Submission RICS/Legal Documents

Question 1

RICS Conflicts of Interest, 1st Ed (2017)

Answer 1

• Effective 1 Jan 2018
• Avoid if there is conflict or significant risk of conflict
• Seek informed consent if in best interest of all parties
• Be transparent and get informed consent in writing
• Manage conflict by using information/ethical barriers

Question 2

RICS Service Charges in Commercial Property, 1st Ed (2018)

Answer 2

• Effective 1 April 2019
• Aims to promote best practice, uniformity, fairness and transparency
• Ensures the timely issue of budgets and YE certificates
• Reduces cause of disputes
• Introduced 9 mandatory principles (as per lease, no more than 100%, issue budget annually, issue actual accounts annually, issue apportionment annually, keep sc funds in discrete bank account, interest to be credit to sc account, T to only withhold disputed sums, any errors to be corrected)

Question 3

Bribery Act 2010

Answer 3

• Aims to reduce bribes
• Bribe = giving/receiving advantage EG payment or gift
• 6 Principles (proportionality, top-level commitment, communication, risk assessment, due diligence, monitoring and review)
• 4 Offences (bribing, receiving bribe, bribing foreign public official, failing to prevent bribe)
• Penalty = 10 years imprisonment and unlimited fine (individual) or unlimited fine (company)

Question 4

RICS Guidance Note on Complaints Handling, 1st Ed (2016)

Answer 4

• Firms CHP must be RICS approved
• Firms CHP must include RICS approved ADR (EG Property Redress Scheme, CEDR, or RICS Dispute Resolution Service)
• Complaints Log must be maintained (details/outcome)
• Notify PII insurers if complaint could lead to claim for negligence

Question 5

RICS Guidance Note Surveying Safely: Health and Safety Principles for Property Professionals, 2nd Ed (2018)

Answer 5

• Effective 1 Feb 2019
• Basic, good practice principles
• Personal responsibilities for members/firms
• Hazard/Risk Assessments
• Health and Safety in Workplace
• Visiting Sites
• Fire Safety
• Contractor Procurement and Management
• Residential
• Advices RICS firms to have: safe working environment, safe working equipment, safe systems of work, competent staff

Question 6

Health and Safety at Work Act 1974

Answer 6

• Key UK legislation
• Responsibility on employer to ensure reasonable health and wellbeing of employees
• Breach of Act is criminal offence - unlimited fine and imprisonment for 2 years
• Guilty until proven innocent in this instance

Question 7

Data Protection Act 2018

Answer 7

• Effective 25 May 2018
• Implemented UK GDPR
• Covers everything previously covered by Data Protection Act 1998
• Gives people stronger rights to be informed about how their personal information is used
• Breaches to be reported to ICO within 72 hours
• Penalty is greater of 20 million euros or 4% global turnover

Question 8

General Data Protection Regulations 2021

Answer 8

• Replaced EU version
• Consent must be clearly given, and as easy to withdraw as it is to give
• 8 individual rights which are Right to: 1) be informed, 2) access, 3) rectification, 4) erasure, 5) restrict processing, 6) data portability, 7) object and 8) automated decision making

Question 9

Equality Act 2010

Answer 9

• Firms must embrace the 9 protected characteristics:
  1) Sex
  2) Sexual Orientation
  3) Gender Reassignment
  4) Disability
  5) Race
  6) Religion
  7) Age
  8) Marriage/Partnership
  9) Pregnancy/Maternity

Question 10

RICS Code of Measuring Practice, 6th Ed (2015)

Answer 10

• Best practice for measurement of properties (other than office and residential)
• Defines GEA, GIA and NIA
• Aims for common and consistent approach

Question 11

RICS Property Measurement, 2nd Ed (2018)

Answer 11

• Effective 1st May 2018
• Encourages members to use IPMS for global consistency and transparency
• Encourages members to dual report until IPMS All Buildings released (mandatory)
• Encourages members to advise clients of benefits of IPMS
• States members must keep detailed files (purpose, date, measurement standard, methodology, plans used, floor area)
  Note: IPMS All Buildings now released as of 15 Jan 2023

Question 12

RICS Guidance Note on Commercial Property Management in England and Wales, 2nd Ed (2011)

Answer 12

• Notes PMs core duties: rent collection, service charges, managing building, H&S, procurement of 3rd party suppliers, day-to-day liaison
• Principles state that PM acts for LL, has duty of care to LL, and must manage 3rd party suppliers

Question 13

RICS Valuation - Global Standards (2022)

Answer 13

• Effective 31 Jan 2022
• AKA Red Book
• PS1: Compliance with standards
• PS2: Ethics, Competency, Objectivity and Disclosures
• VPS 1: Terms of Engagement
• VPS 2: Inspections, Investigations and Records
• VPS 3: Valuation Reports
• VPS 4: Bases, Assumptions and Special Assumptions
• VPS 5: Valuation Approaches and Methods

Question 14

RICS Valuation - UK National Supplement (2019)

Answer 14

• Effective 14 Jan 2019
• Provides specific requirements for members on application of Red Book for UK jurisdiction
• User-friendly advice on what is and is not mandatory
• Provides mandatory statements and advice for UK valuations