APC 2025 Flashcards
(204 cards)
1
Q
What is the difference between Raster Data & Vector Data?
A
Raster Data -
Geographic data represented as a matrix of cells, each with an attribute.
e.g. Pixels on an Ariel photo
Not scalable
Vector Data -
Geographic data symbolised as points, lines, or polygons.
e.g. Fence lines, ownership titles
Scalable
2
Q
When is a Red Book Valuation compulsory?
A
Legal and accountancy related procedures:
- Probate
- Capital Gains Tax
- CPO’s
- Divorces
- Property Disputes
- Sales by charities or NPO’s
- Valuation of Bank, mortgage, or lending securities
3
Q
When is a Red Book Valuation not required?
A
- Advice given during negotiations or litigation
- Internal use with no liabilities
- Performing Statutory Functions
- When acting as an expert witness
4
Q
What are the Valuation Technical and Performance Standards?
A
1) Terms of Engagement
2) Bases of value, assumptions & special assumptions
3) Valuation approaches & methods
4) Inspections, investigations, and records
5) Valuation models
6) Valuation reports
5
Q
What are the main changes to the Red Book?
A
- The introduction of “Valuation Models” as a new VPS (VPS 5)
E.g. Income/Market/Cost approach is the valuation method,
then DCF/comparable/investment method is the valuation model.
- ESG Factors
Environmental, Social, Governance Factors
Have to be considered through all aspects of valuation
If ESG is to be disregarded, it must clearly state this in the Terms of Engagement
6
Q
What is the residual method of valuation?
How does it work?
A
The residual method of valuation establishes how much a developer should pay for a site with development potential.
Gross Development Value, minus the associated development costs and the developers profit.
7
Q
What is the Profits method of valuation?
How does it work?
A
The profits method of valuation establishes the trading potential of a business in trade related properties, such as cinema’s or schools.
The profits method calculates the gross annual income, minus all associated costs, and them multiplies by the relevant multiplier.
8
Q
What is the Depreciated Replacement Cost Method of Valuation?
How does it work?
A
The depreciated replacement cost method of valuation provides an indication of value based on a buyer paying no more or less than the cost to obtain the asset based on the current equivalent.
It is often used to value properties where this is no active market, such as a mosque.
The depreciated replacement cost method of valuation is calculated by identifying the cost of building the equivalent building, plus the cost of purchasing the land.
9
Q
What is hope value?
A
Hope Value is a term used to describe the market value of land based on the expectation that planning permission will be granted to develop on it.
10
Q
What is marriage value?
A
Marriage value is the extra value that arises from the merger of 2 physical or legal interests.
11
Q
What is special value?
A
Special value is an extraordinary element of value over and above market value.
12
Q
What is a discrete account? And how should this be managed?
A
A Bank account set up to hold client money for a single client.
When holding Client money, the account must:
- only hold the clients money
- name of the account must state the word “client” and the name of the firm in the title of the account
- be immediately available to the client at all times
- That it is not overdrawn
13
Q
What’s the difference between a lease and a licence?
A
A licence is a personal right to use land and is not transferable
A lease is an interest in land, and is transferable
14
Q
Remedies for Non-Payment of Rent?
A
- Payment Plan
- Guarantor
- Draw down on Rent deposit
- CRAR (Commercial Rent Arrears Recovery)
- Statutory Demand
- Surrender / Forfeiture
15
Q
What are the 2 core duties of a Property Manager?
A
1) Collection of rent, service charges, and other sums
2) The management of the property
16
Q
What is a DCO?
A
Development Consent Order:
Means of obtaining planning permission for a Nationally Significant Infrastructure Project under the Planning Act 2008.
17
Q
What are the Crichel Down Rules?
A
Non-statutory arrangements for AA to sell surplus land back to owners if bought using statutory powers.
18
Q
What are the MacCarthy rules? When do they apply?
A
1) Must be consequence of statutory powers being exercised
2) Must arise if was done without statutory powers
3) Value of land must be affected by physical interference with legal right that claimant is entitled to make use of
4) arises from execution of the works, not the use
19
Q
What is a Notice to Treat?
A
Notice stating on AA’s willingness to negotiate for a purchase & compensation.
20
Q
What is the difference between severance and injurious affection?
A
- IA = Compensation for depreciation of value of retained land arising from statutory works.
- Severance = when the retained land is severed from the rest of the property and therefore loses value.
21
Q
What is the principle of equivalence in relation to compulsory purchase and compensation?
A
You should be no better or worse off in financial terms after an acquisition than you were before.
22
Q
What is disturbance in CPO?
A
This represents the costs and losses incurred as a result of being disturbed from the occupation of the property.
23
Q
What is Betterment?
How do you calculate it?
