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APC > Lists to remember > Flashcards

Lists to remember Flashcards

1
Q

What are 7 mandatory Professional Obligations all RICS members must follow?

A
  1. Members must comply with CPD requirements set by RICS
  2. Members must cooperate with RICS
  3. Members must provide all information reasonably requested by the Standards and Regulation Board.
  4. Firms must publish a complaints handling procedure which includes ADR method approved by RICS and a record of complaints
  5. Firms must display and RICS designation on their business literature to show they are regulated by the RICS
  6. All previous and professional work must be covered by adequate professional indemnity cover
  7. Firms with a sole principal must have arrangements in place if they can no longer work
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2
Q

What are the 6 principles of the 2010 Bribery Act?

A

Proportionality

Top-Level Commitment

Risk Assessment

Due Diligence

Communication

Monitoring and Review

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3
Q

What must be included in a firms annual return?

A
  1. Type of business and staffing details
  2. Statutory Regulated Activities - eg valuation firms for financial services
  3. Nature of clients
  4. Complaints Handling Procedure and Records
  5. PII Insurance details
  6. Whether the firm holds clients money
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4
Q

What improvements did the new Rules of Conduct make over the old ones?

A
  1. Simpler Structure
  2. Clearer examples
  3. Focus on respect, diversity and inclusion
  4. Understanding evolving technology
  5. Tackling global challenges
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5
Q

When should you NOT accept an instruction?

A
  1. If you are not competent
  2. You are not being provided with sufficient facts on the issue
  3. The proposed client will not sign off the terms of engagement or AML checks
  4. There is a conflict of interest that can’t be managed
  5. PII indemnity cap can’t be agreed
  6. The advice is for a friend on a pro-bono basis but your PII doesn’t cover this work
  7. The company is on the governments sanctions list
  8. The work could cause public embarrassment to your firm if it was made public
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6
Q

How would you start a new practice?

A
  1. Inform the RICS and register for Regulation by the Regulatory Board
  2. Appoint a Responsible Principal who ensures compliance with the RICS
  3. Arrange PII and send details to the RICS
  4. Set up procedures for client money handling
  5. Obtain RICS approval for your firms complaints handling procedure
  6. Appoint a complaints handling officer
  7. Ensure ‘logo kit’ and ‘regulated by the RICS’ is on all practice material
  8. Ensure you have a locum
  9. Ensure your members meet their CPD requirements
  10. Ensure completion of the RICS Annual Return at the end of each year
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7
Q

What are the 10 principles of GAAP?

A

Regularity R C S P N P C P M U

Consistency

Sincerity

Permanence

Non-compensation

Prudence

Continuity

Periodicity

Materiality

Utmost good faith

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8
Q

When are audited accounts needed and why?

A

All companies require an audit except for small companies with :
- Turnover below £10.2m
- Total assets below £5.1m
- Under 50 employees

Required by law and provide assurance to shareholders

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9
Q

What are the 7 principles of Data Protection Act 2018? (AKA 7 principles of GDPR)

A

Lawfulness, fairness, transparency

Accuracy

Accountability

Purpose limitation

Storage limitation

Data minimisation

Integrity and confidentiality

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10
Q

8 individual rights under GDPR?

A

Right to Information

Right to Access

Right to Rectification

Right to Erasure

Right to Restrict Processing

Right to Data Portability

Right to Object

Right to Automated Decision Making

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11
Q

What valuations are Exceptions to the Red Book?

A
  • If for internal purposes (for client to know market value of their property)
  • If for agency work prior to acquisition or disposal instructions (EG advertise at price X and if it does well, we’ll up the price but if it is not getting much interest then we will lower the price)
  • If for stautory function (where the Law tells us what to do)
  • If acting as expert witness (EG if you can’t agree a rent review or lease renewal, then you would give an expert witness report in court - arbitrator or judge would tell you what to do, not the Red Book)
  • If in negotiation or litigation
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12
Q

Can you name some valuations that are carried out for a Statutory Function?

A
  • Lease renewal EG reporting on rent at lease renewal - see s34 of LL & T Act 1954 to see rent definition (court determines the level of rent)
  • Rating EG if giving a rating valuation there will be legislation to follow
  • Also compulsory purchase
  • Leasehold enfranchisement (for residential) – statutory – Buying the freehold or getting a long leasehold extension
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13
Q

What are the main contents of the Terms of Engagement for a Valuation?

A
  • Valuer - name
  • Client - name
  • Property - address
  • Purpose of valuation
  • Basis of value
  • Valuation date
  • Nature and extent of the valuer’s work - including investigations - and any limitations thereof - the extent of these
  • Assumptions/special assumptions - if you don’t make planning enquiries then you need to make planning assumptions
  • The Fee –
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14
Q

Name three situations that can adversely affect the Certainty of valuations.

