APC Success Resi Flashcards
- Tell me about the money laundering regulations 2017?
b. Agents must register with HMRC if they let properties for 10,000 Euros or more
c. Firms must have policies to identify and scrutinise unusually large transactions or transactions without apparent economic or legal purposes
d. A money laundering reporting officer must be nominated and they must report any suspicions with a SAR to the National Crime Agency data
- Tell me about the Economic Crime Act 2022?
a. Includes measures for:
i. a beneficial ownership register of overseas entities owning property in the UK
ii. making it easier to prosecute anyone involved in sanctions-busting, including those unaware that they were involved in such activity
- Tell me about the RICS anti-money laundering sanctions update, Feb 2022?
a. Advice for RICS members as to how to have regard to sanctions as a result of the Ukraine conflict
b. Informs all RICS members to be aware of the latest UK sanctions list and check regularly on Government website for updates
- Tell me about the RICS Professional Statement – Home Survey Standard 2019?
a. Came into effect March 2021
b. Establishes a framework that sets minimum expectations to protect and maintain consistent high-quality standards for resi property survey services that RICS members and firms provide
c. Says RICS members must be familiar with type of property to be inspected and the local area
d. States that equipment taken should include recording equipment, measuring equipment, access equipment and H&S equipment
- Tell me about Home Survey Level 1?
a. For conventional properties and newer homes
b. Professional and objective report on property condition
c. Visual inspection, less extensive than level 2 & 3
d. Doesn’t include repair advice
e. Traffic light ratings of the condition, setting out details of any problems
f. Summary of risks to the condition of the property
- Tell me about Home Survey Level 2?
a. Similar structure and format to level 1. But proves more info
b. Extensive report assessing main elements of the building
c. Includes a list of problem areas that the surveyor may consider may impact value and advice on repairs and on-going maintenance
d. Advice on legal issues that need to be addressed and also included
- Tell me about Home Survey Level 3?
a. Appropriate for older properties or properties in disrepair
b. Also appropriate if planning building works
c. Detailed assessment of the property, its grounds and its services
d. Thorough inspection and detailed report on wide range of issues with a description of visible defects and potential problems
e. Includes advice to legal advisor and details of risks and dangerous conditions and maintenance advice
f. May provide indication of approximate costs of works required if instructed to do so
- Tell me about Hart v Large 2020?
a. Residential survey negligence case
b. Surveyor was negligent and didn’t advise the Harts that further damp proofing investigations were required and that they needed an Architect’s certificate for the extension that had been carried out by the vendors
c. They would not have completed had they known this info
d. Court advised that “Surveyors need to consider their duty to recommend a full building survey where it becomes apparent, during an inspection, that the cheaper option of a HomeBuyer report is not suitable”
- Tell me about RICS Guidance Note: Valuation in properties in multi-storey, multi-occupancy residential buildings with Cladding, March 2021 (Updated March 2022)?
a. In response to Grenfell, RICS introduced EWS1 Forms in December 2019
b. Main cladding materials considered are:
i. Aluminium cladding material (ACM)
ii. Metal composite material (MCM)
iii. High pressure laminate (HPL)
iv. Timber cladding
v. Metal sheet panels
c. This guidance note includes suggested wording for valuation reports
d. This guidance note was updated in March 2022 to reflect latest government advice on what requires an EWS1 form
e. RICS provides a decision tree to follow for valuers to decide whether a form is needed (see below)
- Tell me about Houses in Multiple Occupation?
a. At least 3 tenants live there, forming more than 1 household.
b. You share toilet, bathroom or kitchen facilities with other tenants.
f. 30 min fire resistant doors to main routes are required
g. Protected fire escape routes are required
h. Need a license from your local authority
i. License needs to be renewed every 5 years
- Tell me about the Deregulation Act 2015?
a. This act introduced new requirement for a landlord to comply with to serve a section 21 notice – can only be served after a minimum 4 month tenancy
b. Section 21 notice is needed every time a new term is agreed served in the prescribed form
c. An EPC should be provided to every prospective tenant at the point of enquiry about the property
- Tell me about recent Taxation changes?
a. Councils can give discounts for vacant homes, single occupation and holiday homes
b. This is topical as many local authorities are not proposing/setting increases for second homes
c. No VAT is payable on acquisition or sale of a residential property (It will only apply to costs incurred in connection such as professional fees)
d. Non-UK resident companies are not subject to corporation tax on their UK rental income (From April 2020)
- Tell me about RICS Professional standard – Valuation of individual new build homes, 3rd edition, 2019?
a. Effective December 2019
b. Assists RICS members in achieving a consistent approach to the valuation of new-build property
c. Covers properties that are of new construction, a conversion or a property that has undergone a comprehensive renovation
- Tell me about RICS Guidance Note – Valuation of land for affordable housing (2nd edition), 2016?
a. Released April 2016
b. Assists RICS members in the approach to valuing affordable housing development land
c. It covers:
i. What is affordable housing?
ii. Assesses development potential
iii. Valuing by comparable and residual method
iv. Establishing the GDV
v. Section 106 affordable units
vi. Establishing development costs
vii. Establishing land value
viii. Reporting the valuation
- Tell me about RICS Guidance Note – Leasehold Reform in England and Wales (3rd edition, 2015)
a. Released April 2015
b. Assists valuers in the provision of leasehold reform valuation advice whether they are acting for the freeholder, intermediate landlord or tenant
c. It covers:
i. Leasehold reform legislation
ii. The tenant’s rights
iii. General provisions
iv. The valuer’s role
v. The valuation principles
