Randoms Flashcards
(111 cards)
1
Q
What is a bye law?
A
a rule made by a company or society to control the actions of its members
2
Q
What is a royal charter?
A
Instrument of incorporation granted by the crown to allow organisations to self-regulate and set bye-laws.
3
Q
What is the motto of the RICS
A
There is measure in all things
4
Q
Whats the governance structure of the RICS?
A
- Governing Council 25 members
- Regulatory Board, Management board
- 17 specialist groups
- Interim Chair of Gov Council Chris Brooke
5
Q
What H&S documents do you need to have to had when marketing a property?
A
- Asbestos Reg
- Fire safety Regs
- Schedule of condition
6
Q
What purposes are GEA used for?
A
Town Planning
Building cost estimation for insurance
7
Q
Time limit of storage of data?
A
GDPR does not specify retention periods for personal data. Instead, it states that personal data may only be kept in a form that permits identification of the individual for no longer than is necessary for the purposes for which it was processed.
Personal Data information will be retained for a maximum period of 6 years following submission
Or longer if we need to in relation to contractual arrangements.
8
Q
Where does a sub-letting fit in with the hierarchy of evidence?
A
If the lease clause allows the sublet to go to market rent then it fits in between open market letting. If its sublet at the same level that is has very little significance.
9
Q
What is a wayleave?
A
Temporary right
Annual payment
Personal to company, no transferring
No compulsory to register
10
Q
What new legislation did the government recently bring out for fire safety?
A
Fire Safety Act 2021
11
Q
What does the Fire Safety Act 2021 amend?
A
- Duty of responsible person to manage fire risks in regards to structure and external walls of building.
- Applies to Multi-occupancy buildings with no height limit.
But does not address remediation works.
12
Q
What are the aims of the RICS 2021 review?
A
- Consider how best to maintain stakeholder and public trust in the RICS & Profession
- Ensure RICS remains a sustainable body
13
Q
What act provides powers of enforcement to the GOV in regards to criminal assets?
A
Proceeds of Crime Act 2002
14
Q
What is the proceeds of crime act 2002
A
Gov can recover in criminal and civil money and other assets which are deemed to be the proceeds of crime.
Creates a set of criminal offences intended to combat money laundering (AML offences).
15
Q
What are the three main areas of offence?
A
- Concealing criminal property: if a person conceals, disguises, converts or transfers criminal
property - Arrangements: if a person enters into or become concerned in an arrangement which they know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person
- Acquisition use and possession: if a person acquires, uses or has possession of criminal property
16
Q
What is concealing criminal property?
A
If a person conceals, disguises, converts or transfers criminal
property
17
Q
What is the offence ‘arrangements’?
A
if a person enters into or become concerned in an arrangement which they know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person
18
Q
What is the offence in regards to acquisition use and possession?
A
If a person acquires, uses or has possession of criminal property
19
Q
What is section 82 of the Coronavirus Act 2020?
A
The amended Section 82 Coronavirus Act 2020 currently prevents any forfeiture between 26 March 2020 and the end of June 2021 whether by proceedings or peaceable re-entry, of the vast majority of commercial leases for non-payment of “any sum” due under the lease.
Others known as the eviction moratorium
20
Q
What changes are happening with the Ethical and professional standards and code of conduct?
A
The new Standard aims to replace and combine the existing RICS Professional & Ethical Standards and the Rules of Conduct for Firms and for Members, together with detailed guidance on specific issues and example behaviours (particularly for RICS regulated Firms) to aid compliance
21
Q
Two make changes for ethics?
A
The key changes from the existing standards are:
Separation of the principle of maintaining continuing competence from the principle of providing a good service to clients
Combining the principles of taking responsibility and maintaining public confidence in the profession
22
Q
3 types of Due Diligence for ML
A
SDD (Simple due diligence)
CDD (Customer due diligence)
EDD (Enhanced due diligence)
23
Q
What does the limitation Act 1980 relate to?