A
  • If there are very few or no comparables – an unusual property or one in a unique location
  • If the valuer is unable to make full enquiries or investigations
  • When there is market volatility such as during the beginning of the pandemic -
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15
Q

What costs did you deduct (are deducted) in your / a Residual Valuation?

A
  • Demolition / site clean up fees
  • Cost of construction (the building cost) -
  • Fees for construction (architects, engineers, surveyors, environmental survey etc)
  • Costs of finance
  • Contingency to allow for fluctuations in these costs
  • Agent and Legal fees on acquisition
  • Fees and stamp duty land tax on aquisition when you buy the site (only on acquisition)
  • developer’s profit
  • Agent and Legal fees on disposal
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16
Q

What could statutory due diligence include for a valuation?

A

Asbestos register
Business rates / council tax
Contamination
EPC rating
Flooding
Planning history and compliance
Environmental matters
Equality act compliance

17
Q

What would you include in a valuation report?

A

Client name
Date of valuation
Valuation purpose
Property details
Basis of value
Methods of Valuation
Status of valuer & competency
Currency
Investigations Undertaken
Assumptions / special assumptions
Departures
Valuation Calculations & Comparables
Valuers Conclusion
Terms of Engagement

18
Q

Can you name VPS 1-5?

A

VPS 1 - Terms of Engagement

VPS 2- Inspections & investigation records

VPS 3 - Valuation Reports

VPS 4 - Basis of Value, assumptions and special assumptions

VPS 5 - Methods of value

19
Q

How do you know if you are competent to undertake a valuation (or any work)?

A

SUKE

Skills - Do I have the right skills/qualifications

Understanding - Do I understand what is required

Knowledge - Do I have the required knowledge

Experience - Have I got the right level of experience

20
Q

What can the enforcements agents seize from the tenant when using CRAR?

A
  1. Only goods belonging to the tenant (Not 3rd Party)
  2. ‘Tools of the trade’ with an aggregate value of up to £1,350 eg computers. The tenant must still be able to operate a business eg can’t remove the chairs people are sitting on from an office
  3. Only non perishable goods with a value not greater than the rent arrears owed
21
Q

What are the 9 mandatory requirements in Service Charge Professional Statement?

A

Recover expenditure in line with lease terms

Recover no more than 100% of costs

Annual provide budgets and explanatory notes

Annually provide service charge accounts (showing actual figures)

Annually provide service charge apportionment schedule

Service charge money to be held in separate bank account

Interest must be credited to SC account

When acting for tenant, advise that if disputing payment then withold the amount in dispute

22
Q

What are 12 mandatory requirements for members set out in RICS Professional Statement, Real Estate Management 3rd Edition 2016?

A

Conduct business in honest, fair, transparent manner

Carry out work with skill and due diligence

Ensure clients are provided with clear terms of engagement

Avoid conflict of interest, and when they arise deal with them openly and promptly

Do not discriminate

Ensure communications are fair, clear, timely and transparent

Ensure all advertising and marketing is honest

Ensure client money held in separate accounts

Ensure professional indemnity insurance in place

Ensure scope of obligations of work is provided to all parties

Give realistic assessment of buying/selling/rental price

Ensure all inspections and meetings are carried out in accordancce with client wishes

23
Q

Name the tenancies to which the 1954 Act does not apply

A
  1. Agricultural holdings
  2. Mining Leases
  3. Residential Tenancies
  4. Tenancies created as a condition of employment
  5. Tenancies not exceeding 6 months unless a) there is a provision for extension or b) T has been in occupation for more than 12 months
24
Q

What must a LL s25 notice contain?

A
  1. Details of the landlord
  2. Tenant details
  3. Date of the notice
  4. Date of termination of the lease
  5. If friendly, the terms of the new lease
  6. If hostile, the grounds why a new lease won’t be granted
25
Q

Explain when tenant’s improvements are disregarded under Section 34 of the LL & T Act 1954?

A

If improvements were carried out within the last 21 years, or during the prior tenancy

Not all alternations are improvements - an improvement must add value

Note: not disregarded if they were lease obligation

26
Q

What key information does surveying safely contain?

A
  1. Personal responsibilities for RICS members and firms
  2. Assessing hazards and risks
  3. Workplace health & safety
  4. Occupational hygiene and health
  5. Visiting premises and sites
  6. fire safety
  7. procurement and management of contractors
27
Q

What does RIDDOR stand for, what is it and when was it introduced?

