Level 3 - Office Disposal Gloucester

Question 1

Tell me about the Property?

Answer 1

Detached, 10,000 sq ft office over 2 floors
Set on Business Park
Grade B specification - Recessed lighting, double glazing, VRV, open plan and meeting rooms
Brick construction with pitched tile roof
EPC B
44 parking spaces

Question 2

Summarise the disposal?

Answer 2

National client instruction to dispose / lease of asset
Dispose of 10,000 sq ft
Marketed the property and circulated to agents
Two potential buyers
Went with a chosen party however they pulled out due to internal budgets
Still on the market

Question 3

Did you tell you client you received a phone call?

Answer 3

I informed my client about offers promptly and disclosed the levels

Question 4

Why is a party asking to what level to bid at unethical?

Answer 4

It lacks in fairness and transparency for all parties involved
A party would be gaining an unfair advantage which isnt available for all parties

Question 5

Are you aware of an legislation which guides you in this unethical situation?

Answer 5

RICS Professional Standard: Code of Leasing Business Premises 2020 & Estate Agency Act 1979

Question 6

What rule states you must act with Honesty?

Answer 6

Rule 1

Question 7

Outline the 12 core principles UK Commercial Estate Agency Professional Standard 2016

Answer 7

1. Act in honest, fair and transparent manner
2. Work with due skill, care and diligence
3. Fair terms of business and CHP
4. Avoid conflicts of interest
5. Do not discriminate
6. All communications with client are fair, decent and timely
7. Advertising is honest and truthful
8. Client money held separately and insured
9. Appropriate PII
10. clear of obligations to each party
11. Realistic assessment of selling price, rents etc
12. Meetings, inspections, viewings in accordance with client wishes

Question 8

Why couldn’t you disclose the information to the party?

Answer 8

I would not be acting with Integrity (Rule 1) and it would be unfair to the other party

Question 9

What if your client would benefit massively from one of the parties knowing?

Answer 9

I would adhere by the RICS guidance for acting with transparency and fairness. Although i have a duty to my client, it would not be in line with ethical rules of conduct

Question 10

Why did you advise the parties to bid, prior to deadline, at level within financial capacity?

Answer 10

I cannot provide advise on what level to bid at as it would be unethical
I can only advise on facts and for their bid to be valid (before deadline)
I advised within their financial capacity to avoid misleading party

Question 11

Tell me abuot your ethical dilema in Gloucstershire

Answer 11

Point 1 – I was disposing of an office in Gloucester, with two parties looking to bid
Point 2 – One party approached me asking for guidance on a level to bid at
Point 3 – I understand that this would be unfair, and give an advantage to one party, therefore I declined to comment and advised to bid at a level within their financial capacity and opinion of value for the property.