Key Principles Flashcards
(159 cards)
1
Q
What are the principles of the bribery act?
A
Bribery Act 2010 PTR DCM
Proportionality Top level commitment Risk assessment Due diligence Communication Monitoring and review
2
Q
Offences and punishment under the Bribery Act? Possible defences? Who polices it?
A
1) Accepting a bribe
2) Offering a bribe
3) Bribing a public foreign official
4) Tipping off
Serious Fraud Office
10 years in jail / unlimited fine
Company is responsible for its employees
Defence: Had adequate procedures in place and employee went rogue.
3
Q
What is included within the CPRs?
A
1) Misleading practices: Omissions and actions (e.g. withholding info, not doing DD, lying)
2) Sales practices (e.g. harassing)
3) Black list e.g. bait and switch
4
Q
What does unfair mean in CPRs? What are the punishments?
A
Unfair = not professionally diligent and materially distorts economic behaviour of average consumer
Average consumer = reasonably well informed person or interested party
Policed by Local Authority Trading Standards
Unlimited fine / prohibition order / 2 years in jail
5
Q
What are the sections of the Blue Book?
A
Professional Statement UK REAB 2017
1) Ethics and core principles
2) Pre-instruction procedures
3) Marketing
4) Implementing a sale
5) Letting a property
6) Ending instructions
6
Q
What are the core principles Global REAB?
A
RICS Global REAB 2016
12 including:
- Act in a fair, honest, transparent and professional manner
- Carry out work with skill, care, due diligence and ensure staff are competent
- Ensure ToE is clear and fair
- Avoid conflicts of interest and disclose them
7
Q
What are the principles of the Estate Agents Act?
A
EAA 1979 - THIC DOM
1) ToE (section 18)
2) Honesty
3) Interest conflicts disclose (Section 21)
4) Costs
5) Discrimination
6) Offers
7) Money handling
8
Q
What are the principles of the Misrepresentation Act?
A
Misrepresentation Act 1967
1) Check all information is correct
2) To not make false statements / misrepresentations
3) Ensure all opinions given are reliable
Relates to pre-contractual enquiries
Fraudulent / Negligent / Innocent
Forseeability / Proximity / Fairness
9
Q
Principle of the H&S at work act?
A
H&S Act 1974
“Duty of employers to ensure, as far as reasonably practicable, the health, safety and welfare of their employees”
1) Do risk assessments if 5+ employees
2) Report injuries to HSE
3) Hold H&S info on site
10
Q
What are the flood risk zones?
A
Zones: 1 - Low, under 1:1,000 river and sea 2 - Medium, between 1:100-1:1,000 river; 1:200-1:1,000 sea 3a - High, over 1:100 river / 1:200 sea 3b - Flood plain
11
Q
Valuing today, what would you do differently?
A
1) VPS 2: Investigations. Inspections are not allowed, make clear limitations in ToE and report, offer to inspect when safe.
2) VPGA 10: Material uncertainty. No comparable evidence
12
Q
Assumption definition:
A
Supposition that is reasonable to accept as fact in the context of the valuation without specific investigation or verification
13
Q
Special Assumption definition:
A
Assumption of facts that are
1) different to reality at the valuation date or
2) would not be made by a typical market participant at the valuation date.
14
Q
What has changed in fire safety since Grenfell?
A
1) Hackitt Review 2018. ACM cladding is banned and to be removed from buildings 18m+ tall.
2) Jan 2020: Gov post advice for building owners.
3) March 2020: Fire Safety Bill (amending Fire Safety Order 2005). Extends the scope of duties to cover Residential buildings.
4) April 2020: Budget - £1bn fund to replace cladding. Indicate 18m threshold will be reduced to 11m.
Later in 2020: RICS IFSS
15
Q
What is the assigned risk pool?
A
PII for people who cant get it on the market
16
Q
What is the Low Earners Scheme?
A
PI for part time or retired members
17
Q
What is the Member Support Service
A
Defence for people being sued personally without PI cover e.g. employer has gone into administration
18
Q
Other than GDPR what did the DPA 2018 introduce?