A

Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995.

  1. If an incident occurs and the member of staff is incapacitated for more than 7 days, the incident must be reported to HSE within 15 days from the date of the incident.
  2. Employers must keep a log book of all 3 day plus injuries
  3. Information should be kept in an accident book which must be stored for at least 3 years from the date of the previous injury
28
Q

What are the 6 pack regulations under the H&S at Work Act 1974?

A

6 Pack of regulations (Very similiar to Surveying Safely:

Management of Health & Safety at Work Regulations 1999

Manual Handling Operations Regulations 1992

Health & Safety (Display Screen Equipment) Regulations 1992

Workplace (Health, Safety and Welfare) Regulations 1992

Provision and Use of Work Equipment Regulations 1998

Personal Protective Equipment 1992

29
Q

What is the hierarchy of risk?

A

Elimination

Substitution

Engineering controls

Administrative controls

Personal protective equipment (PPE)

30
Q

Assumptions in a RR?

A

The unit is fit to be occupied immediately

Property can be used for intended use

The unit has vacant possession

Let on Open Market by willing lessor to willing lessee

Tenant has satisfied lease obligations

31
Q

Disregards in a RR?

A

Goodwill

Tenant’s occupation

Any improvements with LL permission

Any licenses including alcohol licenses

32
Q

Sections 23-40 under the LL & T act 1954?

A

23: act applies to business tenancies

24: tenancies protected under act only to be terminated in accordance with act

25: Landlord’s notice to terminate

26: Tenant’s request for new tenancy

27: Tenant’s notice to quit

28: Agreement for new tenancy = original tenancy becomes unprotected

29: Timescales for application to court

30: Landlord’s grounds for opposing tenancy

31: Court will dismiss tenant application if s30 is successful

32: Court decides what property is comprised

33: Court power to order new tenancy for a term

34: Rent, assumptions and disregards

35: Other terms under new tenancy

36: Carrying out of order for new tenancy (order is binding)

37: Compensation where new tenancy not granted

38: Contracting out of S24-28

39: Saving for compulsory acquisitions

40: Duty to provide information

33
Q

What is included / excluded in NIA?

A

Included:

Usable area, measured horizontally to IF

Skirting/ trunking

Atria with clear height above

Entrance halls

Notional Lift Lobbies

Kitchens

Ventilation/ heating grilles

Non structural lightweight internal partition walls

Excluded:

Interior walls & columns

Toilets / Cleaners Cupboards

Corridors / Circulation areas

Areas less than 1.5m in height

Permanent air conditioning

Lift rooms / Plant rooms

Stairwells / Permanent lift lobbies

34
Q

What is included / excluded in IPMS 3?

A

Included:

Usable area, measured horizontally to IDF

Skirting/ trunking

Atria with clear height above

Entrance halls

Notional Lift Lobbies

Kitchens

Ventilation/ heating grilles

Interior walls & columns

Half the common wall

Areas less than 1.5m in height

Excluded:

Standard facilities:

Toilets / Cleaners Cupboards

Corridors / Circulation areas

Permanent air conditioning

Lift rooms / Plant rooms

Stairwells / Permanent lift lobbies

35
Q

Diff between IPMS 3 and NIA?

A

Common walls in half: IPMS 3 yes NIA no

Internal walls and columns: IPMS 3 yes (but stated separately) NIA no

Areas less than 1.5m: IPMS 3 yes (but stated separately) NIA no

Passages between buildings: IPMS 3 (but stated separately) yes NIA no

36
Q

Basic definitions of measurement bases?

A

IPMS 1: The sum of the areas of each floor level of a building measured to the outer perimeter of external construction features and reported on a component basis for each floor of a building.

IPMS 2: The sum of the areas of each floor level of an office / resi building measured to the internal dominant face and reported on a component basis for each floor of a building.

IPMS 3: The floor area available on an exclusive basis to an occupier, excluding standard facilities and shared circulation areas, reported by an occupier-by-occupier or floor-by-floor basis

IPMS 4: The sum of floor areas in a building to a finished surface, used for measuring part of a building.

GEA: The area of a building measured externally at each floor level

GIA The area of a building measured to the internal face of the perimeter walls

NIA: The usable area of a building measured to the internal face of the perimeter walls

37
Q

Due diligence before any valuation?

A

Competence check

COI check

Check for good title

Inspect property

Check for environmental matters i.e contamination

Check the surrounding area (market conditions)

Planning enquiries

Check for alterations / improvements

Check the EPC

Check compliance with statutory H&S

Research with agents

38
Q
A

APC (14 decks)

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