Submission Flashcards
What are the requirements of setting up your own firm?
- Type of business and staffing details
- Name of the responsible principal
- Statutory regulated activities e.g. financial services
- Nature of Clients
- CHP details & records
- PPI Details
- Whether the firm holds any client money
Can you price match another firm?
No - check
What are the RICS Five Rules of Conduct?
Rule 1 - Members and firms must be honesty, act with integrity and comply with their personal obligations, including obligations to RICS
Rule 2- Members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise
Rule 3 - Members and firms must provide good-quality and diligent service
Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion
Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevents harm and maintain public confidence in their profession
What are the fines for breach of the bribery act?
Maximum penalty of 10 years imprisionment + unlimited fines for individuals and or companies
How do you ensure that you receive a response from every colleague? Do you think this is sufficient for a company the size of Cluttons? - COI
- Send around a company wide email detailing property, borrower and
any other relevant info - The email includes a Microsoft teams link which requires each
employee to confirm if there is a conflict or not - The teams admins will manage it to ensure everyone has responded
- Yes, I am aware of databases that manage conflicts checks however these information are only as good as the info that is inputted into them therefore, my company my email is a more personal approach and will get a more accurate response
What legislation covers Bribery?
Bribery Act 2010
What is your company’s anti-bribery policy?
The firm accepts that low value gifts and reasonable levels of hospitality are part of everyday business, however the following are not acceptable:
- any form of money vouchers and/or cash;
- tickets, invitations or passes for any function or event where the donor or representative of the donor is not present;
- use of donors properties (such as a holiday home);
- extension of business trips abroad for leisure purposes which are funded by the host;
- payment of any travel or accommodation expenses funded by the host where it is not an existing relationship
- payment of any travel or accommodation costs for any family member or friends; and
- any visits to a location which is not necessary or related to a genuine business purpose.
A gift register will be held of all “material corporate hospitality” where such a judgement is made.
Why is it important to maintain client confidentiality?
It is vital for companies to operate, retain the public’s trust, not damage the business reputation and being trustworthy it is at the core of the RICS Rules of Conduct.
Why would you not provide this advice? (Regards to Summer Event - Market Value)
- It would be a conflict of interest CHECK
- Wouldn’t be in line with the RICS Rules of Conduct
It wanted to act with integrity
Be helpful still - find a surveyor
What is included in ToE?
A. Identification and status of the valuer
B. Identification of the Client
C. Identification of any other intended users
D. The asset to be valued - if a portfolio then lotting of assets should be considered
E. Currency
F. Purpose of the valuation
G. Basis of value
H. Valuation date
I. Extent of investigation
J. Nature and source of the information to be relied upon
K. Assumptions and special assumptions to be made
L. Format of the report
M. Restrictions for use, distribution and publication
N. Confirmation of Red Book/IVS compliance
O. Fee basis
P. CHP to be made available
Q. Statement that the valuation may be subject to compliance by the RICS
R. Limitation on liability agreed
Talk me through your company’s complaints handling procedure?
- In the first instance you should contact the head of the Division with which you have been dealing.
- Where your complaint is initially made orally, you will be asked to send a written (paper or email) summary of your complaint to the person dealing with it. We will consider your complaint as quickly as possible and will acknowledge receipt of your complaint within 3 working days of receiving it. Within 14 days of receipt of your written complaint, the person dealing with your complaint will write to you, in order to inform you of the outcome of the investigation in to your complaint and to let you know what actions have been or will be taken.
- If you are dissatisfied with any aspect of our handling of your
complaint, you should write to James Gray, our Managing Partner. - check this He will personally conduct a separate review of your complaint and will contact you within 14 days to inform you of the conclusion of this review. - If we are unable to agree on how to resolve your complaint and you feel we have not sought to address your complaints within eight weeks, you have the opportunity to take your complaint to an independent redress provider, as approved by RICS Regulatory Board. - Check this
Why do we have PII / What is the purpose of PII?
To protect clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages arises
How would you determine if the PII cover is adequate?
Look and assess the firm’s turnover in the preceding year and check the minimum level of idemnity that is required for each and every claim -
If a new business, estimate the turnover and adjust in due course accordingly
CHECK
What strategies do you use for negotiation?
- Enter negotiations fully prepared
- Prepare for best and worst-case scenarios
- Take a positive approach
What is the purpose of surveying safely? What does this document set out?
Basic, good practice principles for the management of H&S for RICS regulated firms and members
Principles for those engaged in the built environment as property professionals and includes H&S responsibilities:
- At a corporate level (whether small/large)
- At the level of the individual RICS member
What are the employees obligations under the Health and Safety at Work Act 1974?
- to take reasonable care of your own health and safety
- to take reasonable care not to put other people - fellow employees and members of the public - at risk by what you do or don’t do in the course of your work
- to co-operate with your employer, making sure you get proper training and you understand and follow the company’s health and safety policies
- not to interfere with or misuse anything that’s been provided for your health, safety or welfare
- to report any injuries, strains or illnesses you suffer as a result of doing your job
CHECK
Can you talk me through the duty holders responsibilities?
