Mandatory - Ethics, Rules and Professional Conduct (L3) Flashcards
1
Q
When was the RICS Founded?
A
The Royal Institution of Chartered Surveyors was founded in 1868
2
Q
In what year did the RICS receive its Royal Charter?
A
They received their royal charter in 1881
3
Q
What are the four membership levels (starting with the most junior)?
A
- Trainee Member
- AssocRICS
- MRICS
- FRICS
4
Q
How do you become a Fellow of the RICS?
A
You must submit evidence of achievement of four fellowship characteristics, which are:
- 5 years or more as an MRICS
- A leadership role in the industry
- Professional Technical Achievement
- Academic Achievement
- Raising the profile of the RICS
5
Q
Who is the Current President of the RICS? And when was she in power from?
A
Tina Paillet on 1st Jan 2024
6
Q
Who is the Current Chief Executive Officer of the RICS in the UK
A
Justin Young - 5th July 2023
7
Q
What is the Governing Structure of the RICS?
A
Currently, the Governing Council is in charge of the management of the RICS. Consists of 21 members
Underpinned by various boards and committees. The Standards and Regulation Board is accountable to Governing Council, but not directed by them.
8
Q
What are the major challenges currently facing the RICS and initiatives to address these?
A
Diversity & Inclusion: Started to collect demographic data in UK & Ireland for benchmarking and target setting
Sustainability:
Granted observer status for COP28 in Dubai
Rebuilding trust in the profession for both members and public. Appointments of Tina Paillet and Justin Young recognise the importance of respecting tradition but evolving with the times.
9
Q
What are the THREE main roles of the RICS
A
- Maintain highest standards of education and training
- Protect consumers through strict regulation and professional standards
- To be the leading source of information and independent advice in the field
10
Q
What do you know about The Bichard Review?
A
Independent Review conducted by Alison Levitt in 2021 found internal governance failings at the RICS.
Following consultation, Bichard appointed to further review made 36 recommendations in seven key areas to create a clearer and more simplified structure including creation of Management Board and Standards & Regulation Board.
11
Q
Why do you want to become a Chartered Surveyor?
A
I would like to become a member of the Royal Institution of Chartered Surveyors because it would provide me with increased credibility in the eyes of my clients, help me maintain and further my professional competency, and provide me with access to a network of 140,000 property professionals worldwide (network, knowledge, recognition, status, market advantage)
12
Q
Mentioned in summary of experience
What are the 5 RICS Rules of Conduct (2022)?
A
- Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS
- Members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise
- Members and firms must provide good-quality and diligent service
- Members and firms must treat others with respect and encourage diversity and inclusion
- Members and firms must act in the public interest, take responsibility for their actions, and act to prevent harm and maintain public confidence in their profession
13
Q
What’s the Role of the RICS, according to the RICS Rules of Conduct (2022)?
A
Three
1. Maintain highest standards of education and training
2. Protect consumers through strict regulation and professional standards
3. To be the leading source of information and independent advice
14
Q
What are the Benefits to clients of Being an RICS Regulated Firm?
A
The RICS State three benefits of regulation for firms: “CPS”
- Confidence - for clients as regulated firms are controlled by RICS Regulation.
- Professionalism – firms will have to provide clear, impartial and expert advice.
- Security – firms have to have a recognised complaints handling procedure, access to free independent redress and PII cover.
“CPS”
15
Q
What are the criteria for Registration as an RICS Regulated Firm?
A
- After April 2020, the criteria require firms to have at least 25% of their principals as RICS qualified, and there is the requirement for a Responsible Principal to provide accountability and engagement with RICS standards and regulations.
- Firms that provide a surveying service to the public are required to register for regulation to ensure there is a benchmark of quality for all firms (25% principals RICS can apply, and over 50% have to be regulated)
- Firms can be corporations, limited liability partnerships or sole practitioner, partnerships.
- There are strict rules on the use of the RICS logo. Firms that are registered have to use the “Registered by RICS” designation.
- Regulation provides a Gold Standard of quality for clients
16
Q
Is your firm regulated by the RICS, and if so what level of PI insurance do you have?
A
Yes - typical cap is up to £5m
Extra cover can be bought for assets above this
17
Q
If a breach of Conduct is Referred to the Disciplinary Hearing, what Penalties can be Imposed on the Breaching Party?
