Extra questions Flashcards
(116 cards)
1
Q
What dispute resolution procedures do you know of and what are their benefits?
A
Arbitration, mediation and expert witness
2
Q
What does the 54 act mean?
A
The 1954 relates to security of tenure for commercial occupiers.
3
Q
How to contract out of the 54 act?
A
Health warning notice and simple declaration or health warning notice and statutory declaration
4
Q
Which objection to renewing a protected lease would you have relied on (section 30)?
A
5
Q
Do particulars form part of the contract?
A
No they are pre contractual
6
Q
How binding is a heads of terms agreement?
A
They are pre contractual and are not binding
7
Q
What are the upcoming EPC changes?
A
EPC rating of C by 2030
8
Q
Walk me through what you did on inspection to stay safe, both before and during?
A
Looked at the site on my computer - access
Considered if i’d need PPE
Made my team and client aware of the inspection and diarised this
Told my team when i arrived on site and when i left
9
Q
How would you carry out a residual?
A
Gross development value - total development costs - profit = market value
10
Q
What are the requirements for registering a firm?
A
Register with the RICS
Responsible principle
Copy of CHP and ADR
State if i’d be handling client money
PII cover
11
Q
What do you ask for incoming tenants to provide you with?
A
Check covenant streght
Business plan
Gurantor
Credit report
12
Q
How would you deal with rent arrears?
A
- Speak to credit controller - if they have any further information
- Speak to the tenant
- Read the lease for a guarantor or rent deposit
- Inspect the property to understand if they’re still in occupation and to understand the situation better
- If the tenant is still refusing to pay rent then issue a statutory demand to pay the rent within 21 days
- Can action CRAR
- Check the lease for the forfeiture clause
- Obtain a court judgement to obtain the rent arreras
- Serve a section 17 notice on the AGA - within 6 months of the rent arrears
- Payment plan
Recommend best option to my client
13
Q
How did you deal with a request for a licence to alter?
A
Read the lease - alterations clause
Completed before works commence
Full set of plans and specifications
Costs associated
Agreement to pay surveyor fees + vat
Recommend to the client to approve the LTA
Who will then instruct solicitors
14
Q
Have you ever come across any hazardous materials and can you give examples?
A
No - asbestos
15
Q
Have you ever dealt with a licence and do you know the difference between a lease and a licence?
A
The lease is a legal obligation - Gives tenant exclusive occupation on the terms set out in the lease
Licence is not legal and does not have exclusive occupation
16
Q
How do you show good client care?
A
Meeting the aims and objectives of my client
17
Q
What are your firm’s business objectives?
A
18
Q
How do you work towards these objectives in your work?
A
19
Q
Do you know anything about Japanese knotweed and how would you deal with this?
A
Green and purple hollow stems with green heart shaped leaves
Instruct client to have it removed by a professional
20
Q
Have you ever processed a request for an assignment? What did you consider?
A
no
Tenant covenant strength of the assignee
AGA
21
Q
What would be the issue with letting a contracted-out lease roll over?
A
Grant a tenancy at will
22
Q
How long would your PII run off cover be for?
A
6 years
23
Q
What are the differences between how you would measure an office in 2025 and how you would measure an office previously?
A
IPMS
24
Q
What can you ask a tenant for if their covenant strength is weak (i.e. they’re a small independent business or a new business)?
A
Deposit
Gurantor
25
How long would you hold the details and documents of offers for?
No longer then necessary - in line with the data protection act
26
What is a dynamic risk assessment
a continuous, real-time process of identifying, evaluating, and managing risks in rapidly changing or high-risk environments
27
What are the UK's net zero goals
Meet net zero by 2050
28
What is included in VPGA 2
Dealing with conflicts of interest for secured lending valuations
29
examples of how you are sustainable
Travel to work through sustainable methods - public transport and cycle
30
What are the principles of bribery act
Proportionality
Top level commitment
Risk assessment
Due diligence
Communication
Monitoring and review
31
What is the material and effective date in an MCC
Material date - Date the check was submitted
Effective date - the date the works started
32
compiled list - what would you include
33
definition of reversionary yield
Market rent divided by current price on an investment let at a rent below the market rent
34
What is a balance sheet
Statement of the business's financial position showing its assets and liabilities at a given date
35
What is a profit and loss account
Summary of the business's income and expenditure transactions on an annual basis
36
what valuation method is used least
DRC
37
What is a cash flow statement
is a financial report that tracks the movement of cash in and out of a business over a specific period
38
What are the types of illegal discrimination
Illegal discrimination includes direct, indirect, harassment, and victimisation.
39
What is the equality act 2010
piece of legislation that prohibits discrimination, harassment, and victimisation based on protected characteristics.
40
What premium is applied to offices with A/C
5-10%
41
How often is the rating list updated
Every 2 weeks
42
How would you action a forfeit in terms of rent arrears
Read the lease for the forfeiture clause
Either through physical peaceable re-entry or by commencing County Court proceedings to recover possession
43
Talk me through Jarvis vs Harris
The landlord's right to re-enter the property to undertake the repairs and then claim to recover the cost of doing so from the tenant
44
What are the 9 principles of the service charge sandard
1 All expenditure that the owner and manager seek to recover must be in accordance with the terms of the lease.
2. Must seek to recover no more than 100%
3 Service charge budgets are issued annually to all tenants.
4 Approved set of service charge accounts showing a true and accurate record of the actual expenditure constituting the service charge are provided annually to all tenants.
