Weak Areas Flashcards
What are the 3 purposes of inspections?
Valuation, Property management and agency.
What things are you looking for when undergoing an inspection for valuation purposes?
factors impacting value such as location, condition, aspects, defects, form of construction
What things are you looking for when undergoing an inspection for property management purposes?
if occupied: lease compliance, statutory compliance, need for decoration and repair, defects, repair and condition
if unoccupied: statutory compliance, state of building, repair and maintenance, defects, obsoletion, vandalism and building damage
What things are you looking for when undergoing an inspection for agency purposes?
buildin condition
repairs and maintenance
services
presentation and flexibility of accommodation
MARKETABILITY
What things are you looking for when undertaking an external inspection?
method of construction
defects and repair/condition
car parking
access
loading
structural movement
What things are you looking for when undertaking an internal inspection?
layout and specification –> flexibility and obsolescence
repair and maintenance
defects
age/condition of services
statutory compliance e.g asbestos, H&S, equality act 2010, fire safety
F&F
What is the institutional specification of retail units?
if new: constructed of steel or concrete frames
services capped off
concrete floor
no suspended ceiling
no shop frontage
effectively in shell condition for retailer to fit out
What is the institutional specification of industrial units?
Steel portal frame
Plastic coated profiled steel cladding
c.2m brick or block work walls elevations
Min 8m eaves height
Min 10% roof lights
Full height electric loading doors
3 phase power supply
Main services capped off
LED lighting
5-10% office areas
What is the institutional specification of office units?
BCO (British Council for Offices) provides an institutional spec including:
full accessed raised floor c.150mm void
ceiling height 2.6-2.8m
2.50-3 kn/sqm floor loading capacity
A/C and double glazing
passenger lifts
1 cycle space per 10 staff
1 shower per 100 staff
8-10m2 occupancy density
3 common causes of defect?
Water, movement and deterioration of/defective building materials
Types of movement causing defects
Subsidence = vertical downward movement of building foundation. can be from changing underlying ground conditions
Heave = expansion of ground beneath part/all buiding, can be due to tree removal and subsequent moisture build up
OR
Horizontal cracking = in brickwork and may indicate cavity wall tie failure
shrinkage cracking = in new plasterwork when drying out
thermal expansion can also cause crakcs
Purpose of snagging
to meet standards and specification
Types/causes of damp?
Wet rot
Dry rot
rising damp
condensation
leaking plumbing / AC / pipework
What is wet rot and what are the signs?
Caused by timber decay and damp.
Signs = wet/soft timber, high damp meter reading, visible fungal and musty smell
What is dry rot and what are the signs?
Caused by fungal attack
signs = fungus, known as mycelium with white fluffy strands across wood
large and often organ mushroom like bodies
strong smell
red spores
cracking paintwork and timber
can destroy masonry and timber
What must you do regarding defects for all inspections?
You must look for defects during all inspections by starting at the roof and working downwards
what are the causes of condensation?
lack of ventilation and heating
signs = mould and streaming water on windows and walls
typical defects for period resi/office/shop building
dry rot
wet rot
roof tile slippage
damp penetration at roof and ground level
water ingress on windows and doors
structural movement
typical defects for modern industrial buildings
leaks around roof lights
cut edge errosion
spalling/efflorescence/cracking on brick work
damaged cladding
blocked valley gutters
water damage from poor guttering
typical defects for modern office buildings
damp penetration at roof and ground level
water damage from burst a/c, water pipes
damaged cladding
cavity wall tie failure
efflorescence
Key legislation regarding contamination?
Environmental Protection Act 1990
Who pays for remedial works if contamination occurs?
Typically landowner pays for remediation works
Why can contamination exist?
because of heavy metals, radon and methane gas and diesel/oil/chemicals
Signs of contamination?
bare ground
evidence of chemicals, oils, oil drums
subsidence
underground tanks
what are the typical phases of investigation of contamination?
Phase 1 - review site history (desktop) and site inspection/investigation
Phase 2 - investigation to identify nature and extent of contamination. With detailed soil samples using bore holes
Phase 3 - remediation report to set out remedial options and monitoring
**suggest specialist reports if concerns the site has contamination
What would you do if you were instructed to value a site with contamination?
- DO NOT provide val advice until specialist report is comissioned
- Caveat advice with disclaimer highlighting the issue OR special assumption
- Deduct remediation costs from gross site value
Signs of deleterious materials?
brown staining on concrete or concrete frame
Example of a deleterious material?
Reinforced autoclaved aerated concrete (RACC)
Used in many public buildings in 60s-90s and deteroriorates over time - esp in harsh conditions - leading to structural issues
High alumina cement
calcium chloride
woodwoll shuttering
Examples of hazardous materials
asbestos - always check asbestos register
radon gas
lead piping
Recommend specialist report
What is Japanese knotweed?
invasive species of plant that can damage hard surfaces ie foundations and tarmac
Hard to control and costly to eradicate - specialists must remove and dispose
purple/green stem with large green leaves (spade like shape)
chemical treatment / digging out / removing to licensed landfill –> in accordance with Environmental Protection Act 1990
professional standard on knotweed called Japanese Knotweed and residential property
What is the RICS Guidance on property measurement available?
RICS Prof Standard: RICS Property Measurement 2018
Code of Measuring Practice 2015
IPMS All Buildings 2023
IPMS Data Standards
For all building classes except offices and resi, bases of measurement in COMP may still apply BUT application (ie part 1) of the professional standard applies to all e.g. what should rics members consider when evaluating the level of accuracy
What does the RICS Prof Standard: RICS Property Measurement 2018 set out?
Application of the PS
Technical definitions
IPMS: Office Buildings
IPMS: Residential Buildings
what should RICS members and firms consider when evaluating the level of accuracy expected from a measured survey?
What is the purpose of the measurement exercise?
