Conflict Avoidance...

Question 1

RICS Conflict document

Answer 1

RICS Global Conflicts of Interest Professional Statement 2017

Question 2

Three types of conflict

Answer 2

Party conflicts
Own interest conflicts
Confidential information conflicts

Question 3

What is a party conflict?

Answer 3

When an RICS member is acting for both sides in the same or related professional assignment

Question 4

What is an own interest conflict?

Answer 4

RICS Member acting for a client conflict with personal interests in the assignment

Question 5

Confidential information conflict is…

Answer 5

RICS member needing to provide info to client that is confidential info to another client

Question 6

What is informed consent?

Answer 6

Consent willingly given by a party who may be affected by a conflict of interest stating that they understand the conflict and agree to continue the instruction with the conflict in place

IN WRITING

Question 7

What is important when deciding to continue with an instruction when a conflict is present and informed consent obtained?

Answer 7

Ensuring that I am still competent and can act independently and still provide diligent advice

Question 8

Every RICS member must do what with regards to conflicts?

Answer 8

1. Identify and manage conflict of interest in accordance with the professional statement
2. Keep records of decision made in relation to continuing with the instruction and information regarding informed consent and information barriers

Question 9

How should a conflict be handled?

Answer 9

1. Decide whether the conflict compromises your advice and should be avoided or if it can be managed
2. Obtain written advice from both parties if decide to go ahead i.e. informed consent
3. Manage conflict through setting up information barrier and keep record of management

Question 10

RICS UK conflict document

Answer 10

RICS Conflicts of Interest UK Commercial Property Market Investment Agency Professional Statement

Question 11

Three types of agency conflicts in UK professional statement

Answer 11

Dual agency

Multiple introductions

Incremental advice

Question 12

Dual agency

Answer 12

Where agent has a contractual relationship with the buyer and seller

Question 13

Multiple introductions

Answer 13

Acting for multiple buyers who have interest in similar properties

Question 14

Incremental advice

Answer 14

Example- Where agent is acting for seller on a disposal and they are approached by the buyer for a valuation

Question 15

What is an own interest conflict? Linked to particular legislation?

Answer 15

Acting when there is a personal interest

Section 21 estate agents act 1979 – disclosure of personal interests

Question 16

What do you do when a complaint has not been satisfied using your CHP?

Answer 16

Refer to alternative dispute resolution methods

Question 17

Example of ADR methods

Answer 17

Negotiation, mediation and arbitration

Question 18

Advantages of ADR

Answer 18

Speed/informality/greater opportunity for negotiation/cheaper

Question 19

What is mediation?

Answer 19

Use of a mediator who facilitates discussions between two parties to find a solution

Not to legally binding

Question 20

What is arbitration?

Answer 20

Use of arbitrator who has specialist knowledge of the subject area

Parties are bound by the decision from an arbitrator

Question 21

RICS dispute resolution service

Answer 21

Largest provider of ADR services in the industry

Question 22

What other RICS docs refer to conflicts of interest?

Answer 22

Professional and Ethical Standards
Rules of Conduct
RICS Valuation - Global Standards