A
1) Modernises the 1998 Act which is the foundation of GDPR
2) Parental consent now needed at 13
3) Additional offences e.g. recklessly obtaining data/selling data/buying data
19
Q
Are desktop valuations for internal purposes red book?
A
Desk top is not an exemption from the red book, so yes they are.
Internal purposes depends on reliance - if internal with no third party reliance then it is exempt.
20
Q
How would you value if done again today?
A
1) Unable to inspect -> VPS 2 restricted information
2) Material uncertainty -> VPGA 10
Ben Elder RICS Global Valuation Director: VPGA 10 is a disclosure not a disclaimer
Only value where we know the area or have valued recently
21
Q
What is the breakdown of costs a developer provides called?
A
Contract Sum Analysis
22
Q
What title factors impact value
A
1) Title quality
2) Tenure and length of term if leasehold
3) Any covenants, restrictions, easements
4) Access to the site for development e.g. ransom strips
23
Q
What are the agency rights and bases
A
Rights: 1) Sole selling rights 2) Sole agency rights Bases: 1) Sole agency 2) Joint agency 3) Multiple agency
24
Q
What do the 2020 ML Regs update include?
A
Effective Jan 2020
1) More detail on when CDD and EDD is required
2) Now covers crypto currencies
3) EDD required if high risk third country
4) CDD on tenant needed if rent exceeds EUR 10,000 per month
25
What are the three types of obsolescence?
Functional
Economic
Physical
26
What is a deed?
A legal instrument used to confirm an interest in property
27
How has BCIS changed? Why?
All in TPI now uses a panel of experts
Done on a quarterly basis
Each provides feedback and agree the % change on previous quarter
All in TPI was generally focused on large scale development and not representative
28
What is an area action plan?
Document providing specific planning policy and guidance for an area where specific regeneration needs to be managed
29
What is the legislation for JKW?
Environmental Protection Act 1990 - How to handle it and who can handle it
Wildlife & Countryside Act 1981 - Criminal offence to introduce or allow it to spread
Anti-social behaviour Order 2014
30
What are the punishments for JKW?
Wildlife & Countryside Act 1981
- £5,000 fine and 2 years jail
- LA fines of up to £2,500 per person / £20,000 per firm for failing to take action and it spreads
ASBO 2014 for
31
What benefit is there to a contaminated site?
Can get Land Remediation Relief
- Tax reduction on the cost to remediate 3rd party caused contamination
Potential recourse to make previous occupant/owner pay if they caused it
32
What RICS guidance is there in relation to inspection
Surveying Safely 2018
VPS 2
VPGA 8
33
Where can you find information on what to look for on inspection?
VPGA 8
- Age/construction
- Accessibility
- Amenities
- Condition
- Hazards (natural and non-natural)
34
What is you measurement margin for error?
It depends.
2% rule of thumb for checking scale plans.
Lower for legal cases, higher for purchase and sale purposes.
General valuations c.5% (depending on property)
35
What is the RICS business plan?
Runs 2018 - 2021. SDTT
Goals in 4 areas:
1) Influential thought leader
2) Trusted by stakeholders and society
3) RICS professional qualifications remain in demand
4) Sustainable 21st century professional body
36
How has Covid impacted H&S?
CDM 2015
- CDM expects duty holders make suitable arrangements for sites (and principal contractor to put them in place)
- Also requires updated risk assessments
1) provide additional hand washing
2) Ensure social distancing on site
3) Look to postpone non-essential works
37
How will covid impact valuations? (other than VPGA 10/VPS 2)
1) Change in building design
2) Sensitivity analysis and scenario testing will become more important
3) Covid reiterates the need for consistency in approach, transparency on assumptions/inputs, and effective communication of risk/uncertainty
38
What would you do if you had asbestos in a valuation?
1) Get a specialist report done. Factor in time and cost.
| 2) Agree a SA with client if you can't get a report
39
In your Haringey example - why increase to 20% PoC? What else was impacted?