What are the client’s requirements and expectations
what are the building/site conditions at time of the survey
what are the time/cost elements
what are ramifications for inaccuracy
considering above will mean correct equipment and procedures can be adopted
IPMS 1 Definition
measuring the area of a building
including external walls
on floor-by-floor basis
IPMS 2 Definition
used for measuring the interior of an office to include
all areas available for direct use
measured to IDF
on floor-by-floor basis
IPMS 3 Definition
the floor area available
on an exclusive basis to an occupier
measured to IDF
excluding standard facilities
on floor-by-floor basis
IPMS 1 exclusions
upper void levels of an atrium
open external stairwells
patios
refuse areas
external parking at ground level
IPMS 2 exclusions
upper levels of void atrium
open light wells
patio and decks at ground level
external parking
equipment yards
refuse areas
IPMS 3 exclusions
standard facilities providing shared or common facilities e.g
stairs
lifts
WC’s
cleaner cupboards
plant rooms
IPMS 1,2 and 3 all include but state seperately
Covered galleries
balconies
generally accessible roof terraces
What things must RICS members do/comply with and keep information in a file on / in report with work that includes the measurement of buildings?
purpose of measurement instruction
date of measurement instruction
date of measurement
name of RICS M/F responsible for instruction
measurement standard adopted
measurement methodology / tool
reasons for departure of IPMS
floor area / scaled plans
unit of measurement and conversion factor
What are the differences between IPMS 3 and NIA?
IPMS includes pillars/columns
IPMS measures to IDF, NIA is to internal face
IPMS includes areas with heights of less than 1.5m
Where multiple occupiers on one floor, IPMS takes to midpoint of the partition
IPMS includes but states seperately: covered galleries and balconies and generaly accessible roof terraces
IPMS includes area occupied by reveals of window if they are the IDF, NIA does not but NIA does go to glazing if full height glazing unless window structure/design render space unusable ie at 6 Ramillies.
Define Internal dominant face (IDF)
the surface area of each IDF wall section comprisig 50% or more of the FTC height
*if this doesnt occur, the finished surface is the IDF
define Internal face
the brick/block work or plaster coat applied to the brick/block work, not the surface of internal linings installed by the occupier
define finished surface
the wall area directly above the horizontal wall/floor junction
IGNORES skirting, perimeter trunking, pipework or heating/cooling units.
define limited use area
an area whereby legal occupation is not possible e.g height restrictions or poor day light
define internal dominant finish wall section
each individual finish of an external wall that is either recesses or protrudes from the adjacent section
What are the aims of IPMS all buildings
- Establish consisent methodology for all building types around world
- promote international collaboration
- harmonises all buildings into single set of standards
- provide high level overarching standards on best practice in regard to property measurement
What is good about / useful about the COMPS 2015
Best practice for all asset types except for office and resi (as are in prof standard)
provides precise definitions - ensures a common and consistent approach
When is GEA used (COMPS 2015)
town planning
resi building cost estimations
council tax vals
When is GIA used (COMPS 2015)
estate agency
rating
building cost estimation for commercial assets
valuation of industrial warehouses
When is NIA used (COMPS 2015)
estate agency
rating
building cost estimation for commercial assets
valuation of industrial warehouses - is this true?
what does the GIA for industrial units include?
stairwells
lifts
permanent access mezz floors
loading bays
what does the GIA for industrial units exclude?
canopies
fire escapes
covered ways
If you are measuring a shop with full height partitioning what would you do?
try to remove ceiling tile or get behind the partitioning via gaps/holes
use scale floor plans
what is included for NIA for office buildings in COMPS 2015 (REMEMBER BUILDING NOT SINGLE FLOOR)
Notional lift lobbies
notional fire corridors
kitchens
built in cupboards etc occupying usable area
ramps/steps within usable areas and stated seperately
areas occupied by ventilation/heating grills
areas occcupied by skirting/perimeter trunking
areas occupied by non-structural walls subdividing accommoation in SOLE OCCUPANCY
what is excluded for NIA for office buildings in COMPS 2015 (REMEMBER BUILDING NOT SINGLE FLOOR)
WC’s
stairwells
areas less than 1.5m head height
cleaners rooms
plant and lift rooms
service cupboards and risers
areas rendered unusable with 0.25m gap to opposite face (ie 0.25m gap between column and wall)
if glazing is full height but renders space by it substantially unusable
space occupied by permanent A/C or heating and cooling apparatus
what is internal eaves height
clear height between floor and lowest point on underside of roof - ie at the eaves
how would you measured land?
trundle wheel
promaps - but check boundaries on site with OS Map or Land Reg prior. Promaps doesnt take into account elevation of land ie hillls
use trigonometry
what is a appropriate scale for A4 floor plan?
1:50-1:200
what is a appropriate scale for location/street plan?
1:1,250 - 1:2,000
Drawbacks of a disto / laser measure
can be distorted by sunlight and cant measure reflective surfaces
but is accurate to 1.5mm up to 200m away
What is NIA?
the usable area withing a building measured to the internal face of the perimeter walls at each floor level
includes:
- base of atria with clear height above
- entrance halls
- notional lift lobbies and fire corridors
- kitchens
- built in cupboards occupying usable area
- ramps, sloping areas and steps within usable area
- areas occ’d by ventilation/heating grills
- areas occ’d by skirting boards/perimeter trunking
- areas occ’d by non-structural walls subdiving accommodation in SOLE occupancy!
Excludes:
- WC’s
- lift and plant rooms
- staiwells and lift wells
- common area corridors
- internal structural walls
- columns
- areas with headroom less than 1.5m
- areas rendered substantially unusable with 0.25m distance between opposite faces
What is GIA?
the area of a building measured to the internal face of the perimeter walls at each floor level.
includes:
- area occupied by internal walls and partitions
- columns, stairwells, lift wells
- mezz floors with permanent access
- atria and entrance halls with clear height above (measured at base level ONLY)
- internal balconies
- structural or stepped floors (treated as level)
etc
Excludes:
- perimeter wall thickness
- external open-sided balconies
- external covered ways
- external fire escapes
- canopies
**so basically includes everthing but those 5 exclusions above
What is GEA?
The area of a building measured externally at each floor level.
Information required from client before commencing instruction (L+T)
Agreed TOE
understand client strategy/objectives
Get copy of lease and lease plans
copy of licenses e.g for alterations/improvments/sub lettings/deeds of variation
copy of RR memoranda
contact details to arrange inspections
L&T Fee structure types?
Fixed ie stage 1,2,3 et
Incentivised - ie % of saving / increase
Define without prejudice / what does it do and the benefits etc
Means during negotiations the opposing party CANNOT rely upon any document labelled without prejudice
the information is privileged and cannot be used as evidence to show to arbitrator / independent expert
Define subject to contract
means exactly that, it is subject to the contract
What is a tenancy at will?
form of licence
for unspecified time
LL can evict T at any time
NO legal interest in land
No right to renewal
example: allows a tenant early access to undertake fit out works
What is a licence and some of their featurea?
‘passes no interest in the land but makes legal what would otherwise be illegal’
e.g car park, pop-up shop in shopping centre
4 Features
- a right to enter property
- personal arrangement between licensor and licencee
- does not acquire any interest in the property
- can be terminated at any time
What are the 4 requirements of a lease?
