Mandatory - Conflict avoidance, management & dispute resolution procedures Flashcards
(13 cards)
What is conflict avoidance? Provide example.
Understanding what could go wrong and what to implement in order to avoid conflicts.
E.G - carefully drafting contracts or terms of engagement
What is dispute resolution?
Process of resolving disputes between parties:
(1) Negotiation - sorted internally
(2) Mediation - 3rd party involved but NOT binding
(3) Litigation - 3rd party involved and binding
What method involves resolving the dispute without going to court?
Alternative Dispute Resolution (ADR) - examples - mediation, arbitration, and independent expert witness
What is mediation?
Neutral mediator (3rd party)
Confidential and informal
Without prejudice
NOT binding
What is arbitration?
3rd party who is registered by Chartered Institute for Arbitrators
Binding
Specialist Knowledge
Cannot be sued for negligence
Typically a quick process
What is independent expert witness?
Independent expert is appointed by parties involved in the dispute (or RICS dispute resolution service)
Binding
Expert knowledge
Uses evidence and expertise to make decision
Explain what an Expert witness is?
- A surveyor who provides information during a court hearing.
- They must provide a statement of truth and confirm they will act impartially before starting their role.
What are the differences between an Arbitrator and a Independent Expert Witness?
(1) Arbitrators can’t be sued (IEWs can be sued)
(2) Arbitrators have limited rights to appeal (IEWs can’t appeal)
(3) Arbitrators only use evidence provided (IEWs use expertise as well)
(4) Arbitrators can ask for evidence and an expert witness (IEWs can’t)
(5) Arbitrators are regulated by Arbitration Act ‘96 (IEWs have no legislation)
(6) Arbitrators take c 18-24 months (IEWs take c 3 months)
(7) Arbitrators are typically more expensive than IEWs
What does the RICS Prof Statement: Conflicts of Interest (2017) state?
Mandatory Statement which says that a member must not advise a client where there is a conflict.
UNLESS if both parties give consent.
Why do we take conflict checks?
To align with RICS Rules of Conduct
Avoid negligence claims and negative press.
What is an information barrier in terms of conflict management?
Procedure to ensure a firm can manage conflict
i.e. Clean desk policy, physical separation (CBRE tried having their valuation team on a separate floor to agency team), separate support staff.
3 types of conflicts?
Party conflict - work on same instruction i.e. vals and agency on some property
Own interest conflict - personal interest i.e. advising a family member on the purchase of a property you are marketing
Confidential info conflict - Relating to work between 2 parties that is confidential i.e. NDA
Key takeaways from RICS Complaints Handling (2016)?
(1) Terms of business + engagement are important ! Complaints occur when expectations are not met
(2) Know your PII policy and inform insurer when complaints arise
(3) Don’t admit fault when compliant submitted
