Submission - CPD

Question 1

How do you ensure you adhere to the RICS Rules of Conduct?

Answer 1

• I know the Rules of Conduct 2021
• I am honest and open with clients
• I ensure I am competent on all jobs I undertake and maintain my professional knowledge
• I understand my clients objectives prior to jobs to ensure a high quality service
• I treat all colleagues and clients professionally and with respect

Question 2

When was Bio-Diversity Net Gain be enforceable on all developments?

Answer 2

12th February 2024

Question 3

What is the rough cost of an off-site BNG unit?

Answer 3

Around £20-40k dependent on location, availability of units etc

Question 4

What is the cost of statutory credit?

Answer 4

Depends on the type of land, the quality etc but likely 2-4 times more expensive.

Question 5

What’s your understanding of the BNG multiplier?

Answer 5

If you are looking to purchase off-site units then you need to be within your LPA or NCA in order for the units to be worth the same amount. The further away you get the less they are worth 0.5 and 0.75.

Question 6

What system do you use in Welbeck?

Answer 6

Excel sheet created by Martyn (Accounts)

Question 7

What has been the main factor affecting the residential market?

Answer 7

Properties are less affordable as interest rates increase and mortgages become stretched.

Question 8

How can environmental issues halt a site?

Answer 8

Environmental issues can cause delays on site as extra surveys and remediation works may need to be done. This can affect the viability of a site if these works are too expensive or can cause issues when putting sites forward for planning.

Question 9

How long do you have to report offers to clients?

Answer 9

48 hours - written

Question 10

When should a valuation be undertaken?

Answer 10

• Bank valuations
• IHT/ CGT

Question 11

What percentage of carbon emissions are caused by the construction industry?

Answer 11

40%

Question 12

How can BNG affect the viability of a site?

Answer 12

Adding 10% gain to a site may mean you have to take out a large number of proposed dwellings in order to achieve this on site. WE have seen this in practice with a site in Brentwood where we have run a scenario analysis which allows us to work out whether it more profitable to achieve BNG on-site or off-site as it is a high value area and removing 40 dwellings of 180 reduces the profit more than purchasing the units off-site.

Question 13

What are the key elements of the Estate Agents Act 1979?

Answer 13

To act with transparency and ensure effective
communication.

Question 14

What types of communication are available?

Answer 14

-Verbal - eg. in person, on the phone
-Non-verbal eg. emails, letters, fax
-Presentations
-Body language/ expressions

Question 15

Why can written communication be miscommunicated and when would you look to ensure you had verbal communication with a client?

Answer 15

You cant get the tone of written communication.
With an elderly client who I was producing a marketing appraisal for in Doddington, I wrote the marketing appraisal and went to visit her to explain what I had written (lotted the properties as 9 acres and planning for 2 dwellings).

Question 16

What are the key differences between option and promotion agreeements?

Answer 16

Option - after achieving PP the developer will purchase the site off the landowner at a discounted rate to MV

Promotion Agreement - after achieving PP the promoter and the landowner will go on to sell the site to the market together and the promoter will take a cut of this

Question 17

What are the advantages and disadvantages of Promotion Agreements?

Answer 17

Pros:
- Both want to achieve the same goal and maximise the land value
- When selling you are taking the property to the market to find its actual value
Cons:
- No pre-agreed sale at the end
- Landowner may like a particular developers style of development

Question 18

What are the advantages and disadvantages of Option Agreements?

Answer 18

Pros:
- Know the product the developer produces
- Ensured sale following PP
Cons:
- Site never gets taken to market and the sale price must be negotiated
- May have different goals as not always looking to maximise the value of the site

Question 19

What is the difference between self-build and custom build houses?

Answer 19

Self-build houses must be purchased by an individual who will live in the property for a minimum of 3 years after.
Custom build houses are purchased by developers and built out with the end user being involved from the start and having say on layout/ interior etc.

Question 20

What are the profit margins for a self-build appraisal?

Answer 20

When completing a self-build appraisal in Guilden Morden we applied a reduced profit margin of 10% and cross checked this with recently sold comparable evidence in the locality.

Question 21

What does IBOS stand for?

Answer 21

International Building Operation
Standard (IBOS)

Question 22

What are the IBOS?

Answer 22

Provides a global benchmark into the assessment of
an asset with aim to improve decision making by using the 5 pillars

Question 23

What are the five pillars under the IBOS?

Answer 23

compliance, functionality, economics, sustainability and performance

Question 24

What are the rules under Class Q planning?

Answer 24

For Class Q planning permission to be granted the site must wholly be in agricultural use as part of an established agricultural unit and the unit must not exceed 465 sq m.

After the 20th of March 2012 the barn must have been in use for a period of at least 10 years.

Question 25

What are the benefits to acting ethically?

Answer 25

• High customer satisfaction and therefore repeat business
• Building and maintaining trust in the profession
• Avoiding negligence claims
• Building a strong reputation
• Positive work environment and therefore higher job satisfaction and reduced staff turnover
• Access to additional sources of funding

Question 26

What is the definition of IRR?

Answer 26

Internal Rate of Return: It is calculated by finding the discount rate that makes the net present value (NPV) of the project zero.

Question 27

What is Money on Money?

Answer 27

The multiple of money (MoM) is a metric used to measure the return on an investment as well as track the performance of a fund.