Mandatories Flashcards
1
Q
- Why is it important to understand a client’s objectives?
A
Can have a more tailored service resulting in a more trusting relationship
2
Q
- What is the Professional Standard which provides advice on Complaints?
A
RICS Professional Standard: Complaints Handling 2016
3
Q
- When should details of CHP be issued to a client?
A
At the same time as the Terms of Business
4
Q
- How should complaints be tracked?
A
In a complaints log
5
Q
- What should you do when you receive a complaint?
A
Notify PII insurers and undertake CHP
6
Q
- What are the minimum procedures for handling complaint?
A
Stage 1) IN HOUSE: Ensure the complainee has the Complaints Handling Officer details so they can contact them, must be acknowledged in 7 days, and investigated in 28 days
Stage 2) Alternative dispute resolution (3rd party): If not happy with Stage 1, uses independent redress scheme such as The Property Redress Scheme and the RICS Dispute Resolution Service (DSR)
7
Q
- What are CBRE’s policies for CHP?
A
Must be acknowledged in 5 days and 20 days investigated, then respond with an action
Use the Property Redress Scheme for ADR
8
Q
- What do good negotiation skills include?
A
- Agree objectives and strategy before beginning negotiations
- Always maintain communication
- Walk away if needed
- Active listening – responding and reflecting on what they say whilst retaining info
9
Q
- What are the different forms of communication?
A
Verbal, non-verbal, written, Phone, email, meeting, zoom/teams, listening
10
Q
- What is included in a set of public limited company accounts?
A
Chairman’s statement, independent auditor’s report, income statement (P&L), balance sheet, corporate governance report, remuneration report
11
Q
- What is a balance sheet?
A
State of business’s financial position showing its assets and liabilities at a given date
12
Q
- What is an example of an asset?
A
Cash, property, debtors
13
Q
- What is an example of a liability?
A
Borrowing, overdrafts, loans, rent
14
Q
- What is a profit and loss account?
A
Summary of business’s income and expenditure transactions on annual basis
15
Q
- What are management accounts?
A
Internal use and not audited
16
Q
- What are audited accounts?
A
Prepared by accountant
17
Q
What is a cash flows statement?
A
A company’s cash inflows and outflows over a specific period of time including VAT
18
Q
- What must all companies comply with when using International Financial Reporting Standards?
A
IFRS16 – Leasing Accounting Standard
19
Q
- What needs to be included within the IFRS16 – Leasing Accounting Standard?
A
Full cost of leases need to be included in the balance sheet, such as rent, however, service charge payments are accounted separately
20
Q
- When may an exemption to include leases on IFRS16 exist?
A
For leases of 12 months or shorter
21
Q
- What is the Fair value Measurement?
A
IFRS13 – the amount at which an asset or liability would exchange between two market participants in an orderly transaction at the measurement date
22
Q
- Why should you undertake financial background checks on prospective tenants?
A
Ensure they are reliable and responsible, pay rent on time, which provides less risk to client
23
Q
- What is an Experian report?
A
Gives an indication to the strength of the covenant by giving a credit score, in other words how risky and what their credit limit is
24
Q
- What is the UK GAAP?
A
The Generally Accepted Accounting Practice – set of accounting standards that businesses in the UK use to prepare financial documents
25
16. Who publishes the UK GAAP?
Financial Reporting Council (FRC)
26
17. What are the 5 general principles of Accounting?
1. The accrual principle – income should be recognised when its earned not received
2. The matching principle - expenditure should be recognised against revenues.
3. The historic cost principle - actual cost is typically reported as opposed to current value (property depreciates, record what you bought it for)
4. Conservatism principle - accountants should choose the approach that produces the lowest net income
5. Substance over form principle - leasehold assets can be recorded as assets as long as their price is incorporated.
27
18. What are statutory accounts?
Show a company’s financial performance over the previous year, used to calculate corporation tax
28
19. What do statutory accounts include?
Balance sheet, P&L, Cash flow statements
29
20. Who are statutory accounts shared with?
Shareholders and companies house
30
21. What are some differences between statutory and management accounts?
Statutory accounts are required by law for companies house for limited companies, produces a statement of overall spending, whilst management are used for internal decision making
31
1. What is CBRE’s business plan?
Short term: Increase attachment rates across the business
Long Term: increase DE&I initiatives
32
2. What are used to plan future business activities?
Fee forecasts
33
3. What are different forms of business vehicles?
PLC, LLP, Limited Company, Sole Practitioner
34
4. What is a PLC?
Publicly listed company - Shares offered to the public, limited liability, listed on stock exchange
35
5. What is a LLP?
Limited liability partnership – Partners liability is limited and not responsible for others negligence
