RICS Guidance / Statements Flashcards
What is the RICS Guidance on Comparable Evidence?
RICS Guidance Note on Comparable Evidence in Real Estate Valuation (2019)
Hierarchy of Evidence
A) - Direct
B) - General
C) - Other sources
What does the RICS Guidance note on Risks, Liability and Insurance cover?
Understand risk in transactions
- Risk management strategies
- Examining Liabilities
- PII cap
- Informed about legal requirements
What is the RICS guidance on safety?
RICS guidance Note Surveying Safely 2018
- Good practice principles for management of health and safety
- Personal responsibilities
- Hazard & Risk assessment (hierarchy of risk control)
- Safe Person concept (Assumes responsibility for their own and others health and
safety)
What is the guidance on Money Laundering?
RICS Guidance Note Countering Bribery, Corruption, Money Laundering and Terrorist Financing
- Enhanced Dude Diligence
- Identify beneficial owners and source of funds
- Obligation to report suspicions
- Training internal controls, risk assessment, regulatory compliance
What is the IPMS?
International Property Measurement Standards 2023
- All buildings but not fully integrated yet
1. External (Whole/part of building)
2. Internal (Whole/part of building)
3.1 External (Occupier)
3.2 Internal (Occupier)
4.1 Internal walls / columns (select area)
4.2 Excluding internal wall / columns (select area)
What is the current measurement standards?
Property Measurement Standards 2018
- Incorporates IPMS for Resi + Offices
Relates IPMS to Code of Measuring Practice
Measurement from the Internal Dominate Face
What is the Code of Measuring Practice?
- GEA, GIA, NIA
- NIA excludes common areas, internal walls/columns, headroom under 1.5m
- GIA (for resi valuation) excludes headroom under 1.5m, garages, terraces
- Net sales area – sum of GIA for multi-occupancy resi
- ITZA and effective floor area
What is the Levitt Review 2021?
- Investigation into the treasury management
- Board members had been taking funds
- Claims of financial misconduct
What is the Bichard Review?
Followed from the Levitt Review
- Independent review into RICS Purpose, governance and strategy
Key Recommendations
- Increase focus on public interest
- Increase diversity and inclusion
- Independent governance review every 5 years
- New governance structure with standards and regulation review
- Greater leadership on global issues such as climate change and sustainability
What is the Hackett Review?
Review into building fire regulations and fire safety following Grenfell
Recommended
- New Regulatory Framework for high-rise residential buildings
- Clear roles and responsibilities for duty holders
- Improved fire safety systems and testing
What is the Valuer Registration Scheme?
Scheme which requires anyone providing Red Book Valuations to sign up to
- Launched in 2010
Provides:
- Accountability
- Consistency
- Standards
Valuation are audited
What is the RICS guidance note on residential blocks?
Valuations of Multi-story, multi-occupancy Residential Buildings with Cladding
To understand when an EWS1 for is required in valuation
EWS1 valid for 5 years
When is an EWS1 for needed,
Above 6 stories if there is:
- Cladding
- Curtain walling
- Stacked timber balconies
5 - 6 stories of there is:
- More than 25% cladding
- Stacked timber balconies
- Combustible materials
Under 4 stories if there is:
- Combustible cladding
What is the RICS Professional Statement for Agency?
RICS Professional Statement UK Residential Estate agency or the Blue Book
Code of practice for marketing residential properties
- Compliance with legislation
- Standards & Ethics
- Conflicts
- Truthful Marketing
- Duty of care
You mention conflicts of interest, what is the RICS guidance on this matter?
RICS Professional Statement Conflicts of interest 2017
- If conflict exists not advice can be given unless there is informed consent in writing
- Informed consent can only be gained if it is in all parties interest and not legally
prohibited
- If informed consent is given make sure appropriate information barrier and records
are kept
What is the Data Protection Act 2018?
Seeks to empower individuals to take control of their personal data and support organisation with the lawful processing of their data
7 Principles:
- Lawful
- Accurate
- Data minimisation
- Purpose limitation
- Storage limitation
- Security
- Accountability
Rights under the act:
- To be informed
- Access
- Erasure
- Rectification
- Restriction
- Data portability
What is the Environment Act 1990?
Governs waste management controls
&
Relevant to the disposal of Japanese Knotweed
What are the regulations governing Money Laundering?
The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
Firms must have:
- Written risk assessments
- Internal controls
- Staff training
- CDD & EDD if red flags
- Record keeping
- AML Checks
- letting agents letting over eu10k a month must register with HMRC for VAT
Penalties
- 14 years in prison
- 5 years for tipping off a client
What is the Tenant Fees Act 2019?
Reduced fees on tenants no fees for:
- Admin
- Referencing
- Viewings
Holding deposits is max 1 weeks rent
Tenancy deposits
- Up to £50,000 p.a. = 5 weeks rent
- Over £50,000 p.a. = 6 weeks rent
What are the immigration acts and why are they important?
Immigration Act 2014
- Right to rent checks are mandatory for all applicants
- Strengthened immigration control and reduces public service abuse
- Expanded detainment powers
Immigration Act 2016
- Expanded on data collection
- Port power searches
- Penalties for employers hiring illegal workers
What is the Health and Safety at Work Act 1974?
It is legislation that is used to enforce Health and Safety compliance in the work place for employers
- It is policed by the Health and Safety Executive
-Employers / employees must report injuries and dangerous occurrences (RIDDOR
1995)
Penalties
- Fines or imprisonment
What is the Deregulation Act 2015?
Ended retaliatory evictions following legitimate complaints
Enforced stricter rules on Section 21 Notices
- Cannot serve S.21 Notice within first 4 months of tenancy
- Court process must be started by LL within 6 months of serving S.21
What is the main legislation governing Estate Agency?
The Estate Agents Act 1979
Governs a set of rules which estate agent must follow in the publics best interest
7 Principles
- Clarify terms and agency (S.18)
- Honesty & Accuracy
- Upfront with Fees , Liabilities and costs
- Conflicts aired quickly (S.21)
- No discrimination
- Offers into the vendor/LL promptly and in writing
- Clients money is kept separate
What does the Building Safety Act 2022 cover / introduce?
It followed after extensive review from the Hackett Review
- Many people argued over who was liable to pay for remedials
Introduced
- New Building Safety Regulator responsible for securing safety of people in or about
buildings and improving the standards of the buildings
- Developers obliged to fund unsafe cladding removal
- Leaseholder can monitor works through online portal
- S.38 of the Building Act 1984 in place to enforce leaseholder claims for breaches of
the buildings regulations which cause physicals damage
What is the Control of Asbestos Regulation 2012 and what did it introduce?
Down to the Duty Holder to conduct risk assessments and update the asbestos register
Two Types of Survey
- Management - (Non invasive, monitors condition and seeks no change)
- Demolition - (Removal and lab testing)
Sets out five steps for management:
1) Duty holder Survey
2) Management Plan
3) Asbestos register
4) Register available to all who want to view/distribute
5) Review every 6 months