A
Current limitation periods for negligence:
Contract: 6 years from negligent act. With a 15 year long stop from the negligent act or omission.
Tort: 6 year from the date claimant suffered the loss.
24
Q
How do you avoid negligent claims?
A
Understand clients objectives and confirm TOE
Competence
Leave audit trail with notes and pictures
Keep up to date with legislation
25
What is the leading case is margin of error
Singer & Friedlander Ltd v J.D.Wood (1977)
26
Singer & Friedlander Ltd v J.D.Wood (1977)?
Margin of error varies with complexity of instruction
27
What must the Money Laundering reporting officer do when suspicions is brought to them?
# Fill out a Suspicious Activity Report (SAR) to the National Crime Agency
Retain records for 5 years
28
What do you do to prevent Bribery?
Follow the 6 steps of the bribery act 2010:
```
Proportionality
Top level commitment
Risk assessment
Due diligence
Communication
Monitoring and review
```
29
What is the mechanism similar to a Calderbank but for a lease renewal?
Part 36 of the Civil Procedure Rules, 1998
30
What must a Part 36 of the Civil Procedure Rules 1998 do?
Must be made in writing and remain open for acceptance for a minimum of 21 days
31
When should the Interim Rent be paid from
The appropriate date.
32
When is interim rent payable?
Interim rent is only payable when a party makes an application to the Court for interim rent to be determined. An application for interim rent can only be made provided if either
the Landlord has served the Tenant with a section 25 notice; or
the Tenant has given the Landlord a section 26 notice.
If no application is made, there is no entitlement to interim rent, rather the rent due under the lease is paid.
33
What does compensation for disturbance mean?
Relates too section 37 of LTA 1954, with RV comp for grounds of refusal.
34
What grounds of opposition are discretionary?
A to E, court decides whether reasonable
35
What ground of opposition are mandatory?
F to G
36
What is a price can not be agreed in the pre-emption clause?
If a price can not be agreed in regards to the market value of a property in a pre-emption clause then the matter will be referred to an independent expert, who will be agreed by both parties, if not they are appointed by the RICS. If its not accepted by the pre-emption party then the owner can dispose of the asset elsewhere.
37
What legislation governs the basis of value for IHT?
s.160 Inheritance Tax Act 1984
38
When is the date of valuation for IHT?
Date of death
39
What is market value as defined in S.160 Inheritance Tax Act 1984?
the value at any time of any property shall for the purposes of this Act be the price which the property might reasonably be expected to fetch if sold in the open market at that time."
40
When must an inheritance tax valuation be reported by/
Latest date is one year post death.
41
What is Business Property Relief (BPR)?
It provides relief from Inheritance Tax (IHT) on the transfer of relevant business assets at a rate of 50% or 100%. For a business or an interest in a business its 100%.
42
What is VPGA 4
VPGA 4 Valuation of individual trade related properties
43
What sort of questions does the ethical decision tree ask?
Do you have the facts?
Is it legal?
In line with RICS global professional and ethical standards?
Do you have informed consent from consented people?
Is there reason in your decision?
Would you be content with your action being made public?
44
What is present value?
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return.
45
The higher the present value discount rate the________
lower the present value of the future cash flows.
46
What does BREEAM stand for?
Building Research Establishment Environmental Assessment Method
47
What is the scoring method for the Building Research Establishment Environmental Assessment Method?
```
Pass
Good
Very Good
Excellent
Outstanding
```
48
What categories are properties assessed for by the Building Research Environmental Establishment Assessment Method
1. Energy consumption
2. Water use
3. Transport links
4. Waste management
5. Health & Wellbeing
49
How do you calculate net effective rent?
Devalue the rent free period over a 10 year term, assuming 3 months for fit out.
Times the rent by 10 years, minus the rent free period (excluding the 3 months fit out) and divide by 10 years.