A
This is the opposite of injurious affection. There may be instances where the scheme of the acquiring authority may increase the value of the retained land.
you would look to offset the increase in value against the compensation that is payable in respect of the land acquired.
24
Q
What is the “no-scheme” rule?
A
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
25
What is the home-loss payment?
This is an additional sum to reflect and recognise the distress and discomfort of being compelled to move out of a persons home.
26
What is blight?
What is a blight notice?
This is where a landowner is unable to sell their property or can only sell it at a substantially reduced price as a result of the CPO.
This is when a landowner serves a blight notice on the acquiring authority seeking them to purchase the land at open market value.
27
What is the Pointe Gourde Principle?
What is the case law?
Also known as the no scheme principle. Exclude any increase or decrease in value of the land due to the underlying scheme is to be disregarded.
Pointe Gourde Quarrying Co Limited v Sub Intendant of Crown Lands [1947]
28
What is the No Scheme Principle?
This is where the effect of the scheme underlying a CPO is required to be disregarded in assessing compensation.
29
Difference between General Vesting Declaration and a Notice to Treat?
General Vesting Declaration can obtain the title more quickly but can take longer to gain possession and for development to start.
A notice to Treat has a longer process to obtain the title, but can possibly gain possession and start development earlier than a General Vesting Declaration.
30
RICS guidance on Compulsory Purchase?
Surveyors advising in respect of compulsory purchase and statutory compensation (2024)
31
6 Rules of compensation for when land is taken (1961 Act)?
1) no allowance for purchase being compulsory
2) to be valued based on Market Value
3) No allowance for special suitability of the land
4) Any use of the land which is illegal is disregarded
5) If no market, based on equivalent reinstatement
6) Rule 2 to not affect compensation for other heads of claim, e.g. expenses, legal fees, etc.
32
What are the main RICS measuring standards?
- Code of Measuring Practise (2015)
- RICS Property Measurement (2018)
- International Property Measurement Standards (2023)
33
Terminating a FBT?
Term less than 2 years = expire automatically
Term 2+ years = at least 12 month's written notice
Notice to quit (Section 5 of the 1995 Act)
If notice is not served, continues on an annual basis
34
What is Security of Tenure?
the right to remain in occupation after the lease term expires.
35
Differences between a FBT & AHA?
AHA = Security of Tenure
FBT = No security of tenure
AHA = rent reviews at any time but only once every 3 years (section 12)
FBT = Up to the parties. If silent, every 3 years under the 1995 Act
AHA = can be written or oral agreement
FBT = Must be a written agreement
36
What rights to succession are included within a AHA agreement?
Pre-July 1984 = rights to 2 successions
After July 1984 = rights to 1 succession
37
What is "Holding Over"?
a tenant continues to occupy a property after the lease's expiration date without a new lease agreement in place
38
Terminating a tenancy under the L&T Act 1954?
s.25 Landlord notice of termination
s.26 Tenant requests a new tenancy
s.27 Tenants notice of termination
s.28 Landlord & tenant agree new tenancy
39
How is a FBT created?
The landlord and tenant exchange section 1(4) notices to confirm that it is to be, and will remain a farm business tenancy.
40
Rent Reviews under the L&T Act 1954?
No statutory procedure, is up to the parties as to what is agreed in the terms of the agreement.
41
What tenancies does the Landlord & Tenant Act 1954 cover?
Residential and Business
42
Terminating a AHA?
s.25 notice to quit
Must specify the grounds as set out in the 1986 Act, e.g. needed for non-agricultural purposes, breach of terms, failed to operate in accordance with good husbandry practises.
43
Rent reviews for FBT's?
Unless stated otherwise, the Agricultural Tenancies Act 1995 provides for rent reviews to take place at 3 yearly intervals.
Parties can negotiate their own rent review terms.
44
Rent reviews for AHA's?
Rent review at any time, but only once every 3 years (Section 12)
Landlord or Tenant can demand arbitration as to the "rent properly payable" by serving this notice.
Based on market rent
45
Powers to compulsorily acquire land in the different utility industries
Water = Water Industry Act 1991, s.155
Electricity = Electricity Act 1989, schedule 3
Gas = Gas Act 1986, schedule 3
46
What is the difference between a wayleave and an easement?
A wayleave is a terminable agreement with the owner or occupier, not with the land itself and is not binding on the successors.
An easement is a permanent agreement against the land itself, is on the land title and is binding with the successors.
47
What is the difference between a licence and a lease?
A licence is a personal right to use land and is not transferable
A lease is an interest in land, and is transferable
48
What is schedule 6 of the Water Industry Act 1991?
Compensation is assessed in accordance with schedule 6 of the Water Industry Act 1991
49
What is a necessary wayleave?
If they cannot reach an agreement with a landowner voluntarily, an operator can apply for a necessary wayleave.
They must provide evidence as to why it is needed and this must be granted by the Secretary of State.
