicable if there is an express clause in the lease.
- The only other way loss of rent could be included in a claim is if the landlord has a new tenant ready to take over the space straight after lease expiry. In this instance the landlord would be able to evidence actual loss.
29
At Landor Road, London you were instructed to undertake a SoC. What type of SoC was this?
It was undertaken prior to lease commencement to document the condition of the premises to then be appended to the lease.
30
What were the key outcomes of Proudfoot v Hart?
- Definition of Repair.
- Tenant must keep premises in repair but not obligated to improve it.
- Required standard depends on the age, character, and location of the property. [A tenant leasing a Victorian warehouse does not have to modernize it to new-build standards.]
31
What defences can a tenant use against a dilapidations claim?
- LTA 1927 Section 18(1) diminution in value and supersession.
- Proudfoot v Hart: Tenant only needs to repair not make improvements (betterment).
[lease must be interpreted reasonably, considering the age, character and location of the property.]
- Leasehold Property (Repairs) Act 1938: The landlord must prove that repairs are reasonable.
32
How does Proudfoot v Hart (1890) define repair?
Repair must match premises' age, character and location (ACL).
33
Can a landlord claim for repairs if they plan to redevelop?
No, if a landlord intends to redevelop or demolish, they cannot claim for irrelevant repairs.
[Sunlife Europe Properties v Tiger Aspect (2013) – Court ruled that the true measure of loss was diminution in value, not repair costs.]
34
What is the Leasehold Property (Repairs) Act 1938, and how does it protect tenants?
Protects tenants from excessive interim repair claims in long leases.
[Applies to leases of at least 7 years with 3+ years remaining (Interim dilaps).]
[Prevents landlord trying to enforce repair obligations through a Section 146 Notice (which could lead to eviction), the tenant can apply to the court for relief.]
35
What are the main stages of a dilapidations claim?
- Interim Schedule of Dilapidations – If applicable, issued during the lease term.
- Terminal Schedule of Dilapidations – Issued before lease expiry detailing alleged breaches.
- Quantified Demand – The landlord submits a formal financial claim.
- Tenant’s Response – The tenant can negotiate, dispute, or seek legal advice.
- Scott Schedule (if disputed) – A detailed side-by-side comparison of claims, responses, and costs.
- Settlement or Legal Action – The claim is resolved via negotiation, mediation, or court.
36
What are the 3 things in a surveyor's endorsement?
- Costs are reasonable and reflect landlord's intentions.
- Schedule is accurate.
- Complies with the RICS Dilapidations Professional Standard [and Protocol].
37
Apart from having more than 3 years left on a lease, what other requirements are there for an Interim Dilapidations claim to be made by the landlord?
- Landlord has to prove breach in repair obligations.
- Repairs must be necessary and reasonable.
38
How is the diminution in value calculated?
How are landlord's damages capped?
- Value of property in its current state [at lease expiry].
- Value of property if tenant had complied with repair obligations [at lease expiry].
- Landlord claim can't be more than diminution in value [even if cost of repairs exceeds this].
39
At Murdock Road, you advised the client that where they had EPC ratings below an E they could not rent properties to tenants. Is this for new or existing tenants?
Are there any exemptions you know of for this issue?
- Existing [as well as new tenants].
- Upgrades reduce property value by more than 5%.
40
Legal/reg compliance - Ash House:
- Details of instruction (service, spec, contract value/claim amount etc)?
- Issues encountered?
- Dilaps (terminal schedule).
- Acting for tenant.
- Used BCIS for costs.
- Negotiated claim via Scott schedule.
41
Legal/reg compliance - Murdock Road, Bicester:
- Details of instruction (service, spec, contract value/claim amount etc)?
- Issues encountered?
- TDD.
- Advised client that where ratings fell below E rating they wouldn't be able to let properties to new tenants [this also applies to current tenants as well though].
- Advised that including sustainable features would potentially improve EPC ratings [LED, solar panels, low flow taps].
42
Legal/reg compliance - Gordon Grove:
- Details of instruction (service, spec, contract value/claim amount etc)?
- Issues encountered?
- Project.
- Cient has to abide by CDM regulations - F10 mentioned [appoint PD (CDM) and principal contractor, provide PCI].
- Legal action may be taken if they don't comply with F10 notification.
43
Gordon Grove, London - How did you advise the client to ensure compliance with other CDM 2015 duties, such as appointing a PD (CDM) and Principal Contractor?
[- PD (CDM), PC.]
- F10.
- PCI.
- CPP.