If it was stepped I could take an average of the 5 year term or if stepped and rent free I would work out how many months equivalent rent free there were, take away three for it out and devalue that over the 10 year period minus the rent free (excluding the 3 months fit out) and divide by 10 years.
50
AG&G indemnity level?
£5,000,000
51
How can landlords and tenants assist with inclusiveness for people at higher risk from covid-19?
Going forward improvements to their outdoor areas, providing improved covered outdoor areas with heaters, to facilitate trade in an open air format which reduced likelihood of the spread of covid-19.
52
What is a cash flow statement?
is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.
53
What does a cash flow statement show?
The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
54
public limited company accounts include:
Chairman's statement
Independent auditor’s report
Income statement (profit and loss account)
Statement of financial position (balance sheet)
Corporate governance report
Remuneration report
Other statutory information
55
Why does sustainability impact value?
Corporate Social Responsibility of big firms will lead them to ignore taking leases of buying property that does not meet their targets. Therefore the properties are less desirable and will produce lower rents and values.
56
Why is having an EPC important
Energy Performance Certificates (EPCs) are required for all commercial buildings over 50 sq. m.
An EPC is also required for sub-letting or assignment of a lease
57
What must you do in regards to any EPC for marketing?
1. Must be commissioned within 7 days of the commencement of marketing (28-day limit for procurement)
2. Agents are responsible for procuring EPCs
3. Only the actual energy rating is required to be displayed on property and advertisements.
4. All online marketing material must have a link to the EPC to show the front page of the EPC
58
How long does an EPC last?
10 years unless the building has been altered, then a new one is required for marketing.
59
How do you find an EPC?
The EPC online register holds EPCs available for inspection
60
Penalties for non-compliance
Max pen 12.5% of RV (min £500 max £5,000)
61
How do buyers usually fund their purchases?
For the assets I have been involved with selling almost all of the buyers have been cash buyers.
Pubs usually sold without trading figures and without planning permission, therefore it becomes very hard to secure finance from banks.
In some cases, high street banks or private lenders are used.
62
What is the issues with a buyer using finance?
Takes much longer to complete due to amount of information that needs to be supplied to the lender
63
How involved are AG&G with the CPSE process?
We do not tend to get heavily involved, but do remain open to assisting if required.
64
Who asks for Commercial Property Standard enquiries?
The buyer's Solicitor
65
Who replies to Commercial Property Standard enquiries?
The vendor
66
What document is exchnaged during the sale of a freehold?
Purchase and Sale Agreement
67
What does a Purchase and Sale agreement detail?
```
Parties
Property
Price
VAT
Date of completion
Deposit
Demise
Title
Draft transfer deed on Land Registry
```
68
What topics do buyers usually ask for information on in CPSE?
1. Boundaries and extent
2. Party walls
3. Rights benefiting the Property
4. Adverse rights affecting the Property
5. Title policies
6. Access to neighbouring land
7. Access to and from the Property
8. Physical condition
9. Contents
10. Utilities and services
11. Fire safety and means of escape
12. Planning and building regulations
13. Statutory agreements and infrastructure
14. Statutory and other requirements
15. Environmental
16. Occupiers and employees
17. Insurance
18. Rates and other outgoings
19. Notices
20. Disputes
21. Community Infrastructure Levy (CIL)
22. Commonhold
23. Stamp Duty Land Tax (SDLT) on assignment of a lease
24. Deferred payment of SDLT
25. Value Added Tax (VAT) Registration information
26. Transfer of a business as a going concern (TOGC)
27. Other VAT treatment
28. Standard-rated supplies
29. Exempt supplies
30. Zero-rated supplies
31. Transactions outside the scope of VAT (other than TOGCs)
32. Capital allowance
69
How would a freeholder of a tenanated public house reply to CPSE?
With less detail as they have not had a intimate relationship with the property.
70
What is an SPV
A special-purpose entity is a legal entity created to fulfill temporary objectives.
SPEs are typically used by companies to isolate the firm from financial risk.
