RICS Guidance / Statements

Question 1

What is the RICS Guidance on Comparable Evidence?

Answer 1

RICS Guidance Note on Comparable Evidence in Real Estate Valuation (2019)

Hierarchy of Evidence
A) - Direct
B) - General
C) - Other sources

Question 2

What does the RICS Guidance note on Risks, Liability and Insurance cover?

Answer 2

Understand risk in transactions
- Risk management strategies
- Examining Liabilities
- PII cap
- Informed about legal requirements

Question 3

What is the RICS guidance on safety?

Answer 3

RICS guidance Note Surveying Safely 2018
- Good practice principles for management of health and safety
- Personal responsibilities
- Hazard & Risk assessment (hierarchy of risk control)
- Safe Person concept (Assumes responsibility for their own and others health and
safety)

Question 4

What is the guidance on Money Laundering?

Answer 4

RICS Guidance Note Countering Bribery, Corruption, Money Laundering and Terrorist Financing
- Enhanced Dude Diligence
- Identify beneficial owners and source of funds
- Obligation to report suspicions
- Training internal controls, risk assessment, regulatory compliance

Question 5

What is the IPMS?

Answer 5

International Property Measurement Standards 2023
- All buildings but not fully integrated yet
1. External (Whole/part of building)
2. Internal (Whole/part of building)
3.1 External (Occupier)
3.2 Internal (Occupier)
4.1 Internal walls / columns (select area)
4.2 Excluding internal wall / columns (select area)

Question 6

What is the current measurement standards?

Answer 6

Property Measurement Standards 2018
- Incorporates IPMS for Resi + Offices
Relates IPMS to Code of Measuring Practice
Measurement from the Internal Dominate Face

Question 7

What is the Code of Measuring Practice?

Answer 7

• GEA, GIA, NIA
• NIA excludes common areas, internal walls/columns, headroom under 1.5m
• GIA (for resi valuation) excludes headroom under 1.5m, garages, terraces
• Net sales area – sum of GIA for multi-occupancy resi
• ITZA and effective floor area

Question 8

What is the Levitt Review 2021?

Answer 8

• Investigation into the treasury management
• Board members had been taking funds
• Claims of financial misconduct

Question 9

What is the Bichard Review?

Answer 9

Followed from the Levitt Review
- Independent review into RICS Purpose, governance and strategy

Key Recommendations
- Increase focus on public interest
- Increase diversity and inclusion
- Independent governance review every 5 years
- New governance structure with standards and regulation review
- Greater leadership on global issues such as climate change and sustainability

Question 10

What is the Hackett Review?

Answer 10

Review into building fire regulations and fire safety following Grenfell

Recommended
- New Regulatory Framework for high-rise residential buildings
- Clear roles and responsibilities for duty holders
- Improved fire safety systems and testing

Question 11

What is the Valuer Registration Scheme?

Answer 11

Scheme which requires anyone providing Red Book Valuations to sign up to
- Launched in 2010

Provides:
- Accountability
- Consistency
- Standards

Valuation are audited

Question 12

What is the RICS guidance note on residential blocks?

Answer 12

Valuations of Multi-story, multi-occupancy Residential Buildings with Cladding

To understand when an EWS1 for is required in valuation
EWS1 valid for 5 years

When is an EWS1 for needed,
Above 6 stories if there is:
- Cladding
- Curtain walling
- Stacked timber balconies

5 - 6 stories of there is:
- More than 25% cladding
- Stacked timber balconies
- Combustible materials

Under 4 stories if there is:
- Combustible cladding

Question 13

What is the RICS Professional Statement for Agency?

Answer 13

RICS Professional Statement UK Residential Estate agency or the Blue Book

Code of practice for marketing residential properties
- Compliance with legislation
- Standards & Ethics
- Conflicts
- Truthful Marketing
- Duty of care

Question 14

You mention conflicts of interest, what is the RICS guidance on this matter?

Answer 14

RICS Professional Statement Conflicts of interest 2017
- If conflict exists not advice can be given unless there is informed consent in writing
- Informed consent can only be gained if it is in all parties interest and not legally
prohibited
- If informed consent is given make sure appropriate information barrier and records
are kept

Question 15

What is the Data Protection Act 2018?

Answer 15

Seeks to empower individuals to take control of their personal data and support organisation with the lawful processing of their data

7 Principles:
- Lawful
- Accurate
- Data minimisation
- Purpose limitation
- Storage limitation
- Security
- Accountability

Rights under the act:
- To be informed
- Access
- Erasure
- Rectification
- Restriction
- Data portability

Question 16

What is the Environment Act 1990?

Answer 16

Governs waste management controls
&
Relevant to the disposal of Japanese Knotweed

Question 17

What are the regulations governing Money Laundering?

