Mandatory Competencies Flashcards
Have you been involved in a conflict avoidance situation? If not how would you deal with it?
No but if I had a conflict management situation I would advise both parties in writing of the conflict.
If I believed I could carry out the work I would obtain informed consent and proceed. If this is not possible I will decline the instruction.
How does the VO’s conflict of interest procedure work?
- Upon receiving instructions I complete a conflict check to check if both the VO and myself can proceed. This is recorded and stored electronically.
- if a conflict is identified this is flagged to my line manager and client is informed.
- if I can undertake instruction impartially I will advise client and request informed consent
- if this is received I will proceed.
- if I cannot carry out instruction or informed consent is not received I will decline the instruction.
What is the RICS recommendations regarding conflict? Name at least 3
There is a professional statement on conflicts of interest effective January 2018 (released late 2017). 5 key recommendations are:
- The Conflict of Interest professional statement prohibits you from proceeding if there is a Conflict of Interest or a significant risk of one unless you obtain prior Informed Consent from all affected parties.
- Where a Conflict of Interest or a significant risk of one exists, you should only consider proceeding with the work (and seek Informed Consent in order to proceed) if you are satisfied that all of the relevant clients/parties interests will be served by you doing the work (as opposed to another firm doing it).
- You should not seek Informed Consent in order to proceed because your firm’s interests are served by doing so.
- Conflict of interest (2018) professional statement must be considered and applied not only when new work assignments are being considered, but also as work assignments progress further.
- Every RICS member must identifty and manage conflicts of interest and keep records of all decisions made.
What is a professional statement?
Mandatory requirements for RICS members and RICS regulated firms
What are the three types of conflict and what do they involve?
Party conflict- relating to work on the same or related instruction for two different parties
Own interest conflict- relating to a personal interest
Confidential Information conflict- relating to work between two parties which is confidential
What is an information barrier?
Physical and or electronic separation of individuals within the same firm that prevents confidential information passing between them.
How do you communicate effectively in a report relating to a complex issue?
This is dependent on the client and thier level of knowledge. I would detail all of the information using plain English without jargon in an concise manner to avoid confusion, using visual aids if suitable.
What is informed consent?
Consent given willingly by a party who may be affected by a conflict of interest.
What method of communication do you use when negotiating with an opposing party?
I mostly use email but have regularly communicate via phone calls, and face-face meetings when needed.
Tell me about a negotiation you have done?
I negotiated a value for Inheritance Tax purposes on a detached property in Seal, Kent.
I arrived at a value at the valuation date based upon a range of evidence, I then communicated this to the taxpayer via a formal opinion of value.
I was then contacted by a valuation agent representing the taxpayer with which i then entered negotiations.
across email i presented my evidence and reasoning for reaching my value. I was then presented with some further evidence from the agent which I had not previously seen. As this was good comparable evidence i adjusted my value slightly and managed to agree a midpoint figure with the agent.
What communication method do you use with a new client?
This is dependent on the client and the method of communication required. I prefer to have an audit trail (as I’m sure the client does also) and therefore would start with written communication i.e email or letter, unless client informs me otherwise.
How do you ensure you communicate effectively?
I adjust my language based on the person I am communicating with. Visual aids such as plans and tables can also be effective communication. I listen and carry out research beforehand.
What is a statement of profit and loss?
A financial statement that summarises income and expenditure over a specified period telling you how much profit or loss a business is making.
What is IAS 1
Presentation of financial statements
Sets the overall requirements for the structure and contents.
how does the accruals concept work?
- Income is recorded when earned not when received.
- Expenses are recorded when incurred not when paid.
- Taxes payable on all earned revenue.
why adopt accrual accounting? List at least 3 advantages
- More accurate picture of business performance
- Must be used for regulatory filing that requires GAAP.
- Suited for most businesses - Cash account generally for small businesses paying tax via owner personal tax returns.
-Most investors and lenders require GAAP financial statements.
what is GAAP
Generally accepted accounting principles.
- Set standards on the details and legalities of business and corporate accounting.
what is a balance sheet sometimes referred to as?
Statement of financial position
what is a balance sheet?
a financial statement that reports a companies assets and liabilities at a specific point in time.
Tell us what you know about VPGA 1 (3)
Valuation for inclusion in financial statements
- Where the entity has adopted IFRS the basis of value will be fair value.