71
For Purchase and Sale when is the depsoit given?
On Exchange of Contracts which is legally binding.
72
What is the industry standard for a deposit for a pruchase ?
10%
73
What do you need to do with a deposit?
Detail it in a rent deposit deed
74
When do I need a new epc?
EPCs and their recommendation reports are valid for ten years from the date of issue, however, an EPC should be no older than 12 months at the commencement of marketing.
cost between 60-120
75
What is section 18 of the LTA 1927?
Claim is limited to either the cost of the works or, in accordance with Section 18 of the Landlord and Tenant Act 1927, the diminution in value of the reversionary interest - i.e. the difference in value of the property upon possession had the covenants to repair and decorate had not been undertaken.
If a landlord proposes to demolish or substantially refurbish, the value of the reversion could be nil
76
What is the basic method of a Residual?
Land/Property = GDV – (Construction + Fees + Profit)
77
What is GDV?
Gross Development Value highlights what the final capital value of the completed development is projected to be when it is eventually sold to an interested party.
78
What are the build costs in regards to a Residual method?
The fees element covers things such as payments to professionals who are involved in the process – solicitors, planning consultants, architects, engineers, property agents for example.
79
What is the developers profit?
The property developer will need to have in-mind their required return on their investment… the profit expect to make for all their hard work. Usually around 20%
80
What is the residual method of valuation?
A development appraisal is a tool to financially assess the viability of a development scheme
81
What is IRR?
The rate of return at which all future cashflows must be discounted to produce a NPV of zero.
82
When is IRR used?
IRR is used to assess the total return from an investment opportunity making some assumptions regarding rental growth, re-letting and exit assumptions
83
What are the 5 steps to an IRR?
1. Input current market value as a negative cash flow
2. Input projected rents over holding period as a positive value
3. Input projected exit value at the end of the term assumed as a positive value
4. Discount rate (IRR) is the rate chosen which provides a NPV of Zero
5. If NPV is more than zero, then the target rate of return is met
84
In regards to rating and a degree of permanence , how long is this and in what case is this set out in?
12 months and Sir Robert McAlpine v Payne (1969)
In this case Lands Tribunal held that 5 separately assessed sheds which had remained in situ for between 6 and 7 months were not rateable. This and further cases led to a working rule that if a hut or caravan has been on a site for longer than 12 months then the occupation is rateable, if less the occupation is not rateable.
85
When will is the business rates review being published?
The final report of the government’s fundamental review of business rates will now be published in the Autumn 2021
86
What do you think will be the outcome of the business rates review?
There has been a big call for a more equal playing field for high street retailers who are suffering the most from rates. So I anticipate some sort of system that benefits them, whether this is a reduction in the multiplier or permanent retail relief schemes I do not know.
87
What is the gov doing in regards to MCC covid appeals?
Bill states future MCC for covid are void, but current applications are yet to be voided.
88
Is there any rating case law for modes of property?
Williams (VO) v Scottish and Newcastle 2001 confirmed the correctness of the above. It decided a public house use was not in the same mode or category as a general shop or restaurant.
89
What are the 8 principles from the Data Protection Act 2018
1. Processed Fairly & Lawfully
2. Not kept Longer than necessary
3. Adequate and not excessive
4. Not transferred to Countries without the same data security
5. Accurate & up to date
6. Relevant
7. Data subject’s rights
8. Kept Securely
90
What are the quarter days?
25 March
24 June
29 September
25 December
91
For leisure property market practice suggests that it may be helpful for some areas within GIA to be stated separately:
1. Internal load-bearing walls and columns
2. Fire escape stairs and corridors
3. In the measurement of purpose-built multiplex cinemas the floor levels providing raised projection boxes and the stepped flooring providing the auditoria seating
4. For restaurant premises the public seating areas, kitchens, cellars and stores
5. Where the effective drinking area of licensed premises is required by licensing justices or similar bodies, the trading accommodation area must exclude the area of the servery (bar counters)
92
What does the Gov Guidance for landlords and tenants say in regards to rent?