50
What does your firm do to ensure the health and safety of its employees?
- Has a H&S hierarchy and policy which is updated regularly
- Training is provided to staff
- Internal Audits
51
What is the Health and Safety at work act?
What are its basic principles & what penalties are there?
The H&S at Work Act 1974
- UK legislation ensuring health, safety & wellbeing of employees & others
- Safe operation & maintenance of office environment and equipment
- Adequate & appropriate training provided
- Employers must keep H&S policy up-to-date
- Unlimited fines
- 2 years in prison
- Director Disqualified
52
What are the CDM regulations?
When do projects become notifiable?
Construction, Design, & Management regulations (2015)
Aims to consider H&S throughout entire projects, from conception to demolition
Projects become notifiable if they:
- Last longer than 30 days
- Are more than 20 workers
- Are over 500 person days
53
What is the difference between risk and hazard ?
Hazard - anything that could cause harm
Risk - combination of:
- likelihood of occurrence
- severity of outcome
54
What are the:
- 7 Key Principles
- 8 Individual rights
of GDPR?
7 Key Principles:
1) Lawfulness, fairness, transparency
2) Purpose limitation
3) Data minimisation
4) Accuracy
5) Storage limitation
6) Integrity & confidentiality
7) Accountability
8 Individual Rights:
1) To be informed
2) Access
3) Rectification
4) To erasure
5) Restrict processing
6) Data portability
7) object
8) Automated decision making
55
What are included in your firms Terms of Business?
- Introduction
- Persons responsible
- Charges
- Payment Procedures
- Confidentiality
- Limitation & Liability
- Data Protection
- Complaints Procedure
- Termination Procedures
56
What components would you find in a business plan?
Why are they needed?
- Executive Summary
- Marketing Strategy
- Product or service provided
- Management Structure
- Responsibilities & Targets
Help to secure new instructions, expand client base and allows for resource planning
57
Terms of engagement examples
- Client details
- Staffing details
- Conflict of interest declaration
- Scope of work
- Assumptions
- Fees
- Complaint Handling Procedure
- Liabilities
58
What is a safe place?
A place or environment where people feel safe from discrimination, criticism, harassment, and harm.
59
What is a balance sheet?
What is an income statement?
What is a cash flow statement?
Balance Sheet -
A statement of financial position at a specific point in time (assets, liabilities, equity)
Income statement -
Statement recording revenue, costs, and expenses over a specific period (usually quarterly)
Cash flow statement -
Statement showing net cash-flow position to help assess liquidity
Shows the movement of cash in and out of a company during a specific period.
Helps assess the liquidity of a company
60
Have you dealt with a complaint before & what did you do?
Complaint from a landowner that a surveyor had taken access without consent
- Called client to confirm details
- Logged complaint in the complaint handling log
- notified complaint handling officer
- reviewed practises and held internal meeting to discuss avoiding in the future
- the complaint was resolved and did not escalate
61
When is it appropriate to use informed consent?
When the member/firm are satisfied that
- proceeding is in all parties best interest
- it is not illegal
- objective, competent, and diligent service can still be provided.
62
What guidance does the RICS offer regarding conflict of interest?
RICS professional statement 'Conflicts of Interest' 2017
63
If a client wanted to pay you in advance of works, how would you deal with this?
1. Create client account
2. Provide statement of account
3. Agree and inform of drawdowns
4. Provide statement rationalising drawdowns
5. Provide final statement on completion
64
How have you agreed an uplift to your fees from a client?
- Met client to discuss change in scope
- Provide cost estimate, in writing, for additional work
- Confirmed new total fee account proposed
- Offered further discussion if required
- Awaited consent before proceeding
65
How does your company guard against money laundering?
- Anti Money Laundering policy
- Conducts AML risk assessments
- Adopt internal controls and procedures
- Provide Staff Training
- Client ID procedures
- Keep good records
66
What must we do when holding Client Money?
- Maintain exclusive control over client accounts
- ensure no other money is held in that account
- ensure 'client' and the firms name are specified in the account name
- ensure money is immediately available to the client
67
What must we do in relation to accounting records & control of client money?
- Keep records of all transactions
- ensure all transactions align with client instructions
- publish money handling procedures on website
- prevent overdrafts & rectify any immediately
- have adequate data protection in place
68
What are the benefits of an inclusive environment?
- Reduced social inequality
- Reduced cost on adaptations long-term
- Attracts a diverse group of users
- Improved economic development
69
What is the minimum indemnity cover required for firms?
Depends on previous years turnover -
- less than £100,000 = £250,000
- £100,000 - £200,000 = £500,000
- Over £200,000 = £1,000,000
70
What are the RICS rules of conduct?
