Conflict Avoidance, Management & Dispute Resolution Procedures Flashcards
(34 cards)
What is a conflict?
When two parties have differing views and cannot reach an agreement.
When do disputes arise in your role?
Usually during lease negotiations.
What can you do if negotiations break down?
Set up an in person meeting with all parties to resolve relationship.
What is a conflict of interest?
Surveyor or firm’s duty to act in the best interests of a client and impartiality is compromised or could be, by a competing interest.
- What do the RICS Rules of Conduct say about avoiding conflicts of interest?
a. Ensure there are effective processes in place to identify actual and potential conflicts of interest.
b. Not to provide advice/services unless it is done in accordance with the Conflicts of Interest guidance.
c. Keep records of decisions made about conflicts.
Give examples of ways that conflict can be avoided.
a. Agree terms of engagement prior to instruction.
b. Set realistic expectations and communicate of any changes or obstructions proactively.
c. Good record management.
d. Good communication.
What are the benefits of clear contract documentation?
Ensures expectations are clear from the offset.
How can good client management reduce conflict?
Manages expectations and ensuring clear understanding of objectives.
Give examples of good payment practices.
Clear terms agreed - due dates, method, penalties.
Prompt invoicing
Adhere to payment terms
Communication if issue regarding payment arises
Transparent and accurate billing
How can good record keeping avoid conflict?
Prevents misunderstandings and disputes. Provides clarity, ensures a clear timeline of decision-making.
How do reporting and proactivity reduce conflict?
a. Reporting ensures transparency and helps both parties understand objectives and expectations.
b. By being proactive, you can identify and address issues early to prevent a conflict arising.
What are the three pillars of dispute resolution?
a. Negotiation
b. Mediation
c. Adjudicative process
Who introduced the three pillars of dispute resolution?
Professor Green of Boston University
How does mediation/conciliation differ globally?
China - mediation is more coercive.
What is mediation/conciliation?
Neutral third party who facilitates discussions, with the goal of reaching a settlement.
Power to settle remains with the disputing parties.
Mediation leads the process.
What is negotiation?
Parties resolve any issues between themselves.
Power to settle rests with the disputing parties.
What is adjudication?
Used in construction industry
Appoint an adjudicator within 7 days of serving a Notice of Dispute.
28 days to issue a decision - usually binding.
What is Alternative Dispute Resolution (ADR)?
Forms of dispute resolution that fall outside the scope of court litigation.
Why might you prefer to pursue ADR rather than litigation through the Courts?
Speed, informality, cost, confidentiality.
Tell me about a conflict of interest check you have carried out.
Prior to assisting with a valuation, I completed a conflict of interest check.
I checked the internal database using the client’s name and property address.
Also spoke with colleagues.
What would you do if you identified a perceived/actual conflict of interest?
Inform parties involved, explaining the conflict. If manageable, I would seek informed consent.
Can you tell me about any RICS guidance relating to conflicts of interest?
RICS Conflicts of Interest Professional Standard 2017
What is the practice of dual agency/double dipping?
Where you have a contractual agency relationship with both the seller and the buyer at the same time.
RICS prohibit it.
- Can you tell me about any recent RICS guidance relating to dual agency/double dipping?
RICS Conflicts of interest – UK commercial property market investment agency Professional Standard 2017
RICS Professional Statement Real Estate Agency & Brokerage 2016.