Tenants should continue to pay rent and abide by all other terms of their tenancy agreement to the best of their ability.
The government has made a strong package of financial support available to tenants, and where they can pay the rent as normal, they should do.
Tenants who are unable to do so should speak to their landlord at the earliest opportunity.
No one size fits all
93
The Management of Health & Safety at Work Regulations?
this states that the employer must assess all significant risks to their staff taking account of the employee’s age, experience etc.
94
Manual Handling Operations Regulations
this states the employer must seek to avoid any manual handling tasks that have any risk of injury involved. If this can’t be done then steps should be taken to assess such risks and then seek to reduce the risk.
95
Display Screen Equipment (DSE) Regulations
this covers the use of workstations and not just the use of monitors and display screens. Employees must be allowed to interrupt screen use with rest or other forms of work and are entitled to employee-paid eye tests and, if assistance is required, the cost of glasses/contact lenses.
96
Workplace (Health, Safety, and Welfare) Regulations
this essentially covers the maintenance and upkeep of the premises and covers things like
```
Cleanliness
Seating for all
Washing Facilities
Drinking water
Lighting
Temp
```
97
Provision and Use of Work Equipment Regulations
Work equipment must be suitable for the purpose intended
Equipment must be properly maintained.
The employer must provide information, instruction, and training on the correct use of the equipment being used.
98
Personal Protective Equipment (PPE) Regulations
The employer must provide suitable PPE when the risk cannot be controlled or removed in any other way.
99
What is Triangulation?
Cross verification on data by verifying it from two or more sources.
100
What is Encryption?
encryption is the process of encoding information so that only people with access can see the formatted text.
101
What is a firewall?
A network security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules.
Establishes a barrier between a trusted network and an untrusted network.
102
What us the L&T Covenants Act 1995 stipulate?
1. Assignment from 1996
2. Abolished Privity of Contract
3. AGA
4. S17 served to guarantor within 6 months of tenant defaulting rent.
5. Code of leasing business premises 2020 states AGA not to be needed used if new tenant is financially strong or provides a suitable deposit or guarantor.
103
Landlord & Tenant Act 1988, what is this about?
Consents must not be unreasonably withheld or delayed
104
Landlord and Tenant Act, 1927, what is this about?
Dilapidation
105
What is a deed of variation?
A deed of variation is a document that supplements an existing lease when a leaseholder and freeholder mutually agree to a variation in the lease
106
Give an example of when a deed of variation may be used?
When a tenant wishes to sublet the upper parts of a property for resi use but the alienation clause currently only allows for subletting of the whole.
Or to insert a covid-19 clause.
107
Give an example of when you have had a conflict of interest?
1. I was acting for the freeholder to sell a property in central london, the client.
2. An interested party asked if i could act from them on the acquisition.
3. Following the principles set out in the RICS Professional Statement Conflicts of Interest - UK Commercial Property Market Investment Agency 2017
4. Declined as under non circumstances should an agent have a contractual relationship with both the buyer and the seller.
108
Give me an example of when you have mitigated a conflict of interest?
I was acting for the tenant on an RR in Wimbledon
Colleague was acting for Landlord in an RR in Wimbledon and similar times.
Naturally we had different objectives set by our clients and therefore it would not be appropriate to share information.
Informed consent was given by the clients and information's barriers were put in place to make sure no information was passed between the two instructions.
109
What did the High Court rules in regards to Covid rent arrers?
Mike Ashley’s Frasers Group has been ordered to pay rent arrears built up since the beginning of the Covid-19 pandemic.
110
Code of practice for commercial property relationships was made by who? and is it mandatory to negotiate rent arrears?
The Government and No it is voluntary.
111
Which usual disregard in a MRO valuation is itself disregarded?
To disregard goodwill and the
occupation of the tenant.
The valuer takes occupation in to account.