To reflect planning risk
Could also impact professional fees and timescales
40
What are the Investment approaches?
Income cap
DCF
Term and reversion
41
What must you include in a red book report that is not in the ToE?
1) Amount of the valuation
2) Commentary on material uncertainty
3) Valuation approach and reasoning
42
How did you account for aspect/layout/floor etc?
1) Had regard to my comparable evidence
2) Found the reasonable bounds
3) Made smaller, proportionate adjustments having regard to the tone of my comparable evidence
43
What is reports are there for asbestos? What are the steps to deal with asbestos?
1) Management survey
2) Refurbishment/demolition survey
1) Duty holder must assess if the site has it, where and what state. Presume it is there.
2) Assess risk and create management plan
3) Create asbestos register
4) Make register available to anyone who might disturb it
5) Review and update regularly (every 6 months)
44
How do you get rid of JKW?
On-site chemical treatment
Excavation
Encapsulation
3-4 year treatment plan to ensure its gone (required by lenders)
45
What is party wall?
A wall which stands astride a boundary belonging to 2 or more owners.
46
Is JKW an issue if its not on your land?
Yes - roots can grow 7m horizontally and 3m vertically
47
What would JKW have looked like when you inspected your case study?
Inspected in October
- growing season is March - October
- leaf, flowers, main steps all identifiable
Harder to identify in winter months as the leaves die and it can become concealed/mistaken
48
What are the principles of client money handling?
RICS Prof. Statement CMH 2019
How IRPRC
```
How to hold client money
Information to clients
Receipts
Payments into/out of the account
Records
Compliance
```
49
What does the CMH actually say?
CMH 2019
1) Only hold client money in the account
2) Ensure client is in account name
3) Only use money for authorised reasons
4) Keep records
5) Have at least 1 signatory to approve moving money
50
What is covered in surveying safely?
Guidance note SS 2018
RAWHSF
```
Responsibilities of members and firms
Assessing risks and hazards
Workplace H&S
Occupational health and safety
Site visits
Fire safety
```
51
What are the RICS doing for sustainability?
1) RICS Building Carbon database (benchmark building design and comps for carbon emissions)
2) PS Whole Life Carbon Assessment (standardises the test for assessing environmental impact of buildings)
3) Founding member of the Global Alliance for Buildings and Construction
4) Set up the World Built Environment Forum (professional network/education)
52
What has changed in the new PI limits?
Aim is to keep PI affordable to firms
1) Fire safety exclusions (no longer a prescribed/required wording)
2) EWS 1 forms (exclusion of liability)
3) Unlimited aggregate round the clock limit of liability, to provide increased availability
53
How has sustainability impacted valuation?
1) VPGA 8 - commentary on sustainability
2) EPCs / BREEAM
Brown discount not a green premium
54
What is in the updated Rules of Conduct for firms?
Regulatory board renamed to RICS Standards and Regulatory Board
55
What factors impact the supply and demand for residential property?
Demand:
1) Help to Buy
2) Interest rates / mortgage availability
3) Wider economic factors (e.g. job security)
4) Population and migration
Supply
1) Planning system e.g. changes to PD, 2 storeys; getting PP takes too long
2) MMC e.g. modular homes
56
What are the types of affordable housing?
Social rent - housing register
London Affordable Rent - Housing register, set rents at London level
Affordable Rent - 80% MR or LHA Cap (whichever lower)
Intermediate Rent - £60k income, max rent is £323. Includes DMR.
LLR - £60k cap, set at ward level. Pay low rent and save to buy the property. Untested.
57
What is the purpose of the NPPF?
Government's strategic vision for the development of England
58
Other than balconies, what do you exclude from GIA?
Perimeter wall thickness
Voids above ground level
Greenhouses, fuel stores, sheds
59
What do you include in GIA?
```
Internal walls
Voids above stairs
Restricted head space (state separately)
Garages (state separately)
Attics / basements (state separately)
```
60
Whats the difference between NSA and GIA?
