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APC 2024 > Tom W > Flashcards

Tom W Flashcards

1
Q

What is the maximum rent for an AST?

A

£100,000 per year

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2
Q

What is the minimum rent for an AST?

A

£250 per year

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3
Q

What is the minimum term for an AST?

A

No legal minimum term although 6 months is typically the shortest fixed term for and AST

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4
Q

What is the maximum term for an AST?

A

No legal maximum term although any AST of greater than 3 years needs to take the form as a deed. AST’s greater than 7 years need to be registered with the land registry.

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5
Q

What notice is served for the non payment of rent under the Agricultural Tenancies Act 1995?

A

There is no notice in the Farm Business Tenancy legislation. Instead it will depend entirely on the drafting of the agreement in particular the wording of the forfeiture clause and the definition of insolvency. A typical clause would provide for re-entry if the rent is unpaid for 21 days or there is a material breach of Tenant’s covenants or an act of insolvency.

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6
Q

What notice is served for the non payment of rent under the Agricultural Holdings Act 1986?

A

Notice to Pay giving the tenant 2 months to resolve the debt or Notice to Remedy. This is followed up by a Notice to Quite under Case D if the the tenant is still in breach after this period.

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7
Q

What’s the difference between a lease and a licence. What is the case law?

A

Street V Mountford.
Under a lease:
The tenant has exclusive occupation
There is a rent demanded for a fixed term.

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8
Q

What extra care would you provide for sensitive/confidential information?

A

Password protect documents, restricted access, retention policy

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9
Q

How do you keep information safe

A

Avoid using lengthy email chains, email categorisation/encryption, dual factor authentication, locking computer when not in use, not using unsecure platforms, shred documents, don’t leave sensitive information on the desk.

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10
Q

What are the three pillars of corporate sustainability?

A

Economic, Social and Environmental

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11
Q

How do you establish a trustworthy relationship with you client?

A

being honest regarding project timescales

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12
Q

Why was the value guided for the fuel depot so low?

A

due to the unique nature of the fuel depot, finding strong comparables proved difficult. One of the comparables I obtained, Islip fuel depot proved a strong comparable at around £7,000 per acre to the site however the agent advised me that it failed to sell. Given this, I did not want to risk guiding the property to high as this would deter interested parties. another reason informal tender was chosen was so the competitive bidding aspect would maximise the site value.

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13
Q

What are the key differences between a wayleave and easement?

A

Wayleaves are typically above ground easements underground…………

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14
Q

What are the key clauses and sums used within HOT’s for a wayleave or easement?

A
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15
Q

What are the compensation procedures associated with the acquisition of land?

A
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16
Q

What is severance?

A
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17
Q

talk me though a crop loss claim.

A
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18
Q

What is a section 119 deposit?

A

For the diversion of public rights of way

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19
Q

What is the process for a section 119 deposit?

A
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20
Q
A

Rent (Agriculture) Act 1976

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21
Q

What legislation governs AST’s?

A

Housing Act 1988

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22
Q

When does a lease become a deed?

A

Leases greater than 3 years.

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23
Q

When is it appropriate for a solicitor to draft a lease?

A

when it is a deed (greater than 3 years) with the exception of an FBT which can be drafted by us.

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24
Q

How do you review the rent under the rent act 1977?

A

Complete and send an RR1 notice to the rent officer to initiate the RR procedure. following determination of the rent the LL must server the tenant with a form 1 notice

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25
Q

What is the maximum a fair rent can be increased by?

A

RPI plus 5%

26
Q

What notice is served for a rent review under the Agricultural Holdings Act 1986?
When can it be served?

A

Section 12
The review date must be no less than 12 months but no more than 24 months after the day on which the statutory review notice is served.

27
Q

What notice is served for a rent review under the Agricultural Tenancies Act 1995?
When can it be served?

A

Section 10
The review date must be no less than 12 months but no more than 24 months after the day on which the statutory review notice is served.

28
Q

What notice is required where a prospective AST tenant meets the criteria of an agricultural worker? what does this prevent?

A

Form 9 stops the AST from becoming an agricultural occupancy.

29
Q

What notice is required to accompany an FBT agreement. What’s its purpose?

A

Section 1 (4) Notice states that the tenancy is to be and remain a farm business tenancy (FBT).

30
Q

What sections of the Landlord and Tenant Act 1954 provide a tenant with security of tenure and how are these contracted out?

A

Sections 24-28 provide security of tenure. To contract out the landlord must serve the tenant with a warning notice.

31
Q

On the termination of an AST how long does the Landlord have to return the deposit?

A

10 days

32
Q

What are the reasons for a Valuation?

A

Loans
Financial reporting
Investment portfolio performance
Takeovers and mergers
Purchase and sale
Taxation
Stock exchange

33
Q

What Valuations are exempt from the Redbook?

A

Market appraisals (agency)
Valuation for Internal purposes
Statutory function (eg arbitration)
Negotiation/litigation (preparing for a negotiation to purchase/sell)
Expert witness (surveyors acting as an expert witness)

34
Q

What is the formal name of the redbook?

