Miscellaneous Conduct Rules, Ethics and PP Question Flashcards
1
Q
Are you aware of any charities that the RICS is closely connected to?
A
- Lionheart which provides support for past and present RICS members and is funded by donations (largely from RICS firms and individuals).
- LandAid whereby the RICS Pledge50 initiative aims to deliver 150 bed spaces to young people across the UK.
2
Q
If you set up your own business, what would be your approach to fee negotiations?
A
- All fees would be competitive yet adequate and proportional for the proposed level of service.
- I would avoid price fixing or aggressive fee cutting when proposing fees.
2
Q
What would be your key considerations when closing a RICS regulated practice?
A
- Inform the RICS of the retirement.
- Inform clients of key dates and any arrangements for transferring work to separate firms.
- Return any client money to the client.
- Inform the insurer and ensure ‘adequate and appropriate professional indemnity insurance run off cover’. This is generally accepted to be for a minimum period of six years with £250,000.00 indemnity.
3
Q
If a client responded to your fee proposal saying that you were not the cheapest but they would like to use your services if you can reduce your fees what would you say?
A
- I would advise the fee is deemed adequate and proportional for the proposed level of service.
- I would advise that the fee may be reduced but the proposed level of service may have to be reduced accordingly to ensure a high standard of service is provided.
- Finally, I would advise that fee cannot be reduced as aggressive fee cutting or undercutting of competitors does not comply with the RICS rules for individuals and firms to act ethically and professionally.