NSA excludes
- Garages
- Restricted head space
- Communal spaces (if whole building)
61
Which IMPS relates closes to GIA? and NSA?
GIA - IPMS 2 Residential or IMPS 3b
| NSA - IPMS 2 Residential
62
What the difference between IPMS 2 and GIA?
Go from IPMS 2 to GIA:
- IDF areas
- Balconies and terraces
63
Whats the difference between IPMS 3b and GIA?
Go from IPMS 3b to GIA:
- IDF areas (take away)
- Balconies and terraces (take away)
- Voids above stairs (add back)
64
What colours can you find on a title plan?
```
Red line = site boundary
Blue colour = area within a larger property the title plan is about
Yellow/brown = rights of way
Pink = areas subject to covenants
Green = area removed from a title plan
```
65
What does integrity mean to you
Being honest and straightforward in all that I do
- Terms of Engagement detailing scope/PI/fees
- Asking for permission to use report in my case study
66
What does service mean to you
Ensuring those i work with and for get the best possible advice/quality/support
- Working late to finish a report
-
67
What does trust mean to you
Acting in a way that promotes myself, my firm and the RICS in a positive way
- CoI checks and delivering a report that i said I would deliver
- Asking for permission to use report
68
What does respect mean to you
Treating others how you want to be treated
| - polite over the phone to agents
69
What does responsibility mean to you
Taking ownership of a mistake and fixing it
- Mistake spotted in peer review
- Doing everything i said I would do
70
What case law relates to leases and license?
Street v mountford - tenant has exclusive possession therefore a tenancy
71
What case law relates to JKW?
Williams v Network Rail - NR were negligent for ignoring/not treating JKW
72
What case law relates to housing strategy?
Hopkins Homes v Suffolk Coastal - 5 year housing supply needed within local planning docs
73
What is being done about material uncertainty in response to covid?
RICS Material Uncertainty Leaders Forum
Clauses lifted on
1) Institutional grade healthcare
2) Very strong annuity style income 20+ years
3) Large supermarkets let to national brands
4) EUV SH
5)
Still needs to be done on a case by case basis
74
Changes to the new red book?
1) PS1 - "Written" includes any communication of an opinion of value in a recorded medium including an AVM
2) PS2 - Professional scepticism when reviewing informaion
3) IVS 105 - ensure valuation model is appropriate and explicitly state input assumptions.
4) VPGA 8 / IVS410 - 2 methods of value for development
75
What is LLR?
Homes for Londoners 2016-21
LLR:
- rent set at wardlevel
- £60k income cap
- Idea is to save up and buy
76
What is LAR?
Homes for Londoners 2016 - 21
LAR:
- Essential Social Rent for London. Housing register tenants.
- Rent set by GLA
- More expensive that social rent but less than 80% MR
77
What is the process of an acquisition?
1) DD (KYC/AML/CIT)
2) What are the objectives/targets
3) Consider best strategy and implement
4) Inspect, measure
5) Full DD
6) purchase report/advice
7) Negotiate and close
8) Solicitors, exchange with conditions
78
How do you execute a deed?
Practical guide 8 by HMLR
1) Get legal advice
2) Sign in writing
3) Need a witness
4) Counter party acknowledges it
79
What are the minimum standards of the red book?
The whole book. PS and VPS are mandatory.
80
What is an EWS form? Which buildings is it done on? How long does it last?
A method of assessing (and confirming to valuers/lenders) a building of 18m+ by an expert. The form is signed to say it is safe.
Done on buildings of 18m+ where there is risk of flammable cladding. Can be done on smaller buildings if specific concerns.
Lasts for 5 years
81
What are the key points of a lease?
Exclusive possession
Defined area
Term of 6+ months
82
Where are the exemptions to the red book found? What are they?
```
PS 1 - Internal ALES
Internal purposes, no reliance, no disclosure to 3rd parties
Statutory purposes
Expert witness
Agency
Negotiation and litigation
```
83
How does AH work on BTR schemes?
London Plan: Provide DMR (i.e. £60k income cap, FH retained, pepperpotted within schemes)
84
What is in the UK Red book?
