Hot Topics Flashcards
(7 cards)
What fundamental review is the RICS currently conducting
Review of investment valuations. Review considers
- Valuation methodology,
- Property risk analysis,
- Independence and objectivity
- Measuring market confidence
What changes has the RICS made to its structure
RICS new governing council which has a number of independent members from outside of the profession who provide assurance on the production and enforcement of RICS standards
What recent changes have occured to PII
From May 1st 2021 insurers are not permitted without specific dispensation to exclude fire safety claims on a property 4 storeys or less and fire safety coverage must be provided as a minimum on an aggregate, defence cost inclusive basis
What recent guidance has the RICS issued on liability and what were the main takeaways?
RICS Guidance Note: Risk, liability and insurance
Top Tips:
- Use of liability caps in order to manage risk
- Clearly state if third party reliance applies to a case
- A good set of terms of engagement which outlines what the client can expect from the surveyor and the extent of their work
- Correct level of PII cover is acquired
What recent changes have there been to leasehold reform?
Government residential leasehold reform
- Right to extend leasehold of flats and houses by 999 with a ground rent of £0
- New set calculation rates will replace payment of marriage value
- Retirement home ground rents at £0
- Agreed restrictions on future development to avoid paying development value
What has occured in regards to cladding?
Cladding EWS1 Form:
- When conducting a valuation for lending purposes, consideration of an EWS1 form will need to be made
- An EWS1 form (external wall survey) is a fire risk assessment/ appraisal of a building
- There are certain requierments for an EWS1 form to be required, these typically consists of balconies with flammable material, cladding which is flammable and the number of storeys of a premises.
What is an EWS1 form
This is a fire risk assessment form which is conducted by a qualified professional to ensure that a prudent valuation can be conducted for lending purposes.