Answer 17

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017

Firms must have:
- Written risk assessments
- Internal controls
- Staff training
- CDD & EDD if red flags
- Record keeping
- AML Checks
- letting agents letting over eu10k a month must register with HMRC for VAT

Penalties
- 14 years in prison
- 5 years for tipping off a client

Question 18

What is the Tenant Fees Act 2019?

Answer 18

Reduced fees on tenants no fees for:
- Admin
- Referencing
- Viewings

Holding deposits is max 1 weeks rent

Tenancy deposits
- Up to £50,000 p.a. = 5 weeks rent
- Over £50,000 p.a. = 6 weeks rent

Question 19

What are the immigration acts and why are they important?

Answer 19

Immigration Act 2014
- Right to rent checks are mandatory for all applicants
- Strengthened immigration control and reduces public service abuse
- Expanded detainment powers

Immigration Act 2016
- Expanded on data collection
- Port power searches
- Penalties for employers hiring illegal workers

Question 20

What is the Health and Safety at Work Act 1974?

Answer 20

It is legislation that is used to enforce Health and Safety compliance in the work place for employers
- It is policed by the Health and Safety Executive
-Employers / employees must report injuries and dangerous occurrences (RIDDOR
1995)

Penalties
- Fines or imprisonment

Question 21

What is the Deregulation Act 2015?

Answer 21

Ended retaliatory evictions following legitimate complaints

Enforced stricter rules on Section 21 Notices
- Cannot serve S.21 Notice within first 4 months of tenancy
- Court process must be started by LL within 6 months of serving S.21

Question 22

What is the main legislation governing Estate Agency?

Answer 22

The Estate Agents Act 1979

Governs a set of rules which estate agent must follow in the publics best interest

7 Principles
- Clarify terms and agency (S.18)
- Honesty & Accuracy
- Upfront with Fees , Liabilities and costs
- Conflicts aired quickly (S.21)
- No discrimination
- Offers into the vendor/LL promptly and in writing
- Clients money is kept separate

Question 23

What does the Building Safety Act 2022 cover / introduce?

Answer 23

It followed after extensive review from the Hackett Review
- Many people argued over who was liable to pay for remedials

Introduced
- New Building Safety Regulator responsible for securing safety of people in or about
buildings and improving the standards of the buildings
- Developers obliged to fund unsafe cladding removal
- Leaseholder can monitor works through online portal
- S.38 of the Building Act 1984 in place to enforce leaseholder claims for breaches of
the buildings regulations which cause physicals damage

Question 24

What is the Control of Asbestos Regulation 2012 and what did it introduce?

Answer 24

Down to the Duty Holder to conduct risk assessments and update the asbestos register

Two Types of Survey
- Management - (Non invasive, monitors condition and seeks no change)
- Demolition - (Removal and lab testing)

Sets out five steps for management:
1) Duty holder Survey
2) Management Plan
3) Asbestos register
4) Register available to all who want to view/distribute
5) Review every 6 months

Question 25

What is the Regulatory Reform (Fire Safety) Order 2005?

Answer 25

Covers non-domestic property risk assessments

Idea of the responsible person to ensure fire safety of occupiers and visitors
- Manage and reduce risk
- Regular reviews
- Reasonable precautions (Fire Alarms, escapes)

Question 26

Fire Safety At 2021?

Answer 26

Reformed the Regulatory Reform (Fire Safety) Order 2005 to include multi-occupancy residential buildings

Requires the responsible persons to:
- Inspect lifts regularly
- Update evacuation plans
- Check fire safety doors
- Ensure building is of a safe standard (Cladding, balconies etc)
- Manage and reduce risk

Fire service can enforce compliance upon non-complaint responsible persons

Question 27

What is the Bribery Act 2010?

Answer 27

Aims to reduce bribery in the UK and abroad

6 Principles
- Top-level commitment (Heads of organization should be committed to anti-bribery)
- Risk assessment
- Proportionality (Procedures company has in place should be proportional to risk it
faces)
- Due diligence
- Communication
- Monitoring and Review

The Four Offences
- Bribing
- Being Bribed
- Bribing a Foreign Public Official
- Failure to Prevent Bribery

Penalties policed by the Serious Fraud Office
- 10 years in prison (individual)
- Unlimited fine (individual / company)

Question 28

What act brought into place Assured Tenancies?

Answer 28

The Housing Act 1988
- Assured and Assured Short Hold Tenancies
- Section 21 no fault evictions
- Rent increase during tenancies allowed but subject to specific procedures

Question 29

What is the Wildlife and Countryside Act 1981?

Answer 29

Protects wildlife in the UK

Japanese Knotweed being allowed to spread onto neighboring land
- Up to £5,000 fine
- 2 years in prison

Question 30

What act governs equality in the UK?

Answer 30

The Equality Act 2010
Aims to fight antidiscrimination

9 Protected Characteristics:
- Age
- Disability
- Race
- Gender reassignment
- Sexual orientation
- Marriage
- Pregnancy
- Civil partnership