A
Referral to the Disciplinary panel is used for more serious breaches, the head of regulation can consider that a hearing is required under the discipline rules, 50% of this panel are lay members (i.e. not RICS). Penalties can be:
- Issue a consent order
- Impose an unlimited (but proportionate) fine for each breach.
- Conditions on Continued Membership of the RICS.
- Expulsion from Membership or Remove a firm.
- Require publication of the results of a hearing in Modus magazine, on the RICS website and in the local newspaper of the area where the offending firm is located.
18
Q
Rank RICS Regulation, and state whether they are Mandatory or Voluntary (There are 5, from most important to least)
A
- International Standards (Mandatory) – E.G. IVS (2020) / IPMS (2018) / Professional Standards (e.g Conflicts of Interests Rate)
- Professional Statements (Mandatory) – E.G. Conflicts of Interest – UK Commercial Property Market Investment Agency, (2017)
- Practice Statements (Mandatory) – E.G. Very Few of these (Home Buyer Report (2016) for example)
- Guidance Notes (Voluntary) – Surveying Safely (2018)
- Codes of Practice (Mandatory or Recommended Practice)
19
Q
What are the 5 benefits of being an RICS member?
A
- Status
- Recognition
- Market Advantage
- Knowledge
- Network
20
Q
What must you include in the Terms of Engagement prior to starting work on an instruction?
A
There must be a written agreement with the client on:
- The fee due
- How expenses are to be treated, including how they are to be calculated
- A copy of the firm’s complaint handling procedure will be available on request.
21
Q
Where would it be stated the level of Professional Indemnity Cover that you intend to offer your client?
A
In the terms of business, that are to be agreed before the instruction is undertaken.
22
Q
What 3 things should you do prior to undertaking an instruction?
A
You should check that there are no personal or professional conflicts of interest in accepting the instruction, ensure that you are professionally competent to complete the instruction, and confirm terms of engagement in writing prior to beginning work on the project.
23
Q
What did the RICS publish on Conflicts of Interest?
A
The RICS reissued as a Standard: “RICS Professional Standard on Conflicts of Interest (2017)”
24
Q
Mentioned in summary of experience
In what circumstances might a conflict of interest not cause you to decline an instruction?
A
If it can be successfully managed and/or believe that despite the conflict it is in the best interests of all those involved for you to proceed with the instruction and you have the written informed consent of your client, then you may proceed despite the conflict
25
**According to the RICS Professional Standard on Conflicts of Interest, 2017, what three types of conflict might arise?**
1. Party Conflict – work on same or related instruction between two parties
2. Own Interest Conflict or Personal Conflict
3. Confidential Information Conflict relating to work between two parties which is confidential
26
**Who enforces the bribery charges?**
Serious Fraud Office
27
**How might a conflict of interest be managed, should you receive written consent and proceed with an instruction?**
If you receive written consent from all parties involved to proceed with the instruction despite the identified conflict, information barriers should be put in place, including keeping all related information securely, ensuring physical separation of the two professionals involved, and keeping an adequate audit trail of the acceptance of written consent.
28
**What does “RICS Professional Standard Conflicts of Interest – UK Commercial Property Market Investment Agency, 2017,” say about dual agency?**
It should not happen under any circumstances for RICS members, as of the 1st January 2018.
29
**What does “RICS Professional Standard Conflicts of interest 2017” say about incremental advice?**
The statement says that in such instances, advice can only be provided in circumstances where there is written informed consent and information barriers are created internally.
Incremental advice example: agent acting for the seller in relation to a disposal is approached by the buyer, or its lender, to provide a valuation.
30
**Can you give an example of where a conflict of interest has been managed in your firm?**
**Ask GR and JS**
31
**How long should you retain a client’s files prior to securely destroying them?**
6 years
32
# Mentioned in submission
**How many Hours of CPD must an RICS member do each year?**
20 hours, 10 of which must be formal
33
**Are there any Rules Concerning CPD and Professional Ethical Standards?**
Yes, every member of the RICS must undertake 20 hours of CPD each calendar year, with at least 10 hours of that being formal CPD.
Additionally, members are required to undertake CPD related to the Global Professional and Ethical Standards every three years.
