Conflict Avoidance Flashcards
(50 cards)
What is a conflict?
A conflict refers to a situation where there is a disagreement between different parties.
When do disputes arise in your role?
In valuation instructions, a client can have conflicting views on what the property value should be.
What can you do if negotiations break down?
In the event of a potential dispute, I am aware of different alternative dispute resolutions (ADR) such as arbitration, mediation, and adjudication.
What is a conflict of interest?
Where an agent acts for clients who have competing interests, or where an agent’s personal interest conflicts with that/those of their client
There are three types of conflicts:
A party conflict: Occurs when duties to different clients clash in related assignments.
Own interest conflict: When a professional’s personal interests conflict with their client duties.
Confidential: Happens when the need to inform a client contradicts the obligations to maintain confidentiality for another.
What do the RICS Rules of Conduct say about avoiding conflicts of interest?
It is to prevent anything getting in the way of your duty to advise and represent each client objectively and independently, without regard to the consequences to another client or third party or your own interests.
Give examples of ways that conflict can be avoided.
By getting informed consent from the client who may be affected by the conflict of interest. The client must understand the follow:
A) That there is a conflict of interest or a risk of one.
B) Knows the facts by the member or firm that relate to the conflict of intrest.
C) What the conflict of interest may be.
D) That the conflict of interest may affect the ability of the RICS member to advise or act fully in the interests of the client.
Why is good management important?
Good management can mitigate risks and identify and implement strategies to mitigate them, preventing conflicts before they arise.
How can good client management reduce conflict?
Through clear scopes of works including what is included and isn’t to avoid misunderstandings.
How can good record keeping avoid conflict?
Records provide evidence that appropriate systems have been considered and implemented, reducing disputes.
How does proactive reporting reduce conflict?
Proactive reporting helps identify potential problems early.
What are the three pillars of dispute resolution?
Arbitration, Adjudication, Mediation.
Arbitration: A private litigation process governed by certain rules agreed to by the parties.
Adjudication: A form of dispute resolution used mainly in construction and building disputes.
Mediation: Parties agree they want to try to negotiate a settlement of the issue. A mediator is instructed to help them engage in dialogue to come to a solution.
Give examples of each.
Arbitration: A landlord and tenant disagree over a rent review. They appoint an arbitrator who after hearing from both sides decides on the new rent amount.
Adjudication: During a construction project, a contractor claims for additional costs due to unforessen ground conditions. The dispute is refered to an adjudicator who makes a decision within 28 days.
Mediation: Two neighbours are in a conflict over boundary lines. A mediator helps them discuss their concerns and facilitates an agreement on a mutually acceptable boundary.
How do mediation and conciliation differ globally?
Mediation is a more informal process than conciliation. Unlike a conciliation commission, the mediator does not have the authority to issue formal orders or decisions.
Why is this important to be aware of?
Provides a legal framework.
What is Alternative Dispute Resolution (ADR)?
Ways to resolve a dispute without having to go to court.
Why might you prefer to pursue ADR rather than litigation through the Courts?
Legal costs associated with taking it to court.
Tell me about a conflict of interest check you have carried out.
Before accepting an instruction I ensure to check my companies database to see if the company has an existing relationship with another client.
What would you do if you identified a perceived/actual conflict of interest?
A) That there is a conflict of interest or a risk of one.
B) Knows the facts by the member or firm that relate to the conflict of intrest.
C) What the conflict of interest may be.
D) That the conflict of interest may affect the ability of the RICS member to advise or act fully in the interests of the client.
Can you tell me about any RICS guidance relating to conflicts of interest?
Conflicts of interest 1st Edition 2017.
What is the practice of dual agency/double dipping?
Where an agent has a contractual agency relationship with both the seller and the buyer at the same time.
Can you tell me about any recent RICS guidance relating to dual agency/double dipping?
Conflicts of Interest - UK Commercial Property Market Investment Agency 2017. Gives a general rule that you should not undertake dual agency.
What is the difference between an arbitrator and an independent expert?
Arbitration is a formal process where an arbitrator listens to the dispute and then makes a legally binding decision called an arbitral award. Independent expert is a less formal method is usually used for technical matters.
Can you tell me about any other types of ADR?
Independent expert is a less formal method is usually used for technical matters.
Can you tell me about mediation/conciliation/adjudication?
Mediation: Parties agree they want to try to negotiate a settlement of the issue. A mediator is instructed to help them engage in dialogue to come to a solution.
Adjudication: A form of dispute resolution used mainly in construction and building disputes.
Conciliation is similar to mediation but is normally used when there is a particular legal dispute, rather than more general problems.