The duty holder must undertake risk assessment - express obligation to manage the risk and a written plan prepared and implementation and reviews recorded - CHECK
Who is the duty holder with regards to asbestos?
Duty holder is the owner if the premises is vacant and tenant is holding a repairing lease - CHECK
What are the distinctions between risks and hazards?
A Hazard refers to anything that has the potential to cause harm (such as a wet floor) whereas, a risk is the probability/likelihood that someone will be harmed (such as the risk of falling over on the wet floor).
What is your company’s lone working policy?
Ensure inspection/appointment in my outlook diary - colleagues have access to my diary
Have contact details of person meeting in my outlook diary
Use staysafe app -CHECK
What is a balance sheet?
Is a statement of the businesses financial position showing its assets and liabilities at a given date, usually at the end of a financial year.
Assets can include cash, property, debtors and other investments held
Liabilities can include borrowings, overdrafts, loans and creditors
Needs to be audited
What is a profit and loss statement?
A summary of the businesses income and expenditure transactions, prepared usually on an annual basis
Needs to be audited
What is an asset?
An asset is something containing economic value and/or future benefit - CHECK
Assets can include cash, property, debtors and other investments held
What is a liability?
A liability is something a person or company owes, usually a sum of money.
Liabilities can include borrowings, overdrafts, loans and creditors
What is IFRS 16?
It is the lease accounting standard which all companies have to comply when using the International Financial Reporting Standard.
Accounting change which impacted how occupiers regard their property liabilities
Are there any exemptions to IFRS 16?
Exemptions exist for leases of 12 months or shorter.
How can conflicts be avoided?
- Ensuring clear, concise, careful drafting of the contract or lease and
associate documentation - Adopting proactive conflict avoidance risk analysis
- Managing all parties expectations requires understanding their
objectives and clearly communicating these, as well as implementing
early warning systems - including the serving of app notices - Negotiating contractual obligations carefully and transparently
- Keeping good records
Can mediation be binding?
No - the mediator has no decision-making authority
What are the principles of UK GDPR? (seven principles)
Article 5(1) Principles relating to the storage of personal data states that data must be:
- Processed lawfully, fairly and in a transparent manner in relation to individuals (Lawfulness, fairness and transparency)
- Collected for specified, explicit and legitimate purposes and not further processed in a manner which is not compatible with those purposes (Purpose limitation)
- Adequate, relevant and limited to what is necessary for the purpose for which they are processed (Data minimisation)
- Accurate and where necessary kept up to date. Inaccurate data must be erased or rectified without delay. (Accuracy)
- Kept in a form which permits identification of data subject for no longer than is necessary for the purpose that the personal data is processed (Storage limitation)
- Appropriate security of the personal data including protection against unauthorized or unlawful processing and against accidental loss, destruction or damage using app technical or organisational measures. (Integrity and confidentiality (security))
- It is important that the controller be responsible for and be able to demonstrate compliance with the principles (accountability)
How do you verify information from third party databases / why is this important?
What is unconscious bias?
Attitudes, assumptions or beliefs that influence our thinking without our concious awareness.
These are influenced by attitudes formed form our experiences, during our upbringing and education, an the environments in which we work and live.
What is the legislation that covers diversity and inclusion?
UK Equality Act 2010
What are the 9 protected characteristics?
- Race
- Sex
- Gender
- Age
- Disability
- Religion or beliefs
- Marriage and partnership
- Pregnancy and maternity
- Sexual orientation
What is an inclusive environment?
- An environment that is designed and managed to allow people with a diverse range of needs and abilities to access and use it
- An environment can mean - building / place including homes, workplaces, shops
What are the current MEES regulations?
Require a minimum EPC rating of Level E to let a building from 1st April 2018 onwards
- New leases from 1 April 2018 (commercial & resi) - including lease renewals / extensions
- All existing leases from 1 April 2023 for commercial properties (2020 for resi)
What is the difference between MV and FV?
Market Value = the estimated amount for which an asset or liability should exchange for
WHEREAS
Fair Value (IFRS13) = The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
What is a Fair Rent?
A fair rent is the maximum rent a landlord can charge a regulated or protected tenant
What are the 5 methods of valuation?
- Comparative Method
- Profits Method
- Investment Method
- Residual Method
- Contractors Method
Any RICS guidance for this? (Comparable Evidence)
RICS Professional Standard: Comparable Evidence in Real Estate 1st Edition, 2019 (reissued as a Professional Standard in April 2023)
When is a Red Book valuation not required?
There are five exceptions to the Red Book:
- Providing agency or brokerage advice for an acquisition or disposal
- Acting as an expert witness
- Performing statutory functions
- Providing a valuation purely for internal purposes, without liability and without communication to a third party
- Providing valuation advice in the course of negotiations or litigation where the valuer is acting as an advocate
Can you talk me through the process of the comparable method?
- Search & Select them
- Verify them
- Assemble them
- Adjust them
- Analyse them
- Report them
When inspecting the vacant properties, did you take any extra safety precautions?