Exclusive occupation
specified period of time
payment of rent
if over 3 YEARS terms must be in writing and signed as a deed
Differences between a lease and a licence?
Leases can be assigned - licences cannot
Leases terminated at lease events e.g breaks or RR or expiry - licences can be terminated at any time
Leases provide an interest/estate in the land - licences only allow the right to use it
What is case law surrounding Lease vs Licences?
Street vs Mountford (1985)
Deeming provision definition?
In older leases, some RR clauses required the LL to specify the rent in the trigger notice.
If the T does not serve a counter notice within specified time frame - the T will have deemed to accepted the new rent
what is a wayleave?
A temporary right
receives an annual payment
is personal to the company
cannot be transferred to new owner
e.g provides a right for a electricity company to install and maintain apparatus
What is an easement?
A permanent right
receives a capital payment
capable of being registered on land reg
A prescriptive right of way or prescriptive easement can be obtained due to:
continuous and uninterrrupted use proven over at least 20 years
A permissive right can be granted by landowner to allow access over the land
E.g. utility company allowing them to service pipes etc underground
What is adverse possession?
when someone who is not the legal owner of land can qualify to become the legal owner
through possession of the land over a specified period of time without landowners consent
If after 2003, is 10 years of occupation if the land is registered, if not, its 12 years
**this happened after land registration act 2003 where before it was 12 years for registered land
Headline clauses/RENT for RR?
uncommon as hard for LL to achieve a HLR at RR - UNLESS lease wording is explicit
Contents of a RR clause?
- basis of valuation ie UO / RPI or CPI linked or turnover rents
- 4 assumptions
- 3 disregards
- hypothetical lease term
- Time of the essence
what are the 4 ususal assumptions?
Property is available to let on open market between willing LL & T for term as stated in hypothetical lease term
Property is fit and available for immediate occupation
All covenants have been observed by the LL or T
The property may be used for its purpose set out in the lease
what are the 3 usual disregards?
Effect of goodwill with tenants occupation
Goodwill attached to the property
Tenant improvement (if LL consent granted for it)
what is the hypothetical lease term
the lease term assumed for RR purposes
can influence rental value
how do you know the hypothetical lease term / what if it isnt mentioned?
will be in the RR clause
unless the wording is explicit then ‘assumption of reality’ - ie you the residual of the term is the assumed hypothetical lease term
Case law regarding hypothetical lease term?
Canary Wharf (Three) Vs The Telegraph Group ltd (2003)
Ritz Hotel vs Ritz Casino (1989)
What is time of the essence?
the presumption that time is not of the essence UNLESS there are sufficient contradictions stating otherwise
It will say in the lease if it is or isnt of the essence
key case law surrounding time of the essence?
United Scientific Holding vs Burnley Borough Council (1978)
More recently
Bello vs Ideal View (2008)
- LL initiated RR 13 years after RR date but court held time was not of the essence so was fine
Post rent review date evidence case law?
Segama vs Penny Le Roy Ltd (1984)
- transactions can be used as comps if after RR date
BUT
post rent review events (ie covid 19) cannot be taken into account
What is the order of the hierarchy of evidence and wh coined in?
Reynold and Fenshaw in the ‘handbook of rent review’
open market letting
lease renewal
rent review
independent expert
arbitration
court determination
hearsay evidence
etc
What is without prejudice save as to costs?
without prejudice = as mentioned before cannot be used as evidence for other party
save as to costs = if you go to 3rd party and it was decided your opinion/valuation should have ben accepted, the costs incurred in that time frame goes to the other party who didn’t accept that Calderbank originally
Which terms of the lease effect the rent review?
- Lease term
- Breaks / RR frequency
- Alienation
- User clause – if restrictive which means restricted to a certain use. This decreases rental value as restricted on type of occupier – by how much….it depends
Functions / purposes of without prejudice save as to costs?
gives my client some protection against the costs of dispute resolution
can focus attention of parties to reach an agreement
what is a calderbank letter?
Written letter open for unconditional acceptance
is used for dispute RR’s - either party can serve one
what must be included in a calderbank?
genuine offer to settle (rent)
clear terms set out
a reasonable time frame for the opposing party to consider their proposal (normally 3 weeks)
must be capable of unconditional acceptance
clear client approval
do you label calderbank letters with subject to contract
No
calderbank case law?
calderbank vs calderbank (1975)
can calderbanks be used for lease renewals and what other options do parties have for lease renewals?
Yes - generally drafted by solicitors (but not always/dont have to be)
BUT ONLY FOR PROTECTED TENANCIES
or party can use Part 36 from Civil Procedure Rules
Must get legal advice on which to use and should be drafted and served by solictor as more prescriptive - to win you also need to win on all the terms whereas calderbanks you just need to win on the rent
can you serve more than one calderbank offer?
yes, can send as many as you want
calderbank benefits over Part 36
- part 36 more legal and Calderbank is more flexible
- part 36 you have to win on all of the terms not just some of them
- potentially carry greater cost sanctions
how do you know what dispute resolution is for each instruction?
it will be stated in the lease and so will the role of the dispute resolver ie arbitrator or independent expert
how much does it cost to appoint an abritrator/indep ex via RICS DRS?
£425.00
Arbitrator vs independent expert
Costs
Legislation
Evidence
Appeal
Negligence
Disclosure
CLEAN’D
Both should be experts in the given field/area
what role can a surveyor have in dispute resolution proceedings?
can act as an advocate or expert witness
How do you know if the arbitrator has the right to award costs
Stated in the arbitration act 1996, so ALWAYS has power to award costs
What is the difference between advocate and expert witness?
advocate can provide an opinion on value, BUT the expert witness can
advocate duty of care to client (and tribunal) whereas expert witness is to the tribunal
expert witness cannot work on a success related fee basis, advocate CAN
advocate must be independent, unbiased, within expertise, truthful
advocate must act properly and fairly and not let integrity be compromised
How does the arbitrator award costs? / How does the arbitrator decides who pays?
Depends who wins the case
How do I know whos won?
A= Calderbanks
When you are negotiating, what do you mark your letters with?
Without prejudice = cannot be relied up on as evidence in arbitration/indep expert (NOT COURT)
AND
Subject to contract = as means it is not binding
BUT DO NOT PUT SUBJECT TO CONTRACT ON CALDERBANK
How would you work out the level of Calderbank to serve ie the rent figure / Is it market rent in your calderbank letter?