PS 1 - compliance
UK VPS 1 - ToE & Reporting (same as the RBG)
UK VPS 2 - Scotland ToE & Reporting
UK VPS 3 - Financial reporting
18 VPGAs e.g. Social housing loan security, charity assets, mortgage valuations
85
How has Covid impacted AML?
1) KYC
- Use video calls
- Use third parties that you can trust (and you know have appropriate policies - esp with covid)
2) Stay vigilant
- if existing client, be aware of any changes and re-do AML check if needed
3) Review staff responsibilities and training
- People ill/furloughed -> others need to step in
4) Review procedures / record keeping
- Currently set up for f2f -> update employee guides/procedures
- Keep records of how you are doing AML and why
86
When might you do or not do simplified due diligence?
For low risk engagements e.g. public body
Not for PEP, high risk, unusually large/strange transactions, not a buy to let property, if you suspect ML or fraud
Still need to keep records (detail why low risk), monitor risk, do KYC checks
87
Define a method of valuation
A particular procedure or technique used to calculate the result of a valuation
88
Define a basis of valuation
A statement of the fundamental measurement assumptions of a valuation
89
Define a valuation approach
The overall manner in which a valuation is undertaken to determine the value of an asset or liability
90
What is PS1?
Compliance where a written opinion of value is given
91
What is PS2?
Ethics, competency, objectivity and disclosures
92
Who must abide by the Red Book?
Any person who is responsible or accepts responsibility for analysing and communicating an opinion of value
93
What are the PI breakdowns
Turnover 0-100k / 100-200k / 200k+
PI cover £250k / £500k / £1 mil
Excess:
Liability under 500k = 2.5% of insured sum or £10k
Liability over £500k = 2.5% of insured sum
94
Which parts of the red book always apply, even to exempt valuations?
PS1 and PS2 are mandatory for all valuations
95
Are valuations objective or subjective?
Objective in your valuation approach but subjective in your method (i.e analysis of comps)
96
When do you need a flood risk assessment?
- Zones 2 / 3
- Zone 1 and over 1 hectare
- Specific concerns of environmental agency
97
Why are EPCs needed in sales and lettings?
Energy Performance of Buildings Regulation 2012 - must be made available for any buyer or tenant.
98
What is JLL's business plan?
```
Short term, maintain market share and protect jobs
Long term
- Grow capital markets team
- Global alignment
- JLL Spark / tech leader and innovator
- Sustainability e.g. Net 0 by 2034
```
99
Key points of Conflicts of Interest 2017
Mandatory rules
- Don't act if CoI
- Keep confidential info confidential
- Don't withhold information from a client
- Have adequate systems in place to identify and manage
- Keep detailed records of everything
100
Do valuers owe a duty of care to the borrower?
Yianni v Edwards
3rd parties who reasonable may rely on the valuation
If it is reasonable to assume that the borrower will rely on that valuation, yes. For most commercial transactions (i.e. not single person getting a mortgage) no.
Need to explicitly state in report/ToE who has reliance
101
What if there is a potential conflict on a val?
VPGA 2: LS
1) Disclosures - previous involvement in past 24 months. It is ultimately the members decision. May need to justify it to RICS
PS CoI 2017
1) Is there an actual, perceived, or potential risk of a CoI? E.g. value up to get more work in future and not kill a deal.
2) Can the work be completed independently and objectively?
3) Is it in my clients best interest? Is it better if someone else does the work?
4) What if the work goes wrong?
102
What do you need to consider if there is a potential conflict of interstest?
PS CoI 2017
1) Is there an actual, perceived, or potential risk of a CoI? E.g. value up to get more work in future
2) Can the work be completed independently and objectively?
3) Is it in my clients best interest? Is it better if someone else does the work?
4) What if the work goes wrong?
103
How do special assumptions impact your valuation?
1) Need to agree them with client in ToE
2) VPGA 2 - need to comment on value with/without the SA
up to you to decide if reasonable and ok to adopt
104
What else do you need to report in a LS val?