Rules 1 -
Must be honest, act with integrity and comply with their professional obligations
Rule 2 -
Maintain professional competence
Rule 3 -
Provide good quality, diligent service
Rule 4 -
Treat others with respect, and encourage diversity and inclusion
Rule 5 -
Act in the public interest, take responsibility, and maintain public confidence in the profession.
71
What would you need if you set up a new practise?
- Insurance
- Business Plan
- H&S Policy
- Complaints Handling Procedure
- Bank details
- Website & Email Address
- Staff Contracts
72
How long do you keep data for?
Bell Ingram Data Protection Policy
Held for duration of business relationship, + 1 year
Held for up to 6 years to protect against legal risk
73
What types of conflicts of interest are there?
1) Party Conflict
2) Own Interest Conflict
3) Confidential Information Conflict
74
What is a bribe?
What are the consequences of a bribe?
An inducement or reward offered, promised or provided unethically to gain any commercial, contractual, or personal advantage
A criminal attempt to influence behaviour
- fines
- Imprisonment
- Legal Costs
- Adverse Publicity
75
If you accidentally send confidential information to the wrong party, what should you do?
Act Honestly
- Inform Client
- Inform Manager
Act Diligently
- Contact recipient & Ask to delete or destroy information
Take Responsibility
- Learn lessons
- Deal with complaints as appropriate
76
How is data secured in your firm?
- Paper Files in lockable cabinets
- Folders, documents & external storage devices are encrypted
- Two-Stage Authentication
- Limited access to SharePoint
77
You are offered tickets to Ascott by a client. Do you accept? What do you do?
Gifts must be proportionate and not used as a reward to gain an advantage
I would politely decline, log this in the firms gifts & hospitality register and if I was concerned about bribery, report to the manager.
78
Prior to working with a new client, what checks would you undertake?
I would ensure I am sufficiently knowledgeable, skilled and competent to carry out the work
I would check for any conflicts of interest
I would ensure the sufficient PII insurance was in place to cover the value of the instruction.
79
On receipt of a formal complaint, what would you do?
- Notify them that the complaint has been received and that we are working to rectify this.
- Issue a copy of my firms complaint handling procedure
- Report the complaint to the designated complaints handler
- Meet the client to receive feedback and address any areas of concern
- And if I was unable to resolve the complaint, I would refer this to the RICS.
80
What is work place diversity?
Diversity in the work place relates to the acceptance and inclusion of employees of all backgrounds.
81
When did the Rules of Conduct change?
February 2022
82
What are the professional obligations of members?
1 - Must comply with CPD requirements
2 - Must cooperate with the RICS
3 - Provide all information reasonably requested by the institution
83
What is included in a Red Book Valuation Terms of Engagement?
- Valuer & Client Details
- Valuation date & subject
- Basis and Purpose of Valuation
- Assumptions & Special Assumptions
- Fees
- Complaints Handling Procedure
84
Before accepting a valuation, what should you do?
- Establish the purpose of the valuation
- Identify if it is a Red Book valuation or not
- Check for conflicts of interest
- Check for legal requirements
- Check for 3rd Party Interests
- Ensure the sufficient PII is in place.
85
What is a ransom strip?
A ransom strip is a piece of land that must be crossed to enable adjoining land to be developed.
86
What is Market Value?
The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
87
The Bribery Act 2010
The Act covers the different types of bribery, the different levels of punishment, and the procedures that organisations can put in place to prevent people associated with them from bribing.
88
Data Protection Act 2018 & General Data Protection Regulation (GDPR) 2016
The Data Protection Act 2018 is the implementation of GDPR, which controls how personal information is used by organisations and businesses, and highlights the data protection principles that must be followed when using or storing personal data.
88
Equality Act 2010
The equality Act 2010 legally protects people from discrimination in the workplace and in wider society. It covers different types of discrimination and what action can be taken.
89
Health & Safety at Work Act 1974
The Health & Safety Act 1974 places a duty on employers to ensure that that health, safety and wellbeing of employees and other affected persons is not at risk, so far as is reasonably practicable.
90
What are the 3 Stages of Anti Money Laundering
1 - Placement
2 - Layering
3 - Integration or Extraction
91
What is dispute resolution?
Types of dispute resolution
the process of settling disagreements between parties
92
What is GIS?
Stands for Geographic information systems, and is a system that creates, manages, analyses and maps all types of data.
93
Define ethics
Having a higher standard than just avoiding a certain behaviour or practise because it is illegal
94
5 principles of better regulation?
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
95
What is Money Laundering?
Converting and investing illegally gained money into property
96
Who is the president of the RICS?
Nick Maclean
97
Who is the Chairman of the RICS?
Martin Samworth
98
Why would a firm want to RICS accreditation?
Status shows that the firm
- behaves ethically
- handles client money responsibly
- acts transparently
- has necessary skills and competence
- handles complaints appropriately
99
What is the RICS guidance on Health and Safety?