Usually not, it is used as tactics therefore leave some room for the negotiations
it is the minimum or maximum your client is willing to accept before 3rd party – its not a valuation figure.
So if acting for tenant you would submit a rent level in Calderbank below the nil increase level as arbitrator will award a rent.
Therefore, it would be best to ask for a nil increase, although in the submission your rental level may be well below that.
what are the contents of a RR memorandum?
name of LL and T
Property address
RR date
Lease date
confirmation of new agreed rent
signed and dated by both parties
can also be accepted via indep exp determination / arbitrator award OR written acceptance of a calderbank letter (NOT MARKET SUBJECT TO CONTRACT)
what is section 24 of the L&T Act?
Continuation of a protected tenancy
at end of business tenancy which is protected, the tenancy will not come to an end if T remains in occupation
will automatically renew on same terms until terminated
called continuation tenancy / holding over
what is section 25 of the L&T Act?
Landlord right to refuse or renew
Must be served not less than 6 months and no more than 12 months before the date of termination
cannot be before contractual expiry - ie the LL cant make the termination date before the contractual expiry
what is section 26 of the L&T Act?
Tenant request for a new business tenancy / notice to renew
The T can serve notice requesting a new tenancy beginning with a date:
- no more than 12 months
- and no less than 6 months after the mkaing of a request
**the request cannot be before the contractual expiry ie new term cannot start before current one expires
what is section 27 of the L&T Act?
Tenant notice to terminate a lease
What must the section 25 notice state/be
provided by competent landlord
be in prescribed form
must state if hostile or non-hostile (friendly)
if hostile = must provide grounds for refusal
if friendly = must provide terms for the new lease
what is the max term that can be granted under S25 notice?
15 years granted by county court
can be longer if parties agree to
what happens if you undertake lease renewal negotiations and you pass the date for a new lease/termination as specified in the notice?
tenant automatically loses security of tenure
UNLESS
new lease is in place
either party has applied to court
parties agreed in writing to an extension of deadline to apply to court for a new tenancy
what are the contents of S25 notice?
Name and address of L+T
Property address
notice of date to end tenancy
confirm whether lease is to be opposed or granted - if friendly add new terms, if hostile add grounds for refusal
a recommendation to seek specialist advice
confirm date by which the T must ask court for a new tenancy (unless parties agreed beforehand)
What must a section 26 notice be/state?
- in prescribed form
- must state T’s proposal for a new lease - included proposed rent
If a Landlord wishes to oppose a S26 by serving a S25 for refusal/new terms how soon must a counter be served?
Must be countered within 2 months
What does section 30 relate to?
Landlord ground for refusal of a new lease - 7 of them from A-G ie section 30a etc.
What are the grounds for refusal undert section 30?
a) Breaches in repairing covenant
b) Peristent delay in paying rent
c) Other covenant breaches
d) Providing alternative accommodation
e) Uneconomic Subdivision
f) Demolition / reconstruction
g) Owner occupation
Of the section 3o grounds - which are fault and which are non fault
Fault: (ie T breach of the lease)
a) Breaches in repairing covenant
b) Peristent delay in paying rent
c) Other covenant breaches
Non fault:
d) Providing alternative accommodation
e) Uneconomic Subdivision
f) Demolition / reconstruction
g) Owner occupation
if the Landlord refuses a new lease due to section 30f (demolition/reconstruction), what must they provide?
- proof of funding
- proof of planning
- proof of substantial work
- proof of necessity to gain Vacant Possession
- Proof of ability to redevelop provided VP is secured
- Firm intention
Which of the section 30 grounds can result in compensation to the T?
E,F,G
e) Uneconomic Subdivision
f) Demolition / reconstruction
g) Owner occupation
this occurs when landlord successfully opposes a business tenancy
How is the s30 compensation calculated?
Depends on the prior period of occupation
if >14 years - it is the rateable value of the property x 2
if <14 years - it is the rateable value
**the rateable value is taken at the date of the hostile S25 or S26 counter notice
T tenant needs to be in occupation at the the end of the current tenancy to be entitled to compensation –> T can lose right to compensation if vacates well ahead of the tenancy
When would tenant improvements not be disregared?
if over 21 years old
potentially also if LL did not provide consent for them
what section of the act regards terms of a new lease?
32-35
Must be at MR
Max term 15 years can be granted by country court - but parties can agree to longer if wish to
Case law regarding when one party in a lease renewal wants to introduce a change against the will of the opposing party?
O’May vs City of London Real Property CO (1982)
Any departure from current lease MUST be fair/reasonable
the party wishing to change terms MUST bear the burden of purusading court to change the terms must be party proposing the changes
changes will not be accepted if not reasonable
How long does the LL have to have held the interest / owned the building to have grounds for owner occupation?
5 years
What is uneconomic subdivision?
when LL has already sublet parts of the demise and it’s the subtenant who wants a new lease, but landlord may say no as I want to let it as a whole.
THIS IS V RARE as normally subtenants don’t have security of tenure
When does the new lease start if the lease renewal dispute goes to court?
3 months and 2 weeks after the court hearing
If lease renewal doesn’t go to court, how else can it be determined with by 3rd party?
PACT – professional arbitration on court terms – ie arbitrator deciding not a judge
If a lease renewal goes to court, when is the valuation date for the new rental level and when will the new lease start?
the valuation date of the new rent is date of court hearing
but lease itself starts 3 months and 2 weeks after date of the court hearing
what section of the act defines competent landlord and what is a competent landlord?
s44
Competent landlord is a freeholder or superior tenant with unexpired term of >14 months
is someone who can serve a notice and whom can be served a notice
what section of the act regards rent under a new tenancy?
S34
- must be agreed between L&T
- determined by court if cant agree
- should be that amount at which the property may reasonable be expected to be let at in the open market by a willing lessess
4 things to disregard
- any effect on rent of T occupation
- any goodwill in the tenant’s business attaching to the premises
- anyaffect on rent of T improvements - UNLESS undertaken as obligation by LL or over 21 years before date of application for new tenancy
- For licenced premises – any effect on rent of additional value because of the licence
what is interim rent?
the rent paid by T after expiry of contractual term (of 1954 protected lease) and before a formal lease renewal has been completed
IR is usually the same as the new rent in the new lease, for a renewal of the same demise where terms have not materially changed
UNLESS
demise has changed/terms have changed/significant market change between effective date of the IR and start of the new lease, it could be different to new lease rent
Same as the NEW rent in the NEW lease unless market conditions have changed significantly between the end of the previous tenancy and the start of the new tenancy! Or if there are differences in the lease terms.
when is interim rent triggered?
after serving of S25 or S26 notice and is payable from the earliest date specified in the notice
Only payable when the party makes an application to the Court for interim rent to be determined and a s.25/26 has been served
so it starts the earliest a notice could expire ie 6 months after notice but can’t start before contractual expiry. –>ie its either 6 months from serving notice (as that’s the earliest it can expire cos s25/26 must be served within 6-12 months) and cant start before contractual expiry.