34
# Mentioned in submission
**What RICS Professional Statement recently got Produced on the topic of Money Laundering? And from when is it Effective?**
RICS Professional Statement – Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019). Effective from 01 September 2019
35
Briefly outline the contents of RICS Professional Statement – Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019)
Part 1: Requirements
Part 2: Guidance
Part 3: Supplementary guidance (enhanced/simplified due diligence), PEPs
Appendices: Template due diligence, draft compliance checks, AML checklist
36
# Mentioned in submission
**What is the penalty for bribery?**
Up to 10 years in prison.
37
**What legislation allows authorities to recover the proceeds of crime in the UK?**
The Proceeds of Crime Act (2002)
38
**What are the penalties for assisting with Money Laundering under Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) 2017?**
If you are found to be assisting in the laundering of money you can face up to 14 years in prison and an unlimited fine. If you fail to report money laundering, and or tip someone off that they are under investigation for money laundering you can also face up to 5 years in prison and an unlimited fine.
39
**What report would a firm’s money laundering reporting officer produce should they suspect suspicious activity and where would they send it?**
They would produce a Suspicious Activity Report (SAS) and would send it to the National Crime Agency.
40
**What position/role must each firm have in place under Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) 2017?**
Money Laundering Reporting Officer
41
**What is a PEP, and what are you required to carry out when working with one?**
A politically exposed person. You are required to undertake further checks or “Enhanced Due Diligence” EDD when working with one. They present a higher risk of being involved in bribery or corruption due to the nature of their position.
42
**What piece of UK legislation covers money laundering in relation to estate agency work and ‘relevant financial business work’?**
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
43
# Mentioned in submission PTRDCM
**What are the 6 Key Principles of the Bribery Act (2010)**
1) **P**roportionality
2) **T**op Level Commitment
3) **R**isk Assessment
4) **D**ue Diligence
5) **C**ommunication
6) **M**onitoring
44
# Mentioned in submission
**What are the Four Offences Under the Bribery Act (2010)?**
The four offences are: Bribing, receiving a Bribe, Bribing a foreign public official, and failing to prevent bribery.
45
**What are the Gender Pay Gap Reporting Regulations?**
Firms with over 250 employees are required to complete an annual report to ACAS and the Government Equalities Office, stating the difference in pay between their male and female employees.
46
**What are the requirements for a client account?**
* Must have client money in the name
* Funds must be readily available for the client upon request
* All interest to be paid to the client
* Only client monies are held unless receipt of mixed monies, in which case office monies are to be released promptly
* If the client wants access to the account too, then the account is set up by the client, not the RICS firm
47
**What is the RICS documentation on handling client money?**
RICS Professional Statement on Client Money Handling 2019
48
**What happens if you have surplus unclaimed client money in a Client Account?**
If after at least 6 years no claimant has come forward for the money and every effort has been made to identify that person then it can be donated to a registered charity.
The RICS has a registered charity, **LionHeart**, to which you can donate to. Ideally, the charity will provide an indemnity, so that if a claimant comes forward at a later date then they can be paid.
49
**What’s the difference between a claim in contract and a claim in negligence?**
A contractual claim can only be brought by a party to the contract (i.e the client). A claim of negligence can be brought by a third party, to whom the surveyor owed a duty of care.
The Limitations Act 1980 limits claims in contract to six years from the omission, error, breach of contract, and limits claims in negligence to 15 years from the negligent act.
50
**What does the RICS say about Pro-Bono Work for Charities or Friends?**
You are still required to draw up terms of business, and you still need Professional Indemnity Insurance, which would be stated therein.
51
**What is the RICS Requirement for Run-Off Cover once a firm closes?**
The RICS requires that for consumer cover, a firm maintains at least £1,000,000 of cover for 6 years. For commercial firms, the firm should decide what level of cover is appropriate for 6 years after. The RICS recommends that you have cover in place for longer, as you are liable for negligent acts for up to 15 years under section 14A of the Limitations Act (1980).
52
**What else does the RICS say about Professional Indemnity Insurance, other than the level of cover required?**
The RICS states that a chartered surveying practice must:
1. Seek cover from an RICS approved insurer.
2. Have a Retroactive Policy.
Provide details of their cover as part of a regulated firm’s annual return to the RICS
53
**How might you avoid claims of negligence made against you?**
Follow RICS guidance during practice, make sure you have a clear understanding of you clients requirements and clearly state and outline these in your scope of works and terms of engagement, and ensuring that I am competent to undertake the instruction prior to proceeding.