A

RICS Valuation Global Standards 31st January 2022

35
Q

What does RICS Stand for?

A

Royal Institution of Charted Surveyors

36
Q

Why is it important that valuation advice is correct and to a high standard?

A

‘The Red book global standards reflects the growing importance of successfully combining professional, technical and performance standards in order to deliver high quality valuation advice that meets the expectations and requirements of clients; of governments, regulatory bodies and other standard-setter; and of the public’

Ultimately to protect the client as your client will take action based upon the valuation you provide.

37
Q

What is the structure of the redbook?

A

Professional standards
PS1- compliance with standards and practice statements
PS2 - Ethics, competency, objectivity and disclosures

Valuation practice statements
VPS1 - terms of engagements
VPS2 - inspections and investigation
VPS3 - reports
VPS4 - bases of valuation, assumptions, and special assumptions
VPS5 - valuation approaches and methods

Valuation applications
VPGA 1-10
VPGA 1 - inclusion in financial statements
VPGA 2 - for secured lending

38
Q

VPS1 What do you need to include in terms of engagement for a valuation?

A

Client
Property
Purpose of valuation
Basis of valuation
Red book compliance
Assumptions and special assumptions
Extent of investigations and information relied upon
Valuation date
Status of valuer
Fee and liability
Complaint handling procedure
Conflict of interest

39
Q

What is probate valuation?

A

a detailed report on the value of a deceased person’s estate, which can help executors calculate inheritance tax

40
Q

What are the key heading in Savills valuation reports?

A

Instruction and terms of reference.
-client, property, basis of valuation, Conflict of interest, dat of valuation, purpose of valuation, valuer details, inspection, liability cap, RICS compliance.
The property, statutory and legal aspects
- location, property schedule, photos, soil type, cropping, planning, services, designations, taxation, title, PROW, occupation

Market commentary
- Savills market reports/Market commentary

Valuation advice
-market value/market rent/other basis of valuation

General assumptions and conditions

41
Q

What’s the difference between an assumption and a special assumption?

A

And assumption is something you reasonably assume to be true.
A special assumption is something you know to be false but assume to be true for the purpose of the valuation.

42
Q

What’s the definition of market value?

A

The estimated amount for which an asset or liability should exchange on the date of valuation between a willing buyer and willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

43
Q

What is the definition of market rent?

A

The estimated amount for which an interest in real property should be leased on the date of valuation between a willing lessor and willing lessee on appropriate lease terms in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

44
Q

What are the five methods of valuation?

A

Comparable
Investment
Profits
Residual
Replacement cost method

45
Q

Who can provide a red book valuation?

A

RICS registered valuer
Valuers must have taken valuation to level 3
Must register as part of the scheme.
Pay the fee
Comply with regs
Complete annual audits
Carry out valuation CPD

46
Q

What factors determine which method of sale to use?

A

Clients objectives, public accountability, current and likely future market conditions, Likely level of demand for the property, timing requirements

47
Q

What is a private treaty ?

A

It allows for parties to freely negotiate in their own time and without commitment in the open market.

48
Q

Why use auction?

A

Can achieve a short timetable for disposal
Certainty of sale
Good for unusual properties
Use where a property is likely to generate strong interest.

49
Q

What are the disadvantages of auction

A

Promotion costs
Lack of confidentiality over sale price.
Vendor cannot choose purchaser
Intensive in nature

50
Q

What legislation must particulars follow?

A

Consumer protection regulations 2008
Misrepresentation act 1967

51
Q

What are the three types of agency?

A

Sole agency
Joint agency
Multiple agency

52
Q

What is multiple agency?

A

When any number of agents advertise a property but only the successful one gets the fee

53
Q

What is multiple agency?

A

When any number of agents advertise a property but only the successful one gets the fee

54
Q

What is joint agency?

A

When two or more agents share the fee on a pre agreed basis

55
Q

What is the sale process?

A

Get client instruction
Check competence/independence
Issue agency instruction agreement to client.
Complete AML Checks
Carry out due diligence and inspection
Perform market research
Value property
Prepare marketing report
Obtain client consent to particulars
Carry out marketing
Carry out viewings
Negotiate a sale
Facilitate arrangements for completion
Send invoice

56
Q

What is required within an agency instruction agreement?

A

It required under estate agents act 1979.
And there is a required cooling off period of 14 days under the consumer rights act 2015

It must include:
Agency basis
Agency rights
Proposed fee
Marketing costs
Conflict of interests
AML requirements
Timescale for payment of fees
Complaints handling procedure.
Agreement must be completed before marketing can commence.

57
Q

What are sole selling rights?

A

This means the agent is entitled to their fee if the property is sold within the set timeframe even is they didn’t find the buyer.

58
Q

What are sole agency rights?

A

This is where a fee is only due if the agent introduced the purchser within the terms of the agreement. (This is less advantageous than sole selling rights)

59
Q

Name the two agency rights

A

Sole selling rights
Sole agency rights

60
Q

What is a ready-able and willing purchasers clause?

A

A clause where if a party is ready to proceed with a sale but the seller withdraws and abortive fee can be charged.

APC 2024 (6 decks)

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