List hits Flashcards
What did you learn from your BNG CPD?
The CPD highlighted that:
1.The Environment Act 2021 makes BNG an explicit condition of planning permission.
- Developers are required to demonstrate how they they will deliver a 10% improvement to biodiversity.
The CPD also covered the mitigation hierarchy:
- Avoid: Retain / Protect / Enhance - on-site
- Mitigate: Recreate / Enhance - on-site
- Compensate: Create & Enhance
- Statutory Credits - matter of last resort
Some of the key recommendations were to:
- Explore constraints & opportunities
- Be aware of wetlands / woodlands & ‘‘greenish’’ brownfield sites
- Engage with ecologist early during feasibility stage & throughout design stage.
What advice does the RICS Professional Standard ‘‘Client Money Handling’’ (2019) give?
- Client accounts separate & identifiable
- '’Client’’ on bank account
- Payment of interest agreed with client
- Account kept in credit
- Client can have monies on demand
- Accurate records kept
- Display procedures document on website
- Money can only be withdrawn if properly required
- Cash receipts are made to settle transactions
- Annual audit & reporting obligations by RICS certified accountant met
What RICS compliance do you need to follow when starting a new practice?
- Inform RICS by completing Firm Details Form
- Appoint Responsible Principal for RICS communication
- Register with RICS for regulation
- Arrange PII and send details to RICS
- Set up procedures for Client Money Handling - including PROTECTION SCHEME
- Register for RICS Valuer Registration Scheme if req.
- Obtain RICS approval for CHP
- Set up complaints log
- Appoint Complaints Handling Officer
- Use Logo kit from RICS to comply with Regulated by RICS
- Plan for succession / future running?
- Ensure CPD logged online on RICS CPD Management System
- Set up staff training plan
- Ensure completion of online RICS Annual Return at the end of each year.
What statutory compliance do you need to undertake when starting a new practice?
- Disclose business name
- Appoint Money Laundering Reporting Officer
- Asbestos Register
- Inform with HMRC for VAT and Tax registration (VAT THRESHOLD 85K)
- Register for data protection
Comply with:
1. Financial services legislation
2. Bribery Act
3. Health & Safety legislation
4. Fire safety legislation
5. Estate agency legislation
6. Employment law legislation
7. Insurance requirements
What RICS compliance do you need to undertake when closing your practice?
- Inform RICS of closure and deregister
- Ensure clients are informed and handover arrangements made
- Return client money to their account
- Inform insurers & procure run-off cover for a minimum of 6 years in line with RICS requirements
- Retain a copy of client files and records for a minimum of 6 years
What are the key provisions of the Terrorist Financing & Transfer of Funds Regulations 2017?
- Written risk assessment
- Implement systems / controls / policies
- Adopt internal controls
- Provide staff training
- Comply with CDD / EDD requirements
- Comply with PEP requirements
- Ensure appropriate record keeping
- AML checks to be undertaken before exchange
- Requirement to include additional high-risk factors when assessing the need for EDD.
What are the main principles of UK GDPR?
Data must be:
- Processed lawfully / fairly / transparently
- Collected for explicit / legitimate purposes
- Relevant to what is necessary
- Accurate and kept up to date
- Kept no longer than necessary
- Processed in a secure way
What are the 8 individual rights under UK GDPR?
- Right to be informed
- Right of access
- Right to rectification
- Right to erasure
- Right to restrict processing
- Right to data protability
- Right to object
- Right to automated decision making / profiling
What are the 9 protected characteristics?
- Gender reassignment
- Sex
- Sexual orientation
- Age
- Disability
- Race
- Religion
- Marriage / partnership
- Pregnancy / maternity
What approaches should you consider when valuing a site with contamination?
- Recommend specialist report commissioned
- Caveat advice with disclaimer / assumption / special assumption
- Deduct remediation costs
What are the mandatory requirements set out in RICS property measurement 2018?
- Provide measurement date
- State methodology adopted
- Provide reference / scale
- State conversion factor and rounding
- Document measurement / calculations
- Retain record of RICS member responsible
- Advise of benefit of IMPS
- Document the reason for departure
What does IPMS 1 measure?
The Area of the building including external walls.
On a floor-by-floor basis
What does IPMS 2 measure?
The interior of an office
Including all areas available for direct use
Measured to the IDF of the wall
on a floor by floor basis
in component areas
What is the IDF?
Inside finished surface comprising more than 50% of the floor to ceiling height for each IDF wall section
What dos IPMS 3 measure?
Measures the occupation of floor areas in exclusive use
Measured the internal dominant face on a floor-by-floor basis
Represents the floor area available on an exclusive basis to an occupier
What does IPMS 3 exclude?
- Common facilities such as stairs / lifts /motor rooms / WC’s / cleaners cupboards/ plant room etc.
