Need to Learn Flashcards
Tell me what you need to consider when taking on a new client?
- Conflict of interest check
- Competency check
- Money Laundering check
- Terms of engagement and fee
What is included in standard Terms of Engagement?
- Services included / excluded
- KPI’s
- Fees
- Dispute resolution
Can you explain the difference between a CVA and Administration?
- Admin – the administrators take over the company and protect it from legal action of creditors
- CVA – the directors remain in control and a legally binding agreement is struck with unsecured creditors to allow it to continue trading
VAT – what is this?
- Tax added to goods and services
Why elect for property?
- Can claim back from HMRC on some works and serves
When is VAT no chargeable?
- TOGC – Transfer f going concern - where property capable of being run as rental business and buyer intend on carrying on with this.
- Dilapidations
What is current Rental values per sq
o Retail – Buchanan Street £280-£300
o Offices – Glasgow City Centre £35 sq ft
o Industrial – Glasgow £9-15 sq ft
Tell me about ransom strips?
- It is land needed to access an adjacent property, where the owner is denied access until payment is received.
- Stokes v Cambridge
What is the Landlord’s right of hypothec?
- It gives landlords a right of security over moveable goods and property owned by a tenant within leased premises up to the value of any unpaid rent
Planning Use classes?
- 1A – Shops, Financial Professional and other services
- Class 4 – Business (Office)
- Class 5 – General Industrial
- Class 7 – Hotels
- Class 11 – Assembly & Leisure
8 individual rights within the Data Protection Act?
- Right to be informed
- Right to access
- Right to rectification
- Right to erasure
- Right to restrict processing
- Right to data portability
- Right to object
- Rights related to automated decision making including profiling
Why is PII cover important and how do you calculate the level of cover required?
Provides financial cover should the company face financial loss due to negligence, error or omissions
Minimum Cover
* The firms cover is based on their turnover:
* T= £100,000 or less C= £250,000
* T=up to £200,00 C=500,000
* T=£200,000 or above C = £1,000,000
Maximum level of uninsured excess
* T= £10,000,000 or less E = higher of 2.5% or £10,000
* T= £10,000,000 or above E = no limit set
What is service charge weighting?
- Weighting is to allow for abnormally sized units to pay what is determined a more equitable level of apportionment and in doing so contribution to the service charge.
What do you consider when determining tenant covenant strength?
- credit check
- Profits test =
o Annual Net Profit = more than the annual amount or rent, sc, insurance and rates for more than three consecutive years previous rental history - Company accounts
How calculate the All Risks Yield?
- Annual Rental income / value of the property * 100
What is BREEAM?
- Building Research Establishment Environmental Assessment Method
- Voluntary assessment tool to rate commercial buildings – 5 ratings:
o Pass, Good, Very Good, Excellent, Outstanding
o Energy, water use, transport links, wellbeing
What should be included in a complaints handling procedure?
The RICS provide a model form
* Must provide a redress mechanism
* Details of the policy should be issued to client
* It must be clear, quick, transparent and free of charge at the first stage
* Must include details of the nominated investigating person
* Must be investigated within 28 days
* All complaints must be recorded
Note the requirement to advise PI insurers
When a complaint is received I would:
- Acknowledge receipt
- Forward to the firms designated complaints handler
- Highlight the importance of informing our PI insurers
What are the D&B ratings?
- Financial Stability - rating of 5A (£35m+) to H (£0 - £7,999)
- Risk Indicator – 1 – 4 (1 being lowest risk)
What are the contents of a credit report?
- Credit rating
- 5 years accounts
- Income statement
- Balance sheet
- Subsidiary / parent company details
If the tenant did not leave following the irritation of the lease, what options are available to the Landlord?
- Raise an action for removing
- Serve a charge for removing
- Serve notice of date of removal
- Evict the tenant
Rates relief in EK?
- 50% first 3 months
- 10% thereafter
Changes to rates relief:
- Now devolved to individual councils
- Listed buildings no longer exempt
What is your understanding of RAAC?
- Used during construction between 1950s-1980s
- Aerated structure planks, which water can easily penetrate and weaken.
- Once wet, the planks can sag and bend
- The steel reinforcements don’t extend far enough to hold the weight
