Mischa's Questions Flashcards
Why do you want to be a Chartered Surveyor?
i want to be a chartered surveyor because i want to be involved in the implementation of sustainability into the core of the real estate industry
Tell me about the structure of the RICS?
Governing Council - 29 members
RICS Board
Standards and Regulations Board
17 specialist professional groups
Who is currently president of the RICS? Since when? For how long?
Justin Sullivan since Jan 25
Nick Maclean as interim president
Who is currently CEO of the RICS? Since when?
Justin Young - July 2023
What are the four different levels of membership?
RICS Fellow - FRICS
Chartered Member - MRICS
Associate Member - AssocRICS
RICS Student
What do you have to do to become a fellow?
Evidence of achievement of four fellowship characteristics:
5 or more years at MRICS
A leadership role
Professional/technical achievement
Academic achievement
Raising the profile of the RICS
Can you tell me about a recent article you’ve read in the property news?
How would you handle a complaint from a client?
Get the complaint in writing from the complainant
Ensure they have a copy of AY’s CHP and the name of the CHP officer
Provide details of the property redress scheme
Acknowledge within 7 days
Respond within 28 days
Tell me about your firm’s complaint handling procedure.
Get the complaint in writing from the complainant
Ensure they have a copy of AY’s CHP and the name of the CHP officer
Provide details of the property redress scheme
Acknowledge within 7 days
Respond within 28 days
Tell me about different styles of negotiation. When would you use each?
Adversarial
Collaborative
Compromise
What are the benefits of informal communication?
Builds trust
Builds client loyalty
Could lead to further work
What are the pros and cons informal communication?
Percieved unprofessionalism
Over familiarity
Risk of miscommunication
What’s a “Safe Person”?
each individual assumes individual behavioural responsibility for their own, their colleagues’ and others’ health and safety while at work
What’s a risk?
The likelihood of an event or failure occurring and its
consequences or impact
What is a risk assessment?
Identify the hazards present
Identify the people at risk from the hazards
Evaluate the risk, considering the likelihood and severity of any accidents
Record the findings
Review the risk assessment regularly
Advise all those affected of the outcome of the risk assessment and precautions to take
What can you tell me about the Health and Safety At Work Act 1974?
Sets out basic, good practice principles for the management of health and safety for RICS members
What’s asbestos?
An insulating material which can cause serious health problems and fatal diseases
What are the different types?
Brown, blue and white
Why is asbestos dangerous?
When disturbed it can release very small toxic fibers which can lodge in the lungs and cause illness
What’s the difference between an asset and a liability?
An asset is something that provides value or potential economic benefit
A liability is an obligation or debt that requires you to pay money or other resources in the future
What’s the difference between an income statement and a balance sheet?
It shows a company’s revenues, expenses, and profits or losses over a specific period (usually quarterly or annually
It provides a snapshot of a company’s financial position at a specific point in time.
What does EBITDA stand for? What does this tell you?
Earnings Before Interest, Taxes, Depreciation, and Amortization
A measure of a company’s operating performance. It focuses on the earnings generated from core business operations, ignoring factors like interest expenses, taxes, and non-cash accounting items like depreciation and amortization.
Talk me through a scenario where you’d need to know a company’s covenant strength.
Valuation purposes
Agency purposes
What is a business plan?
A formal document that outlines a company’s goals, the strategy for achieving those goals, and the resources needed to implement the strategy.
What can a business plan help achieve?
Clarify the business idea
Guide business strategy and growth
Identify and evaluate market opportunities
Define financial projections and manage cash flow
Mitigate risks
How would you write a business plan?
How would a public sector business plan differ from a private sector one?
What’s a conflict of interest?
When a member or firm’s independence and impartiality is threatened due to the existence of a conflict between two clients
If you represent a landlord and your colleague represents a tenant, how would you manage a potential conflict between them?
In writing
Informed consent
Information barrier
Files held in a secure folder that only certain people can access
Physical barrier
What’s a dispute?
A disagreement or conflict between two or more parties over an issue, decision, or situation.
How are disputes avoided?
Clear communication
Detailed and transparent contracts
Provide exceptional service
Manage expectations realistically
Establish clear payment terms
Negotiate in good faith
Provide documentation and proof
What are the different types of dispute resolution procedures?
Arbitration
Independent expert determination
Professional arbitration on court terms
Mediation
And what are the differences between dispute resolution procedures?
Arbitration: Decides in accordance with statute. An award is produced that binds both parties. Arbitrator will have specialist knowledge of the subject area. Has the power to order a hearing. Cannot be sued for negligence
Independent Expert Determination: Appointed in agreement with the parties - binds the parties. Specialist knowledge. Fast, cost effective and confidential solution
PACT: A form of ADR specific to business tenancy renewals under the L&T act 1954
Mediation: Neutral mediator who facilitates discussions. A confidential and informal process. Cannot impose a resolution
What’s the relationship between the DPA 2016 and GDPR?