What does IPMS 1 exclude?
Upper atrium void levels
Open external stairwell
Refuse areas
Patios
External Parking at ground level
What does IPMS 2 exclude?
- Open light wells / upper level atrium voids
- Patio / GF decks
- External Parking & Equipment yards
- Cooling equipment / Refuse areas
What are the major difference between IPMS3 & NIA?
- Perimeter measurements taken to the IDF
- No exclusions for less than 1.5m
- Columns included
- Area taken to mid-point of partition wall between tenancies
- Covered galleries / balconies included and stated separately (exclusive use)
What would you include / exclude for GIA measurements of industrial?
Include:
1. Columns
2. Lift wells
3. Mezzanines w/ perm access
4. Loading bays
5. Ancillary Offices (GIA basis)
Exclude:
1. Canopies
2. Fire escapes
3. Covered ways
What are the bases of value?
- Market value
- Market Rent
- Fair value
- Investment Value
- Equitable Value
- Liquidation Value
What is Investment value?
The value of an asset to a particular / potential purchaser for individual investment / operational objectives
What do VPS1-5 cover?
VPS1 - Terms of Engagement
VPS2 - Inspection / Investigation / Records
VPS3 - Contents of valuation report
VPS4 - Basis of value
VPS5 - Valuation Approaches & Methods
What are the four requirements for desktop valuations as set out in VPS 2 - Inspections / Investigations / Records?
- Nature of restriction agreed in ToE
- Valuation implications of restriction confirmed in writing prior to reporting value
- Valuer should consider whether restriction is reasonable
- Restriction must be referred to in report
When does a valuation not have to be red book compliant?
VS 1 - All valuations must be redbook compliant except for:
- Prepared for negotiation / litigation
- Prepared for internal purposes w/o liability and third party reliance
- When undertaking statutory functions (except for statutory returns)
- For agency / brokerage work when no purchase report required
- In preparation as evidence for expert witness
What are the minimum terms of engagement as set out in VPS 1?
- Identification & Status of Valuer
- Identification of Client
- Identification of any other intended users
- The asset to be valued
- Currency
- Purpose of valuation
- Basis of value
- Valuation date
- Extent of investigation
- Nature / Source of information to be relied upon
- Assumptions / Special asusmptions
- Format of the report
- Restrictions for use / distribution / publication
- Confirmation of Red Book compliance
- Fee basis
- CHP to be made available
- Statement that valuation may be subject to compliance by RICS
- Limitation on liability agreed
What are the minimum requirements to be set out in a Red Book compliant valuation report?
VPS 3 - Valuation Report
- Identification & Status of valuer
- Client / other intended users
- Purpose of valuation
- Asset to be valued
- Basis of value
- Valuation date
- Extent of investigation
- Nature & source of information
- Assumptions / Special assumptions
- Restrictions on use / distribution / publication
- Instruction undertaken in accordance with IVS standards
- Valuation approach and reasoning
- Valuation figure
- Date of report
- Comment on market uncertainty
- Statement setting out limitations on liability
What does professional standard 2 cover?
Ethics / Competency / Objectivity and Disclosers
- Valuations must be in accord with Rules of Conduct
- Valuer must act objectively / independently
- Members must understand requirements / comply with minimum terms of engagement
- Members must be able to demonstrate professional competence
What are the principles set out in RICS Professional Statement - UK Commercial Estate Agency 2016?
- Act honest / fair /transparent
- Carry out work with due skill & employ staff with necessary skills
- Ensure clients provided with terms of business with CHP details
- Avoid / manage CoI fairly / openly
- Do not discriminate unfairly
- Good communication with client
- Honest marketing material
- Client money held separately / covered by adequate insurance
- Hold appropriate PII
- Make client identity clear
- Give realistic assessments of prices / costs
- Carry out meetings / inspections / viewings in accordance with clients wishes.
What are the 7 principles of the Estate Agents Act 1979?
- Clarity to terms of agency (s.18)
- Honesty / Accuracy
- Agreement / liabiltiy for costs
- Openness regarding personal interests (s.21)
- Absence of discrimination
- Inform clients about offers received
- Keep client’s money separate
What are the differences in penalties between the estates agent act (1979) / Misrepresentation act (1967) and Consumer Protection Regulations (2008)?
Misrepresentation Act (1967) - Sued for financial damages / contract rescinded
Estates Agent Act (1979) - Warning / Prohibition order & fine
Consumer Protection Regulations - Fine / Prohibition order / prison (2 years)
What is your understanding of Consumer Protection Regulations (2008)?
- Apply to sales / lettings
- Agents have duty of care to clients / parties
- Agents must declare everything kown about a property
- Agents must not exert undue pressure
- Information discovered must be shared
- Omissions can breach regulations
- full DD required for instructions
- Must be validated by client
- Disclaimers do not apply
