Things I don't know Flashcards
What is collective enfranchisement?
LTA Act 1987 and Leasehold residential, housing and reform act 1993
Rights for tenants to collectively buy in freehold of a leasehold if LL’s duties are not being fulfilled.
Is an EPC needed for sale?
Yes
Are agency fees inc. or exc. VAT?
Exclusive of VAT and disbursements
What is included in a legal pack?
Measured surveys, building surveys, title searches, local authority searches
When did you get surveys done?
I instructed them in the pre disposal process so that they were ready
How did you assess proof of funds?
Letter from bank manager confirming party had adequate funds to transact accordingly
What is included in phase 1 dataroom?
Title, leases, draft headlease
What is included in phase 2 dataroom?
Utility bills, service charge, more granular info on tenants
Do you need planning for advertisement boards?
Yes - Town and Country Planning Regulations - 2007
- Planning required for boards over 2 sq m (flat) and 2.3 sq m (V board)
- 1 board per building
- No more projection than 1m from building, no more than 4.6m from ground
- illuminated, remote, listed buildings, conservation areas (planning also needed)
- Owner’s approval needed, Westminster must be black and white
What is Section 24 of 1954 Act?
Business tenancy to which the Act applies, does not expire with time but only when one party serves notice.
Section 25?
LL’s notice served no more than 12 months and no less than 6 months before date of termination of tenancy. Must:
- relate to whole property
- state date of termination
- Non-hostile notice: proposed terms of new lease must be stated
- Hostile notice: grounds for opposition must be stated
Section 26?
Tenant can serve notice requesting new tenancy, with date not more than 12 months and not less than 6 months after request made.
Must state tenant’s proposals for new lease alongside rent. If LL opposes, counter to be served within 2 months
Section 37
Tenant due compensation
14 years + - 2x rateable value
less tha n14 years - 1x rateable value
Benefits of zoning?
-Allows valuer to attribute value to most valuable part of shop
-Unit of comparison for different sized buildings
-Treatment of return frontages
-Natural zoning when building has physical constraints
-Mirror zoning
inspecting vacant building? What would you do differnetly?
Compliance with surveying safely, carry building survey to be aware of structural defects, check for squatters
How would inspection differ between agency and valuation?
Valuation - key drivers of value, understand what takes away and adds to value
Agency - checking the building is fit for sale, and compliant
8 protected rights under UK GDPR?
be informed
access
rectification
erasure
restrict processing
data portability
object
automated decision processing
Freedom of Information Act 2000?
Grants individuals the right of access to information held by public bodies. Required to supply within 20 days, chargeable
- exemptions: when contrary to GDPR requirements/prejudice a crinimal matter or someone’s personal interest
Difference between an arbitrator and an independent expert?
Arbitrator:
-Acts on evidence provided
-Not liable for negligence and cannot be sued
-Powers of disclosure
-Power over all costs
-Act within formal statutory framework
-outcome called an award
Independent Expert:
-Duty of investigation to discover facts and can use their own knowledge/expertise
- No right for appeal
-Liable for damages because of negligence
-No powers of disclosure
-No relevant legislation
-Outcome called a determination
-Power over only own costs
Further statutory requirements for setting up a business?
Annual return, Eqauality Act 2010, Bribery Act 2010, AML officer, H&S compliance, employers liability insurance
Suspected money laundering?
Report to company’s AML officer and they would submit a Suspicious Activity Report to National Crime Agency
PS for agency and investment?
PS: RICS UK Commercial Estate Agency 2016
Conflicts of Interest: UK Commercial Property Market Investment Agency
Consumer Protection from Unfair Trading Regulations 2008?
Business to consumer, broader non specific consumer protection for estate agents, relate to buyers and vendors and extend duty owed not just to clients but other stakeholders. Duty to declare all known facts on a property, no undue pressure exterted, full DD for new instructions.
Policed by Trading Standards Office
Max penalty of breach of CPRs BPRs?
Unlimited fine and/or prohibition order
Bribery Act Punishment?
Serious Fraud Office, max penalty of 10 years imprisonment/unlimited fine for individuals and companies
Margin of error?
Range allowed by courts in respect of a valuation.
K/S Lincoln and Others vs CBRE - Valuation of 4 hotels in 2005. Commercial approximate margin is +/- 10% and if any exceptional features the margin could be +/- 15%.
SDLT limits?
0-150,000 - NIL
150,000 - 250,000 - 2%
250,000 + 5%
What would you do if you discovered land contamination?
RICS Guidance Note: Contamination, the Environment and Sustainability 2010:
- review site history
- investigate to identify nature and extent of contamination
- remediation report setting out remedial options with design requirements and monitoring standards
What can you apply for as a developer if you develop a contaminated site?
Land Remediation Relief up to 150% corporate tax relief to developer
What era of construction is NR?
Victorian
Who is ultimate owner of grosvenor estate?
Duke of Westminster - Hugh Grosvenor
What is included in property searches?
Local Authority search, drainage and water search, environmental and flood risk, highways search
What is tangible net worth for 5A covenant?
£35M+
What is negligence?
A duty of care that exosts to clients and third parties, using reasonable ‘care and skill’. When breached, and there is a loss, a claim for damages arises.
