Rent Review

Question 1

What is an Arbitrator?

Answer 1

Appointed by RICS. Chartres arbitrator.
Only use evidence submitted by the parties
Immunity from negligence
Can order a disclosure

Question 2

What is an independent expert? 8 points

Answer 2

1. Has detailed knowledge of the market
2. Appointed by RICS but not bound by judicial rules
3. Can have own opinion
4. Bound by terms of lease
5. No judicial function
6. Can’t appeal against decision
7. Good if there is a lack of market comps.
8. No power to order disclosure

Question 3

What is an Advocate?

Answer 3

Applies to evidence given to arbitrator or independent expert hearings where advocate represents client
Duty to act in best interest of client but also act with integrity.

Question 4

What is an expert witness?

Answer 4

Specialist in subject
Presents opinion impartially
Duty is to court
Complete and true opinion

Question 5

What are the typical assumptions for a rent review?

Answer 5

1. Property available to let on open market by willing T & L for term if yrs as stated
2. Property is fit and available for immediate occupation
3. All covenants observed by L & T
4. Property may be used for purpose set out in lease.

Question 6

What are the typical disregards in a rent review?

Answer 6

1. Any effect of goodwill on tenants occupation
2. Ignore goodwill attached to property
3. Tenant improvements if L consent been granted

Question 7

Tell me what you did in the RR on Heddon Street?

Answer 7

Discussed client objectives
Read lease timing provisions
Inspect and measure
Gather comps and assess rental value
Report a d recommend
Arrange service if notice if necessary and open negotiations
Agree settle my it refer to 3rd party

Question 8

What is a winning Calderbank?

Answer 8

Rent proposed on the calderbank is closest to arb or ie decision.