The IR goes from then, until the new lease which is 3 months and 2 weeks after the court date.
what is section 40?
request for information by either party
so either can check exactly who is the competent LL or T
can serve during tenancy -> the other must respond within 1 month and if DO NOT then can be taken as breach of statutory duty
not limited to one, can issue multiple
what is the default dispute resolution mechanism for a lease renewal inside the act?
determination by County Court
alternative is PACT, subject to both parties agreeing
can you explain how the county court process works?
after service of a valid S25/26
one party (usually tenant) is required to apply to court for a new tenancy (issue proceedings) and then serve proceedings to the opposing party
court process:
- starts with pre-trial review (via phone/teams) where timescale for each stage of case is agreed
- hearing date is fixed and if matter goes to court, then lawyers/witnesses present a case
- county court orders new tenancy
Trial judge has discretion over costs
once decision make, T decides if what to take the lease or not on the terms ordered - cooling off period
What is PACT - dont define - just what is it?
- joint initiative by RICS and Law Society
- both parties must agree to it
- encouraged as an ADR mechanism for unopposed business tenancy lease renewals
- non rent issues = decided by solictor
- rent issues = decided by surveyor
- parties decide if resolver acts as abr/indep exp - can be appointed by RICS DRS or by application to law society
Benefits
- cost
- speed
- quality of decision making
- more flexibility and control
What are some of the proposed changes to the L&T Act 1954
Review of Part 2 in March 2023
Aim: ensure part 2 works with today’s commercial leasehold market
Next steps likely stated to be in mid/late November
what section of the act regards interim rent
24a
what is section 29 of the act?
Order by court for new tenancy
what section of the act regards terms of a new lease?
32-35
*34 basis of valuation for new rent
what is section 34 of the act?
Basis of valuation for the new rent
what section of the act regards compensation?
section 37
what section of the act is in relation to contracting outside the act?
38a
what is section 40 of the act?
Notice requesting info about the other party
what is section 44 of the act?
defines a competent landlord
Why would a letting be contracted outside the security of tenure?
- requirement of the headlease to grant any sublettings outside the act
- LL wants to reoccupy in due course
- LL wants to redevelop property at lease end
- LL wants future flexibility
- rent may be lower
what happens at lease end for leases outside of the security of tenure
T has not stautory right to remain in occupation
No compensation is payable
LL must ensure premises is vacant OR ensure new lease is in place at expiry
**IF LL accepts rent, a protected tenancy may be created so need to be careful
how does a LL avoid a T claiming statutory protection when contracting out but wants to grant a new lease?
can provide tenancy at will whilst
why should the LL not collect rent until the new lease is completed (for outside act leases)?
as acceptance of rent can lead to a protected new tenancy
what is the procedure for contracting outside the security of tenure?
LL must serve notice on prospective tenant, warning the lease will not be protected (called a health warning)
proposed T must make declaration in response, confirming receipt of notice and accept its terms
above MUST be done before lease is signed
what are the two types of declaration when contracting out?
simlpe declaration - given when parties have at least 14 days prior to committing to lease
statutory declaration - given when parties have less than 14 days prior to committing to lease
what are the ways to terminate a lease?
Forefeiture
surrender and negotiation
merger
break clauses
lease expiry and service of notices
what does contracting out mean (in relation to lease renewals)
the L & T agree to not include the security of tenure provisions provided by the 1954 Act.
What do you have to have for a protected lease?
Holding
Exclusive possession (otherwise you have a licence)
business tenancy
occupation for at least 6 months
pays rent
if a lease is silence then generally it is protected, if it is not protected it will state its not protected/excluded
How do you know if a lease is protected
If a lease is silent, then generally it is protected, if it is not protected it will state its not protected/excluded
Can independent expert have power to award all costs?
is possible but rare, would state it in the lease if so
So if you served your S26 for a client, and the LL didn’t serve counter notice, what else does the T have to do to make sure they retain security of tenure / before the notice expires.
Have to apply to court prior to expiry of section 26, or agree to extensions of timescales – otherwise will lose security of tenure.
Serving the S26 itself is not sufficient, you HAVE to apply to court prior to expiry of that S26 (either LL or T can apply to court but T must make sure that application has been made – you apply to court via a solicitor (same case for S25)– THIS IS FUNDAMENTAL
- be in occupation when served notice.
- must be a business tenant.
- Must be in occupation for at least 6 months
for your rent review L2 in Southbank was it and arbitrator or independent expert? Would you have preferred independent expert or arbitrator?
Arbitrator
I would have preferred an arbitrator as my client was a tenant and it was a rising market. As an arbitrator only looks at the evidence provided it would provide better chance of the rental value not increasing.
In rising market LL would prefer indep exp as they can undertake own investigations which would likely demonstrate a rental increase.
What is included on a DRS1 form?
Property address
Lease info e.g date and RR date, passing rent,
whether it is for an arbitrator or independent expert
information of both the LL and T e.g name, address, email
the adviser details as above too for both the LL and T
And any COI, if any
Is there any point serving a calderbank if the resolver is an independent expert?
Yes - if they can award costs, even if its just their own
NO - if they have no power to award costs - would be better off serving an open negotiation letter
THEREFORE check first if the Indep Exp has the right to award costs (in lease). if they do, then it’s appropriate to serve the Calderbank. If doesn’t have rights to award costs, then the Calderbank doesn’t really mean anything
For your lease renewal in Cambridge Heath, how long before the lease renewal were you appointed on this?
12 Months
So in your lease renewal in Cambridge Heath, you said you were instructed 8 months before the lease renewal date, what did you need to know from the tenant when you were first appointed
There objectives:
Which were to stay in occupation
at a reduced rent or passing rent
for further 5 years
What advise did the firm give on that? re lease renewal in Cam Heath given my clients objectives?
Advised on market conditions informing client a lower rent should be achievable so a section 26 notice should be served
So for Cam Heath lease renewal did you serve a 6 or 12 month notice?
Served S26 with 6 month notice
why did you serve a 6 month S26 notice
the tenant wanted to rent to be settled as soon as possible as they were a proactive client
why did your client want to renew for Cam Heath?
