RICS Crib sheet

Question 1

What are the five rules for RICS members and firms?

Answer 1

1. Members and firms must be honest, act with integrity, and comply with their professional obligations, including obligations to RICS.
2. Members and firms must maintain their professional competence and ensure that services are provided by competent individuals who have the necessary expertise.
3. Members and firms must provide good-quality and diligent service.
4. Members and firms must treat others with respect and encourage diversity and inclusion.
5. Members and firms must act in the public interest, take responsibility for their actions, and act to prevent harm and maintain public confidence in the profession.

Question 2

What are the five methods of valuation?

Answer 2

1. Comparable Method – Uses recent sales of similar properties.
2. Investment Method – Based on rental income and yields.
3. Profits Method – Used for trading businesses (e.g., hotels, pubs).
4. Contractor’s (DRC) Method – Cost-based valuation for specialist properties.
5. Residual Method – Used for development land valuations.

Question 3

What are the four methods of sale?

Answer 3

1. Private Treaty – Property marketed at an asking price, negotiation occurs.
2. Formal Tender – Sealed bids, legally binding upon acceptance.
3. Informal Tender – Sealed bids but not legally binding upon acceptance.
4. Auction – Public bidding, legally binding when the hammer falls.

Question 4

What is PS 1 in the Redbook?

Answer 4

Compliance with standards where a written valuation is provided.

Question 5

What is PS 2 in the Redbook?

Answer 5

Ethics, competency, objectivity, and disclosures.

Question 6

What are the VPS in the Redbook?

Answer 6

1. VPS 1 – Terms of engagement (scope of work) – no change in title.
2. VPS 2 – Bases of value, assumptions and special assumptions – similar to former VPS 4.
3. VPS 3 – Valuation approaches and methods – similar to former VPS 5, includes methods.
4. VPS 4 – Inspections, investigations and records – similar to former VPS 2.
5. VPS 5 – Valuation models – new in 2025.
6. VPS 6 – Valuation reports – similar to former VPS 3.

Question 7

What is VPGA 1?

Answer 7

Valuations for Financial Statements – Ensure compliance with relevant financial reporting standards (e.g., IFRS, UK GAAP) for accurate financial statement valuations.

Question 8

What is VPGA 2?

Answer 8

Valuations for Secured Lending – Conduct thorough due diligence and adopt a cautious approach when valuing assets for loan security purposes.

Question 9

What is VPGA 3?

Answer 9

Valuations for Taxation Purposes – Align valuations with tax legislation requirements, considering potential tax liabilities and reliefs.

Question 10

What is VPGA 4?

Answer 10

Valuations for Compulsory Purchase and Compensation – Assess fair compensation by valuing property interests affected by compulsory acquisition.

Question 11

What is VPGA 5?

Answer 11

Valuations for Charities – Ensure valuations comply with charity regulations, supporting trustees in fulfilling their legal obligations.

Question 12

What is VPGA 6?

Answer 12

Valuations for Litigation Purposes – Provide impartial and robust valuations to support legal proceedings and dispute resolution.

Question 13

What is VPGA 7?

Answer 13

Valuations for Insurance Purposes – Determine accurate reinstatement costs for insurance coverage, ensuring proper protection against loss or damage.

Question 14

What is VPGA 8?

Answer 14

Valuation of Real Property Interests – Consider factors such as sustainability, environmental, social, and governance (ESG) issues, and market conditions when valuing real property interests.

Question 15

What is VPGA 9?

Answer 15

Valuation of Plant and Equipment – Apply appropriate methodologies to accurately value plant and equipment assets, considering their operational context.

Question 16

What is VPGA 10?

Answer 16

Valuation of Personal Property, Including Arts and Antiques – Utilize specialized knowledge to value personal property assets, reflecting their unique characteristics and market demand.

Question 17

What is VPGA 11?

Answer 17

Valuation of Intangible Assets – Identify and assess the value of intangible assets, such as intellectual property, considering their contribution to overall business value.

Question 18

What is the purpose of the RICS code for measuring practice?

Answer 18

Provides a consistent, standardised approach to measuring buildings and land across property sectors.

Question 19

What is GIA?

Answer 19

Gross Internal Area – Total internal floor area, including internal walls and partitions.

Question 20

What is NIA?

Answer 20

Net Internal Area – Usable area excluding internal walls, columns, WCs, and other non-usable spaces.

Question 21

What is GEA?

Answer 21

Gross External Area – Total area measured to the external face of external walls.

Question 22

What is the purpose of IPMS?

Answer 22

Provides a globally consistent method for measuring property, improving transparency and comparability.

Question 23

What is IPMS 1?

Answer 23

Measures the external area at each floor level (like GEA).

Question 24

What is IPMS 2?

Answer 24

Breaks down space into standardised components (e.g. circulation areas, workspace).

Question 25

What is IPMS 3?

Answer 25

Measures the area available to an occupier, including internal walls and columns.

Question 26

What is the purpose of RICS Property Measurement (2018)?

Answer 26

Establishes consistent property measurement practices, incorporating International Property Measurement Standards (IPMS).

Question 27

What is the purpose of RICS Valuation – Global Standards 2024?

Answer 27

Provides global and UK-specific valuation standards for consistency and professionalism.

Question 28

What is the purpose of RICS Conflict of Interest Global (2017)?

Answer 28

Outlines principles to manage conflicts of interest in the profession.

Question 29

What is the purpose of RICS Ethical Decision Tree?

Answer 29

A tool to assist professionals in making ethical decisions.

Question 30

What is the purpose of RICS Dispute Resolution Service (DRS)?

Answer 30

Offers structured, impartial methods for resolving property-related disputes.

