Level 1

Question 1

Key regulation?

Answer 1

RICS Professional Statement - UK Commercial Estate Agency 2016

Question 2

What does the RICS Professional Statement - UK Commercial Estate Agency 2016 say?

Answer 2

• Must make clear to client it is not a formal valuation
• Must be realistic in pricing advice to client, having regard to market evidence
• All marketing materials must be honest
• Market appraisals must be provided in writing
• Must inspect for market appraisal
• PII

Question 3

What is the difference between market appraisal and formal valuation?

Answer 3

Market Appraisals are excluded from red-book compliance as per PS1 (Agency)

Question 4

What are the different appraisal methods?

Answer 4

Comparative, residual

Question 5

What are the main limitations of a market appraisal?

Answer 5

• Cannot be relied upon as a formal valuation
• Availability of comparable evidence
• Forecasting and take into account hope value

Question 6

What did you consider regarding timing of bringing the property to market?

Answer 6

ASAP due to elections

Question 7

Did you inspect both properties?

Answer 7

Yes

Question 8

What was the nature of both instructions?

Answer 8

Comprised as part of an instruction to dispose of the property - provided as pre-marketing advice

aka terms of engagement were signed prior to undertaking the market appraisal and PII was in place