Property management L1

Question 1

Tell me about your responsibilities for occupied/vacant buildings/communal areas.

Answer 1

Occupied - ensuring safety, maintenance and compliance with legal obligations, tenants manage service charge
Vacant - secure the property, manage the utilities conduct regular inspections, prevent damage and illegal activities

Question 2

What is the Occupiers Liability Act 1957/1984?

Answer 2

1957 - duty of care on occupiers to ensure visitors are reasonably safe while using premises
1984 - extends duty of care to non visitors - trespass in certain circumstances, especially if the occupier is aware of the danger and the likelihood of trespass

Question 3

How do these impact upon your role?

Answer 3

proactive management of health and safety standards, regular inspections and having maintenance matters flagged at the earliest convenience

Question 4

Tell me about the RICS guidance on Service Charges/Real Estate Management/Commercial Property Management.

Answer 4

Professional standard sets a marker for the standards of management required in commercial property. Aims too:
1. improve standards and best practice
2. ensure timely issues of budgets
3. reduce causes of disputes
4. provide guidance to solicitors

Question 5

Are you aware of any additional RICS guidance on Service Charges?

Answer 5

Professional statements for residential management

Question 6

Tell me about the relationship between alienation/alterations/repair/payment of rent and service charge on property management.

Answer 6

Alienation is where leases change tenants through assignment or transfer. This may then affect the rent and service change as any modifications are tenants improvements, repairing clauses should remain the same.

Question 7

What is the rule of privity of contract?

Answer 7

The principle that only parties to a contract are bound by and can enforce its terms. Third parties typically cannot enforce contract terms or be held liable under it.

Question 8

What is the difference between an absolute/qualified/fully qualified covenant?

Answer 8

Absolute Covenant: An unconditional promise to perform or refrain from performing certain actions.

Qualified Covenant: A promise with specific conditions or limits.

Fully Qualified Covenant: A promise with conditions that must be met for its full effect, often detailed and precise.

Question 9

What is the statutory duty placed on landlords under the Landlord & Tenant Act 1927/1988?

Answer 9

1927 Act: Requires landlords to repair and maintain the property.

1988 Act: Updates and clarifies repair obligations, including specifics on the condition of the property and the extent of required repairs.

Question 10

What remedies are available to landlords for breach of repairs?

Answer 10

Writing to the tenant they are in breach on terms and outline what this means for them if they do not undertake the works.
1. Termination of lease
2. Court action
3. landlord undertaking works and reclaiming costs from tenant

Question 11

What are the remedies for rent default?

Answer 11

rent default is where a tenant fails to pay rent

Remedies include demanding rent, legal action, deby recovery

Question 12

What are the main rent arrears recovery options for landlords?

Answer 12

Possession proceedings - to reclaim the property
Debt collection - through legal channels
Forfeiture of the lease
Rent deposit
Guarantors

Question 13

What are the various forms of corporate insolvency?

Answer 13

Liquidation - company assets sold off to pay creditors
Administration - aims to rescue the company or achieve better outcome for creditors.

Question 14

Talk me through your understanding of the Corporate Manslaughter and Corporate Homicide Act 2007.

Answer 14

Estalishes corporate liability for gross breach of duty causing death, and that companies must ensure health and safety compliance to avoid gross negligence.

Question 15

What are your duties under the Act? - Corporate manslaughter act 2007

Question 16

What are the offences and penalties under the Act? - Corporate manslaughter act 2007

Answer 16

unlimited fines, remedial orders and publicity orders

Question 17

How would you hand over a service charge account upon sale or change of manager?

Answer 17

Not something I deal with - would go to someone who had done this before for advise.

Question 18

Tell me about any RICS guidance you are aware of relating to licences for alterations.

Answer 18

Should include clear drawings, showing existing building, extent of the proposed works and specification of works, evidence of statutory consent - planning and building control checks.

Question 19

What is the process of considering a tenant’s application to alter?

Answer 19

Review the proposed changes, assess impacts on the property, ensure compliance with lease terms, and decide on approval or conditions.

Question 20

Why is important to handle applications properly?

Answer 20

Proper handling ensures legal compliance, protects property value, and avoids disputes or unintended consequences.

Question 21

What protection does a licence to alter provide?

Answer 21

Legal permission for alterations, ensuring changes are approved and documented, and often includes requirements for restoration of the property to its original state upon lease termination.

Question 22

How should an application be submitted? licence to alter

Answer 22

Typically, an application should be submitted in writing with all required documentation to the property manager or landlord, following specified procedures.

Question 23

What is a cost undertaking?

Answer 23

A cost undertaking is a financial guarantee from a tenant to cover the costs associated with proposed alterations, including potential additional expenses.

Question 24

What information should be provided with the application? - licence to alter

Answer 24

Include detailed plans of the proposed alterations, cost estimates, impact assessments, and any required permissions.

Question 25

What would you look for in the lease if you received an application?

Answer 25

Check for clauses regarding consent requirements, conditions for alterations, and any restrictions or obligations.

Question 26

What are improvements under the LTA 1927?

Answer 26

Improvements are defined as works that enhance the property’s value, functionality, or aesthetic appeal, rather than mere repairs.

Question 27

How does this impact upon landlord’s consent?

Answer 27

Landlords must consider whether the proposed improvements enhance the property and assess if consent is necessary under lease terms.

Question 28

What is an improvement?

Answer 28

An improvement is a modification that adds value or enhances the functionality of the property beyond basic repairs.

Question 29

What does not to be unreasonably withheld mean?

Answer 29

It means that consent for proposed alterations cannot be denied without valid reasons and must be granted if the request is reasonable.