Liked the location and the building and were put off by the monetary cost of moving and the impact on staff
what would be considered as an onerous clauses in a RR clause?
User clause - can be restrictive
Restrictive alienation - ie assign/sublet - ie absolute alienation clause
repairing
could be something to do with hypothetical lease term
why did you make yourself familiar with the DRS form in your Southbank RR?
This was because the landlord’s advisor was making negotiations tough, therefore, I looked up the form and familiarised myself with it incase it went to arbitration. Then, save as to costs, I wrote a calderbank letter because if it does go to 3rd party than I have banked my position on the letter to get costs back if did go to arbitration. However, the calderbank was then agreed at nil increase meaning there was no need to look into arbitration/DRS1 form.
What are the benefits of being inside the act (for lease renewal)
provides tenant with security of tenure so when lease comes to end they can continue on that lease and hold over / continue their tenancy
What happens if the tenant didnt want to renew their lease?
serve 27
If LL beat me to it and wanted me to renew, they could serve a S25.
what terms did you serve your S26 on.
5 year term
below current passing rent
LL wanted it to be at passing rent
why did you advise your client to serve S26 as oppose to waiting for S25 to be served?
My client was proactive and property was overrented and therefore wanted to agree new term.
As market was rising so wanted to agree asap before rents rise even further.
Why was the Bichard review carried out?
- clarify purpose of RICS to act for public advantage
- make reco’s on governing structure
Outcomes of Bichard Review?
- recruited new management board
- recruited new S&RB
- elected new GC
- RICS agreed to adopt all the BR reco’s
- RICS recruited DEI and Sustainability panel chairs
- maintain self regulation via greater independence
- increased focus on DEI
- empower members via support for regional boards and more focus on young members
- undertake review on governance structure and its effectiveness every 5 years
- show greater leadership on key issues e.g sustainability and climate change
what is the RICS future foundations
5 future foundations published in Nov 2023 follwing BR
Vision - sust built enviro for all
Mission - inspire, advanca knowledge and uphold standards
Values -professional/ collaborative / inclusive and ambitious
Strategic Goals - lead on sust, diversity, trust in profession, enhance member value/engagement
A word class organisation -
rics rules for the regulations of firms 2022 - what does it include?
if no RICS members in firm cannot register
if at least 25% of principals are MRICS then can register
if 50% of principals are MRICS then MUST reigster
what is a principal
sole practitioner
leadership position
board member
director
partners
someone who can act autonomously
what does Appendix A say in RoC?
Sets out professional obligations for RICS M&F
Members:
- comply with CPD
- cooperate with RICS
- provide all info requested by S&RB
firms:
- cooperate with RICS
- provide all info requested by S&RB
- publish CHPP
- all current and previous work covered by appropriate PII
- If sole princiapl have locrum in place - ie someone to replace you if absent for any reason
- designation to denote they are regulated - in accordance with RICS
- report to RICS any matter they are required to report under
Why is the RICS responsible for regulating the surveying profession?
To:
- protect public
- uphold public confidence in the profession
- uphold professional standards
what can trigger a disciplinary procedure?
- someone complaining to RICS
- an allegation by client or 3rd party
- because of info received or established to the RICS
not all shortcomings result in disciplinary procedures
what does the RICS Regulations Decision Making 2022 do?
out lines regulatory approach by RICS of regulated members, non-members and firms
what are the 3 levels of disciplinary procedure?
Action by head of regulation
Disciplinary Panel
Appeal Panel
what is the first stage of investigation of disciplinary action?
investigation by Head of Regulations - nigel clarke
he can then initiate one of 4 actions:
- serve fixed penalty notice
- make RCO
- refer matter to single member of Regulatory Tribunal
- refer matter to disciplinary panel
what is a fixed penalty notice?
breach of rules
relating to supply of into to RICS by M/F
= fine or caution
what is an RCO
regulatory compliance order
low level breaches of rules e.g. minor breach that can be easily corrected
is a written doc outlining actions to take or stop taking over time period
AND fine
e.g failing to undertake appropriate CPD - but this can lead to expulsion ie in the case with Jacob Lunding who in 2024 was expelled for failing to do CPD for 2 years
what actions can be undertaken by a disciplinary panel?
for more serious breaches
Head of reg can consider hearing
membership of DP includes lay members
penalties to a Regulatory Tribunal Disciplinary Panel can penalties inc:
- issue RCO
- Reprimand
- fine
- unlimited fine per breach (proportionate)
- impose conditions on future RICS registration
- expel M/F
- publish hearing results to website, Modus mag or local news paper
what is the appeal panel?
considers M/F appeal
membership inc lay members
review evidence previously presented and any new evidence
can vary penalty first imposed
what penalties can the disciplinary panel impose?
- issue RCO
- Reprimand
- fine
- unlimited fine per breach (proportionate)
- impose conditions on future RICS registration
- expel M/F
- publish hearing results to website, Modus mag or local news paper
define professional standard?
set of requirements / expectations for RICS M/Fs
include mandatory requirements using ‘must’
AND
recommend best practice using ‘should’
define practice information
supports
can include good practice/info/insights
DO NOT CONTAIN ADVICE
define RICS Practice alerts
web page published in aug 2023
alerts M/F to emerging areas of risk e.g for expert witness shortfalls
cans/should be’s for fee negotiations?
ad hoc
market based
healthy competition encouraged
must be completley transparent w client
cants for fee negotiations?
price fixing
aggressive fee cutting
collusion w competitors
can you amend your initial fee proposal?
yes, you can enter into further negotiations if you have submitted initial fee but must act in a professional manner
can also vary level of service but still have to provide high standard of service
what is informed consent
buzzword for COI q’s
= consent given willingly by a party who may be affected by
a Conflict of Interest
sought only when surveyor satisfied proceeding despite COI is in interests of all those affected
only given in writing by party
how to handle a COI
conflict avoidance = decide to accept or decline
if accept
wrriten advice to both parties = inform both parties of nature of conflict, be clear and request written informed consent
then…
conflict managemet = set up info barrier with provisions agreed
what does the prof standard say re COI and what are the other key parts of the prof standard COI 2017
- mandatory
- members not to advise where COI or significant risk, unless got informed consent
- all 3 types of conflict
- record keeping
- party conflicts
- informed consent
- info barriers
other key parts
- all conflicts managed in accordance to the prof standard
- every rics firm must have systems and controls appropriate to size / complexity of their business (ie BAIT)
- all firms must keep records
define multiple introduction
when agent has competing contractual relationships with severy buyers for CRE investment opps
when client appoints agent can be on exclusive or non-exclusive basis - confirmed in TOE
if exclusive = cannot act for anymore clients
if non-exclusive = agent must get informed consent to act for another buyer
define incremental advice
where agent approached by another party to provide advice inc vals/ BS / planning related to purchase/disposal
e/g agent acting for seller is approached by buyer to value that building - can only do with informed consent
why were the rules of conduct brought in and what did they replace
make them simpler for professionals and the public by building the rules on ethical principles
combining the requirements for members and firms.
replaces:
- Rules of Conduct for members,
- Rules of Conduct for firms
- global ethical principles.
what is your firm’s complaints handling procedure?