5 Service charge apportionment matrix for their property is provided annually to all tenants.
6 Service charge monies must be held in one or more discrete (or virtual) bank accounts.
7 Interest earned on service charge accounts must be credited to the service charge account after appropriate deductions have been made.
8 Where acting on behalf of a tenant, practitioners must advise their clients that if a dispute exists any service charge payment withheld by the tenant should reflect only the actual sums in dispute.
9 When acting on behalf of a landlord, practitioners must advise their clients that following resolution of a dispute, any service charge that has been raised incorrectly should be adjusted to reflect the error without undue delay.
45
What are the extra costs associated to SC
Management
Utilities
Soft services
Hard services
Income
Insurance
Exceptional expenditure
46
What are the different types of alienation clauses
Open (allowing alterations)
Restrictive (allowing alienation, subject to some conditions)
Absolute (no allowing alienation)
47
What is the professional standard for dilapidations
RICS professional standard: Dilapidations
48
What is included in the PS on dilaps
Aims to reduce claims between landlords and tenants
Landlord can only claim the amount lost because of the tenants breach of the lease
49
How would you deal with a breach in repair
Check the lease for repairing obligations
Serve a section 146 notice in accordance with the law of property act
Serve an interim schedule
50
What are the quarter days
25th March
24th June
29th September
25th December
51
What are the warning signs of rent arrears
Bounced checks
Persistent late payments
52
What interest is gained on rent arrears
2-4%
53
Talk me through the estate agents act
Disposal or acquisition of an interest in land
Freehold property
Leasehold property property with a capital value
Land as well as buildings
54
What is s.18 of the estate agents act
clarity in terms of agency (any kind of transaction - set terms of agency in place - scope of work, fee basis, client expectations, timeframes, costs
55
What is s.21 of the estate agents act
declaring personal interest
56
What are the principles in the Estate Agents act
1. Clarity as to the terms of agency (s18)
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
57
What is an important accountancy change
IFRS 16 requires that the lease liability should initially be measured at the present value of the lease payments that are not paid at the commencement date.
58
When are EWS 1 forms required
For all multi storey residential properties
59
Who policies the health and safety at work act
Health and safety executive
60
What are the different types of BREEAM
In use
In construction
61
What are the PPE at work regulations
Employers duty to ensure provision of appropriate PPE for employees and contractors
62
What are the ratings in BREEAM
Range from acceptable to outstanding
63
Who is exempt from needing an EPC rating
listed or officially protected and the minimum energy performance requirements would unacceptably alter it
Places of religious worship
Agricultural
64
What is the definition of sustainability
meeting the needs of the present without compromising the ability of future generations to meet their own needs
65
What are the important sections of the landlord and tenant act
66
What are AY's sustainability goals
To be net zero by 2030 in the UK
Net zero globally by 2040
67
What is the defintion of unconscious bias
It relates to the associations we hold which are deeply ingrained and outside of our conscious awareness or control
68
What are the principles mentioned in the professional standard: PM
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.
69
Talk me through how you would take a rent collection
1. I would look at the lease and establish when and how much the tenant needs to pay.
2. I would then report this information to accounts who then produce an adhoc report 4 weeks before monthly and quarterly rent days.
3. I would then go over this adhoc report and cross check it with the TS to ensure what we are billing is correct.
4. Upon approval I would instruct accounts to issue invoices to the tenants.
70
What is included in RICS PS: surverying safely
1. Personal responsibilities for RICS members
2. Assessing hazards and risks
3. Workplace health and safety
4. Occupational hygiene and health
5. Visiting premises and site
6. Fire safety
7. Residential property surveying
8. Procurement and management of contractors
71
What is the safe person concept
An individual assumes individual behavioural responsibility for their own and colleagues health and safety while at work
72
What is RAMS
Risk assessment method statement
73
What are the three types of financial statements
Cash flow
Income statement
Profit and loss
74
What are the costs associated to CRAR
£75 for the written notice
£235 enforcement
75
How would you deal with a rent arrears
1. Court proceedings
2. Use a rent deposit
3. AGA - section 17 of the landlord and tenant covenants act
4. Serve a statutory demand
5. CRAR
6. Forfeit the lease
7. Payment plan
76
What insurance does the tenant need during an LTA
Contractors insurance
77
What is lotus and delta vs Culverwell
It explains the hierarchy of evidence and weighting evidence.
78
What buildings are exempt from paying business rates
Places of religious worship
Agricultural
RV of the property is less than £2,900
79
What is transitional relief
if your rates go up by more than a certain amount. This means changes to your bill are phased in gradually.
