core questions Flashcards
what checks do you need to undertake when taking on a new client?
For property management client I fill out:
-Bidwells AML form
-Bidwells Know your Client form
For Agency:
-Bidwells AML form for client, tenants and any beneficiary parties
what do you include in Heads of terms
- Landlord
- Tenant
- Property
- Lease length and start date
- Break options
- LTA Act protection
- Rent deposits
- Guarantors
- Rent
- VAT
- Rent Free period
- Rent reviews
- Assignment and subletting provisions
- Service charge
- Repairs
- Schedule of condition/hand back procedure
- Use
- Alterations
- Insurance
- Subject to contract
- Solicitor details
- Agents details
what advice did you give to your client when dealing with rent arrears in Oxford?
Rental arrears options:
- Statutory demand
- seek payment from guarantors
- draw from rent deposit
- CRAR proceedings
- Court order
- Forfeiture
Detail your involvement in a rent review
What are the standard assumptions and disregards when dealing with a rent review?
Standard assumptions are:
- all covenants are adhered to
- the property is available for immediate occupation
- let on the open market
- use is as per the lease
Disregards are:
- any good will attached to the property
- any good will attached to the tenancy
- any tenants improvements documented by the landlord
what are the key points of the RICS Code for leasing business premises:
- Terms of the agency
- honesty and accuracy
- agreement for liability of costs
- declare conflicts of interest
- absence of discrimination
- legally obliged to declare all offers received to client
- Keep clients money seperate
what is the difference between NIA and IPMS 3?
IPMS is:
- to the internal dominant face on a floor by floor basis
- do not exclude areas under 1.5m
- Do not exclude columns
- include balconies, roof terraces in exclusive use but stated separately
what material do you consider when you undertake measurements?
International Property measurement standards (2018).
RICS code of measuring practice 2015.
what is required to set up an RICS Firm?
- Inform the RICS
- Appoint a Complaints Handling Officer
- Appoint a Money Laundering Officer
- Get appropriate PII cover
- Set up client holding accounts
- Set up a succession plan
What is required when closing down a practice?
- Inform the RICS
- Ensure that all client money is handed back
- Arrange for another practice to look after clients
- Arrange PII run off cover of 6 years minimum
- Retain a copy of the client files for a minimum of 6 years
what advice would you give your client if you inspected a property and the tenant was in breach of their repairing obligations?
I would advise:
1. speak to the tenant
2. serve a repairing notice
3. serve an interim schedule of dilaps.
4. place them in breach of the lease
5. discuss forfeiture of the lease
what is the difference between an arbitrator and an independent expert
ACE DIP
Appeals - only appeal arbitration on point of law or bias, no appeal for independent expert
Cost - arbitrators can set their ow costs, independent experts have to follow the lease
Evidence - arbitrator rules on evidence placed in front of them, independent expert can make own investigations
Discovery - arbitrator has pwoer of discovery, Independent expert doesn’t
Immunity - Arbitrator is protected whereas independent expert can be sued for negligence
Power - Arbitrator uses Arbitration Act 2010, Independent expert is guided by the lease
What are the RICS rules of conduct
- Be Honest and act with integrity
- be professionally competent
- provide a good quality and diligent service
- treat others with respect and encourage diversity and inclusion
- Act in the public interest
What hierarchy of evidence would you use when establishing the market rent?
- Open market lettings
- Lease renewals
- Rent reviews
- Third party determinations
- Sale and lease backs
- Inter-company transactions
What is a discounted Cash flow?
an investment appraisal technique used to establish the IRR based on explicit assumptions modelled into the cash-flow