A Malaysian family is suing the country’s government and Malaysia Airlines for negligence in the disappearance of flight MH370
Who manages Estate Agents Act?
National Trading Standards: Estate Agency and Lettings team
Who polices UKGDPR?
Information Commissioner’s Office (ICO)
2 types of deleterious material?
RAAC Concrete, Vermiculite, Asbestos
Principles of UK GDPR 2020?
-Lawfulness
-Fairness, and Transparency
-Purpose Limitation
-Data Minimisation
-Accuracy
-Storage Limitations
-Integrity and Confidentiality
-Accountability
What does UK GDPR do?
Aims to create single data protection regime affecting businesses and o empower individuals to take control of how data used by 3rd parties
What is difference between standards of conduct and rules of conduct?
Standards of conduct include the following:
-Rules of Conduct
-Bribery, Corruption, Money Laundering and Terrorist Financing
-Conflicts of Interest
-Client money
-Risk liability and insurance
-Client relationships and handling data
What does Sustainability and ESG in commercial property valuation and strategic advice 2021 set out?
Glossary of relevant terms and factors to incorporate into valuation approaches:
Terms of engagement, valuation purpose, inspection, reporting
What do you know in relation to valuing charities?
-Charities Act 2011 requires trustees to obtain valuation prior to disposal.
-Report must confirm that Charity has obtained best terms for transaction
-Act gives more discretion to charities when considering the advice obtained
What is a premium?
Capital payment from one party to another. Eg.
-money to represent fixtures and fittings within a building paid by ingoing tenant
-money paid by tenant for leasehold interest
-in event of negative difference, reverse premium can be paid by out-going tenant to new tenant
What are limits for PII?
£0-£100k - £250k
£100-£200k - £500k
£200k+ - £1M
What is the RICS maximum level of uninsured excess?
up to £10M - the greater of 2.5% of the sum insured, or £10,000
£10M + - no set limit
What is the structure of Surveying Safely?
-Personal responsibilities
-Assessing hazards and risks
-Workplace health and safety
-Occupational hygiene and health
-Visiting premises and sites
-Fire Safety
-Residential property surveying
-Procurement and management of contractors
When was asbestos banned?
1985, 1999
What is part M of building regulations?
Relating to the ease of access to and use of buildings, including facilities for disabled visitors or occupants
What would you do if someone was injured on site?
Reporting of injuries, diseases and dangerous ocurrences regulations 1995 (RIDDOR)
-trigger date of over 7 days incapacitation
-reported to HSE within 15 days from date of accident
-record kept of all 3-day plus injures
-kept in an accident book for a minimum of 3 years after an occupational accident or injury
What is conciliation?
The parties to a dispute use a conciliator, who meets with the parties both separately and together in an attempt to resolve their differences
How does it differ to mediation?
The conciliator will be asked by the parties to provide them with a non-binding settlement proposal. A mediator, by contrast, will in most cases and as a matter of principle, refrain from making such a proposal.
What if there was a data breach?
Inform those affected, inform IT who would inform ICO within 72 hours
What legislation would you have regard to in asbestos?
Control of asbestos regulations, 2012 - non compliance is criminal offence
- duty holder is owner of premises or a tenant holding a repairing lease
- purpose to make materials assessment
- non licensed work needs to be notified to HSE
What is defective Premises act 1972?
Obligation for landlord to ensure premises comply with requirements.
What is a profit and loss account?
INCOME STATEMENT - summary of business’s income and expenditure transactions
What is a cashflow statement?
Shows all receipts and expenditure of a business to include VAT
What is NOI?
Income after operating expenses are deducted, but before deducting interest and taxes.
How do you calculate a WAULT?
-Multiply the current rent by the remaining lease term for each of the tenants
-Sum the total of the above
Divide the result by the sum of current rent for each of the tenants
What if you breach negligence?
Get sued
What are the principles set out in the Red Book?
Need for competence and independence, ethical valuation, the bases of value and the format of a report.
What are you advising on for loan security valuations?
Advising on the suitability for a loan to be secured against a building. Ensuring they’d be able to recover costs if the borrower defaulted.
When did the Red Book become effective? (RICS Valuation - Global Standards 2021)
January 2022
What is an expert witness?
When a surveyor provides evidence to a judicial/quasi judicial body
What is RIDDOR?
Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995
What is set out in RIDDOR?
-Trigger date of 7 days incapacitation
-Injury must be reported to HSE within 15 days of accident
-Employers must keep record of 3 day plus injuries
-Info can be kept in accident book which must be retained for minimum of 3 years post accident or injury
What are the two regulations relating to asbestos?
Control of Asbestos Regulations 2012
Guidance Note Asbestos: Legal Requirements and Best Practice for Property Professionals and Clients 2021
What is prime rent for Mayfair?
£165psf , 65 Davies Street - May
To whom does duty of care extend ti?
Clients and third parties, with a ‘reasonable care and skill’. When breached, there is a loss and a claim for damages arises.
What are the principles of Article 5?
-Lawful, fair, transparent processing
-Right for access and erasure
-Data controller appointed
-‘Data accountability’
-Report breach to ICO in 72 hours
-Accurate, up to date
-Hold ID of data subject for no longer than necessary
-Ensuring appropriate security of data
-Controller to be responsible for and show compliance with these principles