80
What is small business rates relief
If your property's RV is less than £15,000
81
When does the crossrail supplement apply
To buildings with an RVover £75k
82
How would a landlord contract a lease outside the act
At least 14 days before the start of the lease:
Serve a simple declaration
Serve a health warning notice
Within 14 days of the lease starting:
Serve a statutory declaration
Serve a health warning notice
83
What are the costs associated if the landlord wants to break the lease when its inside the act
Section 30 of the Landlord and tenant act
1. Breach of repairing obligations
2. In rent arrears
3. LL
84
How can a landlord break the lease if its inside the act
Section 30 of the Landlord and tenant act
1. Breach of repairing obligations
2. In rent arrears
3. LL will provide suitable alternative accommodation
4. LL wants to reoccupy (compensation payable)
5. LL wants to refurbish or demolish (compensation payable)
6. Uneconomic subdivision where the landlord has inherited sublettings created by the tenant, which would prevent the landlord selling or letting the premises as a whole. (compensation payable)
85
Why would the RV reduce during an MCC
Because the tenant in occupation would not be paying full rent while the building is undertaking works which is reflected in a reduction in the rateable value
86
What comparable evidence is needed in business rates
1 - Subject rent taken as the starting point
2 - Comps in the same building close to the AVD
3 - Close comps similar mode and category near the AVD
4 - Close comps of similar mode and category not near the AVD.
5 - If no comps or rental information is available the rent at the subject cannot be ignored.
87
What is the defintion of rateable value
Annual rental value on the AVD assuming a hypothetical tenancy based on 7 assumptions
88
What is the landlord and tenant act 1984
AGA - section 17
89
What are the health and safety concerns in terms of vacant property
Inform insurance
Undertake a health and safety and fire risk assessment of the building
Drain water
Ensure the building is secure
90
What are the fees for property management
Fixed fees
10% of expenditure
91
Is VAT payable on rent
Depends on the lease
92
Is VAT payable on service charge
Depends on the lease
93
What are the apportionments in SC
Sq ft
Percentage
Weighted average
94
If a company goes into administration - what would happen to the rent
Check the lease
See if there is a guarantor or deposit
Tell the insurers
95
What repair notice would you serve to a tenant who has breached the lease
Sectio 146 notice according to the law of property act
96
What is the loan to value ratio
60%
97
What are the loan terms
3 years
98
What is the spec for new offices
New or refurbished space that meets the criteria of the BCO Office Specification.
Typical building ratings include EPC B, Wired Scored Platinum, and BREEAM
Excellent
99
What are the rights in the GDPR
Right to erasure
Right to be informed
Right to object
Right to rectification
Right to access
Right to restrict processing
Right to data portability
Right to automated decision making
100
What are the benefits of the different ADR processes
Arbitrator:
- acts on the evidence provided
- limited right of appeal
- Power over all costs
- Fast, cost effective
Independent expert:
- Can use their own knowledge and expertise
- No right to appeal
- No automatic power to determine costs - determined in the lease
- Fast, cost effective
101
What does it state in RICS Professional Statement: Conflicts of interest - UK commercial property investment agency
- Bans dual agency
- Multiple introductions
- Incremental advice
- Personal interest/ Own interest conflict
102
How do you work out contractors
Stage 1 - Estimation of Replacement Cost (ERC)
Stage 2 - Estimation of Adjusted Replacement Cost (ARC) - taking A&O into account
Stage 3 - Estimation of Site Value - Establish CV of site then specific circumstances
Stage 4 - Application of the Statutory Decapitalization Rate
Stage 5 - Consideration of results of Stage 4 to see if it is accurate
103
How do you work out DRC
Value of land in its existing use
Add current cost of replacing the building plus fees less a discount for depreciation and obsolescence - BCIS
104
What are the fines associated to not having an valid EPC
For breaches of less than three months, a fine of 10% of the rateable value, from a minimum of £5,000 to a maximum of £50,000.
For breaches of more than three months, 20% of the rateable value, with a minimum of £10,000 and a maximum of £150,000.
105
What are the main points of the health and safety at work act
Provide safe working environment
Safe working equipment
Safe systems of work
Competent staff
106
What is a risk
The probability that someone will be harmed
107
What is a hazard
Something that has the potential to cause harm
108
Are all accounts audited
Private limited companies are exempt from needing audited accounts:
Annual turnover of no more than 10.2 million
50 or fewer employees
109
What is the definition of initial yield
Simple income yield for current income and current price
110
What are the modern quarter days
1st Jan, 1st April, 1st July, 1st Oct
111
What RICS papers are important for property managers?
RICS Professional Statement – Real Estate Management, 2016
RICS Guidance Note on Commercial Property Management in England and Wales, 2011
112
What methods of rent collection were banned under the Covid moratorium?
CRAR
Statutory demands
Forfeiture
113
When did the moratorium end?
25th March 2022 for CRAR and Forfeiture.
1st April 2022 for Stat demand.
114
What is the CRAR process?
Sums must be due for 7 days.
CRAR raised – tenant has 7 days to respond
Enforcers visit the premises – tenant has 2 days to pay arrears
If not paid the enforcers return and seize non business critical goods
The goods are held for 7 days
If still not paid the goods are sold to fund the arrears payment.
115
What is fair value
The price that would be recieved to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
116
What is investment value
The value of an asset to a particular owner for individual investment objectives
