Property Management Flashcards
What is the purpose of the RICS Professional Statement - Real Estate Management, 2016
It is a mandatory professional statement that outlines principles relating to transparency and fairness with regard to real estate management.
What are the principles confirmed within the RICS Professional Statement - Real Estate Management, 2016
- Act in an honest fair and transparent manner
- Carry out work with due skill, care and diligence.
- Ensure clients have the terms of business and details of the complaints handling procedure.
- avoid conflicts of interest
- Not to discriminate
- All marketing to be truthful
- Client money handled seperately and covered by insurance.
- have appropriate PII
- Clear identification of client
What does the RICS Guidance Note - Commercial Property Management in England & Wales 2011 provide?
- a guide to bets practice to commercial property managers.
- Outlines that the primary duty of care is to your client.
- provides advice on key areas such as service charges, rent collection, H&S and procurement.
-contains summary of statute law and a model terms of engagement.
Difference between and assignment and sublet?
Assignment - new tenant has a direcr relationship with the landlord.
Sublet - the new sub-tenant has a direct relationship with the tenant and pays them the rent.
Reasons to sublet, instead of assign?
- requirement of the lease
- new tenant only wants part of demise and not whole.
- market rent is higher than passing rent (profit rent)
- tenant may want to re-occupy in the future.
- lesser covenant strength.
What are a landlords remedies for alienation?
- forfeiture
- damages
- injuction
What does the RICS Licence to Alterations Guidance Note, 2013 provide
Guidance is archived but it sets out advice dealing with application to make alterations to office and industrial properties.
What does s19 of the Landlord and Tenant Act 1927 provide?
Provides that where a tenant can make improvements to the property with landlord consent, that consent cannot be unreasonably withheld.
If the s19 procedures are followed, the landlord may be obliged to pay compensation for alterations that constitute as improvements.
What are dilapidation negotiations?
Take place at leas expiry to bring the property back to its original condition.
What should you do before entering into dilapidation negotiations? And what must be served
- check lease for repairing obligations.
- Check if there is a schedule of condition
- Check for any licences to alter
A section 146 of LPA Act 1925 must be served.
What options are there to the tenant in dilapidations negotiations?
Tenant has 2 choices:
- Tenant can do the agreed works.
- Tenant can pay sum to the landlord to undertake the works.
Breach + Loss + Evidence = Recovery
Are there any limitations on dilapidations claims?
- Claims are limited to the cost of the works.
- or in accordance with s18 of Landlord and Tenant Act 1927, the diminution value of the reversionary interest.
- if landlord proposed to demolish reversion could be nil.
What are the 3 forms of dilapidation schedules?
Interim Schedule - served by landlord during term with at least 3 years left on the lease.
Terminal Schedule - served normally in the last 3 years of lease.
Final Schedule - served at or after lease expiry when the tenant is out of occupation when the landlord want to agree damages.
What should a dilapidation schedule outline? and what happens if an agreement cannot be reached.
- outlines repairing obligation.
- states the remedy and cost of breach.
- any loss of rent, for period to do the works.
- fees + vat for the claim for surveyors and lawyers.
Negotiations should proceed without prejudice until agreement.
If agreement cant be reached then LL surveyor hsoud prepare as scott schedule for the court/ADR - setting out the LL & Tenant position.
What is the RICS guidance for dilapidations?
RICS Professional Standard Dilapidations 2016
