RICS Crib sheet Flashcards
What are the five rules for RICS members and firms?
- Members and firms must be honest, act with integrity, and comply with their professional obligations, including obligations to RICS.
- Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide good-quality and diligent service.
- Members and firms must treat others with respect and encourage diversity and inclusion.
- Members and firms must act in the public interest, take responsibility for their actions, and act to prevent harm and maintain public confidence in the profession.
What are the five methods of valuation?
- Comparable Method – Uses recent sales of similar properties.
- Investment Method – Based on rental income and yields.
- Profits Method – Used for trading businesses (e.g., hotels, pubs).
- Contractor’s (DRC) Method – Cost-based valuation for specialist properties.
- Residual Method – Used for development land valuations.
What are the four methods of sale?
- Private Treaty – Property marketed at an asking price, negotiation occurs.
- Formal Tender – Sealed bids, legally binding upon acceptance.
- Informal Tender – Sealed bids but not legally binding upon acceptance.
- Auction – Public bidding, legally binding when the hammer falls.
What is PS 1 in the Redbook?
Compliance with standards where a written valuation is provided.
What is PS 2 in the Redbook?
Ethics, competency, objectivity, and disclosures.
What are the VPS in the Redbook?
- VPS 1 – Terms of engagement (scope of work) – no change in title.
- VPS 2 – Bases of value, assumptions and special assumptions – similar to former VPS 4.
- VPS 3 – Valuation approaches and methods – similar to former VPS 5, includes methods.
- VPS 4 – Inspections, investigations and records – similar to former VPS 2.
- VPS 5 – Valuation models – new in 2025.
- VPS 6 – Valuation reports – similar to former VPS 3.
What is VPGA 1?
Valuations for Financial Statements – Ensure compliance with relevant financial reporting standards (e.g., IFRS, UK GAAP) for accurate financial statement valuations.
What is VPGA 2?
Valuations for Secured Lending – Conduct thorough due diligence and adopt a cautious approach when valuing assets for loan security purposes.
What is VPGA 3?
Valuations for Taxation Purposes – Align valuations with tax legislation requirements, considering potential tax liabilities and reliefs.
What is VPGA 4?
Valuations for Compulsory Purchase and Compensation – Assess fair compensation by valuing property interests affected by compulsory acquisition.
What is VPGA 5?
Valuations for Charities – Ensure valuations comply with charity regulations, supporting trustees in fulfilling their legal obligations.
What is VPGA 6?
Valuations for Litigation Purposes – Provide impartial and robust valuations to support legal proceedings and dispute resolution.
What is VPGA 7?
Valuations for Insurance Purposes – Determine accurate reinstatement costs for insurance coverage, ensuring proper protection against loss or damage.
What is VPGA 8?
Valuation of Real Property Interests – Consider factors such as sustainability, environmental, social, and governance (ESG) issues, and market conditions when valuing real property interests.
What is VPGA 9?
Valuation of Plant and Equipment – Apply appropriate methodologies to accurately value plant and equipment assets, considering their operational context.
What is VPGA 10?
Valuation of Personal Property, Including Arts and Antiques – Utilize specialized knowledge to value personal property assets, reflecting their unique characteristics and market demand.
What is VPGA 11?
Valuation of Intangible Assets – Identify and assess the value of intangible assets, such as intellectual property, considering their contribution to overall business value.
What is the purpose of the RICS code for measuring practice?
Provides a consistent, standardised approach to measuring buildings and land across property sectors.
What is GIA?
Gross Internal Area – Total internal floor area, including internal walls and partitions.
What is NIA?
Net Internal Area – Usable area excluding internal walls, columns, WCs, and other non-usable spaces.
What is GEA?
Gross External Area – Total area measured to the external face of external walls.
What is the purpose of IPMS?
Provides a globally consistent method for measuring property, improving transparency and comparability.
What is IPMS 1?
Measures the external area at each floor level (like GEA).
What is IPMS 2?
Breaks down space into standardised components (e.g. circulation areas, workspace).
What is IPMS 3?
Measures the area available to an occupier, including internal walls and columns.
What is the purpose of RICS Property Measurement (2018)?
Establishes consistent property measurement practices, incorporating International Property Measurement Standards (IPMS).
What is the purpose of RICS Valuation – Global Standards 2024?
Provides global and UK-specific valuation standards for consistency and professionalism.
What is the purpose of RICS Conflict of Interest Global (2017)?
Outlines principles to manage conflicts of interest in the profession.
What is the purpose of RICS Ethical Decision Tree?
A tool to assist professionals in making ethical decisions.
What is the purpose of RICS Dispute Resolution Service (DRS)?
Offers structured, impartial methods for resolving property-related disputes.
