RICS Hot Topics Flashcards
What is the RICS Motto?
‘Est Modus in Rebus’
There is measure in all things
What is the RICS mission Statement
To qualify and equip their members to offer the highest standards of professional service.
To promote and enforce standards.
To lead solutions to the major challenges facing the built environment through professional expertise.
When was the RICS founded
1868
What is the RICS leadership team?
Governing Council is the highest governing body
Chief Executive is Justin Young
How is the RICS structured?
Royal Charter being granted by the Privy council in 1881
The RICS is self regulated and internally monitored meaning that it is not regulated by the government or external parties
The bye-laws determine how the RICS is regulated
The governing council manage and agree the strategy for the RICS.
The Regulatory board, audit committee and management board are beneath the governing council and execute the strategy set by them
What are the RICSregulations
The regulations add further detail to the bye laws and sets out the different classes of membership and contains further details of when fees are payable etc.
There are 10 regulations in total.
R1 - Definitions
R2 - Membership and registration
R3 - Designations
R4 - Contribution to funds
R5 - Conduct
R6 - Governing council, officers & staff
R7 - Subordinate boards, committees and groups
R8 - Procedure for General Meetings and voting
R9 - Accounts and audit
R10 - General
What are Bye Laws
The Bye-Laws are set out in the Royal Charter and Determine how the RICS is regulated.
The are 10 Bye Laws.
Application and Definitions
Membership and Registration
Designations
Contribution to funds
conduct
Governing Council officers and staff
Subordinate boards, committees and groups
Procedure for General Meetings
Accounts and audit
General
What are the 5 principals of better regulation?
(PACTT)
Proportionality
Accountability
Consistency
Targeting
Transparency
Why have rules of conduct?
provides a framework that we can all work to, and so the client knows they are getting a set level of service.
what information do firms need to send to the RICS annually?
Annual return which includes:
Type of business and staffing
Nature of clients
training provision
PI insurance details
whether the firm holds client money.
Complains handling records
Please explain your understanding of the Harris Debate?
The Harris Debate is organised annually by the RICS and provide a platform to address ethical concerns in valuation and surveying.
What was discussed in the Harris Debate 2024?
Ethics in AI and its impact on valuation practices.
Explored the ethical implications on incorporating AI into valuations.
What is your view on the use of AI in property valuation?
Potential to offer greater accuracy and efficiency in valuations
But should be used in conjunction with surveyor, AI cannot consider site specific abnormalities such as condition.
It will always be critical to have significant input from a human for check and due diligence.
What are the ethical concerns with AI and property valuation?
Where is the data AI is using from and is it accurate or bias
Transparency of the data, how has the results been generated
To be Red Book compliant it should be transparent how the value has been determined.
what wider impact do you think AI will have on the property industry?
Enhanced property management
Analysing data faster, data driven decision making
Streamlining Transactions
Risk Management
What is your understanding of the RICS Business plan?
The Business Plan for 224 focuses on 4 main areas:
Substantiality leadership
Attracting Diverse Talent
Enhancing Member Engagement
Strengthening Trust
Are you aware of any guidance that applies to RICS members when using social media?
Guidance Note: Use of Social Media
Explain your understanding of the Inclusive Employers Quality Mark?
RICS Launching a scheme know as the Inclusive Employer Quality Mark.
Designed to improve diversity and inclusion.
What is the RICS doing to encourage diversity and inclusion?
They have set up a Diversity and Inclusion Leadership
What happened at COP29?
Help in Baku, Azerbaijan in November 24
focused on addressing climate finance for venerable nations
Progress on a global carbon market
Progress on a new climate finance goal.
Please provide a high level overview of the RICS sustainability report?
Provide detail analysis of the current state of substantiality within the built environment.
Key findings:
increased demand for green buildings
high upfront costs and insufficient government incentives
the need for consistent sustainability measurement across projects
What do you understand by the term Carbon life Cycle?
A holistic view of the carbon footprint of a building.
Materials
transport
maintenance
Energy used etc
What impact will the labour government have on the property and construction industries
House building targets
Infrastructure projects
Sustainability focus
Skills development
What impact will the US election have on the property and construction industries
Currency fluctuations
interest rates
Supply chain
What is your Economic Outlook for the 2025 UK Property Market?
Cautiously optimistic that further interest rate cuts which should result in increased market confidence.
Please explain your understanding of the recent updates to RICS Professional Indemnity Insurance Cover around Fire Safety?
Fire safety insurance cover has been removed from PII following Grenfell.
Firms exposed and unable to obtain fire cover.
RICS worked with insurers to remove blanket restrictions, agreed only excluded over 4 stories.
Following the Grenfell Disaster are you aware of any guidance the RICS has published to support fire safety?
Guidance note Cladding for surveyors.
Document to help improve my knowledge, but ultimately this is outside of my area of expertise and would advise client to seek specialist advice.
What is ACM cladding and what is the significance to Grenfell?
Standards for Aluminium composite material
Thought to be used in Grenfell
Now banned on Highrise external walls of new buildings above 18m
Local authorities to remove all existing ACM
What is EWS1
External Wall System Fire Review Certificate
Required on sale or mortgaging multi storey residential building.
What is the New Fire Safety Act 2021?
Update to the Fire Safety Order 2005
Focus on clarifying who is responsible for fire safely compliance of the structure and external walls
Aimed to force owners, landlords of multi occupied residential building to identify any dangerous cladding and remediate
Please explain your understanding of the importance of Hart vs Large caselaw?
Dispute between purchaser and surveyor.
Level 2 home buyer report
Large had failed to report damp ingress, failed to advise to get further report carried out.
Important case law, as its important to report defects and further investigations.
What is the Levitt Report?
Commissioned by the RICS following a Treasury management audit in 2018.
Conclusion alluded to an internal power struggle between management board and executive board.
Inaccurate cashflows.
Recommendations: RICS governing council to have more oversight over internal dealings of RICS
Oversight of management bonuses
Transparency
What are the impacts of Brexit?
Movement of people
Movement of material
Material costs