RICS Surveying Safely 2018
100
How does your company guard against money laundering?
- Anti Money Laundering policy
- Conducts AML risk assessments
- Adopt internal controls and procedures
- Provide Staff Training
- Client ID procedures
- Keep good records
101
What are the Crichel Down Rules?
Non-statutory arrangements for AA to sell surplus land back to owners if bought using statutory powers.
102
CPO Notice to Treat process
- Notice served
- 21 days to respond
- Initiates the process of negotiation
103
(CPO) - How should an Objection be submitted and how long is the objection period?
- Must be in writing
- within objection period stipulated in the notice (at least 21 days from the date of notice)
- Inquiry held once objection period has expired
104
How did you use GIS to benefit your client?
GIS allows us to present clients with a visual representation of a scheme whilst storing important information through shapefiles. It is easy to navigate and increases the efficiency of a number of schemes.
E.g. we can create a shapefile which accurately reflects the area of a property, whilst storing landowner information.
105
What are the 3 pillars of sustainability?
- economic
- social
- environmental
106
Someone comes in and offers to pay you with £15,000 in cash. What do you do?
My firm has its own policy not to accept cash payments so I would refuse.
107
You have done a good job and your client wants to give you a bottle of champagne - can you accept it?
If the gift is proportionate to the instruction, is at the end of the instruction and is not being offered unethically as an attempt to gain an advantage - Yes.
And then record this on my companies gifts and hospitality register.
108
What is the maximum fine under the Bribery Act?
Unlimited
109
Rules of conduct - an example in practise
Be honest & Act with Integrity -
An agent had submitted an invoice for their fees that was lower than what it should have been based on Ryde's scale. I responded to inform them off this and requested that they sent a new invoice with the correct figure attached.
110
What action can the RICS take against members and firms who breach the rules of conduct?
- Investigation
- Disciplinary process
- Regulatory compliance order
- Sanctions (including fines or expulsion)
111
What are the firms professional obligations to the RICS?
1 - Complaints Handling Procedure
2 - Appropriate PI cover
3 - Must make arrangements for cover in the event of death or incapacity
4 - Must cooperate with the RICS
5 - Must provide all information reasonably requested by the Standards and Regulation Board
6 - Must display on their business literature a designation to denote they are members of the RICS
7 - Must report any matter that they are required to under the rules of registrations for firms.
112
What is included in my firms Complaints Handling Procedure?
- Who to address the complaint to
- Timeline for acknowledgement and response
- How complaint will be investigated and handled
- Means for further recourse if not satisfied with the response
113
If a client doesn't have a client account with your firm, and they ask you to hold funds for them in your firms account, can you do this?
No - you can not mix client and firm money.
114
If a client wants to pay their fee in cash, can you accept?
My firm has its own policy not to accept cash payments so I would refuse.
If I was at a company who did not have this policy, the maximum cash payment allowed is $10,000 and any large transactions I would ensure to do relevant AML checks.
115
What anti-money laundering legislation is currently in force in the UK?
What are the penalties for failing to comply with these acts?
Countering bribery, corruption, money laundering and terrorist financing (2019) -
unlimited fine and/or imprisonment up to 2 years
Proceeds of Crime Act and Terrorism Act -
up to 14 years prison sentence and/or fine
116
What regulations govern data protection?
General Data Protection Regulation (2016)
117
Give examples of what counts as clients' money?
Where and what are RICS members' accounts rules?
Money held or received as:
- Rent and service charges
- arbitration fees
- Client money held but due to be paid to contractors
- Interest credited to a client account
RICS Client money handling
- Sets out how client money should be handled
118
What is the difference between a balance sheet and a profit and loss?
On which side would liabilities be shown?
a balance sheet shows the value of everything that the company owns, owes (liabilities) or is owed on the last day of the financial year
a profit-and-loss account shows the company sales, running costs, and the profit or loss that it has made over the financial year
119
What is the maximum penalty for a breach of GDPR?
Financial Penalties of up to 17.5 million or 4% of global turnover, whichever is higher.
120
What is the minimum EPC rating for a commercial property?
E
To increase to C by 2027, and B by 2030
121
What is the difference between a tenants improvement and a tenants fixture?
If permission was given for a fixture, it becomes an improvement.
Fixture - if no permission was given, the landlord can ask the tenant to remove it at the end of the tenancy.
Improvement - If permission was given, the Tenant can be entitled to compensation
122
What is the RICS professional standard for Money Laundering & Bribery?
Countering bribery, corruption, money laundering and terrorist financing (2019)
123
GIS - What is a shapefile?
a shapefile is a geospatial data file that records the shape, size and location of an item that has a place in the world, allowing to also add additional attributes to record the data that clients are interested in
124
GIS - What is GIS?