54
**Where would it be stated the level of Professional Indemnity Cover that you intend to offer your client?**
In the terms of business, that are to be agreed before the instruction is undertaken.
55
**What is the legally acceptable Margin of Error in Property Valuation?**
Following the case of **K/S Lincoln and Others v CB Richard Ellis (2010**), it was established that there was an acceptable margin of error of +/- 5% for single residential properties, +/- 10% for single commercial properties, and +/- 15% for more complex holdings.
56
**What did Singer & Friedlander Ltd. v J D Wood (1977) establish?**
That for relatively simple valuations there is smaller margin for error and for more complicated valuations there is a greater margin of error acceptable.
57
**Does a residential valuer acting on behalf of a lending bank have a duty of care to a mortgagor purchaser?**
Yes, there is a duty of care, and this was established in **Yianni v Edwin Evans (1981)**.
However, if the advice is in respect of a buy-to-let purchase, then it may be argued that there is an obligation on the “commercially astute” borrower, as established in the Court of Appeal case; Scullion v Bank of Scotland (2010).
58
**What are the different types of documents the RICS publish?**
1. RICS Rules of Conduct
2. International Standard
3. RICS Professional Statement
4. RICS Guidance Note
5. RICS Code of Practice
6. RICS Jurisdiction Guide
59
**What is the new RICS Professional Statement on Clients Money called and what does it do?**
The statement is called “Client Money Handling”, published October 2019. Effective from January 2020. It provides advice for the RICS members in relation to the holding of client monies.
60
**What are the Three Objectives of Client Money Handling (2019)?**
1. Keep Client’s Money Safe
2. Client accounts are used appropriately
3. RICS – regulated firms have appropriate procedures in place to ensure best practice
61
**What are the 8 Mandatory Requirements of Client Money Handling (2019)?**
RICS Regulated firms must provide the following to clients in writing:
* Confirm that client’s money is to be held in a client account (including bank account details), which the firm has exclusive control over.
* “client” in the name of the bank account
* Not to hold office money in the account, unless it is in receipt of mixed monies
* Only withdraw out of high interest (penalty-bearing account) with written consent from the client.
* client's money account contains no other funds, and funds withdrawn in error are replaced.
* money held in a client account is immediately available even at the sacrifice of interest.
* Confirm account operating conditions with bank (No set-off for other firm accounts, no mixing of funds)
* Ensure that when a client requests it, money is held in an account that the firm and client have access to. (Has to be an account established by the client, not the firm).
62
**What would you consider if you were invited to a sporting event?**
I would consider the value of the gift, the situation in which I was being entertained (not alone) and the scope of ongoing and future works with that client. I would consider whether it was appropriate for me to attend and whether it would impact on my integrity as a practitioner. I would ensure that any gift accepted would not be during a current instruction and any fees payable would already made.
63
**How did you Carry Out a Conflict-of-Interest Check?**
**Ask LM**
64
**If you had valued the property next door would you be conflicted?**
No, not necessarily. You would in fact be well placed to inform on the value of that property.
65
**What should you include in the Terms of Business?**
You must include in the Terms of Business, the fee involved, the scope of work to be carried out, the time in which the instruction is to be completed, the level of professional indemnity cover, and details on the company’s complaints handling procedure.
66
**When starting a new practice what would you do in regard to VAT?**
You must inform HMRC for VAT and Tax registration – current threshold is £90,000 p.a. in turnover.
67
# Mentioned in submission
**What are the key elements of the RICS Professional Statement on Countering Bribery and Corruption, Money Laundering and Terrorist Financing, 2019?**
NHRPR
Mandatory requirements are:
- Not to offer or accept anything that could constitute a bribe.
- Having procedures in place to comply with the law.
- Report suspicion to the relevant authority.
- Perform periodic written evaluations of the risks the firm faces.
- Retain records to show the firm has met the requirements of the Professional Statement.
68
**What are the 5 exceptions from Red Book Global valuations?**
**In PS 1 – Compliance with standards and practice statements where a written valuation is provided.**
**E-A-S-I-N**
(1) Expert Witness work.
(2) Agency and Brokerage work.
(3) Statutory work – e.g. for a tax return.
(4) Internal Purposes – no 3rd party reliance.
