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CAAV (MR) > Oral > Flashcards

Oral Flashcards

1
Q

What do you need to confirm before discussing the work requested?

A

Check that there is not conflict of interest in accepting the work

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2
Q

Give an example of when a conflict may arise

A
  • Acting for a party who you may have acted against previously
  • Acting for a party when another member of your firm is acting for the other party
  • Acting for a party who wishes to purchase or lease a property that your firm is marketing on behalf of another client.
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3
Q

What further information do you need to establish before accepting an instruction?

A
  • Who exactly is the client and the ownership of the property to be valued.
  • The asset to be valued and its extent
  • The purpose of the Valuation
  • The valuation date.
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4
Q

Two example of the basis of fee charge?

A

Time and Expenses - A pre-agreed hourly rate supported by time recording. Used for lots of professional work when the extent of and timescale of work is unknown.

Fixed fee - Agreed total sum for the work. Used for lower value or routine work where the extent and timescale can be assessed beforehand.

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5
Q

What is the current Nil rate band for Inheritance tax?

A

£325,000

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6
Q

What is the IHT rate for 2024-25?

A

40%

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7
Q

Name three other main reliefs that may be applicable to IHT

A

Agricultural Property Relief, Business Property Relief and Main Residence Nil rate Band

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8
Q

What are two types rate apply to APR and BPR?

A

Currently 50 and 100%

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9
Q

Explain the Main residence Nil rate band

A

Applies to dwellings that are owned by the deceased and passed to direct descendants. The current threshold is £175,000 and if the gross estate is worth more than £2 million that threshold is tapered by £1 for every £2 the net value of the estate over the £2 million.

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10
Q

What is the most appropriate agreement for the letting of an estate cottage and what legislation regulates it?

A

An Assured Shorthold Tenancy under the Housing act 1988, amended in 1996

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11
Q

Prior to marketing a property, what factors should you consider when undertaking an inspection?

A
  • General structure and repair
  • Any maintenance and repair which would be best undertaken whilst the property is vacant
  • The standard and condition of the fixtures and fittings in the property
  • Internal and external decoration
  • State and condition of the heating system
  • state and condition of other services such as electrical, water, drainage
  • Condition of gardens and any outbuildings
  • Any health and safety issues at the property such as asbestos.
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12
Q

Name two Government approved Tenancy Deposit schemes

A

The Tenancy Deposit Scheme
Deposit Protection Scheme

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13
Q

How can a Landlord Terminate a Fixed AST?

A

By serving a S.21 notice at least 2 months before the end of the tenancy.

OR;

by serving a s.8 notice under one ground of the Housing Act

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14
Q

How can the tenant terminate an AST?

A

By serving a notice in writing in accordance with the notice provisions in the tenancy agreement. Minimum notice is 4 weeks notice.

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15
Q

Under what guidance should stock taking valuations be carried out?

A

RICS Valuation standards

CAAV Guidance notes on Agricultural Stock Valuations for Tax Purposes

HMRC Helpsheet HS232 “Farm stock Valuation”

The statements of Standard Accounting Practice 9 (SSAP 9)

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16
Q

On what bases should stock be valued?

A

At cost or if lower, net realisable Value.

Deemed cost is defined at 60% for Cattle, 75% for sheep, pigs and harvest crops.

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17
Q

What steps would you take in recording and assessing all stocks for the valuation

A
  • Inspect all live and deadstock record details
  • Verify numbers and actual costs of all stock
  • Asses market value of stock
  • Record details of al cultivations and applications to growing crops
  • Establish whether stocks are home bred/produced or purchased
  • Establish which livestock are on Herd basis.
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18
Q

What is the minimum length of rent review notice for AHA 1986?

A

Minimum notice period is 12 months, expiring on the next termination date.

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19
Q

What section of the AHA 1986 is a rent review notice served?

A

Served under section 12.

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20
Q

How often can a rent review be referred to arbitration under such a notice?

A

Not less than 3 years from a rent change or arbitration standstill.

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21
Q

How is the rent calculated under AHA 1986?