The DPA is a supplement to GDPR and implements EU GDPR in to UK terms
Aims to create a single data protection regime
Gives people rights to be informed about how their personal information is being used
What are the seven data protection principles?
Lawfulness, fairness and transparency
Purpose limitation
Data minimisation
Accuracy
Storage limitation
Integrity and confidentiality
Accountability
Who polices data protection breaches?
Information Commissioners Office
What is the maximum penalty for a breach of data management?
Up to 4% of a company’s annual turnover or £17.5 million
What is unconscious bias?
Relates to the associations we hold which are deeply ingrained and outside of our conscious awareness or control
What are the benefits of having diversity in the workplace?
Enhanced creativity and innovation
Improved problem solving
Improved customer insights and market reach
How would you improve diversity in the RICS?
Promote inclusive recruitment practices
Increase accessibility to the profession
Offer mentorship and networking programmes
How do you use teamworking in your current role?
I ensure to collaborate with other members of my team on projects and communicate regularly to ensure we are meeting deadlines and client’s objectives
How do you promote teamworking within your current team?
Team meetings
Team socials
Being present in the office
What skills have you got that contribute to teamworking?
I ensure to communicate consistently and effectively with my team. I am flexible in what work i can assist in and i ensure to ask questions and projects however i can. i have good time management skills to ensure objectives are being met in great depth
How would a blind person navigate their way around your office?
I would ensure that the FOH are aware of their visit to guide them around the office
What is an inclusive environment?
One which is designed and managed to allow people with a diverse range of needs and abilities to access and use it
Tell me about the Equality Act 2010.
The act consolidates discrimination law and provides protection against a wide range of discrimination and inequality, including the use of property as well as when dealing with people
What’s a protected characteristic?
Refers to specific attributes or qualities that are legally protected under equality and anti-discrimination laws.
Can you give me some examples of protected characteristics?
Sex
Sexual orientation
Age
Disability
Race
Religion
Marriage
Pregnancy
Gender reassignment
What does being sustainable mean to you?
Why is sustainability so important?
What’s an EPC? Why is it important?
Energy performance certificate - renewed every 5 years
EPCs play a key role in reducing carbon footprints and improving sustainability.
Give me some examples of how an EPC could be improved
Upgrade insulation
Replace or upgrade heating systems
Improve windows and doors
Upgrade lighting
Change to energy-efficient appliances
In what scenario would a property be exempt from complying with MEES requirements?
If the building is due to be demolished
Listed building
If the building does not need an EPC - place of worship
Industrial units with a low energy demand
What does BREEAM stand for? And what does it mean?
The Building Research Establishment Environmental Assessment Method
A voluntary environmental assessment tool to rate new, refurbished and operational buildings. 9 weighted environmental categories: energy consumption, water use, transport links, waste management and health and wellbeing
What are the reasons for inspecting?
Valuation
Agency
Property Management
Talk me through the process of inspecting?
Ensure you have the correct equipment to inspect
Consideration of the immediate area - location, contamination, comparable evidence
External inspection - method of construction, repair and condition, car parking, access, defects, site boundaries
Internal inspection - layout and spec, repair and maintenance, defects, services, statutory compliance
How would you identify Japanese Knotweed?
Purple/green hollow stemmed with green leaves
What’s a schedule of condition? Why is this important?
A detailed report or document that outlines the current condition of a property or specific part of a property at a particular point in time.
Important because it prevents disputes, assists in property maintenance, insurance purposes
You’re inspecting an office for management purposes and you spot a patch of damp. What do you do?
Take a photo of the damp
Try to establish the cause while on site
Inform your client
Recommend advice from a building surveyor
What’s a section 146 notice?
To inform the tenant of a breach of lease or tenancy agreement, such as non-payment of rent, failure to maintain the property, or unauthorized alterations.
What’s IPMS?
International property measurement standards
How do you check if your distometer is correctly calibrated? How would you calibrate it?
The distometer should already be callibrated
To check this, measure it against a known distance
What are the benefits of IPMS vs COMP?
IPMS:
Global consistency
Transparency
Regulatory compliance
COMP:
Widely adopted in the UK
Tailored to different property types
Often used in legal and contractual obligations within the UK
What’s the difference between IPMS 3 and NIA?
IPMS 3 does not have any height restrictions and includes columns - gives an overall footprint of a building
NIA only measures the usable space
When would you use GEA?
Town planning, rating and council tax and in some building cost estimation
What do you include in GEA?
- Garages
- Conservatories
- Entrance halls
- Internal walls
- Service accommodation such as toilets
What do you exclude from GEA?
- Perimeter wall thicknesses
- Fire escapes
The red book has recently been updated – what are the key updates from its predecessor
Valuers must now record relevant ESG data and consider any factors related that might impact value
What’s the relationship between the red book and UK national supplement?