A GIS (Geographical Information System) is a Geospatial system used to record, manipulate and display the data that you want to illustrate with a spatial element
125
Valuation - What PI do we have, e.g. for the Bank valuation?
Bell Ingram have professional indemnity insurance in place with a limit of indemnity worth £10,000,000.
126
Access & Rights - Where is a necessary wayleave in the Electricity Act 1989?
Schedule 4 of the Electricity Act 1989
127
What is a firms minimum run-off cover?
A minimum of £1,000,000 in all for a period of 6 years.
128
What is Professional Indemnity Insurance?
Insurance which covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual.
129
What is Run off cover?
What is the minimum policy requirements / minimum run-off cover for an RICS accredited company?
professional indemnity insurance cover provided for the past liabilities of a business once it has ceased trading.
A minimum of £1,000,000 in all for a period of 6 years.
130
What is Public Liability Insurance?
What is Bell Ingram's Policy cover?
Insurance which covers the cost of claims made by members of the public for incidents that occur in connection with business activities.
£10,000,000
131
What is employer's liability?
What is Bell Ingram's cover / Indemnity limit?
Insurance which covers the costs of employee claims for illness or injury caused by their work due to employers' negligence.
£10,000,000
132
Rents for FBT's in Cheshire?
£100-£200 per acre for grazing and general cropping
£250-£300 for potatoes
133
Where is secured lending in the Red Book?
What’s a forced sale?
What’s the marketing period?
VPGA 2
A forced sale is where whoever obtained the loan cannot pay the debt, and is forced to sell the property to pay this back.
The marketing period is commonly assumed to be between 90 and 180 days.
134
What goes into Land Designations?
Found on Magic Maps
These can include:
- Nature Reserves
- SSSI's
- Green Belt
135
What external factors could have an effect on a valuation?
- The economy
- The location
- Planning permission
- Market conditions
- Land designations
- Flood risk
136
What is the difference between an All Risks Yield and a Net Yield?
A Net Yield yield does not forecast the future performance of the property, whilst an All Risks Yield does.
137
If you had served the s.159 but the landowner had refused access, what could you do?
Apply for a magistrates warrant
138
Case law for Leases & Licences
Street v Mountford (1985)
Case law which distinguished between a lease and a licence.
Was held that the licence agreement was actually a lease.
139
How long was the duration of the objection period?
3 weeks from the date of the notice.
140
What are the 3 types of wayleave?
- Necessary
- Expressed
- Implied
141
What were the benefits of a license over a lease for your client in this situation?
Securing a licence was quicker for my client to obtain the rights.
142
What is your companies lone working policy?
- To inform of my whereabouts at all times, when we have left for site, when we have left site, when we have arrived home
- To ensure we have the appropriate PPE
- To carry out risk assessments
- To report any incidents / near misses
143
What is the difference between assignment and sub-letting?
Assignment is where a new tenant takes over the lease.
Sub-letting, you are still the tenant of the lease but enter into a contract with a "sub-tenant".
144
What is the prescribed Form for Contracting out?
Health Warning Notice
145
Assuming the lease was a protected tenancy, what reasons could a landlord serve S25 to remove the football club from site?
- If Landlord wants to develop site
- Breaches of covenant / contract
- Premises and Disrepair
- Rent Arrears
- Landlords intention to occupy
146
What is the key legislation around gas inspection?
The Gas Safety Regulations 1998
147
What are the regulations specific to Asbestos?
Control of Asbestos Regulations 2012
148
What laws govern Occupiers Liability ?
Occupiers Liability Act 1957
Occupiers must keep visitors safe for the purposes of their visit
149
Tell me about the proposed EPC changes?
E
To increase to C by 2027, and B by 2030 for commercial
To increase to C by 2030 for privately rented homes.
150
If the lease is silent on a repair and obligation matter, where would you refer to?
What items would you expect to find in the Models Clauses?
If there is nothing in the lease, refer to model clauses
Landlord -
- External and Structure to the building
- Pipework and Sewage
- Gas work and electrical systems
Tenant -
- Fixtures and Fittings
- Hedges and Fences
151
What are the 6 principles of the bribery act?
1 - Proportionate procedures
2 - Top level commitment
3 - Risk assessment
4 - Due diligence
5 - Communication
6 - Monitoring and review
152
Maximum Fine under Bribery Act 2010?
Unlimited fine, maximum sentence of 10 years.
153
What is the RICS Statement Relating to Money Laundering?
RICS professional standard on Countering Bribery, Corruption, Money Laundering, Terrorist Financing
154
Why have a Terms of Engagement?
Creates a contract with a client, covering scope of works, fees, assumptions, Complaints Handling Procedures.
155
What is PII? Why is it needed? What are the levels?
Professional Indemnity Insurance
It is insurance which covers the cost of compensating clients for loss or damage resulting from negligent services or advice provided by a business or an individual.
