Lists Flashcards
What is the conflict of interest process?
- Notify the partner in charge
- PIC will then run this through workmans internal conflict of interest database
- Whilst the check is being undertaken, step back from the instruction
- if not conflict arises/ is reported, you can accept the instruction as long as you are competent
- If there is a conflict the PIC will inform both parties of the conflict.
AML Check Process
Request organisational and personal information
Check for any criminal affiliation
Check the source of the funds
Check against the sanctions list
What is the client onboarding process?
Request organisational and billing information
Conflict of interest check
AML check
competence check
Draft terms of engagement
Agree PMA
Setting up a RICS firm process.
Notify the RICS of your intention
Appoint a lead communicator
Provide all information in line with the RICS
Have the appropriate PII in place
Set up CHP, anti bribe and money laundering process
Set up a locum
Add regulated by RICS to business literature.
Bribery Act 6 Principles
Proportionality
top level commitment
Risk assessment
Due diligence
Communication
Monitoring and review
5 RICS Rules of Conduct
- Honesty and Integrity
- Competence
- Service
- Respect
- Responsibility - act in the public interest
6 Ethics Principles
Honesty
Integrity
Competence
Service
Respect
Responsibility
Requirements for handling clients money?
Data is to be secured and protected
Money is to be held in a seperate bank account that is labelled client and clients name
Account is always to be in credit
Money must always be able to be available to the client on request
Agreement on interest to be made
3 monthly reconciliation
Firms obligations to the RICS?
To have PII cover
To have a locum
To have a CHP
To coorperate with the RICS
To provide any information reasonably requested by the standard and regulations board.
To display RICS Regulated on all business literature
To provide all information requested under RICS registration process
Members obligations to the RICS?
To cooperate with RICS
To provide all information reasonably requested by the RICS
To comply with CPD requirements.
What is your firms complaints handling procedure?
If someone wants to complain, do not discourage them
Refer them to your complaints handling officer and step back
Complaint to be sent in writing and added to the complaints log.
Officer to acknowledge within 7 days, to respond within 28 days
if agreement cannot be reached, refer to RICS Dispute Resolution service (workman use property redress scheme)
How to close down an RICS firm?
Notify RICS you intend to close down
Notify all clients and handover to suitable
Return all client funds you are holding
Set up 6+ years run off cover
Keep records for 6 years
What is included in a PMA?
Identification of both parties and properties to be managed
Terms of engagement
CHP and Dispute Resolution
MGMT Fee and Basis
Service to be provided - budget, services, rent collection
KPI’s and Reporting Requirements
Talk me through a rent review?
Receive instruction
Check competence, COI check
Agree terms of engagement
Request full legal pack
Review lease
Inspect and measure
gather comparables, calculate market rent
inform client and get approval
serve a trigger notice on the tenant for the new rent proposal
agreement - instruct solicitors
disagreement - dispute resolution procedures in lease or calderbank offer
Talk me through the lease renewal process
Receive instruction
Competence check, COI check
discuss with the client their intention
Inspect and measure
determine market rent by gathering comparables
propose terms to be included in the friendly section 25
instruct solicitor to issue notice
negotiate
agreement - instruct solicitors
disagreement -court proceedings - PACT
Assumptions and disregards in a lease?
Assumptions
- fit for immediate occupation
- assume in good repair
- can be let at market rent
- assume it has all essential utilities and services connected
- Vacant possession
Disregards
- Goodwill
- Previous occupation
- Improvements
- Any liquor licence
Landlord grounds for opposing a new tenancy?
persistent non payment of rent
breach in repairing obligations
breach of lease terms
landlord provide suitable alternative accommodation
landlord wishes to redevelop
landlord wishes to occupy
Uneconomic sublet
What are the PII requirements?
under £100,000 turnover - £200,000 cover
£100,000 to £200,000 - £500,000 cover
over £200,000 - at least £1million
What are the 7 GDPR Principles?
- Lawfulness, Fairness and Transparency
- Data minimisation
- Storage Limitation
- Purpose Limitation
- Accountability
- Integrity and confidentiality
- Accuracy
What are the 8 rights under GDPR?
- To be informed
- To access
- To rectify
- To erasure
- To restrict
- To data portability
- To object
- rights related to automated decision making and profiling
Measurement Process?
- Receive instruction
- Competency check and coi check
- Agree on basis of measurement and reporting requirements
- Desktop assessment, review plans and previous measurement.
- Arrange access and assess any risks
- attend with necessary measurement equipment
- undertake the measurement - horizontally to IDF
- check measurement against unit plans
- provide report to client
What is included in the measurement report?
ID of property
ID of measurer
Basis of measurement
Unit of measurement
Method of measurement and tools
Date of measurement
What are the rules for a measurement report?
- Measured on a floor by floor basis
- Reconciliation of dual reporting
- Limitations to be stated
- If unit conversion required, conversion rate to be stated
What’s included and excluded from NIA?
Included
- All usable area
- Entrance halls
- Atria
- Notional lift lobbies
- Kitchens
- Ventilation and heating grills
- Non-structural lightweight partition walls
Excluded
- Interior walls and columns
- toilets, cleaner cupboards
- corridors and circulation areas
- areas less than 1.5m height
- permanent air conditioning
- Lift rooms and plant rooms
- Stairwells
What are the components of the Red Book 2024
Introdution
Glossary
PS1-2
VPS 1-6
VPGA 1-11
International Valuation Standards
What is VPS 1-6?