- apologise to client and inform them they can speak to the partner in charge of the instructio, or the CPO (George Roberts Head of UK&I)
- acknoweldged in 7 days
- investigated in 21 days (rics 28 days)
- If not satisfied with outcome of how we handled the complaint
- then may refer to one of following ADRS: RICS DRS
Property or Financial Obudsman Services”
What does the RICS Bye Laws state?
that confidentiality must be maintained for all client affairs - historic and current
if there’s a complaint that could lead to negligence claims what do you?
inform PII insurers
CPH when handling a complaint?
stage 1 - in house
stage 2 - ADR - 3rd party resolution
stage 1: issue CHP details when receive valid complaint, acknowledge in 7 days and investiagted in 28 days
stage 2: if not satisfied with the complaint handling, use independent redress scheme chosen by firm e.g RICS DRS
how does negligence arise
duty of care breached > loss > damages claim arises
case law on negligence?
Yianni vs Edwin Evans (1981)
this case established that a resi valuer instructed by mortgagor lending institution could owe duty of care in tort to a mortgage purchaser who is relying on valuation
how to reduce/avoid negligence claims?
understand clients objectives
ensure competence
undertake work in accordance with rics guidance
up to date on legislation / knowledge and CPD
make detailed notes and take photos
cap professional liability excess on PII policy in TOE
Limitation Act 1980?
provides periods for negligence
contract - 6 years from date of negligent act
tort - 6 years from date the claimaint suffered the loss
tort = breach of duty, not of contractual agreement
contract = breach of contractual agreement
what is PII and what does it do?
Protects surveyors, clients and 3rd parties from negligence claims where duty of care is breaced and claim for damages arises.
RICS Regulation PII Requirements 2024
All members must ensure adedquate/appropriate levels of PII for each instruction and all policies underwritten by RICS approved insurer ie AXA/AIA/Aviva
levels of PII required by RICS?
min based on turn over
£100k = £250k
£100,001 - £200k = £500k
£200,001 + = £1m
its the min level of indemnity required for each and every claim
what is uninusred excess and what is the RICS levels on this?
this is the part of the sum uninisured - ie the part the firm is responsible to pay out
if indemnity is:
up to £10m - then its 2.5% of the sum unisured or £10k
if £10m+ - no set limit
= the amount of money you pay towards an insurance claim when your policy doesn’t cover the cost, or when you have to pay your own excess
PII policies need to be retoractive - what does this mean?
retroactive by definition just means taking effect from a date in the past
so retroactive PII policies mean policies cover claims that are made during the period of insurance, regardless of when the negligent act occurred
what is run-off cover and what are the leves required from the RICS?
= insurance following cessation of trading
insurance that protects against claims made after a business has closed, an individual has retired, or a professional has stopped practicing
must be adequate/appropriate
for consumer claims = min £1m of aggregate cover for 6 years
for commercial claims = firm decide amount, for 6 years
if firms are unable to get run-off cover from incumbent insurer what do they do?
apply for coverage from RICS Run-off Pool
is PII needed for pro-bono (unpaid) work?
Yes
what can M/F do if cannot arrange cover?
RICS Assigned Risk Pool is available at a cost
what does the RICS Pratice Informtion - Risk, Liability and Insurance (2021) cover?
recommends use of liability caps
make it clear that advice can only be relied upon by the client named in TOE
what is the RICS guidance on client money handling?
RICS Prof Standard: Client Money Handling
sets out 6 main areas of good practice
what are the 6 main areas of good pratice in RICS Prof Standard: Client Money Handling
A CHIRP
Accounting records and controls
Compliance
handling client money
Provide information to clients
Receipts of client money
Payments from client accounts
what are the key procedures to be aware of in RICS Prof Standard: Client Money Handling
1) client accounts seperate and identifiable
2) word client on check book and bank account
3) account for single client only
4)payment of interest agreeed with clinet
5) 2 signatories of authorised personnel
6) Money can be withdrawn if required
7)firms handling client money must publish clients money handling procedure on website
8) clients must be able to get monies on request
8)keep accurate records
opening a firm that is non rics
Registration with HMRC
Equality Act 2010 complinace - e.g offices
Bribery Act 2010 compliance
H&S compliance
Register for data protection
Ensure compliance to current employment law ie min wage, gender pay gap reporting
what to do when closing a practice
inform RICS
inform insurers and arrange run off cover
inform clients and of the hand over process to new firm
return monies held by clients to their own accounts
retain copy of files for 6 years
what is the aim of the bribery act and what does it state?
aims to reduce bribery in business in UK and abroad
sets out 4 offences of a bribe and
the 6 key principles
states firm responsible for corrupt actions of employees - unless can show adequate policies to combat bribery
does the bribery act permit hospitality?
states hospitality/other low value business expenditure is acceptable and key part of doing business - as long as it is to genuinely promote and improve firms image and must be registered by the firm
certain lavish corporate entertainment can be bribery but hospitality not prohibited - must be reasonable and proportionate and must be logged in firms gift register
6 key principles in birbery act
communication
monitoring and review
proportionality
top level commitment
Risk assessment
due diligence
4 offences in the bribery act 2010
bribing
receiving a bribe
failing to prevent a bribe
bribing a foreing public official
what is a bribe?
the promsing, offering, giving or receiving of an advantage e.g payment/gift for an action which is illegal or a breach of trust
bribery penalties
10 years prison or unlimited fine
unlimited fine for firms
Policed by serious fraud office
what is the regulations regarding Money laundering?
