Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APC > Anything & Everything > Flashcards

Anything & Everything Flashcards

1
Q

What is the Levitt review?

A

Published in September 2018, independent review of the events that took place following the Treasury Management Audit.

Found that genuine concerns were raised by NEDs which were ignored and they were wrongly dismissed.

RICS have accepted all recommendations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is a Bribe?

A

Giving or receiving something of value which can cloud professional judgement impact conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is Money Laundering?

A

The cleaning of illicit funds, say through a business, to make them appear legitimate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is GDV?

A

Gross Development Value =

The market value of the completed, proposed development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are the 5 Ethical Standards?

A 
Service
Trust
Integrity
Respect
Responsibility
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the Rules of Conduct for MEMBERS?

A

1) Interpretation
2) Communication

ECS CPD SIC

3) Ethical Behaviour
4) Competence
5) Solvency
6) CPD
7) Solvency
8) Information to RICS
9) Co-operation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the Rules of Conduct for FIRMS?

A

1) Interpretation
2) Communication

PCS CPD CCI

3) Professional behaviour
4) Competence
5) Service
6) CPD & Training
7) Complaints handling
8) Client money
9) Indemnity

ASID DIC

10) Advertising
11) Solvency
12) Arrangements for incapacity or death
13) Designations
14) Information to RICS
15) Co-operation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the offences under the Bribery Act 2010?

A

1) Giving a bribe
2) Receiving a bribe
3) Bribing a foreign public official
4) Failing to prevent a bribe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the 3 main pieces of P&S legislation?

A

1) The Estate Agents Act (1979)
2) Consumer Protection Regulations (2008)
3) The Misrepresentation Act (1967)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the main principles of The Estate Agents Act (1979)?

A

7 principles:

1) S18 - clarity around agency terms
2) S21 - declaration of personal interests
3) Honesty & accuracy
4) Agreement and liability of costs
5) No discrimination
6) Legal obligation to share all offers received with client
7) Keep client money safe and separate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What were the key findings of the Levitt Review?

A
  • Poor RICS governance structure
  • Lack of clarity around the roles & responsibilities of the Board
  • Insufficient scrutiny of the management structure - incl. CEO
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What’s your opinion of the outcomes of the Levitt Review?

A

Short-term = has impacted trust in the organisation

Long-term = organisation will benefit from this, it is encouraging some well needed change to ensure that it is an organisation fit for shaping the 21st century built environment

It is an opportunity to foster a culture of openness and transparency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the main outcomes of the Levitt Review?

A

RICS has pledged to implement a range of new governance standards:

  • Commission an independent review of its governance
  • All Board members to raise issues & concerns directly to Governing Council
  • Governing Council to have better oversight through sharing of Board minutes
  • Publish a new values statement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

RICS Values Statement

A

An RICS Values Statement has been published following the recommendation of the review

–> Sets out RICS’ commitment to cultural change

–> Emphasises that culture and behaviours such as openness, transparency and accountability are just as important as governance structures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

New RICS Rules

A

Published October 2021, effective February 2022

Simplified structure to consolidate the 5 Ethical Standards and the Rules of Conduct for members and firms into a singular framework of 5 new rules - with clear examples of expected behaviour, incorporation of sustainability and technology and a focus on respect, diversity and inclusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is Surveying Safely?

A

Published 2018, effective 2019
RICS Guidance Note - sets out basic H&S principles and good practice for members and firms

> Concept of a “safe person”: an individual who takes responsibility for the safety and well-being of themselves and others at work

> Firm requirements

  • Safe working environment
  • Safe working equipment
  • Safe systems to work
  • Competent staff

> Requirement to undertake risk assessments prior to undertaking an inspection and bringing appropriate PPE

> Health & well-being
Encourages firms to implement efforts and initiatives to ensure employee health - physical and mental
i.e. health clinics, counselling, gym memberships, cycle to work schemes, childcare etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Hazard vs Risk

A

Hazard = anything that can cause injury or harm
i.e. working at height

Risk = the likelihood of a hazard causing injury or harm
i.e. chance of falling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What are the penalties under the Bribery Act?