1 - Terms of engagement
2 - Bases of value, assumptions and special assumptions
3 -Valuation approaches and methods
4 - Inspections, investigations and records
5 - Valuation models
6 -Valuation reports
What is PS 1 and 2?
PS 1 - Compliance standards where a written valuation is provided
PS 2 - Ethics, competency, Objectivity
What is in valuation terms of engagement?
Conflict of interest
Name of both parties, client and valuer
Property
Basis of value and method
Assumptions and special assumptions
Limitations
Valuation date
Dispute resolution method
What is in a valuation report?
Terms of engagement
Inspection notes
Comparable evidence
Comparable analysis
Valuation calculation
Determined Value
Other enquiries - planning, environmental surveys
What due diligence do you undertake before any valuation?
- Competence check
- Conflict of interest check
- Check for good title (legal and clear ownership)
- Inspect the property
- Check for environmental matters
- Check market conditions
- Planning enquiries
- Check for alterations/improvements
- Check the EPC
- Check compliance with statutory H&S
- Research with agents.
What are the 9 mandatory service charge requirements?
- All expenditure recovered must be in accordance with the lease
- only 100% of the proper costs may be recovered
- Budgets provided on an annual basis
- signed accurate expenditure to be provided annually
- apportionment provided annually
- SC money to be held in a seperate account
- Interest to be credited to the account
- SC consultants to ensure tenants only withold payments in relation to the disputed period
- Any incorrect SC must be rectified immediately following dispute.
What do you do if a unit becomes vacant?
- Secure the unit
- Notify the client
- Notify the insurers, utility and service providers and council
- Issue a key holding letter for health and safety purposes.
- Ensure statutory compliance with H&S
- Maintain unit
- Set up client void for insurance and SC
Process for assignment?
Receive Instruction/ Application
Undertaking for fees from tenant
Review competency, COI check
Review Alienation clause in lease and other relevant clauses
Notify client
Inspect to see any breaches
Review proposed rent vs market rent - affect on investment value
Review proposed assignee - covenant strength - AGA?
If no grounds to refuse, authorise solicitors to document
Process for alteration request?
Confirm instruction with client
competency check, COI check
Request undertaking for costs from tenant
Review lease terms
Request details of works - scope of works
If required, review with Building surveyor
Determine if improvement or just alteration
Instruct documentation of licence to alter
Once undertaken, inspect with BS to ensure works are as agreed and compliant.
Process for handling a break?
notify client of upcoming break
if tenant serves the break, check the lease
Review break clause, notice period, conditions
Inspect to determine compliance
If not compliant - invalid break
If valid, raise break fee if there is one and collect
Inspect unit post vacation to ensure compliance with yielding up.
What is the process for an inspection? (Broad terms)
Desktop Enquiries
Area Inspection
External Inspection
Internal Inspection
Name sections of surveying safely?
Personal and firms responsibilities
Hazard and Risk Assessment
Fire safety checks
Contractor Management
Residential property surveying
What are the purposes of inspection?
Property Management
- Lease compliance
- Statutory compliance
- Occupational details
- Defects
- H&S
Valuation
- Age
- Condition
- Location
- Sustainability
L&T
- Lease renewals
- Rent Reviews
What factors would negatively affect value of a property?
Asbestos
Contamination
Flooding
Invasive Species
High voltage overhead cables
What drives the value of a retail space?
LOCATION
But also:
Specification
Frontage ratio
Masking
Condition
Visibility from street
Fit out
Floor to ceiling height
What are some common building defects?
Subsidence
Heave
Wet rot
Dry rot
Leaks
Ponding/ slipped roof tiles
Spalling / Efflorescence
What are the 10 GAAP Principles?
Regularity
Consistency
Sincerity
Permanence of methods
Continuity
Prudence
Non-compensation
Periodicity
Materiality
Utmost good faith
What is the format of company accounts?
Cover page
Information and Contents page
Directors Report
Accountants Report
Statutory Profit and Loss Account
Detailed Profit and Loss Account
Notes to the Accounts
Balance Sheet
What is included in an EPC?
ID of property
ID of assessor
Date of assessment
Floor area
Expiry date
EPC rating
Environmental impact assessment
Estimated energy cost
Recommendation report and potential score
Exemptions for failed EPC’s?
Consent to undertake the works are excused by third parties
A suitably qualified expert advises that the works would devalue the property by 5% of more. Or would damage the property
Exemptions last for 5 years
What buildings are exempt for having an EPC?
Religious Buildings
Listed Buildings
Buildings not occupied for 4 months or less a year
Buildings with no heating
Buildings waiting to be demolished
What are the 9 BREEAM catagories?
Water
Energy
Transport
Management
Waste Management
Materials
Land Use
Health and Wellbeing
Pollution
What are 9 protected characteristics?
Race
Sex
Gender
Age
Disability
Religion or belief
Sexual Orientation
Gender Reassignment
Marriage or Partner
Pregnancy or maternity
4 types of illegal discrimination?
Indirect
Direct
Harassment
Victimisation
Types of ADR?
Arbitration
Adjudication
Independent Expert
Mediation
PACT
