Summary of XP Questioning Flashcards
What are the key components of company accounts?
- Chairman’s statement
- Independent auditors report
- Profit and loss statement
- Balance sheet
- Corporate governance report
- Remuneration report
- Other statutory information
Purpose of a profit and loss statement?
Illustrates the business’s income and expenditure, usually prepared annually
Purpose of a cash flow statement?
Financial statement that summarises the amount of cash and cash equivalents entering and leaving a company
What does a balance sheet illustrate?
Financial statement that reports a company’s assets, liabilities and shareholders equity at a specific point in time
What is the purpose of a Dun and Bradsheet report?
Illustrates the potential risk of a business failing. Can be used for potential tenants for office, retail and industrial properties (failure score, delinquency score, age of business and no. employees)
What is IFRS?
International Financial Reporting Standards. They set common rules so financial statements can be consistent, transparent and comparable around the world.
What was included within your business plan / land strategy document?
- Target locations, lot size requirements for both open market sale and build to rent opportunities.
- The required KPI’s for each opportunity was set out, POC, Equity IRR and ROCE.
What are included in you pre-purchase board packs?
- Intro
- Exec summary
- Location
- Proposal
- Financial Returns
- Key Risks
- Key opportunities
- Conclusion
What are your internal complaints handling procedures?
- Despite not being an RICS registered firm, McLaren has a complaints handling procedure in place.
- Complaints should be recorded, setting out the details, reasoning and date / time.
- Acknowledged within 7 days and investigated in 28 days. Complaint registered with CHO
Key elements of the RICS Complaints Handling 1st Edition, July 2016?
- Firms CHP must be approved by RICS
- Must inform PII insurers of any claim ASAP
- Complaints log must be kept up to date
- Firm must include RIC approved Alternative Dispute Resolution in CHP.
Stage 1: In house
Stage 2: Alternative dispute resolution
RICS Rules of conduct for members?
The current rules of conduct for members are:
- Ethical behaviour
- Competence
- Service
- CPD
- Solvency
- Information to the RICS
- Co-operation with RICS
I am aware of the new Ethical Principles and Rules of conduct which are due to be adopted in October 2021.
- Integrity, Honesty and compliance
- Professional competence
- Service
- Respect
- Responsibility
RICS Rules of conduct for firms?
- Professional behaviour
- Competence
- Service
- CPD
- Clients Money
- Complaints handling
- Indemnity insurance
- Advertising
- Solvency
- Incapacity
- Designations
- Information to RICS
- Co-operation with RICS
What key elements do you include in an offer letter?
- Date
- Address of property
- Title information
- Proposed offer
- Purchase price
- Timescales
- Funding information
- Conditions
- Next steps
What do you include in your negotiation strategy?
- Understanding what are negotiable and non-negotiable points
- Enhancing relationship with landowner
- What the key drivers for the landowner are
- The Board’s drivers and desires
What are the three most common forms of dispute resolution?
- Negotiation
- Mediation (doesn’t bind parties but helps)
- Adjudicative process (determined by third party, such as litigation or arbitration)
What are the three forms of alternative dispute resolutions?
Mediation
- Neutral mediator who facilitates discussion and explores if solution between parties can be made
- Confidential and informal process
- RICS Guidance Note: Mediation 2014
Arbitration
- Parties can be bound by decision
- Specialist knowledge on area of dispute
- Decision can be over-ruled by court of appeal
- Fast, cost effective and confidential
- PACT (Professional Arbitration on Court Terms). Used for lease renewal disputes
Independent Expert Determination
- Appointed by two parties in dispute
- Expert has expert knowledge of subject area
- Parties bound by decision
- IE appointed to investigate dispute and receive evidence from both parties
- Offers speed and specialist knowledge
What are the three types of conflict of interest?
- Party
- Own interest
- Confidential information
What is the RICS Global Professional Statement for confidential interest 2017?
A member must not advise or represent a client where doing so would involve a conflict of interest, other than where all those involved have provided informed consent’.
What data sources do you use on a day to day basis?
- Land registry
- Rightmove
- CoStar
- Land insight
- EGi
- National agents database
- EPC
Principles of GDPR (EU) 2016 and Data Protection Act 2018?
Data Protection Act is the UK’s implementation of GDPR. It governs personal data and aims to create a single data protection scheme for anyone doing business in the EU.
