referral questions Flashcards
What is the difference Between Balance Sheet (Statement of Financial Position) and Profit & Loss Account (Income Statement)
Balance Sheet - Statement of the business financial position, showing assets and liabilities
Profit and Loss Account - Summary of a business’s income and expenditure transactions, prepared usually on an annual basis
What would you find on a balance sheet
Shows the assets and liabilities at a given date, usually the end of a financial year.
Assets include - Cash, property, debtors, and other investments held.
Liabilities include - borrowings, overdrafts, loans, and creditors.
What would you include in a Red book valuation?
A) Identifiaction and status of valuer.
B) Client and other intended users.
C) Purpose of valuation
D) Identification of the asset to be valued
E) Basis of Value
F) Valuation date.
G) Extent of investigation
H) Nature and source of information relied upon.
I) Assumption and special assumption
J) Restrictions on the use
K) instruction is undertaken in accordance with IVS.
L) Valuation approach and reasoning
M)Valuation figure
N) Date of valuation report.
O) Comment on market uncertainty
P) Statement setting out any limitations on liability that have been agreed.
What section of the Redbook would still comply with if the valuation was not a red book valuation?
Professional statement 1 & 2
Provide examples of case law on restrictive covenants
Bath Rugby Ltd V Greenwood and others 2021 or Alexander Devine Children’s cancer trust v Housing solutions 2020
Methods of sale that the council use
Auctioneering and formal tender
What is the purpose of a clawback clause
A clawback agreement is between a seller and purchaser of land and or buildings.
providing the seller to receive an additional payment or share the uplift in value of the property if certain events occur, such as planning permission.
what are the usual assumptions in a rent review
Property is available to let on the open market by a willing tenant and landlord for a term of years.
Property is fit and available for occupation
All covenants observed by landlord and tenant.
property may be used for purposes set out in the lease.
What are the three usual disregards in a rent review?
effect of goodwill on tenants occupation
ignore goodwill attached to the property
tenants improvements if landlord consent has been granted.
What pre-conditions you might see in a tenant break clause
Notice is given as specified in the lease, such as in writing and 6 months in advance of the break date
provide vacant possession
comply with all covenants in the lease
full payment of rent.
What should you consider when deciding to accept a gift or hospitality
Consider the 6 principles of the bribery act 2010 and comply with the company’s anti-bribery policy
What are the 6 principles of the Bribery act 2010
proportionality
top level commitment
risk assessment
due diligence
communication
monitoring and review
What are the timescales for dealing with a complaint
Refer to Boots’ complaint handling procedure and the RICS advises dealing with complaints in a timely manner providing a response within 28 days
what duty of care do you or the council have to the public
Occupiers liability act 1957 and the corporate manslaughter and corporate homicide act 2007