VPGA 2
1) Disclose previous involvement (24 months)
2) Valuation method used
3) Extent to which comps from within the subject have been relied upon
4) Suitability for loan purposes
5) SWOT factors impacting value
105
What factors impact your fee?
1) Competitive valuation pressures
2) Scale of the valuation and time it will take
3) How badly we wanted the job from the client
4) PI offered and excess cost (2.5%)
106
What are abnormal costs? Whats the difference between abnormal and contingency?
Ground conditions / stabilisation, noise control, party wall, rights to light issues, flood protection
Contingency is unforeseen risk that may only become apparent during construction (e.g. contamination, cost inflation)
Abnormals are costs not accounted for as they do not impact sites of that nature
107
What are the key principles of surveying safely?
1) Safe person concept
2) Members responsibilities (follow procedure, do risk assessments, do training/be aware)
3) Firm responsibilities (clear lines of accountability, assess risks, train staff, policies in place, employers and public liability insurance)
108
What does surveying safely cover?
RAWHSF
```
Responsibilities of members and firms
Assessing risks and hazards
Workplace
Occupational health and hygiene (mental health, asbestos, clean workplaces)
Site safety
Fire safety
```
109
Define market value
The estimated amount for which
an asset or liability
should exchange on valuation date
between a willing buyer and willing seller
in an arms length transaction
after proper marketing
where each party had acted knowledgeably, prudently and without compulsion
110
Define market rent
```
The estimate amount for which
an interest in real property
should be leased on the valuation date
between a willing lessor and willing lessee
on appropriate lease terms
in an arms length transaction
after proper marketing
where each party acted knowledgeably, prudently and without compulsion
```
111
Define investment value
The value of an asset to a particular owner for individual investment or operational objectives
112
Define fair value
IFRS 13 - used for valuations for financial statements
The price that would be received
to sell an asset or transfer a liability
in an orderly transaction
between market participants
on the measurement date
113
What is category A evidence?
1) Contemporary completed transactions with full and accurate info from identical properties
2) As above, similar properties
3) As above, partial info
4) Offers on similar properties
5) Asking prices
114
What is the old hierarchy of evidence?
1) Full info on
2) Completed transactions on same/identical property
3) Completed transactions on similar properties
4) Completed transactions on similar properties but with partial info
5) Commercial databases
6) Historic evidence
7) Other (e.g. indices)
8) Other locations/property types/background info
9) Asking prices
115
What is the hierarchy of evidence?
Cat A - Direct comparable
Cat B - General market data (guidance not direct indication of value)
e.g. databases, historic evidence, indices
Cat C - Other sources (broad indications of value)
e.g. other property types, locations
116
Why was surveying safely updated?
1) Control of Asbestos regulations 2012
| 2) CDM Regulations 2015
117
Key principles of GDPR
"single data protection regime for anyone doing business within the EU"
General:
1) Data accountability -> prove to ICO you comply
2) Data Protection Officer responsible for managing data
3) Risk assessment to identify threats
4) Rights of the individual
Data:
1) Collect for a specific purpose
2) Collect only what is needed
3) Ensure it is up-to-date
4) Kept no longer than is needed
5) Processed in a way to prevent loss/damage/unapproved use etc
118
What is shown on a title plan?
1) Red line / extent of boundary
2) Title number
3) OS map reference
4) Administrative area
119
What is shown on a title register?
1) Title number
2) Address
3) Charges
4) Time and date produced
5) Restrictions
120
What do you include in your valuation reports?
Opinion of value
Basis of value
Valuation approach and reasoning
Commentary on material uncertainty
ID of asset, valuer, client and user or report
Investigations and information relied upon
Assumptions and special assumptions
1) ID and status of the valuer
2) ID of client and users of the report
3) Purpose of the valuation
4) Asset being valued
5) Bases of value
6) Extent of investigations
7) Information relied upon
8) Assumptions and special assumptions used
9) Restrictions on publishing/sharing report
10) Valuation approach
11) Amount of the value
12) Date of report
13) Commentary on material uncertainty
14) Liability agreed
15) Confirmation it has been done under IVS
121
Does VPGA 10 undermine valuations?