- Health and safety file (PD prepares at PC).
44
Murdoch Road, Bicester- If the client had ignored your advice and continued to lease a substandard unit, what legal consequences could they have faced?
Fixed fines or percentage of the property's rental value - whichever is higher.
45
What type of RCA did you do?
What others are there?
- Day one reinstatement.
- Reinstatement with inflation.
- Reinstatement less wear and tear
46
What is a Part 36 offer?
- Formal offer to settle a legal case.
- Encourages early agreement and avoid high court fees.
[Landlord may claim money from the tenant for not keeping the property in good repair. The tenant may think the claim is too high and offer a lower amount to settle. Either side can make a Part 36 offer, which is a formal way of saying, "Let’s settle for this amount."
If the offer is fair and the other side refuses but later loses in court (or wins less than the offer), they may have to pay extra legal costs]
47
What is the RICS guidance document on dilapidations?
Dilapidations Professional Standard (2024).
48
What is the difference between a Schedule of Dilaps and Quantified Demand?
SoD:
- Lists breaches.
- Costs not always included.
- Issued first [usually].
QD:
- Landlord's financial claim.
- Required under Dilaps Protocol.
- Issued with or follows the SoD.
49
How is a diminution in value used as a defence in dilapidations?
Tenant may argue:
- “Yes, there is disrepair, but fixing it would cost more than the value lost.”
Example:
- Cost to reinstate a partitioned office to open plan = £50,000.
- Property value reduction due to disrepair = £15,000.
- Tenant argues damages should be capped at £15,000, not the full cost of works.
50
[INCOMPLETE] Is VAT chargeable on a dilapidations settlement?
51
What is a Notice to Repair?
- Served during a lease (not after lease expiry).
- Allows tenant set period to undertake repairs.
- If tenant doesn't action repairs in alloted time landlord can complete repairs and recover as a debt (not damages) [Jervis v Harris clause].
[Notice to Repair served by landlord to tenant]
52
What BCIS reference would you use when costing an RCA?
[INCOMPLETE] - research on BCIS which one of these is correct.
Rebuilding Costs Online (RCO) or General Building Cost Indices (standard rates).
53
RCAs: What type of additional features or factors might you consider including the cost build up and why?
- Listed building.
- Conservation area.
- Ornate detailing.
[- Restricted access.]
- Additional costs.
54
What documents do you consider when preparing your dilapidations response?
- Lease.
- Licence [if applicable].
- Quantified Demand.
- SoD.
- SoC [if applicable].
55
Your client, who is the landlord, is concerned about the condition of their building. What options would you advise they consider under the terms of the lease?
- Repair covenant [obligations - put and keep or maintain, FRI/IRI].
- Notice to Repair [if applicable].
56
a) What are the typical terms of a Notice to Repair?
b) What type of work is it best suited to?
a):
- Breach.
- Remedial works.
- Timeframe to complete works e.g. 28 days.
b):
- Urgent works [roof leak, unsafe structure].
57
What protection does the lease provide the tenant within a typical lease?
- Section 18(1) - Diminution in value [cap on landlord damages claim].
- Right to renew lease [LTA 1954].
58
In preparing an interim schedule, would you advise costing it or not?
- Typically not [unless requested by landlord - might want to recover costs from works (self-help clause)].
- Purpose: notify tenant of disrepair and prompt action.
59
If you are acting for the tenant, when would you advise a s18 defence?
- When landlord intends to redevelop property - supersession.
- Landlord claims for £50k of works to remove partitions but diminution in value is only £15k. Costs therefore capped at £15k.
60
What advice would you give a tenant if they wanted to exercise the Break Clause in their lease?
- Check conditions of clause amd comply with conditions.
- Issue notice [typically min 6 months before].
- Prepare for dilaps claim.
61
What is the implication of a conditional break?
Tenant has to meet the conditions to successfully initiate break.
62
At Murdock Road the EPC ratings fell below an E rating.
a) What document could you refer to in order to establish improvement works?
b) What other report could a client use?
a) Recommendation report.
b) EPC+ report.
63
Bricket Road, St Albans: What design requirements did you consider?
- Partitions.
- Fit-out [kitchens, offices].
- M&E layout.
64
Bricket Road, St Albans: a) What information would you review in order to approve the licence?
b) What information would you look for on a test certificate i.e. for HVAC equipment?
a) - Drawings.
- Test certificates.
- Building regs sign off.
- Contractor insurance.
b) - Air flow rate.
- Water flow rate.
- Noise levels.