Question 30

It means that consent for proposed alterations cannot be denied without valid reasons and must be granted if the request is reasonable.

Answer 30

Consent must not be unfairly refused or delayed; decisions should be made promptly and fairly.

Question 31

What happens if superior landlord’s consent is required?

Answer 31

Obtain consent from the superior landlord following their procedures, which may involve additional documentation and approval processes.

Question 32

How would you deal with this scenario to avoid delays?

Answer 32

Communicate clearly with all parties, ensure all documentation is complete, and follow up regularly to expedite the consent process

Question 33

What are your duties in relation to timings / reasonableness?

Answer 33

Ensure timely processing of requests and decisions, and act reasonably to prevent undue delays or unreasonable refusals

Question 34

Is there any case law relating to these? withholding consent

Answer 34

O’May v City of London Real Property Co Ltd 1983

After expiry of lease, new lease looked to transfer obligations to the tenant in return for a small reduction in rent.

Court of appeal held any departure for terms of current lease must be fair and reasonable.

Short term lease and long term risks being imposed.

Question 35

How would you consider the nature of the works? - alternations

Answer 35

Instruct a building surveyor - Assess the extent, impact on the property, and alignment with lease terms and property management goals.

Question 36

What does S3 of the LTA 1927 relate to?

Answer 36

Section 3 of the LTA 1927 pertains to the right of tenants to make improvements and the conditions under which they can do so.

Question 37

What would happen if you discovered unlicensed works on review or assignment?

Answer 37

Assess the impact, seek remedial action or enforcement, and potentially require reinstatement or negotiation with the tenant.

Question 38

How would you consider the impact of proposed alterations on building operations?

Answer 38

Assess how alterations might affect building functionality, safety, and operational efficiency, and ensure compliance with existing systems.

Question 39

Why would one be requested? - licence for alteration

Answer 39

To ensure that proposed changes comply with lease terms, do not adversely affect the property, and meet safety and operational standards.

Question 40

What is a warranty?

Answer 40

A warranty is a guarantee by a contractor or vendor regarding the quality and longevity of work or materials used.

Question 41

Why would one be requested? - warranty

Answer 41

To ensure that any defects or issues with the work are covered for a specified period, protecting the property owner from additional costs.

Question 42

What are reinstatement provisions?

Answer 42

Reinstatement provisions require tenants to return the property to its original condition after alterations or lease termination.

Question 43

How do dilapidations relate to alterations?

Answer 43

Dilapidations refer to the deterioration or damage of a property, which can be impacted by alterations if they are not properly managed or maintained.

Question 44

How does the Equality Act 2010 relate to alterations?

Answer 44

The Act requires alterations to be made in a way that does not discriminate and promotes accessibility and inclusivity for all users.

Question 45

What H&S considerations relate to alterations?

Answer 45

Ensure compliance with safety regulations, risk assessments, and protective measures to prevent accidents and hazards

Question 46

How does MEES relate to alterations and your reasoned advice?

Answer 46

Alterations must meet MEES to ensure energy efficiency; advice should include compliance with these standards to avoid penalties and improve property performance.

Question 47

What levels of approval decision are there?

Answer 47

Levels include initial landlord approval, superior landlord consent, and potentially regulatory approvals depending on the scope of alterations.

Question 48

If consent is refused, what remedies does a tenant have?

Answer 48

Remedies include negotiating with the landlord, seeking mediation, or potentially challenging the refusal in court if deemed unreasonable.

Question 49

Can consent be granted retrospectively?

Answer 49

Yes, consent can sometimes be granted retrospectively, but it often requires additional documentation and may involve conditions or penalties.

Question 50

How do you document consent?

Answer 50

Document consent in writing, including details of the approval, conditions, and any agreements reached, and keep a record for future reference.

Question 51

What is a final inspection and why would you carry one out?

Answer 51

A final inspection assesses the completed alterations to ensure they comply with approved plans, quality standards, and lease terms.

Question 52

Following alterations, can you and how would you adjust a service charge?

Answer 52

Yes, adjust the service charge based on the impact of alterations on communal services and costs, ensuring transparency and fairness in calculations.

Question 53

What is TUPE?

Answer 53

Transfer of Undertakings (Protection of Employment) Regulations

TUPE is legislation that protects employees’ rights when a business or part of it is transferred to a new owner.

Question 54

What is the purpose of TUPE?

Answer 54

To ensure that employees’ terms and conditions are preserved during a business transfer, protecting their employment rights.

Question 55

How might TUPE relate to property management?

Answer 55

TUPE may affect property management when staff are transferred during the sale or change of management of a property, ensuring their rights and conditions are maintained.

Question 56

What are the effects of TUPE?

Answer 56

Employees retain their existing terms and conditions, and the new employer inherits any ongoing liabilities related to employment.

Question 57

What is a duty of care deed?

Answer 57

A duty of care deed is a legal document outlining specific responsibilities and standards of care to be maintained in property management.

Question 58

How should an application be submitted?

Answer 58

Applications should be submitted in writing, including all required documentation, to the designated property manager or landlord, following the specified guidelines.

Question 59

Are there any specific issues relating to management of a property portfolio in your role?

Answer 59

There are issues on leases and rent reviews, how the estate has been managed previously and not as commercial. There are maintenance that’s required, diverse portfolio of works.

Question 60

How do you ensure good management of mixed use developments?

Answer 60

Clear instructions and operational guidelines from client and the organisation.
Making sure there is good relationship between tenants, ensure compliance is relevant.

Question 61

Does the RICS provide any relevant guidance on this?

Question 62

Under the Occupiers Liability Act 1954, what happens if an injury was caused to a visitor due to the faulty work of a third party?