A

Individuals: max. 10 year imprisonment and/or unlimited fine

Companies: unlimited fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Estate Agents Act (1979)

A

Applies: purchase & sale of property

Penalties: warning or prohibition order and/or fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Consumer Protection Regulations (2008)

A

Applies: throughout the entire agency process [sales & lettings]

Penalties: prohibition order and/or fine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Misrepresentation Act (1967)

A

Applies: to misrepresentation / false statements made by seller or agent to induce purchase

Penalties: sued for financial damages and/or sale contract withdrawn

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the 4 methods of sale?

A

1) Auction
2) Private Treaty
3) Formal Tender
4) Informal Tender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the 5 valuation methods?

A

1) Comparable
2) Investment
3) Residual
4) Profits
5) DRC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is Net-Zero Carbon?

A

Where the amount of carbon emissions produced are offset by the same amount of carbon emissions being removed from the atmosphere

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the Data Protection Act? (2018)

A

Controls how businesses and organisations use personal data

Replaced DPA 1998 – principles the same but obligations more prescriptive and penalties greater

The DPA is the UK’s implementation of GDPR (2016)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is GDPR? (2016)

A

General Data Protection Regulation

Controls how third parties use personal data

Gives individuals stronger rights – i.e. to know what data is held and how it’s used, and to have it erased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is GDPR? (2016)

A

General Data Protection Regulation

Controls how third parties use personal data

Gives individuals stronger rights – i.e. to know what data is held and how it’s used, and to have it erased

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

GDPR breach and penalty

A

Data security breaches must be reported within 72 hours to the ICO

Penalty: 4% of global turnover or €20m (whichever is higher)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

GDPR breach and penalty

A

Data security breaches must be reported within 72 hours to the ICO

Penalty: 4% of global turnover or €20m (whichever is higher)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the Individual Rights under GDPR?

A 
"AIRER ODD"
Access
Informed
Rectification
Erasure
Restrict processing
Object
Data portability
Decision-making and profiling
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the 9 protected characteristics under the Equality Act? (2010)

A 
Disability
Religion
Age
Gender reassignment
Race
Sex (gender)
Sexuality
Marriage
Maternity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is the Profits method?

A

Used to value income generating properties; where the value depends on the profitability of the business rather than the building or land value

–> i.e. pubs, hotels, petrol stations, care homes

33
Q

What is the methodology of the Profits method?

A

Annual Turnover - Costs = Gross Profit

Gross Profit - Working Expenses = Unadjusted Net Profit

Unadjusted Net Profit - Operator’s Remuneration = Adjusted Net Profit [FMOP]

Fair Maintainable Operating Profit capitalised @ an appropriate yield to derive MV

34
Q

What is the DRC method?

A

Used to value specialised properties where direct market evidence isn’t available
–> i.e. schools, lighthouses, oil refineries, sewage works

NOT Red Book compliant - cannot be used for secure ledning
- Simply produces a MV for account purposes

35
Q

What is the methodology of the DRC method?

A

1) Establish land value in its current, existing use [auctions]
2) Add cost of replacing building + relevant fees [BCIS]
3) Minus depreciation/obsolescence [judgement]

Land Value + Building Replacement Cost - Depreciation/Obsolescence = MV

36
Q

What is Market Value?

A

An estimate of the value for which a property would sell for:

  • on the valuation date
  • between willing seller and buyer
  • in an arm’s length transaction
  • after proper marketing
  • with both parties having full knowledge and acting without compulsion
37
Q

What is Market Rent?

A

An estimate of the value for which a property would let for:

  • on the valuation date
  • between a willing landlord and tenant
  • on reasonable lease terms
  • in an arm’s length transaction
  • after proper marketing
  • with both parties having full knowledge and acting without compulsion
38
Q

What is EUV-SH?

A

Existing Use Value-Social Housing

This is valuing on the assumption that the properties will remain within the social housing sector

Essentially a hypothetical sale to another RP - the stock will continue to be regulated social housing and any voids will be re-let, and not sold on a VP basis

39
Q

What is MV-STT?

A

Market Value-Subject to Tenancy

Valuing on the assumption that the properties will be sold outside of the regulated social housing sector, within the residential investment market - i.e. to an investor

Reflects the property as it is found – incl. any leases or tenancies in place

  • This basis is available for RPs to borrow against
  • It is NOT a calculation of the value that can be obtained
  • -> In the event that the lender takes possession and rent setting restrictions fall away, a would be purchaser could increase rents to market levels
40
Q

What is MV-STT?