36
6. What is a limited company?
Responsible for debt to extent of capital invested
37
7. What is a sole practitioner?
One exclusive earner
38
1. What is the Professional Standard regarding CoI?
RICS Professional Standard: Conflicts of Interest 2017
39
2. What are the three types of CoI?
Party conflict, Own interest conflict, Confidential Information conflict
40
4. What could be some alternative dispute resolutions (ADRs)?
* Negotiation
* Mediation - neutral mediator facilitates discussions between parties, not binding
* Arbitration – independent arbitrator expert, assesses evidence, decision is final and legally binding
* Independent Expert Determination - appointed by two parties, undertakes own investigations both parties bound be decision, can be binding or non-binding
41
1. What is unconscious bias?
Social stereotypes formed outside own conscious awareness
42
2. How might unconscious bias impact a surveyor’s work?
May impact recruitment
43
3. How could CBRE improve diversity in the workplace?
Go into more diverse schools and encourage property at young age
44
4. What benefits could be achieved with a more diverse workforce?
Better decision making, increased creativity, improved productivity, positive reputation
45
5. How and why is RICS addressing diversity and inclusivity?
- Historically lack of diversity and Bichard Review highlighted the future of RICS requires improved diversity and inclusion
- Has signed the Memorandum of Understanding Action Plan (MoU)
46
6. What is the main legislation regarding equality?
UK’s Equality Act 2010
47
7. What are the 9 protected characteristics?
Gender reassignment, sex, sexual orientation, age, disability, race, religion/belief, marriage/partnership, pregnancy
48
1. What types of illegal discrimination does the Equality Act 2010 identify?
Direct discrimination, indirect discrimination, harassment, victimisation
49
2. What does the Equality Act require a service provider do if faced with an obstacle to access for disabled persons?
Remove / alter feature or provide reasonable means of avoiding
50
3. Where are most requirements for inclusivity found?
Part M of building regulations
51
4. What is an inclusive environment?
An environment designed and managed to allow people with a diverse range of needs and abilities to access and use it
52
1. What is the main document regarding sustainability in valuation?
RICS Professional Standard: Sustainability and ESG Guidance in Commercial Property Valuation and Strategic advice
53
2. What is the UK’s net zero aim?
Achieved net zero by 2050, reducing emissions by 78% by 2030
54
3. When are EPCs required?
For all commercial buildings over 50 sq m
55
4. How long do EPCS last?
10 years
56
5. When is a building exempt from EPC requirements?
Listed, religious, to be demolished buildings
57
6. What penalty could you receive for failing to comply with EPC requirements?
12.5% of RV, or £500-£5k
58
7. Who policies EPC compliance?
Local Authorities
59
8. What are the Minimum Energy Efficiency Standards 2015?
1) New leases from April 2018 require EPC of E or above
2) From April 2023, LL cannot let commercial property with EPC lower than E without legitimate reason
60
9. What is the fine for non-compliance with MEES?
Up to 20% of RV, £150k max
61
10. Who polices MEES?
Local Authorities
62
11. When are you exempt from MEES?
- If building is exempt from EPC
- 7-year payback
- 5% loss in value from improvements
- Lack of consent
63
12. What is a change to the MEES regime?
In October 2023, scrapped requirement that rental properties need a minimum of C-rating by 2028
64
13. What is BREEAM?
- Building Research Establishment Environmental Assessment Method
- Voluntary assessment tool to rate commercial buildings
65
14. What is BREEAM based on?
Energy consumption, water use, transport links, waste management, wellbeing
66
15. Which valuation practice guidance applications revolves around sustainability?
VPGA 8 – inspection of real estate, ESG, commentary on these
67
16. How soon after marketing must an EPC be commissioned?
7 days
68
17. Who is responsible for procuring EPC?
Agent
69
18. What is the Whole Life Carbon Assessment (WLCA)?
Estimate the amount of carbon emitted throughout the life cycle of a constructed asset
70
19. Why is WLCA useful?
Gives visibility to carbon cost of different design choices, which will help manage carbon budgets
71
What is Sustainability?
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
72
What are some of CBRE's DE&I iniatives?
- Cornerstone Employer
- Career ready: 3 year programme to engage 500 young people
73
What are CBRE's sustainability goals?
- Net zero by 2040
- Encourage and advise buildings managed to be more sustainability
- Encourage sustainability methods to office e.g. public transport passes, cycle to work scheme
74
What are CBRE's national and regional objectives?
National - encourage attachment & DE&I initatives
Regional - £75 million fee objective (currently c.£50m)
75
What does Part M of Building regulations outline?
Provides information about the ease of access to, and use of, buildings, including facilities for disabled visitors or occupants, and the ability to move through a building easily
Volume 1: Dwellings, Volume 2: Other types of buildings
76
What is the Equality Act 2010?
legally protects people from discrimination in the workplace and in wider society
77
What is included within an EPC?
Energy rating, Expiry date, certificate number, property type, floor area, comparison to others