Red book is an international standard and the supplement puts this in to UK terms
What’s zoning?
A valuation technique used for the comparison of retail properties
the rental value of the property reduces away from the street
What are the five methods of valuation?
Comparable
Investment
Profits
Residual
Contractors
When would you use the profits method?
Trade related property
What’s a yield?
A measure of investment return, expressed as a percentage of capital invested
Can you explain the relationship between the initial, reversionary and equivalent yields?
Initial Yield - Simple income yield for current income and current price
Reversionary Yield - Market rent divided by current price on an investment let at a rent below the MR
Equivalent Yield - Average weighted yield when a reversionary property is valued using an initial and reversionary yield
What’s the registered valuers scheme?
a risk monitoring and quality assurance programme which checks compliance with the RICS Red Book
How do you become a registered valuer? What if you don’t have valuation to level 3?
Apply for Registered Valuer status through the RICS Valuer Registration Scheme.
What valuations don’t have to comply with the Red Book?
Agency
Negotiation/ litigation
Expert witness
Internal purposes
Define Market Value.
The estimated amount for which an asset or liability should exchange
- On the valuation date
- Between a willing buyer and a willing seller
- In an arms length transaction
- After proper marketing
- Where the parties have acted knowledgably, prudently and without compulsion
What’s the difference between Market Value and Fair Value?
Fair value - measurement date for financial reporting
Market value - valuation date
There is a push from some within the industry to use DCFs instead of the traditional investment method. What are the pros and cons of each? Do you have an opinion?
Pros of DCFS:
Used for both market and investment value
Makes valuations more transparent
More analytical
Cons of DCFS:
Hard to implement nationally
Unreliable for future market value
Pros of IM:
Cons of IM:
Unreliable when comparable evidence is not available
Inconsistent with the subject properties specification
Talk me through the CCA process.
Process of appealing the rateable value of a property
What is the definition of a rateable hereditament?
Six rules to satisfy:
Single rateable occupier
In a billing authority
Be capable of separate occupation
Single geographical unit
Single use
Single definable position
What are the four tests for determining rateable occupation?
Beneficial
Actual
Exclusive
Transience or permenance
What are the principles outlined in Real Estate Management 2016?
Conduct business in an honest, fair, transparent and
professional manner
Carry out work with due skill, care and diligence, and
ensure that any staff employed have the necessary
skills to carry out their tasks.
Do the utmost to avoid conflicts of interest and, where
they do arise, deal with them openly, fairly and promptly
Not discriminate unfairly in any dealings.
What specifically do you refer to in PS for Service Charges when formulating a SC budget?
Section 3 - the core principles
What can you include but not include in an SC budget?
Included:
Management fees
Utilities
Soft services
Hard services
Not included:
Historical works remediation
What’s a misrepresentation?
false or misleading statement of fact made by one party to another
What would happen if a tenant was induced into entering a lease where a misrepresentation had been made?
the tenant may be able to rescind (cancel) the lease and potentially claim damages, depending on the type and severity of the misrepresentation
What can you tell me about the RICS Code for Leasing Business Premises?
To improve the quality and fairness of negotiations on lease terms and promote the use of a new set of comprehensive heads of terms to make legal drafting of leases more efficient
What are the 5 rules of conduct?
Rule 1: Members and firms must act with honesty and integrity, avoiding conflicts of interest and complying with professional obligations.
Rule 2: Members must carry out their work with due skill, care, and diligence, maintaining the necessary technical standards.
Rule 3: Members should provide a high standard of service and customer care, meeting client needs and objectives.
Rule 4: Members and firms should promote respect, diversity, and inclusion in their workplaces and interactions, addressing unconscious bias and supporting equal opportunities.
Rule 5: Members and firms must act in the public interest and take responsibility for their actions, promoting sustainable practices and upholding the reputation of the profession.
Give me an example of you acting with honesty and integrity.
Conflict of interest checks done prior to any instruction
Been honest to clients about timelines
What is money laundering?
When illegal funds are realized through property/businesses which disguise them as legitimate
What are some signs of money laundering?
Inability/unwillingness to supply documentation
Changes to parties information
Unusual transactions, urgency, acceptance of potential loss
Payment of fees/transactions in unusual currencies
What would you do if you spotted evidence of money laundering?
Decline the instruction
DO NOT INFORM the party
Report it to the compliance officer
Would you accept cash as payment for an instruction you’ve carried out? Why?
No - could be construed as a bribe
If I bought you a bottle of wine as a thank you, would you accept it?
Yes
Gifts register and approved by line manager
What about tickets to Barbados? What could that be construed as?
No
A bribe
What is a bribe?
Giving, offering, receiving or promising an advantage (gift/payment) in return for a service which breaches your duty of care of trust/is illegal