Question 31

What is the purpose of RICS Comparable Evidence in Real Estate Valuation (2019)?

Answer 31

Offers practical guidance on sourcing, selecting, and applying comparable evidence for accurate and credible valuations.

Question 32

What is the purpose of RICS UK Commercial Real Estate Agency (2016)?

Answer 32

Sets out mandatory requirements and best practice for RICS members working in commercial real estate agency in the UK.

Question 33

What is the purpose of RICS Property Law and Leasehold Management?

Answer 33

Covers key legal principles, case law, and best practices in leasehold property management.

Question 34

What is the purpose of RICS Code of Practice – Property Transactions?

Answer 34

Provides best practice guidance for professionals involved in property transactions (buying, selling, letting).

Question 35

What is the purpose of RICS Service Charges in Commercial Property (2018)?

Answer 35

Sets a standard for transparency and fairness in service charge administration.

Question 36

What is the purpose of RICS Code for Leasing Business Premises (2020)?

Answer 36

Provides fair and transparent guidance for negotiating and agreeing commercial leases.

Question 37

What is the purpose of RICS Property Agency and Management Principles (2024)?

Answer 37

Sets out ethical and practical principles for agency and management.

Question 38

What is the purpose of RICS Commercial Property Management in England and Wales (2011)?

Answer 38

Outlines roles, responsibilities, and standards for managing commercial property effectively.

Question 39

What is the purpose of the RICS Commercial Property Management in England and Wales (2011)?

Answer 39

Outlines roles, responsibilities, and standards for managing commercial property effectively.

Question 40

What are the focus areas of the RICS Commercial Property Management in England and Wales (2011)?

Answer 40

Landlord and tenant relationships, service delivery and charge management, health and safety, sustainability, and maintenance planning.

Question 41

What is the significance of the RICS Commercial Property Management in England and Wales (2011)?

Answer 41

Replaces previous segmented guidance, offering a unified global framework.

Question 42

What is the purpose of the Landlord and Tenant Act 1927?

Answer 42

Addresses issues related to property law, particularly concerning the rights and obligations of landlords and tenants.

Question 43

What key provision allows tenants to carry out improvements?

Answer 43

Allows tenants to carry out improvements with the landlord's consent, which cannot be unreasonably withheld.

Question 44

What compensation rights do tenants have under the Landlord and Tenant Act 1927?

Answer 44

Provides tenants with the right to claim compensation for authorized improvements at the end of the tenancy.

Question 45

What is the purpose of the Landlord and Tenant Act 1954?

Answer 45

Provides security of tenure for business tenants, offering them rights to renew leases under specified conditions.

Question 46

What right does the Landlord and Tenant Act 1954 grant business tenants?

Answer 46

Grants business tenants the right to continue occupying premises after lease expiry, subject to certain conditions.

Question 47

What is a key provision regarding lease renewal in the Landlord and Tenant Act 1954?

Answer 47

Allows tenants to apply for a new tenancy, which landlords can oppose only on specific grounds.

Question 48

What is the purpose of the Landlord and Tenant Act 1995?

Answer 48

Simplifies and clarifies the law regarding the assignment of leases and the release of tenants and guarantors from covenants.

Question 49

What does the Landlord and Tenant Act 1995 abolish?

Answer 49

Abolishes the doctrine of privity for new leases, meaning original tenants are no longer liable for breaches by assignees.

Question 50

What is the purpose of the Estate Agents Act 1979?

Answer 50

Regulates the conduct of estate agents in the UK to ensure consumer protection and professional standards.

Question 51

What must estate agents provide according to the Estate Agents Act 1979?

Answer 51

Agents must provide truthful information and avoid misrepresentation.

Question 52

What is the purpose of the Misrepresentation Act 1967?

Answer 52

Addresses the legal consequences of false statements made during contract negotiations, providing remedies for misled parties.

Question 53

What are the types of misrepresentation defined in the Misrepresentation Act 1967?

Answer 53

Fraudulent, negligent, and innocent.

Question 54

What remedies are available under the Misrepresentation Act 1967?

Answer 54

Rescission and damages.

Question 55

What is the purpose of the Control of Asbestos Regulations (2012)?

Answer 55

Protects workers and building occupants from the risks of asbestos exposure.

Question 56

What duty do landlords have under the Control of Asbestos Regulations (2012)?

Answer 56

Must identify and manage asbestos in non-domestic premises.

Question 57

What is the purpose of the Data Protection Act (2018)?

Answer 57

Governs the processing of personal data in the UK.

Question 58

What are the key principles of the Data Protection Act (2018)?

Answer 58

Lawful, fair, and transparent processing; purpose limitation and data minimisation; accuracy, storage limitation, and accountability.

Question 59

What is the purpose of the General Data Protection Regulation (GDPR)?

Answer 59

EU regulation governing data protection, incorporated into UK law via the Data Protection Act 2018.

Question 60

What are the key requirements of the GDPR?

Answer 60

Consent, data subject rights, and reporting data breaches within 72 hours.

Question 61

What is the purpose of the Equality Act (2010)?

Answer 61

Legally protects individuals from discrimination in the workplace and wider society.

Question 62

What are the protected characteristics under the Equality Act (2010)?

Answer 62

Age, disability, gender reassignment, race, religion, sex, sexual orientation, marriage, and pregnancy.

Question 63

What is the purpose of the Inclusive Design Guide Procedure (2017)?

Answer 63

Promotes the design of buildings and spaces that are accessible and inclusive to all users.

Question 64

What are the core principles of the Inclusive Design Guide Procedure (2017)?

Answer 64

Inclusive, responsive, and flexible.