A

Set out in Sch 2 of the act.

Based on the fact it is between a pruding and willing landlord and tenant based on
- Terms of the tenancy
- Character and situation
- the agricultural productive capacity of the holding
- comparable lettings.

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22
Q

What is disregarded in a rent review under AHA 1986?

A
  • Tenants improvements and fixed equipment
  • Grant aided landlords improvements
  • Tenants occupation
  • Tenants dilapidations
23
Q

How is Capital gains tax calculated and are there any allowances?

A

Calculated on the gain in value - The difference between the cost of the property at purchase and the current sale price of the property.

Allowances are the annual exempt amount which is currently £3,000 and the expenses from the sale.

24
Q

What are two main reliefs on Capital gains tax which might be generally considered on land sale by a farmer?

A

Rollover relief and Business Asset Disposal relief

25
Q

What is the main rate of Capital gains tax?

A

The main as of 30th October is 24%

26
Q

If the property was purchased in 1980 what would the date of valuation for the base cost be?

A

31st March 1982.

27
Q

When is capital gains tax due to be paid after any sale?

A

Land - Payment due by 31st January of the following tax year

Dwellings - within 60 days of completion

28
Q

Give details of 5 documents which may help in a boundary dispute

A
  • Title plan and title register, will show the general position of boundaries based on OS but may refer to other relevant documents.

-Pre registration title deeds

  • Conveyance deed/contract, transfer and plans.
  • Published Maps/OS maps
  • Photographs - Ariel, family, archived etc.
29
Q

Provide two examples of the alternative methods to solving a boundary dispute?

A

As there is no regulatory body to settle boundary disputes it can be down to;

  • Negotiation and amicable resolution
  • Expert determination/ RICS Neighbour dispute service
30
Q

Outline four actions you may take to establish the ownership of unregistered property

A
  • Check adjoining registered property for any references to documents
  • search county or local authority records
  • check historic planning applications
  • Check the local electoral register
  • ask neighbours/local residents
31
Q

Under what agreement may a solar cable be laid across your clients land?

A

Generally an easement.

Alternatives include;
- A licence/wayleave
- A lease

32
Q

How would you value the payment for an easement agreement

A

How essential is the route for the project to work?

  • Does the client have a ransom position?
  • Value if this gives a grid connection
  • length of the route over the land and whether it over third party owners are required
  • impact on my client and his plans
33
Q

How might you but a limit on land for sale by its new owner?

A

Sell the land subject to a restrictive covenant which prevents the new owner from making changes such as non-agricutlural use

34
Q

How might you sell land without missing out on any future development?

A

Selling the land with a overage clause which requires a payment of a percentage of the uplift in value achieved within a specified period of time.

35
Q

What is required for a restrictive covenant to be enforceable?

A

Must impose a condition that benefits other land not a person.

36
Q

What action can be taken when a restrictive covenant is breached?

A
  • Take legal action to stop any breach
  • Require that the breach is remedied
  • Compensation can be demanded for the breach
37
Q

How can a restrictive covenant be altered or lifted and on what grounds?

A

Parties can mutually agree to this, usually for a price paid to the beneficiary of the covenant.

Failing agreement, applying to tribunal;
- To modify or discharge the covenant by the Lands Chamber of the Upper Tribunal under S.84 of the Law of Property Act 1925.

Tribunal can lift or alter the covenant if it finds it;
- Obsolete because of changed circumstances
- Will not affect the beneficiary

38
Q

What are the different options for offering land for grazing?

A
  • Grazing Licence
  • Grazing tenancy (FBT)
39
Q

What is the difference between a tenancy and a licence?

A

A tenancy gives exclusive possession of the land with powers of the tenant limited by the agreement

A licence gives no rights beyond what is permitted and does not grant exclusive possession.

40
Q

What are the key points for a grazing licence for the owner to be seen as a farmer in order to be eligible for CGT reliefs?

A
  • Owner has to have and exercise powers of positive husbandry over the land.
  • The owner is responsible for fertilising, liming, spraying and reseeding.
41
Q

What are the methods for the sale of a farm?