It aims to empower individuals to take control of how their data is used by third parties.
Fines now increased to upto 4% of global turnover, or 20 million Euros, which ever is more.
GDPR, 8 individual rights:
- Right to be informed
- Right to have access
- Right to be rectified
- Right to erasure
- Right to restrict processing
- Right to data protability
- Right to object
How can you ensure your data is secured safely?
- Secure and encrypted network
- Anti virus
- Password protected files / folders
- Fire wall
- Data is backed up regularly
NDA’s?
- One way
- Mutual
Legally binding document so confidential information does not get released.
5 core values of the RICS?
- Integrity
- Service
- Trust
- Respect
- Responsibility
How do you instil ethics into decision making process?
- Always consider the five core values and remember that my primary duty of care is to the general public
- If I am making a difficult decision, I reference the RICS Ethical Decision Tree. Would I be happy with my decision being made public?
6 principles of Bribery Act 2010?
- Proportionality
- Top Level Commitment
- Risk assessment
- Due Diligence
- Communication
- Monitoring
4 main offences of Bribery Act 2010?
- Bribing
- Receiving a bribe
- Bribing a foreign official
- Failing to prevent a bribery
Max penalty is 10 years imprisonment and unlimited fine
What would you do if a client invited you to a hospitality event?
- I would review the details of the invitation and review if the invitation was proportionate to work carried out
- I would decline the invitation; in case this would be deemed as passive bribery
- I would discuss this with my line manager.
What are the forms of PPE?
- Protective helmet
- High vis jacket
- Goggles
- Gloves
- Steel toe tapped and soled shoes
What would a risk assessment include?
- Potential hazards on the site and potential risks
- Contamination or flood risk?
- Discuss site visit with site / property manager
- Contact details
- PPE required
- Update diary to inform of whereabouts
Key principles of RICS Surveying Safely 2018?
- Personal responsibilities
- Assessing hazards and risks
- Workplace H&S
- Occupational hygiene and health
- Visiting premises and sites
- Fire safety
- Resi property and surveying
Health and safety at work act 1974?
Duty to every employer to ensure, so far as reasonably practiceable, the health, safety and welfare of all employees.
What did you cover in your Health and safety at work ?
How to treat the following injuries:
- Cuts
- Burns
- Grazes
- Choking (CPR)
What are the 9 protected characteristics of the Equality Act 2010?
- Gender reassignment
- Sex
- Sex orientation
- Marriage
- Pregnancy
- Race
- Age
- Religion
- Disability
Importance of inclusive environments?
Ensuring that the build environment is suitable and safe for people with ranging forms of disabilities, both mental and physical.
What is an unconscious bias?
Prejudice in favour for or against a certain thing or characteristic.
How can this be tackled?
Training and workshops on how to overcome. Adopt cultural change, challenge your own opinion, recognise and manage biases
What is BREEAM?
Building Research Establishment Environmental Assessment Method.
An assessment method that grades the building’s sustainability and environmental credentials. Compulsory for new build / refurbed resi and commercial
Outstanding, Excellent, very good, good, pass
Did your proposal of Ebor Court include BREEAM?
Yes, early engagement with BREEAM and M&E advisors suggested that the building would be a ‘good’ rating
What is the purpose of an EPC?
To measure and rate a buildings energy efficiency rating. An EPC is required for any building over 50 sqm, when newly built, sold or let for a greater term than 6 months and less than 99 years.
EPC requirements for marketing?
- Must be commissioned within 7 days of commencement of marketing
- Agents responsible for procuring
- Only energy rating is required to be displayed
What does front page of EPC show?
- Address and floor area
- EPC certificate
- Info on energy use / provision
- Estimation of running costs
- Energy performance rating of A+ to G
- Benchmarking info
Maximum penalty
12.5% or RV (minimum £500 and max £5,000)
Requirements of MEES?
Requirement of a minimum EPC rating of Level E to let a building from 1st April 2018, onwards for resi and commercial properties. From 2020, this applies to all use types.
In 2023, all existing leases will have to have minimum ratings as well.
Five different types of valuation?
- Comparative
- Investment
- Residual
- Profits
- Depreciated replacement cost
Before undertaking a valuation, what should you consider
- Competence
- Independence
- TOE