(5) Negotiations or Litigation
69
**What is the RICS professional statement regarding conflicts of interest?**
RICS Global Professional Statement on Conflicts of Interest, 2017
70
**What are the three types of conflicts of interest?**
(1) ‘Party Conflict’ – relating to work on the same or related instruction.
(2) ‘Own Interest Conflict’ – relating to a personal interest.
(3) ‘Confidential Information Conflict’ – relating to work between two parties which is confidential.
71
# Mentioned in summary of experience
**What is ‘informed consent’?**
Consent to carry on with an instruction that involves a conflict of interest. Can only be given in writing by the party if it is entirely transparent about any material factors. Party must understand what they are doing. Surveyors should only seek informed consent if satisfied that all parties are best served by doing so.
72
**What are the different types of documents the RICS publish?**
1. RICS Rules of Conduct for Members and Rules
of Conduct for Firms
2. International Standard
3. RICS Professional Statement
4. RICS Guidance Note
5. RICS Code of Practice
6. RICS Jurisdiction Guide
73
What are the 3 benefits to being a regulated firm?
Confidence - clients and firm are monitored by RICS Regulation
Professionalism - firms are obligated to provide clear, impartial, expert advice
Security - firms have to have a complaints procedure, access to free independent redress and PII cover
74
What 7 bits of information are needed in an RICS annual return?
1. **T**ype of business and staffing details
2. **N**ame of the Responsible Principal
3. **S**tatutory regulated activities e.g. financial services
4. **N**ature of clients
5. **C**omplaints handling procedure details and records
6.**P**rofessional indemnity insurance details
7.**W**hether the firm holds client money
75
What are the THREE professional obligations of RICS members
1. Comply with CPD requirements (20 hours inc. 10 hours formal)
2. Cooperate with RICS
3. Promptly provide information reasonably requested by Standards and Regulations Board
76
What are the SEVEN professional obligations of RICS firms?
1. Publish a CHP
2. PII Cover
3. Have adequate cover for a sole principal
4. Cooperate with RICS
5. Promptly cooperate with Standards and Regulations Board
6. Display 'regulated by RICS' on all literature
7. Report to RICS under the Rules for the Registration of Firms
77
What are the SIX ethical principles on which the Rules of Conduct are based?
Honesty
Integrity
Competence
Service
Respect
Responsibility
78
What is the Ethics Decision Tree?
It is a decision making tool to help members make reasoned ethical decisions.
Decisions need to be based on the facts, legal and in line with Rules of Conduct
79
What are the disciplinary procedures available to the RICS?
Head of Regulation to formally review which can lead to:
i. Fixed penalty (low level breaches)
ii. Regulatory compliance order (low level breaches)
iii. Refer to Regulatory Tribunal for consideration (potentially serious breach)
iv. Refer directly to Disciplinary Panel (serious breaches)
Firms and members have the right to an appeal hearing if they disagree with action above.
80
What disciplinary outcomes are you aware of?
In Jan 2024, a member was charged with failing to record 20 hours of CPD.
This contravened Bye Law 5 (Conduct) and Rule of Conduct 2 (Competency) which resulted in expulsion from RICS.
81
Tell me about Use of social media (2021) guidance note.
RICS will investigate social media posts that contravene Rules of Conduct e.g. discrimination, dishonesty, harassment
But unlikely to investigate matter of opinion that doesn't contravene Rules of Conduct. e.g. critical of a firm's performance.
82
What THREE things must you consider before you accept an instruction
1. Check that you are competent to do the work required
2. Check there are no conflicts of interest
3. Agree terms of engagement in writing before starting work
83
Can you outline what you include in your terms of engagement?
The Client name
The Property name
The purpose of the valuation
Date of valuation
Bases of valuation
Tenure
Conflicts
Relevant PII cover
How expenses are treated
Fee value
Information on CHP
84
Can you outline how you calculate fees
Size and complexity of the job dictates fee level.
A standard pharmacy instruction starts at £1,000
A multi revenue destination hotel and spa starts at £5,000
85
What document covers conflicts of interest?
Global Professional Statement Conflicts of Interest 2018
86
What is the difference between conflict avoidance and conflict management
Conflict Avoidance: not accepting an instruction
Conflict Management: identifying conflict and putting steps in place to manage it e.g. information barrier
87
What are the THREE types of conflict?
