Opening and Closing a Practice

Question 1

What is required by the RICS when opening your own practice?

Answer 1

• Inform RICS
• Appoint a Responsible Principle
• Register with the RICS for regulation
• Arrange PII and send details to RICS
• Set up procedures for Client Money Handling
• Register for the RICS Valuer Registration scheme if undertaking Red Book valuations
• Get RICS approval for CHP
• Set up a complaints log
• Appoint a Complaints Handling Officer (or elect someone from another firm)
• Use the RICS logo stating ‘Regulated by RICS’
• Make a business plan
• Ensure CPD is logged
• Ensure completion of RICS Annual Return at the end of each year

Question 2

What is required by law when opening your own practice?

Answer 2

• Requirement to disclose business name

Compliance with:

• Equality Act 2010
• Financial Services and Markets Act 2000
• Bribery Act 2010
• Health and Safety Act 1974
• Asbestos Register
• Fire Safety
• Estate Agency
• Data Protection
• Current employment law
• Insurance for employer and public liability
• Appoint an AML Officer
• Inform HMRC for VAT and Tax Registration

Question 3

What is required when closing a practice?

Answer 3

1. Inform the RICS
2. Inform clients
3. Return money to clients
4. Inform insurers and get Run off cover for 6 years
5. Retain a copy of client files and records for a minimum of 6 years

Question 4

What is Run-off cover?

Answer 4

Professional Indemnity Insurance that continues to protect them closing a practice, covering claims related to work done before closing