A
  • Private Treaty
  • Informal Tender
  • Formal Tender
  • Auction, both public and private
  • Private sale (off market)
42
Q

What investigations would you undertake before preparing the sales particulars?

A
  • Access
  • Environmental Schemes
  • Contamination
  • Designations
  • Flood risk
  • Land classification and soil type
  • Licenses
  • Minerals
  • NVZ
  • Ownership
  • Planning
  • Restrictions
  • Rights of way
  • Services
  • Sporting rights
  • Title matters
  • Wayleaves/easements
43
Q

Who else would you recommend that you client discusses a potential sale with?

A
  • Solicitor
  • Accountant
  • Agronomist
44
Q

What would you costs be for a sale?

A

Commission based fee on the sale price with a minimum fixed fee. (Generally 1.5%)

Additional costs for floorplans, marketing costs and EPC.

45
Q

What would you include in your terms of engagement for a sale?

A
  • Client and property
  • Agency Type
  • Fees
  • Withdrawal charge
  • Additional Charges
  • Sales Particulars
  • Sale Board
  • Money Laundering
  • Data Protection
  • Personal interests
  • CHP
46
Q

What basic information would you seek for the proposal of a compound on your clients land?

A
  • Exact area of compound
  • Siting of the compound
  • How long it will be there
  • what it will be used for
  • how it is to be accessed in consideration to the day to day operations on the farm
  • what disturbance to the surface
  • proposed licence fee.
47
Q

What key terms would you see in a draft agreement for a compound?

A
  • Names and address of parties
  • description of the property
  • Start date and duration
  • extent of licence area and scale plan
  • Access arrangements
  • Licence fee and when payable
  • Agents fees
  • Works to the surface area taken
  • Permitted activities
  • Days and hours of use
  • Fencing and security
  • Reinstatement provision and removal of all equipment
  • prevention of contamination
  • Public liability insurance
  • Dispute resolution clause
48
Q

What methods of resolution are available to parties if a dispute with a compound arose?

A
  • Arbitration
  • Expert determination
  • Mediation
  • Tribunal
  • Court
49
Q

How would you advise your client on a claim from a neighbour in relation to tree damage?

A

First need to establish if;

  • The tree is on client property
  • Consider the terms of the tenancy (property is let)
  • Landlord or tenant responsibility to maintain trees/cover cost of maintenance?
  • Tenants or landlords responsibility to insure losses?
  • Contact clients insurance company
50
Q

What practical steps would you take to rectify damage caused to a neighbours property by tree on client property?

A
  • Obtain quotes for remedial work
  • Arrange access and working area
  • Dismantle wall and set bricks aside for re use
  • Fell the tree to ground level
  • Remove roots below ground level
  • Lay new foundations
  • Rebuild wall
  • Carry out boundary inspection to ensure there are no other trees causing similar damage.
51
Q

What documents would you ask a contractor to provide before instructing works on behalf of a client?

A
  • Detailed specification of works
  • Detailed quote with provisional sums as necessary
  • Method Statement
  • Risk Assessment
  • Copy on contractors liability insurance
  • Estimated programme of works.
52
Q

When might a record of condition be made?

A
  • Prior to intrusive survey works
  • prior to works by statutory authorities
  • Prior to the commencement of a new tenancy
  • Prior to entry for a temporary compound.
53
Q

What would you include in a record of condition for land and buildings?

A
  • All fixed equipment and its condition
  • All aspects and its condition of the land (fences, hedges, gates, ditches, tracks, weeds, ponds etc)
  • State name of holding, landlord and tenant, date it was made, who prepared it, weather conditions and general description
  • Each field should be identified with a brief description
  • Description of construction and condition of buildings, inc redundant
  • Comprehensive photographs and scale plan.
54
Q

What should parties do with a record of condition?

A
  • Check its accuracy and agree any amendments
  • Sign and date agreed version
  • Attach a copy to the the tenancy.

CAAV (MR) (4 decks)

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