What is the purpose of RICS Comparable Evidence in Real Estate Valuation (2019)?
Offers practical guidance on sourcing, selecting, and applying comparable evidence for accurate and credible valuations.
What is the purpose of RICS UK Commercial Real Estate Agency (2016)?
Sets out mandatory requirements and best practice for RICS members working in commercial real estate agency in the UK.
What is the purpose of RICS Property Law and Leasehold Management?
Covers key legal principles, case law, and best practices in leasehold property management.
What is the purpose of RICS Code of Practice – Property Transactions?
Provides best practice guidance for professionals involved in property transactions (buying, selling, letting).
What is the purpose of RICS Service Charges in Commercial Property (2018)?
Sets a standard for transparency and fairness in service charge administration.
What is the purpose of RICS Code for Leasing Business Premises (2020)?
Provides fair and transparent guidance for negotiating and agreeing commercial leases.
What is the purpose of RICS Property Agency and Management Principles (2024)?
Sets out ethical and practical principles for agency and management.
What is the purpose of RICS Commercial Property Management in England and Wales (2011)?
Outlines roles, responsibilities, and standards for managing commercial property effectively.
What is the purpose of the RICS Commercial Property Management in England and Wales (2011)?
Outlines roles, responsibilities, and standards for managing commercial property effectively.
What are the focus areas of the RICS Commercial Property Management in England and Wales (2011)?
Landlord and tenant relationships, service delivery and charge management, health and safety, sustainability, and maintenance planning.
What is the significance of the RICS Commercial Property Management in England and Wales (2011)?
Replaces previous segmented guidance, offering a unified global framework.
What is the purpose of the Landlord and Tenant Act 1927?
Addresses issues related to property law, particularly concerning the rights and obligations of landlords and tenants.
What key provision allows tenants to carry out improvements?
Allows tenants to carry out improvements with the landlord’s consent, which cannot be unreasonably withheld.
What compensation rights do tenants have under the Landlord and Tenant Act 1927?
Provides tenants with the right to claim compensation for authorized improvements at the end of the tenancy.
What is the purpose of the Landlord and Tenant Act 1954?
Provides security of tenure for business tenants, offering them rights to renew leases under specified conditions.
What right does the Landlord and Tenant Act 1954 grant business tenants?
Grants business tenants the right to continue occupying premises after lease expiry, subject to certain conditions.
What is a key provision regarding lease renewal in the Landlord and Tenant Act 1954?
Allows tenants to apply for a new tenancy, which landlords can oppose only on specific grounds.
What is the purpose of the Landlord and Tenant Act 1995?
Simplifies and clarifies the law regarding the assignment of leases and the release of tenants and guarantors from covenants.
What does the Landlord and Tenant Act 1995 abolish?
Abolishes the doctrine of privity for new leases, meaning original tenants are no longer liable for breaches by assignees.
What is the purpose of the Estate Agents Act 1979?
Regulates the conduct of estate agents in the UK to ensure consumer protection and professional standards.
What must estate agents provide according to the Estate Agents Act 1979?
Agents must provide truthful information and avoid misrepresentation.
What is the purpose of the Misrepresentation Act 1967?
Addresses the legal consequences of false statements made during contract negotiations, providing remedies for misled parties.
What are the types of misrepresentation defined in the Misrepresentation Act 1967?
Fraudulent, negligent, and innocent.
What remedies are available under the Misrepresentation Act 1967?
Rescission and damages.
What is the purpose of the Control of Asbestos Regulations (2012)?
Protects workers and building occupants from the risks of asbestos exposure.
What duty do landlords have under the Control of Asbestos Regulations (2012)?
Must identify and manage asbestos in non-domestic premises.
What is the purpose of the Data Protection Act (2018)?
Governs the processing of personal data in the UK.
What are the key principles of the Data Protection Act (2018)?
Lawful, fair, and transparent processing; purpose limitation and data minimisation; accuracy, storage limitation, and accountability.
What is the purpose of the General Data Protection Regulation (GDPR)?
EU regulation governing data protection, incorporated into UK law via the Data Protection Act 2018.
What are the key requirements of the GDPR?
Consent, data subject rights, and reporting data breaches within 72 hours.
What is the purpose of the Equality Act (2010)?
Legally protects individuals from discrimination in the workplace and wider society.
What are the protected characteristics under the Equality Act (2010)?
Age, disability, gender reassignment, race, religion, sex, sexual orientation, marriage, and pregnancy.
What is the purpose of the Inclusive Design Guide Procedure (2017)?
Promotes the design of buildings and spaces that are accessible and inclusive to all users.
What are the core principles of the Inclusive Design Guide Procedure (2017)?
Inclusive, responsive, and flexible.