A

Market Value-Subject to Tenancy

Valuing on the assumption that the properties will be sold outside of the regulated social housing sector, within the residential investment market - i.e. to an investor

Reflects the property as it is found – incl. any leases or tenancies in place

  • This basis is available for RPs to borrow against
  • It is NOT a calculation of the value that can be obtained
  • -> In the event that the lender takes possession and rent setting restrictions fall away, a would be purchaser could increase rents to market levels
41
Q

How do you ascertain MV-STT?

A

2 ways to do this:

1) Applying a discount to MV-VP
2) Applying a yield to rental income – capitalising the net income @ an appropriate yield

42
Q

What is the Comparable method?

A

Involves using transactional, market evidence to arrive at an opinion of value

Essentially comparing subject property to previous transactions of similar properties

43
Q

What is the Investment method?

A

Used where there is an income to value - i.e. rent

Rental value is capitalised to produce a MV

44
Q

What is the Residual method?

A

Used to calculate:
a) Residual Land Value
OR
b) Residual Development Profit

45
Q

What is Japanese Knotweed?

A

Invasive plant that can cause structural damage

  • Hard to control
  • Costly to remove
  • Can impact mortgageability - with lenders refusing loan on the basis of its presence

Allowing it to spread = a criminal offence
Must be legally disposed = chemical treatment or digging it up and disposing at a licensed landfill site

46
Q

What properties make unsuitable lending?

A
  • Japanese Knotweed
  • Leasehold properties with short leases
  • Restrictive covenants - i.e. age restricted (over 55s)
  • Structural problems/defects
  • Flooding risk
  • Non-traditional construction types
47
Q

What is non-traditional construction?

A

Homes which aren’t built using stone or brick walls and don’t have tile or slate roofs

i. e.
- Thatched roofs
- Time frames
- Steel frames
- Concrete walls

48
Q

What is Asbestos?

A

A natural insulating material which can cause serious health problems and death

Widely used in homes pre-2000 - a huge proportion of UK’s housing stock!

49
Q

What are the 3 common causes of defects?

A

1) Movement
2) Water
3) Materials

50
Q

What is the difference between deleterious and hazardous materials?

A

Deleterious = deteriorate with age and can cause building failure

  • Calcium chloride
  • High alumina cement
  • Wood wool

Hazardous = harmful to health

  • Asbestos
  • Lead piping/paint
  • Radon gas
51
Q

What are the 3 types of asbestos?

A

1) White - illegal since 1999
2) Brown - banned since 1985
3) Blue - banned since 1985

52
Q

Is asbestos harmful?

A

When undamaged + undisturbed = no health risks

When damaged + disturbed = releases toxic fibers which are inhaled, causing irreversible damage to lungs

53
Q

What is the key asbestos legislation?

A

Control of Asbestos Regulations (2012)

Under the Regulations the duty holder (i.e. landlord) must:

  • Undertake a survey to find and identify asbestos in the property
  • Carry out a risk assessment and implement a management plan
  • Keep an asbestos register - making it readily available and accessible

** Any homes owned by RPs that have common areas must be surveyed for asbestos **

54
Q

Where can asbestos be found?

A
  • Roofing - tiles, panels
  • Flooring - tiles, panels, underlay
  • Composites - toilet seats, bath panels, window sills
  • Textured or sprayed coating - walls, ceiling
  • Pipe lagging
55
Q

How to identify asbestos?

A

Undertake a survey - only way to be sure!

It is a legal requirement under the Control of Asbestos Regulations (2012)

56
Q

What are the 2 types of asbestos surveys?

A

1) Management
- Visual inspection
- Non-intrusive (no sample)
- To locate, assess and advise on how to manage asbestos safely during use and occupation of building

2) Refurbishment/Demolition
- Intrusive - sampling of asbestos containing materials
- Required when building needs refurbishing or demolishing; lets contractors know what they are dealing with

57
Q

RICS Guidance Note - Asbestos: Legal Requirements and Best Practice for Property Professionals and Clients (2021)

A

Contains an overview of the law and industry guidance for asbestos

Sets out best practice advice for compliance:

  • Details of common asbestos containing materials
  • Commissioning asbestos surveys
  • Suggests contents of an asbestos management plan
58
Q

What is the key legislation for Japanese knotweed?

A

Environmental Protection Act (1990)

59
Q

How to identify Japanese Knotweed?

