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RICS APC > Mandatory > Flashcards

Mandatory Flashcards

1
Q

What headings are included in a typical heads of terms?

A 
The address
Subject to contract
Date
The parties – landlord and tenant
Rent deposit
The demise
Rent
Rent commencement – rent-free
Alienation
Alterations
Dilapidations/reinstatement
Timing
Conditions
Solicitors details
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2
Q

What is an expert whiteness?

A

Appointed by the two parties (or the president of the RICS) to settle a dispute.

Had an expert knowledge of the subject and can use his own opinion and evidence.

Parties are bound by the decision

Offers speed and specialist knowledge

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3
Q

What can you tell me about surveying safely 2011?

A

This is an RICS guidance note.

It provides advice on:

– Personal safety
– personal/corporate responsibility 
– Assessing hazards and risks
– loan working/travel arrangements/PPE
– CDM regulations
– company’s emergency arrangements

It is due to become a professional statement

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4
Q

Are you aware of any changes to surveying safely 2011?

A

It is due to become a professional statement.

RICS surveying safely professional statement, 2017

  • means compliance will be mandatory
  • reflects changes to CDM/asbestos regulations
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5
Q

Are you aware of any legislation with regards to asbestos?

A

The control of asbestos regulations, 2012

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6
Q

Who enforces the control of asbestos regulations 2012?

A

Health and safety executive (HSE)

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7
Q

What is a risk assessment?

A

It is a legal requirement for organisations who employ more than five staff.

Five steps:

  1. Identify hazards
  2. Identify those at risk
  3. Evaluate risk
  4. Record findings
  5. Review regularly
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8
Q

What is a method statement?

A

A method statement details how it work task/process is to be completed.

Outlines hazards and gives a step-by-step guide on how to do a job safely.

It must detail control measures in place to ensure safety.

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9
Q

What is an arbitrator?

A

Appointed in a quasi-judicial role to settle a disputed.

They have specialist knowledge of the subject area.

Parties bound by the decision - decision can be overturned by court.

Fast, cost effective and confidential

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10
Q

What is a mediator?

A

Facilitates discussions between the parties

Conducted without prejudice

No decision making authority

Can not impose a resolution

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11
Q

Can you tell me some alternative disputes resolution processes?

A

Mediation

Arbitration

Independent expert

Adjudication

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12
Q

What is an adjudicator?

A

They use their own knowledge and the law to reach a legally binding decision.

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13
Q

What is an ombudsman?

A

This is an organisation that can investigate a complaint and facilitate a resolution.

Based on redress, not regulation.

Can grant a financial award of up to £25,000.

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14
Q

What are the principals of the data protection act?

Hint: There are 8

A
  1. Process info fairly and lawfully for relevant purposes
  2. Process info for relevant purposes
  3. Kept securely
  4. Not kept for longer than necessary
  5. Accurate and up to date
  6. Adequate, relevant and not excessive
  7. Processed in line with data subjects rights
  8. Not to give info to other countries without same data protection laws
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15
Q

What would you expect to see in a set of public limited company accounts?

A

Chairman statement

Auditors report

Income statement

Statement of financial position

Governance report

Remuneration report

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16
Q

What is an ombudsman?

A

This is an organisation that can investigate a complaint and facilitate a resolution.

Based on redress, not regulation.

Can award a financial payment of £25,000.

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17
Q

What is an independent expert?

A

This is an expert appointed by the two parties (or the President of the RICS through DRS) to investigate a dispute.

They have expert knowledge on the subject matter.

Parties are bound by their decision.

They can use their own opinion/evidence.

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18
Q

What is an arbitrator?

A

Appointed in a quasi judicial role.

An arbitrator has specialist knowledge of the subject area.

Their decision is binding on the parties.

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19
Q

What does mediation involve?

A

This is where a neutral mediator facilitate discussions between two parties to try and establish a solution.

The mediator has no decision-making authority and cannot impose a resolution.

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20
Q

Other than court litigation, what alternative dispute resolution procedures are you aware of?

A

Mediation

Arbitration

Independent expert

Ombudsman

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21
Q

What dispute resolution processes are you aware of?

A

Negotiation

  • Between the parties

Mediation

  • Third-party intervention (not binding)

Adjudicative

  • Outcome determined by third party
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22
Q

How much you aim to avoid conflict with regards to a contractual obligation?

A
  • Ensure the contract is clear and concise
  • Undertake risk analysis to understand where misinterpretation may arise
  • Ensure you communicate clearly with all parties to understand their objectives properly
  • Negotiate carefully and transparently
  • Keep good detailed records
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23
Q

Why might a conflict arise?

A

Failure to comply with contractual obligations.

Differing interpretations of a contract.

Or

Conflict of interest

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24
Q

What would you expect to see in a set of public limited company accounts?

A

Chairman statement

Auditors report

Income statement

Statement of financial position

Governance report

Remuneration report

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25
Q

What is included in your company’s accounts?

A

My company is a private limited company.

The accounts include:

– balance sheet
– profit and loss account
– directors report
– notes about the accounts

(No auditors report required – small company)

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26
Q

What would you expect to see on the liabilities?

A

Loans

Creditors

Overdraft

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27
Q

What are you expect to see under assets?

A

Cash

Property

Investments held

Debtors

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28
Q

What is FRS16?

A

This is a new accounting standard which means that by 2019, companies will have to account for leases in their balance sheet.

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29
Q

What is UK GAAP?

A

This is the UK’s generally accepted accounting principles.

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30
Q

What does a company’s cash flow show?

A

This shows the actual receipts and expenditure inclusive of VAT.

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31
Q

What are audited accounts?

A

These are accounts which have been prepared by a chartered or certified accountant.

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32
Q

What on management accounts?

A

These are accounts which are normally prepared for internal use and are not audited.

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33
Q

What is an income statement?

A

This would be a profit and loss account of a business summarising its income and expenditure transactions.

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34
Q

What is a statement of financial position?

A

This would be the balance sheet for the business showing its assets and liabilities at a given date.

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35
Q

What is a balance sheet?

A

This is a statement of financial position.

It shows a businesses assets and liabilities at a given date.

36
Q

Who is the data protection act policed by?

A

The information Commissioners office (ICO)

37
Q

What most firms do if they hold data?

A

They must register with the ICO and pay an annual fee of £35.

38
Q

What is the freedom of information act 2000?

A

This gives individuals the right of access to information held by public bodies.

39
Q

How can you keep data secure?

A

Using password protection

Firewalls

Encryption

40
Q

What do you know about the general data protection regulations?

A

They come into force on 25th May 2018

They will give people stronger rights to be informed about how personal information is used.

They will provide tougher penalties for non compliance.

Right to be forgotten.

The U.K.’s decision to leave the EU will not affect its commencement.

41
Q

Are you aware of any RICS guidance for sustainability?

A

Guidance note on sustainability and commercial property valuation, 2013.

42
Q

Are you aware of any legislation with regards to sustainability?

A

Climate change act, 2008

43
Q

What is the climate change act, 2008?

A

This sets out the Uk Governments commitment to cut the UK is common dioxide emissions by 80% and 1990 levels by 2050.

44
Q

When is an EPC required?

A

EPCs are required for all commercial buildings over 50sqm when it is:

  • Newly built
  • Sold
  • Let (including assignments/subleases)
  • Newly refurbished
  • HVAC systems are altered
45
Q

Are there any buildings which are exempt from having EPCs?

A

Listed buildings

Unheated buildings

Religious buildings

Building is being demolished/redeveloped

Temporary buildings

46
Q

Who is responsible for procuring an EPC for marketing purposes?

A

The agent

47
Q

When must and EPC be commissioned by?

A

Within seven days from commencement of the marketing period.

48
Q

What details of the EPC must be shown on marketing particulars?

A

The energy rating

The letter and the number.

49
Q

What is included in an EPC?

On the front page?

And on the back page?

A

Front:

The address 
Registration number
The energy rating
Benchmarking formation
Technical information
Floor area
Estimation of running costs

Back: Recommendations.

50
Q

How long is an EPC valid for?

A

10 years

51
Q

What are the penalties for not complying with the EPC regulations?

A

12.5% of the RV

Minimum: £500

Maximum: £5000

52
Q

What is MEES?

A

Minimum energy efficiency standards.

53
Q

What does MEES set out?

A

In order to let a building after 1st April 2018, the building must have an EPC rating of E or better.

  • New leases from 1st April 2018
  • Existing leases from 1st April 2023
54
Q

What are the penalties for non-compliance with MEES?

A

Penalties of up to £150,000 issued by the local authority.

Will also be made public knowledge.

<3 months - up to £5k or 10% RV (Max £50k)

> 3 months - up to £10k or 20% RV (Max £150k)

55
Q

When trying to establish covenant strength, what might you look at in a company’s accounts to establish this.

What else?

A

Net profit

Net assets

Shareholders funds

56
Q

What is a PEP?

A

A politically exposed person

57
Q

Are you aware of any material which governs money laundering?

A

Money laundering regulations, 2017 which updated the previous 2012 regulations.

58
Q

Are you aware of any RICS material regarding money laundering?

A

The RICS guidance note:–

Protecting against money laundering, 2010

59
Q

What updates are you aware of with regards to money laundering?

A

This new Money Laundering Regs came into effect from June 2017

Business relationship is now extended to the buyer as well as the seller.

Additional due diligence requirements.

Agents must register with HMRC and appoint an MLRO (Money Laundering Regulation Officer)

Acceptance of cash down to €10,000

Need to seek evidence of clients funds

Now concerned with Domestic PEPs

60
Q

What are the penalties for non-compliance with money laundering regulations?

A

Involved in money-laundering

  • Up to 14 years in prison and/or unlimited fine

Tipping off/failure to report

  • up to 5 years in prison and/or unlimited fine
61
Q

What is the proceeds of crime act, 2002?

A

This is with regards to money laundering.

It sets out that it is a criminal offence if the party fails to report a suspicion.

62
Q

What are the three main areas of the fence and money laundering?

A

Tipping someone else who is under suspicion

Assisting to obtain hide or invest funds

Failing to report knowledge or suspicion

63
Q

What are the six principles of the bribery act 2010?

A

Proportionality
Top level commitment

Risk assessment
Due diligence

Communication
Monitoring and review

64
Q

What are the main offences for bribery?

A

Receiving a bribe

Giving a bribe

Bribing a foreign public official

Failing to prevent bribery

65
Q

What can you tell me about the health and safety at work act 1974?

A

This sets out the duty of employers to their employees in regard to the health, safety and welfare.

66
Q

What is the RICS complaints handling procedure?

A

Three stages

  1. First contact
  2. Escalation
  3. Appeal
67
Q

What is your companies complaints handling procedure?

A
  1. Director responsible
  2. Compliance officer
  3. Mediation
  4. Arbitration
68
Q

Who polices the proceeds of crime act, 2002?

A

National crime agency

69
Q

Are you aware of any guidance notes with regard to money laundering?

A

Protecting against money laundering, 2010

70
Q

What is an NDA?

A

Nondisclosure agreement

Not legally required

Firm is responsible for employees

Typically last for 3 to 5 years

Failure to comply – sued for breach

71
Q

How do you undertake a risk assessment?

A
  1. Identify hazards
  2. Identify those at risk
  3. Evaluate risk
  4. Record findings
  5. Regularly review
72
Q

What does the equality act, 2010 set out?

A

Provides broader protection against discrimination and inequality.

Sets out requirements for reasonable adjustments to properties do gel disabled people.

73
Q

What would you do if you expected terrorist financing?

A

I would report this under the Terrorism Act to my MLRO who would report to the National Crime Agency by submitting an SAR.

74
Q

How can you reduce the risk of money laundering?

A

Risk assessment

ID checks

Appropriate management

Keep documents safe and secure

Employee training – CPD

75
Q

When don’t you have to comply with MEES regulations?

A

There are a number of exceptions including places of worship industrial sites with low energy demand or when there is a tendency for less than six months.

76
Q

Are there any exemptions from MEES?

A

Compliance is also not required when the EPC rating cannot be improved when all possible improvements with a payback of less than 7 years have been made.

If improvements will devalue the property by more than 5%.

If it is not possible to make improvements ie if planning cannot be sought.

Exemptions last for 5 years and cannot be transferred.

Exemptions must be registered.

77
Q

What might be a potential issue of the new MEES regulations

A

It might lead to depressed rental values and therefore capital values with buildings of F and G rated assets.

Finance for acquisitions of F and G rated assets may become hard as lenders seek to avoid risk.

78
Q

What is a profit and loss account?

A

This is an income statement.

Provides a summary of the businesses income and expenditure transactions.

79
Q

What are the risks of Joint Ventures?

A

Party conflicts/disagreements

Lack of clarity on objectives

Mismanagement of capital and resources due to misunderstandings

80
Q

What is included in you company’s H and S policy?

A

Commitment to H and S

H and S structure

Risk assessment

Control measures

81
Q

What is RIDDOR

A

Reporting Injuries Diseases and Dangerous Occurrences Regulations 1995

H and S legislation with regards to reporting and keeping record of injuries.

82
Q

What is included in your firms business plan?

A

Marketing

Opportunities

Fee forecasts

Budgets

Cash flows

83
Q

What would you do if you closed a practice?

A

Inform the RICS

Inform clients ASAP

Return any client money

Inform insurers - procure Run off cover

Retain files for 6 years

84
Q

What is run off cover?

A

PII required when shutting down a practice or retiring.

6 years cover

Minimum £250,000

85
Q

What are John Hughes’ focus?

A

Cities, infrastructure and technology!

Focusing on global risk and the opportunities we have as a profession to shape the future environment.

86
Q

Can you tell me about a time when you have shown excellent client care?

A

Yes, when I was acting on behalf of an inexperienced client acquiring office space in the City of London, when I received a proposal on the property which they were looking at, I sent the heads of terms through to them and followed it up with a call to arrange a meeting with them, So that I could go through the proposal point by point to ensure they understood. I also arranged for a director to be present, in case I had insufficient experience on any points.

RICS APC (14 decks)

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