- Leases must be shown in balance sheet (IFRS 16).
- States that it is the valuer’s responsibility to provide full details of the accounting standards to be adopted in the valuation.
Why are financial statements produced? Give at least 3 reasons
- So investors can measure business performance
- So management can review performance
- Help companies make informed decisions
- Legal requirement for public and private limited companies
- Compare performance with others
summarise the difference between the financial statements
- Balance sheet is about the assets and liabilities the business has at a specific time.
- Profit and loss account looks at the actual income and outgoings within the business
- Cash flow statement looks at the actual cash that passes hands within the business.
why is diversity in a team important?
Range of cultures and backgrounds can influence the ideas that can be shared, assist in communicating across different languages, and promotes inclusivity, to inspire future generations to join the industry
how does the structure in the VOA work?
Within my team we have:
Unit head
Team Leader
Lead Valuers
Valuer – my current level
Assistant valuers
How does partnering and collaborative working affect a team?
Can facilitate new ideas
Increase efficiency
Spread work load
Increase teamwork and unity within team
Can increase quality of work
what different roles does the agency have?
Mixture of Technical (valuers) and non-technical roles (admin)
What is your role in training new staff
Share knowledge, best practice tips, offer advice, make myself available for shadowing, open door policy
What Internal diversity and inclusion polices do the VO adopt?
The Agency has senior diversity champions, who have an expert partner alongside them from the business representing the 10 different areas of Diversity and Inclusion.
Includes age, ethnicity, gender, gender identity, language, nationality, marital status, religion, disability
what is Supply chain management?
The handling of the entire production flow of a good or service.
Define what communication is
Exchanging of information by speaking, writing or other medium.
Views on emails
Need to take care when sending and opening emails
Can easily send sensitive information to incorrect party
Need to double check recipients
Have the ability to create contracts and form written agreements
Tell me about what MEES are? What are upcoming changes?
The Domestic Minimum Energy Efficiency Standard (MEES) Regulations set a minimum energy efficiency level for domestic private rented properties.
The Regulations apply to all domestic private rented properties that are:
let on specific types of tenancy agreement
legally required to have an Energy Performance Certificate (EPC)
Since 1 April 2020, landlords can no longer let or continue to let properties covered by the MEES Regulations if they have an EPC rating below E, unless they have a valid exemption in place.
If you are currently planning to let a property with an EPC rating of F or G, you need to improve the property’s rating to E, or register an exemption, before you enter into a new tenancy.
future trajectory for the non-domestic minimum energy efficiency standards (MEES) will be EPC B by 2030.
what guidance notes are there on sustainability?
Sustainability and ESG in commercial property valuation and strategic advice (effective 31 Jan 2022) 3rd edition
what do you know about EPC’s
Energy performance certificate
Required whenever property is built, sold or rented.
Contains info on:
Property’s energy use and typical costs
Recommendation of how to reduce energy use and save money
gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years.
Buildings that do not need an EPC include: places of worship, listed buildings, temp buildings used for less than 2 years, stand-alone buildings with total useful floor space of less than 50 square metres, industrial sites, workshops and non-residential agricultural buildings that do not use a lot of energy.
from 1 April 2018, may not grant a lease to new or existing leaseholders if their commercial property has an EPC rating of band F or G
from 1 April 2023, may not continue letting a commercial property with an EPC rating of band F or G. unless: an exemption applies, or property is not required to have EPC.
what is BREEAM
A sustainability assessment method used to masterplan projects, infrastructure and buildings.
Launched in 1990, by the Building Research Establishment (BRE) it sets standards for the environmental performance of buildings through the design, specification, construction and operation phases and can be applied to new developments or refurbishment schemes.
BREEAM assessment evaluates the procurement, design, construction and operation of a development against a range of targets based on performance benchmarks.
It allows clients, project teams and facilities managers to be certain that the required standard of environmental best practice is being adopted on their project. It can also be used as a marketing tool for potential purchasers or tenants.
Focuses on energy, land use, water, pollution, transport, materials and waste.
What minimum energy standards are there for commercial buildings?
EPC E and above as per MEES
from 1 April 2018, may not grant a lease to new or existing leaseholders if their commercial property has an EPC rating of band F or G
from 1 April 2023, may not continue letting a commercial property with an EPC rating of band F or G. unless: an exemption applies, or property is not required to have EPC.