Depends on the firms turnover in the previous year:
£100,000 or less = £250,000
£100,001 - £200,000 = £500,000
£200,001 and above = £1,000,000
156
How do you undertake a Risk Assessment?
- Establish hazards
- Establish risks
- Establish who could be harmed
- Establish who's responsibility it is
- Measures to manage this if possible
157
What is CDM? After how many days until works are notifiable?
Construction Design and Management Regulations (2015).
30 days.
158
What is a client money account? What types are there and what are the obligations?
A client account is an account which holds clients money.
Discrete and general
- Can't be mixed with company money
- Account has to be named with the wording "client account" and the name of who's money is being held
- Has to be readily available to client at all times
- Has to be managed accordingly, such as not to go into arrears.
159
What is the RICS Client Money Protection Scheme?
The scheme provides protection, as a last resort, in instances where an RICS Regulated firm is unable to repay a client's money.
160
What do you understand about your firms environmental plan?
My company adheres to a policy set out in ISO14001 - which is a set of standards put forward by the International Organization for Standardization
Best practise for reducing the environmental footprint.
161
Can you name 3 valuation approaches referred to in the Red Book ?
- Market
- Income
- Cost
162
How would you calculate a yield ?
(Annual Rental Income / Property Value) x 100
163
What is the procedure in making a CPO as set out in the Land Acquisition Act 1981?
- Information gathering / land referencing / preliminary enquiries
- CPO preparation and submission
- Objection Period and Inquiry
- Decision
- Possession & Acquisition
- Compensation
164
On receiving a blight notice how would advise your client to proceed ?
- Advise they have 2 months to respond
- Need to check they have a valid interest (freehold or leasehold for at least 3 years).
- Need to check they have made reasonable efforts to sell the land and that it is blighted
165
How would you advise your client to object to a CPO ?
- There is a 21 day window to object
- Grounds for objection have to be valid and can't just be for compensation as this can be dealt with separately
166
Are you aware of any RICS guidance on undertaking physical inspection?
RICS surveying Safely
167
Are you familiar with the Merrett v Baab case and why was this was important for surveyors?
2001 case which left an employee exposed to personal liability claims in respect of advice given, or work undertaken, on behalf of their employer.
Mr Babb carried out a valuation for a property purchase when working for the employer.
Because Mr Babb had gone out of business and no longer carried professional indemnity insurance when the claim was made, it was held he was personally liable.
168
How would you test for dampness in a building?
I could use a Damp Meter
169
How would you compensate a tenant for improvements at the end of a lease?
Compensation would reflect the increase in the residual value of the property due to the improvement.
Value of the property with the improvement, take off the value of the property without the improvement.
170
If acting in a Rent Review what is the first thing you would look for before triggering the review ?
- Check lease to see what provisions are for triggering the review
- Check the lease to establish how the rent review will be valued.
171
When may tenancies not be protected by the L & T 1954 Act?
- If contracted out of sections 24-28
172
Are you aware of any RICS guidance for Handling clients money ?
Can you explain some of the fundamental principles ?
RICS Client Money Handling (2019)
- Client money is to be kept separate to company money
- Client account must be in the name "client account" and the name of who's money is being handled
- Must be readily available to the client at all times
- Must be managed accordingly, such as to not be in arrears
173
What are the different methods of Rent Reviews?
- Open market rental value
- Rental Price Index
- Fixed rent increases
174
Why did you advise on a lower GDV? (Case Study)
I was asked to review key differences and rebut their findings. I am aware that advising that the GDV is lower doesn't necessarily benefit my client, but as stated in the Rules of Conduct, I am to act honestly and with integrity. It would have been wrong for me to ignore this and only highlight the elements that would have benefitted my client.
Also, I advised that a residual valuation would have been subjective, and this further supported such advice.
175
How was the CPO schedule set out / formatted?
Set out in line with The Compulsory Purchase of Land (Prescribed Forms) (Ministers) Regulations 2004
176
What factors can effect a yield?
Risk -
- Quality of Tenant
- The market and demand
- The economy
- Quality of the property
177
What size were the proposed developments at Barmhouse Lane?
approx. 140 sq m each, approx 280 sq m together
178
Why did the client want a contract farming agreement instead of a lease?
Client wanted more level of control
E.g. The farmer can dictate the terms of the agreement, and can keep any subsidies.
179
You mention building costs were high in comparison to figures provided by BCIS, can you explain?
Yes -
They had Construction costs at £1,600/m2
BCIS had Construction costs at £1,200/m2
They also priced 2 new bathrooms at £20,000, which wasn't justified for what appeared to be a simple design.
There was no evidence as to where their figures had come from.
180
Do you think it was right to use the £65,000 as the basis for the value of the property in it's existing use? If so, why?
