Extra Extra questions

Question 1

What does the estate agents act cover

Answer 1

7 principles:
1. Clarity as to the terms of engagement
2. Honesty and accuracy
3. Agreement and liability for costs
4. Openness about personal interests (s21)
5. Absence of discrimination
6. Legal obligation to tell the client about offers received
7. Keep client’s money separate

Question 2

What are the most important points of the estate agents act

Answer 2

• Specify all costs and fees in advance, in writing
• Itemize all payments
• Specify nature of agency and rights to be agreed (joint or sole agency)
• Disclosure of personal interests (s21)

Question 3

What are the penalties associated to breaching the estate agents act

Answer 3

• Policed by the National Trading Standards Estate & Letting Agency Team (NTSEAT) who work with local authorities.
• Negative licensing – right to be an estate agency can be taken away.
• The Act allows for a prohibition or warning order
• Prohibition order = stops an agent practicing
• Warning order = less punitive, written warning not to do action again

Question 4

What is set out in the RICS professional standard: code for leasing business premises

Answer 4

Part 1: Introduction
Part 2: Mandatory requirements - negotiations and heads of terms
Part 3: Lease negotiations best practice
Part 4: Appendix
Model heads of terms

Question 5

What does the RICS Professional Statement: UK Commercial Estate Agency state

Answer 5

1. Act in an honest, fair, transparent and professional manner
2. Carry out work with due skills, care and diligence and ensure all staff employed have the necessary skills to carry out their tasks
3. Ensure that clients are provided with terms of business that are fair and clear, with details of the firm’s complaints handling procedure.
4. Do the utmost to avoid conflicts of interests and where they do arise, deal with them openly and fairly
5. Not to discriminate
6. Any client money is held separately and is covered by adequate insurance
7. Hold appropriate PII to ensure a customer does not suffer loss because of a negligent act.

Question 6

What are the principles in RICS Professional Statement: Real Estate Management

Answer 6

1. Act in an honest, fair, transparent and professional manner
2. Carry out work with due skills, care and diligence and ensure all staff employed have the necessary skills to carry out their tasks
3. Ensure that clients are provided with terms of business that are fair and clear, with details of the firm’s complaints handling procedure.
4. Do the utmost to avoid conflicts of interests and where they do arise, deal with them openly and fairly
5. Not to discriminate
6. Any client money is held separately and is covered by adequate insurance
7. Hold appropriate PII to ensure a customer does not suffer loss because of a negligent act.

Question 7

What does the RICS Professional Statement: Real Estate Management state

Answer 7

Outlines the principles that shape the culture of fairness and transparency that underpin all activities undertaken by real estate professionals

Question 8

What is unconscious bias

Answer 8

The associations we hold, outside our conscious awareness and control.

Question 9

What is the profits method

Answer 9

1. Annual Turnover – Costs/Purchase = GROSS PROFIT
2. Gross Profit – Reasonable Working Expenses = UNADJUSTED NET PROFIT
3. Unadjusted Net Profit – Operators Renumeration = ADJUSTED NET PROFIT or Fair Maintainable Operating Profit (FMOP)

Question 10

What is a Jervis v Harris clause

Answer 10

When the landlord enters to do repair works and then recharges the tenant

Question 11

What was the cost for renting furniture for the property in Borough

Answer 11

80-100k

Question 12

What was the cost for buying the furniture in borough

Answer 12

170-200k

Question 13

What RICS documentation is there on WELL standard

Answer 13

RICS Practice information: the design, delivery and management of healthy buildings

Question 14

what were the comparables used in your case study

Answer 14

Unit 1C The Chandlery
Maidstone Building Mews
179 Southwark bridge road
136 Southwark Street

Question 15

Tell me about Unit 1C the Chandlery

Answer 15

The property was leased in Aug 2023 at £38.80 psf
On a similar high street to Southwark Street
Greater weight
Communal Courtyard

Question 16

Tell me about Maidstone Building Mews

Answer 16

Relatively similar condition but much better located as it was next to London Bridge Station
Better condition
Leased in Aug 2023 at £48
Gated entrance and communal courtyard

Question 17

Tell me about 136 Southwark Street

Answer 17

Self contained building
Poor layout over 2nd, 3rd and 4th
Second hand office space
Leased in July 2023 at £36

Question 18

Tell me about 179 Southwark Bridge Road

Answer 18

Similar spec
Less desirable location
Less weight applied as it was ground and lower ground so less natural light - dated
Leased in May 2024 at £31.35

Question 19

What is section 24 of the Landlord and Tenant act

Answer 19

Continuation tenancy - A tenant whose protected lease has expired by they have not vacated

Question 20

What is section 25 of the Landlord and Tenant act

Answer 20

Landlords notices served not more than 12 months and not less than 6 months before the date for the termination of the tannacy

Question 21

What is section 26 of the landlord and tenant act

Answer 21

Tenant can serve a notice requesting a new tenancy to begin not more than 12 months and not less than 6 months after making the request

Question 22

What is section 27 of the landlord and tenant act

Answer 22

When the tenant wants to vacate at the end of the fixed term

Question 23

What is section 30 of the landlord and tenant act

Answer 23

Seven grounds for opposition to grant a new tenancy

Question 24

What are the seven grounds in section 30 of the landlord and tenant act

Answer 24

1. Breach of repairing covenant
2. Persistent delay in paying rent
3. Other substantial breach
4. Provide suitable alternative accommodation
5. Uneconomic subdivision
6. Demolition or reconstruction
7. Owner occupation

Question 25

What are the key points under the RICS professional standard: code for leasing business premises in terms of mandatory requirments

Answer 25

1.1 negotiations over the lease must be approached in a constructive and collaborative manner 1.2 a party that is not represented by an RICS member or other property professional must be advised by the other party or its agents about the existence of this Code 1.3 the agreement as to the terms of the lease on a vacant possession letting must be recorded in written heads of terms, stating that it is ‘subject to contract’ and summarizing the following: 1.4 at a lease renewal or extension, the heads of terms must comply with the above except for any terms that are stated to follow the tenant’s existing lease subject to reasonable modernisation 1.5 negotiations should aim to produce letting terms that achieve a fair balance between the parties having regard to their respective commercial interests.

Question 26

What is the new professional standard for PM and LL

Answer 26

RICS professional standard: Property agency and management principles working with clients Managing businesses and staff