Money Laundering, Terrorist Financing and the Transfer of Funds Regulations (2017) as amended 2023
ML = when proceeds of criminal activities are disguised/converted into legitimate assets
regs cover EA work
what are the key provisions of Money Laundering, Terrorist Financing and the Transfer of Funds Regulations (2017) as amended 2023
- have written ML/TF RA
- implement systems, controls, procedures to address ML and TF
- internal controls
- staff training
- comply with CDD and EDD requirements
- compy with requirements relating to PEPs
- ensure record keeping
- AML checks required to identify proposed purchaser of property and chcek source of funds before contracts exchanged
- include high risk factors when assessing need for EDD and seek extra information and monitoring in certain cases ie high risk third countries
What are the estate agents obligations in relation to the Money Laundering, Terrorist Financing and the Transfer of Funds Regulations (2017) as amended 2023?
- Requires letting agents to register with HMRC if let indiv properties for >€10k pcm = £6,666 pcm
- Indivivs and businesses need to be approved by HMRC in order to trade
- undertake CDD checks on vendors, purchasers, L & T’s on new sales and any letting or reletting (>€10k pcm)
- EDD checks if red flags occur ie involving high risk countries or non face-to-face business relationships
- limit of €10k cash acceptance
- detailed record keeping required
- senior member takes responsibility for compliance
- ML Reporting Office is nominated and reports suspicions to Suspicious Activity Report to National Crime Agency
- firm maintains records for 5 years
- firm must report any discrepancies between info recieve and that on Companies House to Companies House
when do agents have to undertake CDD and EDD checks
CDD = all new sales and any letting and reletting - vendors/purchasers/LL&T
EDD = if red flags occur
firms must have policies to scrutinise transactions which are?
complex/unusually large
no economic/legal purpose
unusual patterns
what is CDD and how do you undertake it?
customer due diligence
- identify client and verify identity via independent source e.g passport/ driving licence
make reasonable endeavours to identify benefical owners of client - if cant - check persons of signficant control register on companies house
what CDD do you need for a company?
name
company address
company number
names of directors (unless listed on regulated market ie LSExchange)
info on purpose and intended nature of business
what is EDD and when would you undertake it
enhance due diligence
= additional procedures required for any transaction/business relationshio involving
- high risk third country e.g iran/syria/haiti
- PEP or PEP family member/business associate
basically just requires additional evidence and monitoring
what is a PEP?
politically exposed person
someone entrusted with prominent public function
presents higher risk for bribery/corruption given their position and influence
what are some other key requirements of the
what are the ML penalties?
max 14 years prison +/or unlimited fine for assisting in ML
max 5 years +/or unlimited fineif tip someone off they are being investigated for ML
typical requirement for ML checks for CDD for public limited company?
london stock exchange listing
typical requirement for ML checks for CDD for publicly accountable body?
Govt ownership / control
typical requirement for ML checks for CDD for privated limited company?
full name
registered office
registered number
business and adress
name of directors and shareholders with 25% or more holding
identification of higher risk client
typical requirement for ML checks for CDD for private individual?
copy of valid passport/drivin licence (with photo)
copy of bank statemnt, credit card bill showing evidence of address - not more than 3 months old
what are some red flags?
paying fees in unusual currency
inability/unwillingness to provide identity documents
unusual transaction features e.g. unexpected urgency or unusual transaction for that client
changes to parties involved in transactions
Sanctions and AML Act 2018?
wider sanctions issued in light of geopolitical activities in Ukraine for example
HM Treasury Office for Financial Sanctions (OFSI) provides updated list of countries, companies and individuals with financial sanctions
what is the Proceeds of Crime Act 2002?
gives enforcement authorities more power to recover criminal proceedings in UK
creates set of 3 criminal offences:
- concealing - criminal property
- arrangements - if involved in arrangement you know/suspect facilitates use of criminal property
- acquisiton, use and possession of criminal property
what is the Economic Crime (Transparency and Enforcement) Act 2022
inc measures for beneficial ownership register of overseaes entities owning property in UK
strengthens investigation powers
allows easier prosecution
what is the RICS guidance surrounding bribery / ML etc?
RICS Professional Standard: Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
sets our mandatory and globally applicable requirements in relation to above things
3 parts:
Part 1: Mandatory requirements for B,C and ML &TF
Part 2: Guidance - good practice
Part 3: Supplementary Guidance
what are the mandatory requirements re bribery and corruption in RICS Professional Standard: Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
RICS Firms must:
Bribery
- not accept/offer something that could constitute a bribe
- procedures to comply with law
- report suspicion
- act with DD
- perform written evaluations of risks firm faces
- retain records to show they’ve met requirements in the prof standard
what are the mandatory requirements re ML & TF in RICS Professional Standard: Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
mostly same as bribery
Corruption
- not facilitate / be complicit in ML & TF
- procedures to comply with law
- report suspicion
- perform written evaluations of risks firm faces
- retain records to show they’ve met requirements in the prof standard
all same as above
different ones to B/C
- use 3rd party reliance where u trust that 3rd party’s information
- understand client and purpose of instruction
- verify client using ID checks
key H&S Acts?
H&S at work Act (1974)
Corporate Manslaughter and Corporate Homicide Act (2007)
Smoke Free (Premises and Enforcement) 2007
RIDDOR (2013)
Construction Design and Management (CDM) Regs (2015)
Fire Safety Act (2021)
PPE at work regulations (2022)
name some of the IVS in RBG
IVS 101 - Scope of Work
IVS 102 - Investigations and Compliance
IVS 103 - Reporting
IVS 104 - Bases of Value
IVS 105 - Val Approach and methods
103-105 exact same as VPS 3-5
are you aware of any updates incoming for the red book (RICS Valuation - Global Standards)
yes, consultation for new RBG occured in September this year
likely to be published November 2024 and will be effectice 31 Jan 2025
unconfirmed details but likely to include changes such as:
1) increased focus on sustainability in vals
2) increased focus on automated val models
3) increased encouragement for DCFs
has there been any new RICS guidance regarding property agency?
Yes in October 2024
RICS published new Professional Standard called ‘Property agency and management principles’
Key areas:
- openness / transparency
- protect consumers
- enhance reputation of industry
- stems from RoC
Structure
- Intro
- Working with clients - ie unbiased advice, perform obligations, dont accept instructions beyond expertise
- managing buisness and staff
how does C&W comply with the Data Protection Act 2018
- secure VPN
- password protected files
- 2 factor authentication for phones and apps on phone and laptop
- password change for laptops every month
- Training for staff
if asked on green leases for 6 ramillies?
say this:
- say u understand their importance and increasing popularity
- scale of floor, small and fitted suite, wasnt achieving best ESG credentials, typical occupiers we target were not seeking best in class ESG properties.
infomed client too but we not keen to implement - i advised but they didnt want it