Party Conflict
Own Interest Conflict
Confidential Information Conflict
88
# Mentioned in summary of experience
What is informed consent?
Informed consent is given when all parties are aware of a conflict of interest and are satisfied that proceeding is:
- in the interest of all parties concerned
- not illegal
- does not affect the ability to provide competent advice
Inform each party to seek independent advice if needed.
89
Can you give me an example of a conflict of interest that has been managed in your firm?
**To Ask GR & JS**
90
Can you talk about THREE RICS bye-laws?
I know there are 10. Examples include:
2. Membership and registration - to be eligible as a chartered member, a non chartered member must demonstrate appropriate professional competence
4. Contribution to funds - a person is liable to payment of their fees whilst in membership
5. Conduct - all members shall comply with the rules and regulations laid out by the RICS
91
What is a complaint?
An expression of dissatisfaction
92
# Mentioned in summary of experience
How would you handle a complaint?
Send a copy of the CHP to the complainant advising that
1. Complaint will be acknowledged by the Compliance Officer within 7 days and responded to within 28 days. Notify PII insurers of the complaint
2. If not resolved at this stage, it can be escalated to our Global Managing Director for further review
3. If this is still not satisfactory, referral to our third party ADR
93
What are the FOUR requirements of CPD?
1. At least 20 hours of CPD in a calendar year
2. At least 10 hours must be formal
3. Maintain understanding of RICS Rules of Conduct every 3 years
4. Record all CPD online by 31st January
94
# Mentioned in summary of experience
What is a duty of care?
A moral or legal obligation to someone
95
What is PII?
Professional Indemnity Insurance to protect clients, surveyors and third parties against negligence claims
96
What are the minimum PII levels required and how is it calculated?
Calculated on preceding year's turnover.
<£100k: £250k
£100k - £200k: £500k
£200k: £1m
97
What are the maximum levels of uninsured PII excess?
Up to £10m turnover: the greater of 2.5% of sum insured or £10k
Over £10 turnover: no limit
98
What do you know about Risk, Liability and Insurance, 1st edition (2021)?
Guidance note on risk management.
- From May 2021 insurers must provide cover for fire safety claims on a property four storeys or under
- RICS recommends use of liability caps to manage risks
- Make it clear that the advice can only be relied upon by the named client and no third parties
- Consider the risks associated when defining scope of work
99
What is negligence?
When a surveyor fails in their duty of care which results in a loss to a client or third party
100
How do you avoid negligence?
- Ensure you are competent
- Act in accordance with RICS standards and guidance notes
- keep detailed records
- confirm client objectives in terms of engagement
101
What are the SIX areas of good practice set out in RICS Client Money Handling (2019)?
1. Holding client money
2. Providing information to clients
3. Receipts of client money
4. Payments from client accounts
5. Accounting records and controls
6. Clients
102
If you are successful in the APC and decide to set up your own business, identify the matters that must be addressed
- Must create a business plan
- If limited company then register with companies house
- Get PI cover
- Open a business bank account and a client account
- Lay out a complaints handling procedure
- Register with RICS
- Devise a CPD plan
- Set up a system to counteract bribery and corruption
103
If you want to retire from running your own business, what must you do?
- inform RICS
- inform clients and hand over to a new firm
- return any monies held back to clients
- inform insurers and arrange run off over for 6 years
- keep a copy of files for at least 6 years
104
What is your company policy on accepting gifts, entertainment and hospitality?
Gifts up to £100 and Entertainment/Hospitality up to £250 are OK to accept.
Anything above this must be recorded on the gift register.
Gifts exceeding £200 and Entertainment/Hospitality exceeding £500 need prior authorisation before they can be accepted
Any gift above £500 must be auctioned off for charity
105
What do you know about Freemont v Knight Frank (2014)
Valuer provided a valuation of development land to the Bank for purposes of loan security.
Landowner relied on this as a valuation for sale and rejected offers on this basis. In the meantime, land fell into disrepair and reduced in value.
Landowner tried to sue for negligence but this was rejected as there was no duty of care to the landowner for sale purposes.
106
How do you complete a conflict-of-interest check to confirm there is no previous involvement with a property or connected parties?
I use our internal CRM system to see if we have had any fee earning relationship with the Property or business/persons relating to the Property within the last two years. I sometimes use Companies House to identify the directors of the named business where this is not immediately clear from the invite to quote.