A

Appearances changes throughout the year, but generally:

  • Tall plant - around 2m
  • Clusters of white flowers
  • Heart shaped leaves with pointed tops
  • Asparagus like shoots
  • Green and purple stems
60
Q

RICS DRAFT Guidance Note: Japanese Knotweed and Residential Property

A

Premise that Japanese Knotweed doesn’t have to derail home sales

Purpose = to provide owners with advice on getting expert help to provide lenders with assurance

61
Q

Accepting Instructions - “CIT”

A

Competence
–> Ensure professionally competent [skill, knowledge, understanding, expertise)

Interests
–> No personal or conflicts of interest

Terms of Engagement
–> Signed terms agreeing the instruction before commencement [NOT COVERED BY PII UNTIL THEN]

62
Q

When would you decline an instruction?

A
  • Competence - outside scope of competence
  • Interest - personal or conflict of interest exists
  • T of E - client refuses to sign terms / undertake AML checks
  • PII - can’t agree a liability cap
  • Ethics - unethical instruction
63
Q

What are the 3 types of conflict?

A

1) Party Conflict - where duty to client conflicts with duty owed to another client on the same or related instruction
2) Own Interest Conflict - where duty to client conflicts with a personal interest
3) Confidential Information Conflict - where duty to provide info to one client conflicts with duty to keep the same info confidential to another client

64
Q

RICS Professional Statement on Conflicts of Interest (2017)

A

MANDATORY

  • Places obligation on members and firms to identify and manage conflicts of interest
  • Instructions should be declined if a conflict of interest exists UNLESS informed consent has been granted
  • Informed consent is the exception, not the rule - it should only be sought where proceeding with the instruction is in the best interest of all parties
65
Q

Conflict Management vs Conflict Avoidance

A

Conflict Avoidance = declining the instruction

Conflict Management = accepting the instruction, BUT implementing appropriate measures to manage the conflict

66
Q

What is a Conflict of Interest?

A

Where there’s a risk that professional judgement, independence and impartiality may be compromised by undertaking an instruction

67
Q

What is the difference between Terms of Engagement and Terms of Business?

A

Terms of Engagement are specific to the instruction and client, whereas Terms of Business are more general

68
Q

What is the difference between Professional Indemnity Insurance and Liability Cap?

A

Professional Indemnity Insurance is mandatory for all practicing surveyors (incl. pro-bono work), aim is to protect clients, surveyors and third parties against negligence claims where duty of care is breached

Liability Cap is an agreement which limits the amount for which a professional may be sued for by the client in the event of negligence / breach of duty of care

69
Q

What are Terms of Engagement?

A

Define the service to be provided - set out the basic facts an instruction, to ensure clarity and transparency and to limit liability

70
Q

What are the typical contents of Terms of Engagement?

A
  • Client
  • Surveyor / Valuer acting on the instruction
  • Timescales
  • Fees
  • Scope of works
71
Q

What are Terms of Business?

A

Different to the Terms of Engagement!

Address the commercial considerations of a relationship with client, i.e.:

  • how and when to pay fees
  • rules for terminating instructions
  • complaints procedure
72
Q

What is Unconscious Bias?

A

The unfair and unsupported judgements and stereotypes we all make automatically make

i.e.
Affinity Bias:
–> tendency to warm to someone who is like you
Halo Effect
–> tendency to project positive qualities onto someone simply because you like them

73
Q

How to overcome unconscious bias?

A

Acknowledge that we all have them and be aware of them

74
Q

What is Material Uncertainty?

A

When a valuation has been prepared in extraordinary circumstances and less certainty is attached to it

A material certainty clause emphasises that a greater degree of caution should be applied when relying on the valuation

75
Q

When does material uncertainty arise?

A

1) Property is very unique making it difficult to form an opinion of value
2) Information available to valuer is limited or restricted (either by client or circumstances)
3) Property market is disrupted by unique factors - i.e. COVID-19

76
Q

What are the Regulatory Standards?

A

A set of standards imposed by the RSH that RPs must comply with

77
Q

What is ACM cladding?

A

Aluminium Composite Material - a form of combustible cladding

December 2018 = government introduced a ban on combustible cladding materials, including ACM in response to the Grenfell tragedy

78
Q

What are the disadvantages of a DCF?

A

APC (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions