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APC Technicals 2023 > Submission Qu's > Flashcards

Submission Qu's Flashcards

1
Q

What is the history of Compulsory Purchase?

A

The Lands Clauses Act 1845 outlined the procedure and the right to compensation. There is a fundamental human right that a person should not be deprived of land without compensation.
Now various Acts outline how compensation is payable, but severance and injurious affection is still largely based on the 1845 Act

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2
Q

What is the Acquisition of Land Act 1981?

A

The Act which sets out the the ways in which an acquiring authority can obtain compulsory purchase powers. Includes SECTION 23, the right to appeal.

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3
Q

What is the Compulsory Purchase Act 1965?

A

Sets out the right to claim compensation as a result of a compulsory purchase (Section 10). Sets out the rights to compensation for indirect affects of the scheme (four McCarthy Rules).

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4
Q

(What are the McCarthy Rules?)

A
  1. the injurious affection (IA) = result of lawful exercise of statutory powers
  2. the IA must arise from that which would give rise to action
  3. Value of the land must be directly affected by physical appearance
  4. Damage must come from execution of the works, not the authorised use.
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5
Q

What is a Compulsory Purchase Order?

A

An order made by a public body, through powers obtained in the Acquisition of Land Act 1981, to acquire the land forcefully.

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6
Q

What is a DCO?

A

Development Consent Order - used to consolidate purchase powers, planning permission and any other necessary consents needed for Nationally Significant Infrastructure Projects (NSIPs) as defined in the Planning Act 2008

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7
Q

What is a TWAO?

A

Transport and Works Act Order - to authorise new railways and trams as defined in the Transport and Works Act 1972

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8
Q

Who can make a compulsory purchase?

A

Government Departments and Agencies, Local Authorities, anyone with a parliamentary private bill

Eg Civil Aviation Authority, National Highways, Post Office, British Telecomms, Homes England

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9
Q

What is the relevant RICS guidance?

A

RICS Professional Statement, Surveyors Advising in Respect of Compulsory Purchase 2017

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10
Q

What other guidance is available?

A

Statutory Compensation UK (1st Ed), Land Compensation Claims Protocol 2018 and the Model Claim form for Claimants

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11
Q

What is the RICS Professional Statement, Surveyors Advising in Respect of Compulsory Purchase?

A

Provides guidance and mandatory professional behaviours to help provide advice regarding property interests in the UK realting to the seeking or use of compulsory purchase by or against your client, and where the use of such powers in contemplated

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12
Q

What is the Land Compensation Claims Protocol 2018?

A

Applies to any claim for compensation made by a claimant to a compensating authority that would involve a reference to the Upper Tribunal (Lands Chamber)

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13
Q

What is the Model Claim form?

A

A template used to help formulate a compensation claim

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14
Q

What is the Land Compensation Act 1961?

A

Relates to the assessment of compensation, and Section 5 six rules for compensation

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15
Q

What are the six rules for compensation?

A

Under section 5;
1. No allowance - although this is translated into the Land Compensation Act 1973 (Loss Payments)
2. Market Value
3. Special Suitability
4. Illegal User
5. Equivalent Reinstatement
6. Disturbance

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16
Q

What is Disturbance?

A

Disturbance compensation includes all costs reasonably associated with the CPO. A claimant has a duty to mitigate their loss. Examples of items which are claimed under “disturbance” include removal costs and acquisition fees incurred in purchasing a relocation property (including Stamp Duty Land Tax) as well as business losses

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17
Q

What is Severance and Injurious Affection?

A

when part of the property is taken and the value of the remaining is adversely affected by the scheme
when no land is acquired, but the building of the scheme and/or subsequent use may cause devaluation of the land

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18
Q

What are Statutory Loss Payments?

A

Under s.33 of the Land Compensation Act 1973, Basic and Occupiers Loss payments are paid to claimants other than residential occupiers and residential owner-occupiers

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19
Q

What is the Land Compensation Act 1973?

A

Outlines compensation for subsequent use of the scheme when no land is taken.
Includes statutory home loss payments
Part 1 - compensation for depreciation caused by use of public works (no sooner than 12mths since the opening of the scheme)
Part 2 - duty to responsible authorities to insulate buildings against noise caused or expected to be caused by the construction or use of public works or to make grants in respect of the cost of such insulation.

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20
Q

What is a GVD?

A

General Vesting Declaration
a formal procedure that gives a local authority the right to take over the ownership of property. The authority must wait two months after sending out a preliminary notice before it can make a GVD.

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21
Q

How did you assess the market value of the land to be compulsorily acquired? (Paul Lewis, L2)

A

Using the comparable method of valuation, I worked out the agircultural rates per acre in that area, and used this to determine the value of the amount of land taken

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22
Q

What was the valuation date? (Paul Lewis, L2)

A

In this case, the valuation date is the date of the GVD, however this can differ depending on the method used for the acquisition. if a notice to treat was served, the valuation date would be the date of entry, following the notice to treat.

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23
Q

What items were included in the heads of claim? (Paul Lewis, L2)

A

Loss of land
flooding due to scheme
compromised access to land
loss of crop and BPS

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24
Q

Can you clarify how the CPO affected your client? (Rosie Hayden, L2)

A

The CPO boundary went through a paddock she owns separately to her property. The example however refers to her property which has been indirectly affected by the scheme in the ways in which I have described.

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25
How did you quatify the reduction in value due to the light pollution of oncoming traffic? (Rosie Hayden, L2)
As a client has a duty to mitigate their losses, the figure I attributed to the claim was the equivalent cost of having to install black out blinds in all the windows facing the road, and also the planting of some mature shrubs to reinstate the privacy. However, this must be no sooner than 12 months since the scheme opened according to Part 1 of the LCA 1973
26
How does the AHA tenancy affect the compensation available to the farmer? (Ellis's, L3) (What compensation did you advise was available to the tenant farmer?)
Tenants are entitled to compensation under the same heads of claim. The claim is based on the value of the unexpired lease term, and whilst the tenant cannot claim for land loss, they can claim for crop loss and the loss of income of that area of land. They can also claim for Loss Payments, as the AHA tenancy gives leasehold interest of more than one year and they are in occupation (7.5% and 2.5%)
27
What was the value of your clients interest? (Ellis, L3)
This claim is ongoing, but the figure is based on the crop loss and any future reduction due to the now smaller area of land.
28
What other items did you adivse were claimable? (Ellis, L3)
flooding, restricted access, less land to farm, needing to cross two highways
29
How did you assess market value if there was no claim under this heading? (Ellis, L3)
I spoke with the agents handling the freeholders estate, our tenant's LL, to get the market value assigned on an per acre basis to claim both Basic and Occupiers Loss
30
What is the Upper Tribunal (Lands Chamber)?
Handles disputes relating to compensation for the acquisition of land, including for severance or injurious affection, and depreciation by physical factors caused by the use of public works.
31
Who can make a referral with the Upper Tribunal?
The Acquiring Authorty and the owner of the land
32
What is the procedure for a referral?
- The Upper Tribunal (Lands Chamber) will sit in public. - Any member of the Tribunal dealing with the proceedings is entitled to enter and inspect the land in question. - No declaration of impartiality is required from any member of the Tribunal. - Not more than one expert witness on either side will be heard unless the Tribunal otherwise directs - The general conduct of the hearing is at the Tribunal’s discretion, but is likely to be similar to arbitration. - The party may conduct his own case or be represented by a barrister or solicitor. - The Tribunal shall, on the application of either party, specify the amount awarded in respect of any particular matter the subject of the award. - The jurisdiction of the Tribunal is limited to assessing compensation; it cannot decide questions as to the title to land. - An unconditional offer, made with a view to securing a settlement by agreement, is not admissible as evidence of value during the inquiry (hence the term ‘sealed offer’). - The Tribunal has a discretion in awarding costs under the rules laid down for its guidance by s.4 of the Land Compensation Act 1961.
33
How did you advise on market value of the property pre and post scheme? (Fairview, L3)
Undertook a valuation as at the date of GVD, and a second valuation on the date of the scheme opening, taking in account the change in the market, as well as the depreciation in value as a result of the scheme
34
How did you quatify the disturbance payment for noise? (Fairview, L3)
Under Part 2 of the '73 Act, the AA have a duty to insulate against noise - this figure was both to show a depreciation of value and the cost of installing an acoustic fence and reinstating the mature shrub.
35
Why is it important to undertake inspections?
In order to properly understand the makeup of the property, and consider any defects or factors that may affect the value. Also helpful to understand the locality and immediate amenities/transport links.
36
What defects do you expect to find in a residential building?
Damp (penetrating, rising, condensation), subsidence, dry and wet rot, tile slipage, water ingress (penetrating damp), structural movement, deathwatch beetle/termites
37
How would tenure affect the value of a building?
Depending on whether or not they have security, they may be paying under the market value and therefore not be capitalising fully.
38
What is RICS Surveying Safely?
Provides good practice principles for the management of health and safety for regulated firms and members
39
What PPE might you consider wearing when undertaking an inspection?
Hard hats, high vis, rubber soled shoes, glasses, gloves, steel toe boots
40
How do you collate evidence when undertaking an inspection?
Take pen and paper, take photos, take inspection proforma
41
What pre-inspection due diligence would you undertake?
Planning searches, plans, site history, HMLR deeds, access information, contact details of owner/those I am meeting onsite, any safety considerations (eg PPE)
42
What type of tenancy does the LL and T Act 1954 relate to?
Business leases, grants security of tenure
43
What type of tenancy does the Housing Act 1988 relate to?
Residential domestic rentals. Assured and Assured Shorthold tenancies
44
What is an EICR?
Electrical Installation Condition Report. Required every five years, or at each new tenancy. Checks all electrical equipment is safe to use.
45
What is a Gas Safety Check?
Checks for all gas appliances. Undertaken annually (valid for 12 mths). Copy of the report must be provided to the tenant within 28 days. Must be from an approved engineer on the Gas Safety Register
46
What other LL obligations are included?
Smoke Alarms on every floor with living accommodation, Carbon Monoxide alarms on or near all solid fuel appliances, since 1st October 2022.
47
What must be provided to the tenant when starting a tenancy?
How to Rent Guide, EPC register, Gas Safety Certificate, EICR, Tenancy, DPS, inventory
48
What is MEES?
Minimum Energy Efficiency Standards, all new (april 2018) and current (April 2020) tenancies must have an EPC of an E unless they have a valid expemption. Increasing to a C in 2027 and B in 2030 although this is in review.
49
What are some tenant obligations?
Comply with all terms of the lease, keep property in an appropriate condition, report any damage or urgent works to the LL/LL's agent.
50
What is an AST?
a fixed term, residential domestic tenancy. LL can regain possession under s.8 and s.21 although this is currently under review in the form of the Renters Reform Bill
51
What is s.8 and s.21
To evict under s.8, must have grounds for eviction under sch.2: - persistent failure to pay rent - any breach of tenancy - LL intends to occupy or develop depending on the ground, may have 2 weeks - 2 months notice s.21 = no fault evictions - two months notice
52
What tenancies cannot be an AST?
hig value with rents greater than £100k pa low value with rents less than £250 pa businesses lettings with more than 2 acres of ag land student lettings or holiday lets
53
What act limits the fees that a tenant can be charged?
The Tenant Fees Act 2019 - cannot be charged for cleaning, referencing, tenancy renewals, check-out inspection. can be charged for rent, tenancy deposit (capped at five weeks rent), holding deposit (capped at 1 weeks rent), late payment fees, lost keys
54
What is an FBT?
a farm business tenancy, under the Agricultural Tenancies Act 1995 (since 1st Sept. 1995). T has no right to renewal or security
55
What notice is served at the start of an FBT?
s.1 (4) Notice of Creation
56
what is the rent review formula for an FBT?
Under SECTION 10, the rent at which a holding might be reasonably expected to be let on the open market by a willing LL to a willing T taking into account all relevant factors
57
How do you terminate an FBT?
- (two years or more) s.5 NTQ - (yearly periodic) s.6 NTQ - (two years or less) no NTQ required - (less than one year) under Common Law, notice must equal term length
58
How do you surrender an FBT?
LL and T can agree, and T is entitled to improvements under s.15
59
What is the difference between a lease and a licence?
A licence is simply permission to do something on someone else's land, no exclusivity. A lease grants exclusivity, and must be paying rent over a defined term. If more than three years, must be registered as a deed.
60
What is included in grazing licences?
whatever the LL wants to include, but typically will include subletting clauses, removal of noxious weeds, the term length
61
Why is good communication important?
Key to successful tenancies are good relationships.
62
Why did you draft new AST?
The current ones were coming to the end of their term, in favour of both the LL and T to reissue new tenancies simultaneously with S.21. Ensured security for the tenant for 12 more mths in return for increasing the rent to market levels.
63
What non-statutory requirements exists that are good practice for LL to follow?
- Legionalla test - PAT Testing - Waste Management
64
What is the difference between market appraisal and Red Book Valuation?
- Red Book undertaken by MRICS, usually with a fee - Appraisal usually free service offered by estate agents
65
What DD do you require before starting an instruction to sell?
for AML checks, photographic ID and proof of address, as well as singed ToEs
66
What is the Code of Measuring Guide?
the bases of measurement for all builidngs except residential and offices.
67
What is IPMS?
International Property Measurement Standards, bases of measurement for residential and office buildings
68
When would you use IPMS/Code of Measuring?
IPMS = Resi vals Code of Measuring = agency, and vals of non-resi buildings
69
What is disto? Pros/Cons?
Laser used to measure, effective in ranges of 1.5mm to 200m. Good over long distances, high level of accuracy, rubbish in bright lights, and must have a point for laser to land on. Must be calibrated once a year by returning it to the manufacturer, can be calibrated by measuring a known distance three times
70
Other methods of measuring?
Trundle wheel, tape measure
71
how did you measure the 141 acre farm?
using promap and corresponding HMLR plans I mapped the boundaries of the holding and identified the different areas
72
Why did you use GIA?
non-resi builidng and for agency purposes
73
What did you include/exclude in this measurement?
Included columns, stairwells, toilets etc Excluded canopies, covered ways, fire escapes
74
What is the Estate Agents Act 1979?
regulates work as an estate agent, ensures buyers and sellers are both treated honestly, fairly, promptly (eg communicate offers within 24hrs of receipt) SECTION 21 - personal conflicts
75
what is the Misrepresentation Act 1967?
protect buyers persuaded to buy something that isn't as it seems, eg structural defects. A civil offence, can be avoided with a disclaimer
76
What is the Red Book?
valuers roles in seeking universal objectivity, transparency and consistency in property valuation
77
When does a valuation have to be Red Book Compliant?
- Financial Account purposes - Loan security - Investment
78
What are the five methods of valuation?
Investment, Comparable, Profits, Residual and Costs
79
What is the hierachy of evidence?
category a, b and c a) Direct comparables - location, size, makeup, condition b) general market trends c) other sources - speaking with other local agents
80
How is a probate valuation different from others?
Market Value is defined under the Inheritance Tax Act 1984, s.160 states the value at any time of any property shall be the price which the property might reasonably be expected to fetch if sold in the open market at that time; but that price shall not be assumed to be reduced on the ground that the whole property is to be placed on the market at one and the same time.
81
How did you measure the property?
Using a disto, I measured to IPMS 2, as it was a resi proeprty for a valuation. This is similar to GIA, but is measured to the internal DOMINANT face
82
Why did an open market sale require a red book val?
As per the terms of the lease of the share ownership scheme structure

APC Technicals 2023 (8 decks)

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