No. Ben Elder "its a disclosure not a disclaimer". Need to keep under review as things are changing and new evidence may come to light quickly. Doesn't reduce the reliability of a valuation.
122
Other than the changes in rules to members, are there any other administrative changes within the RICS?
Rules for Regulation of Firms from April 2020
25% ask to be regulated, 50% have to be regulated
Use of designations
123
What is statutory due diligence?
```
Planning permission (conditions, s106)
Planning history
Local planning policies (are sites nearby deliverable?)
Flood Risk
Environmental assessments
Asbestos register
Legal title/report on title
EPC rating
```
124
Punishments for not having an EPC?
Marketing - £200
| Under 3 months £2,000; over 3 months £4,000
125
What types of RICS documents are there?
```
International standards (Red book 2019)
Professional Statements (CoI 2017)
Practice statements (Surveyors acting as expert witnesses 2014)
Guidance notes (Comp in real estate val 2019)
```
126
What are the three main roles of the RICS? What other goals does the RICS have?
1) Protect consumers through upholding regulation standards
2) Educate members on best practice
3) No 1 source for information relating to land, property, and the build environment
Business Plan 2016-21
1) Influential thought leader
2) Demand for qualifications
3) Trust of public
4) Sustainable 21st century thought leader
127
What is the purpose of the VRS?
1) Improve quality of valuations and ensure highest possible professional standards
2) Self-regulate effectively
3) Protect and raise the status of the valuation profession
128
What info do the VRS require?
(T) Type of valuations
(N) Number of valuations
(P) Purpose of valuations
(F) Fee income from valuations
(A) What audit procedures you have in place
(N) History of any negligence claims against you
129
Whats the process for a duty holder dealing with asbestos?
1) Duty holder must assess if the site has it, where and what state. Presume it is there.
2) Assess risk and create management plan
3) Create asbestos register
4) Make register available to anyone who might disturb it
5) Review and update regularly (every 6 months)
130
What are examples of hazardous materials?
Lead piping
Asbestos
Radon gas
131
What are examples of deleterious materials? What are they?
Damage structural integrity of buildings
High alumina cement
Chlorides
Woodwool shuttering
132
What sort of conflicts could you have on a LS job?
1) Long standing relationship with the borrower
2) Financial interest in the site
3) Acted for borrower acquiring the site
4) Agency instruction on the site
5) Acting for the borrower in a related transaction
6) Providing consultancy advice to the owner/borrower or past owner
133
What is included on an annual return?
1) Type of business and staffing details
2) Statutory regulated activities
3) Nature of clients
4) CHP
5) PII
6) Do you hold client money
134
How do you reference tenants?
Home let enhanced check (ID & PoA)
1) Credit check
2) CCJ
3) Employment reference / uni reference
4) Previous landlord reference
135
What are the main policy documents at each level (national etc)?
NPPF
PPG (Planning Practice Guidance)
Local Plan
Local SPGs
136
What does planning policy say about BTR?
NPPF: BTR exempt from absolute minimum of 10% AH
PPG: Should be promoted if needed, 20% AH target.
London Plan: Encourage diverse housing types including BTR
137
What else goes into a LS val?
VPGA 2
1) Disclose previous involvement (24 months)
2) Valuation method used
3) Extent to which comps from within the subject have been relied upon
4) Suitability for loan purposes
5) SWOT factors impacting value
138
What is building a better tomorrow?
Focus on:
1) Clients - integrate sustainability into our advice
2) People - promote diversity and inclusion
3) Workplace - staff wellbeing and env impact
4) Communities - social issues
139
What health and safety legislation are you aware of?
1) H&S at work Act 1974
2) RIDDOR 1995 (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations)
3) Occupiers Liability Act 1957
4) Fire Safety Order 2005
5) Six Pack (DSE, PPE, manual handling operations) 1993
140
What is RIDDOR? What does is legislate?
Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995
Record all 3 day or more injuries
Report to HSE within 15 days if incapacitated for 7 days or more
141
What are the main new points in the 2018 NPPF?
1) Introduced housing delivery tests
2) Removal of SHMA -> Standard Method instead
3) No viability assessment if meets plan requirements
4) Encouragement of BTR
5) LPA review landbanking records, can enforce 2 year planning expiration
6) identify 5 year housing supply
142
What has changed in the 2018-19 NPPF
Minor wording on
1) Use of 2014 baseline for standard method
2) Approving planning if habitats on a site
143
What is the process of an acquisition?
1) CoI / AML / Competence and terms
2) Understand objectives
3) Source properties
4) Do due diligence - planning, environmental, report on title, flood risk, opinion of value
5) Negotiate and instruct solicitors
144
Typical land agents and legals and resi agents and legals?
```
Land = 1% / 0.5%
Resi = 1.5% / 0.25%
```
145
Other than the Global Professional Statement CoI 2017 what other RICS Guidance is there? What does it say
Professional Statement UK Commercial Property Market Investment Agency 2017
1) Dual Agency (just not allowed at any time)
2) Multiple introductions (competing contractual obligations)
3) Incremental advice (approached to provide advice to another party)
146
How do you handle a CoI?
1) Conflict avoidance (can you still act? Is it in clients best interest?)
2) Written advice to both parties
- Disclose all facts and circumstances
- Allow time for 3rd party advice
- Request written confirmation of informed consent
3) Conflict management (but barriers in place)
147
What is impact investing?
Investing for a measurable, beneficial social or environmental impact alongside financial return
e.g. M&G Positive Impact fund
148
What is unconscious bias?
social stereotypes about certain groups of people that individuals form outside their own conscious awareness
149
What do you include in an agency Toe?
```
Agency basis (sole/joint/multiple)
Agency rights (sole selling or sole agency)
Fees
Marketing costs
Section 21 - conflicts of interest
Complaints handling procedure
```
150
How is CIL indexed?
Before 2020: 1st Nov previous year all in TPI
| 2020 on wards: 1st Nov previous year CIL index
151
What additional ML guidance have RICS produced?
Covid-19
1) KYC
- Using video tools -> e.g. right to rent
- Using third parties -> be sure theyre competent
2) Maintain checks for existing clients
- New opportunities for criminal activity
3) Review staff and training
- People long term sick or furlough, replacements need competence
4) Review procedures and record keeping
- New threats, cant do F2F
- Keep records electronically
152
What are Berkeley Group doing to promote sustainability?
Net 0 in all new buildings by 2030
- Solar panels, renewable energy providers
- Offsetting
- Green roofs
Understand the power they have to promote health and wellbeing in their developments
153
PTAL rating - what was your advice? What impact?
0.53 hectares
PTAL of 4
Decrease habitable rooms per unit, can increase units per hectare
From 125 units to 180 by adding more smaller units
Move from a maximum of 175-355 units per hectare to 215-405
154
What made money laundering illigal?
Proceeds of crime act 2002
155
What governs landlords to keep a property in good repair?
L&T Act 1985
Homes (Fitness for Habitation) Act 2018 - in effect 2019
156
What is in an annual return
1) Staffing details
2) CHP
3) Client money handling
4) PII
5) Nature of clients
6) Statutory regulated activities
157
What do you provide to the VRS?
1) Type of valuation
2) Purpose of valuation
3) Number of valuations
4) Fee income of firm from vals
5) Audit procedures
6) Negligence claims
158
Provide to RICS to set up a firm?
1) Firm detail firm
2) Responsible principle
3) CHP approved
4) Client money handling
5) PI approved
6) VRS
7) Register for regulation
8) Complaints officer
9) Plan for your death
10) Training plan and CPD logging
159
Other than CoI 2017 what CoI docs are there?
Professional Statement UK Commercial Property Investment Agency 2017
1) Dual agency
2) Multiple introductions - completing contractual obligations
3) Incremental advice - Asked to provide general advice on something youre already working on