Yes. I was aware that the market value of the land without the right of way would have been lower than £65,000. But there also had to be a level of reasonableness in respects to their negotiations, and essentially this was based on the added value that granting the right of way would have over and above what they had already paid.
181
Why did you use Stokes vs Cambridge? Are you aware of any other case law?
Stokes vs Cambridge & Stone Vs Challioner = 33%
Ozzanne vs Hertfordshire = 50%
Generally, it is dependent on
1) The impact of the right of way
2) The bargaining powers of the parties
In this case, the access already existed and was already used as an access by other properties
The 2 developments would not have a significant effect on traffic, compared to if it was a 10+ residential development.
33% most appropriate in this instance
182
What is Alienation?
the transfer of ownership or property rights from one person to another, such as the rights granted for assignment and subletting of a lease
183
What is a party conflict?
Where you are asked to represent both parties involved with a conflict, e.g. the company and the landowner.
184
How do you know what PPE is required for a site visit?
PPE set out in CDM regulations specific to the site
185
What conditions to the agreement could have been put in place to provide your client with further opportunities down the line?
(Case Study)
The right of way could be limited to the 2 properties to be developed, so if there are any further developments down the line, they would also need to obtain the right of access.
186
How are compensation disputes resolved in a CPO?
- Negotiation (First)
- Mediation
- Upper Tribunal (Final recourse)
187
How does a Red Book differ from a non-Red Book report?
Non-red books are generally more informal and can provide a value range, while a red book has to provide a single/specific value.
188
How do you check the accuracy of measuring equipment?
Calibration
189
Conflict of interest example
Mr Gamon
Diversion of a cable
190
How was the external specialist instructed for the valuation (Nick)?
The client was made aware from the start of the instruction that this was outside of our expertise and that a consultant surveyor would be required for this aspect of the valuation.
My company instructed the external specialist, who we had worked with previously for instructions of a similar nature.
We knew he was competent and the necessary checks were made, e.g. insurance.
Works order form completed. Everything was watertight, and it was made clear who was responsible for which part of the valuation should anything be raised further down the line.
191
Expert witness report for arbitration example?
I assisted a colleague in preparing an expert witness report.
I was asked as I was familiar with the area from carrying out previous records of condition.
1) Intrusive surveys which the landowner claimed affected their own private water supply to dry up.
2) If proven, costs of providing them with a water supply.
This involved checking the easement calculations and that the report content was clear and easy to follow.
192
Cookstool Farm VAL L2
Secured lending valuation
VPGA 2
- £12-15k per acre comps
- Potential to attract lifestyle purchasers
- Valued at the higher end of the range at 15k per acre
- approx. 11 acre plot @ 15k per acre = approx. £170,000
- good security against the loan @ £200,000
193
Duddon WwTW VAL L3
Purchase area = 0.55 acres
Formed part of an approx. 6 acre plot used for grazing
- 15-17k per acre comps
- Valued at 20k per acre to reflect the smaller area to be obtained
Advised client it was unlikely the landowner would sell at this level
- Unwilling seller
- Not on the market
- Only land available to the project for the proposed works
Agreed at 3x market value
194
Bank House VAL L3
- Valuing the flats
- current passing rentals provided and supported by comparable evidence
- A yield of 6-7.5% was established from the comparable evidence
- Standard flats = 7%
- Refurbished flats = 6%
Total valuation at approx. 1.4 million
195
What are notices of confirmation? (Sheffield cables)
Serves as the official notification to those affected by a CPO following its confirmation.
Published in the prescribed form and in the local newspaper within 6 weeks of the confirmation.
196
Cheshire Office Park CPO L3
CPO compensation - cost estimate
- Outline planning for residential development on the site
- Development wasn't actually on the easement strip, and was dedicated as a "wildlife corridor".
- No development = amenity = 25k per acre
- Residential = £700k per acre
- advised the client that given the current design in the planning application, compensation should not be paid based on full residential value.
197
Essar Terrier PM L3 - How would the 2 rent reviews be actioned in 2026?
Both were on FBT agreements and on a statutory rent basis (every 3 years).
12 month's notice by 2026, for Rent reviews to take place in 2027.
198
Essar Terrier PM L3 - Lease expiring at the end of the year?
- Contracted out of L&T Act 1954
- Can't hold over, new lease needs to be negotiated.
199
Barnton FC L&T L2
- L&T Act 1954
- Contracted in & has security of tenure
200
Case law - Easement Water Industry Act
St Johns College vs Thames Water - 50%
201
Give an example of stereotyping in the workplace
It is an old-fashioned stereotype, which in my experience has definitely been proven to be wrong - Younger employees may lack authority or experience.
People who wear glasses are really smart
202
What is unconscious bias?
subconscious attitudes and stereotypes that can influence judgments and decisions without our awareness
203
Where is your closest RICS office?
Birmingham
