Weak Areas Flashcards

Question

what are the typical phases of investigation of contamination?

Answer 1

Phase 1 - review site history (desktop) and site inspection/investigation Phase 2 - investigation to identify nature and extent of contamination. With detailed soil samples using bore holes Phase 3 - remediation report to set out remedial options and monitoring **suggest specialist reports if concerns the site has contamination

Answer 2

1. DO NOT provide val advice until specialist report is comissioned 2. Caveat advice with disclaimer highlighting the issue OR special assumption 3. Deduct remediation costs from gross site value

Answer 3

brown staining on concrete or concrete frame

Answer 4

Reinforced autoclaved aerated concrete (RACC) Used in many public buildings in 60s-90s and deteroriorates over time - esp in harsh conditions - leading to structural issues High alumina cement calcium chloride woodwoll shuttering

Answer 5

asbestos - always check asbestos register radon gas lead piping Recommend specialist report

Answer 6

invasive species of plant that can damage hard surfaces ie foundations and tarmac Hard to control and costly to eradicate - specialists must remove and dispose purple/green stem with large green leaves (spade like shape) chemical treatment / digging out / removing to licensed landfill --> in accordance with Environmental Protection Act 1990 professional standard on knotweed called Japanese Knotweed and residential property

Answer 7

RICS Prof Standard: RICS Property Measurement 2018 Code of Measuring Practice 2015 IPMS All Buildings 2023 IPMS Data Standards For all building classes except offices and resi, bases of measurement in COMP may still apply BUT application (ie part 1) of the professional standard applies to all e.g. what should rics members consider when evaluating the level of accuracy

Answer 8

Application of the PS Technical definitions IPMS: Office Buildings IPMS: Residential Buildings

Answer 9

What is the purpose of the measurement exercise? What are the client's requirements and expectations what are the building/site conditions at time of the survey what are the time/cost elements what are ramifications for inaccuracy considering above will mean correct equipment and procedures can be adopted

Answer 10

measuring the area of a building including external walls on floor-by-floor basis

Answer 11

used for measuring the interior of an office to include all areas available for direct use measured to IDF on floor-by-floor basis

Answer 12

the floor area available on an exclusive basis to an occupier measured to IDF excluding standard facilities on floor-by-floor basis

Answer 13

upper void levels of an atrium open external stairwells patios refuse areas external parking at ground level

Answer 14

upper levels of void atrium open light wells patio and decks at ground level external parking equipment yards refuse areas

Answer 15

standard facilities providing shared or common facilities e.g stairs lifts WC's cleaner cupboards plant rooms

Answer 16

Covered galleries balconies generally accessible roof terraces

Answer 17

purpose of measurement instruction date of measurement instruction date of measurement name of RICS M/F responsible for instruction measurement standard adopted measurement methodology / tool reasons for departure of IPMS floor area / scaled plans unit of measurement and conversion factor

Answer 18

IPMS includes pillars/columns IPMS measures to IDF, NIA is to internal face IPMS includes areas with heights of less than 1.5m Where multiple occupiers on one floor, IPMS takes to midpoint of the partition IPMS includes but states seperately: covered galleries and balconies and generaly accessible roof terraces IPMS includes area occupied by reveals of window if they are the IDF, NIA does not but NIA does go to glazing if full height glazing unless window structure/design render space unusable ie at 6 Ramillies.

Answer 19

the surface area of each IDF wall section comprisig 50% or more of the FTC height *if this doesnt occur, the finished surface is the IDF

Answer 20

the brick/block work or plaster coat applied to the brick/block work, not the surface of internal linings installed by the occupier

Answer 21

the wall area directly above the horizontal wall/floor junction IGNORES skirting, perimeter trunking, pipework or heating/cooling units.

Answer 22

an area whereby legal occupation is not possible e.g height restrictions or poor day light

Answer 23

each individual finish of an external wall that is either recesses or protrudes from the adjacent section

Answer 24

1. Establish consisent methodology for all building types around world 2. promote international collaboration 3. harmonises all buildings into single set of standards 4. provide high level overarching standards on best practice in regard to property measurement

Answer 25

Best practice for all asset types except for office and resi (as are in prof standard) provides precise definitions - ensures a common and consistent approach

Answer 26

town planning resi building cost estimations council tax vals

Answer 27

estate agency rating building cost estimation for commercial assets valuation of industrial warehouses

Answer 28

estate agency rating building cost estimation for commercial assets valuation of industrial warehouses - is this true?

Answer 29

stairwells lifts permanent access mezz floors loading bays

Answer 30

canopies fire escapes covered ways

Answer 31

try to remove ceiling tile or get behind the partitioning via gaps/holes use scale floor plans

Answer 32

Notional lift lobbies notional fire corridors kitchens built in cupboards etc occupying usable area ramps/steps within usable areas and stated seperately areas occupied by ventilation/heating grills areas occcupied by skirting/perimeter trunking areas occupied by non-structural walls subdividing accommoation in SOLE OCCUPANCY

Answer 33

WC's stairwells areas less than 1.5m head height cleaners rooms plant and lift rooms service cupboards and risers areas rendered unusable with 0.25m gap to opposite face (ie 0.25m gap between column and wall) if glazing is full height but renders space by it substantially unusable space occupied by permanent A/C or heating and cooling apparatus

Answer 34

clear height between floor and lowest point on underside of roof - ie at the eaves

Answer 35

trundle wheel promaps - but check boundaries on site with OS Map or Land Reg prior. Promaps doesnt take into account elevation of land ie hillls use trigonometry

Answer 36

1:50-1:200

Answer 37

1:1,250 - 1:2,000

Answer 38

can be distorted by sunlight and cant measure reflective surfaces but is accurate to 1.5mm up to 200m away

Answer 39

the usable area withing a building measured to the internal face of the perimeter walls at each floor level includes: - base of atria with clear height above - entrance halls - notional lift lobbies and fire corridors - kitchens - built in cupboards occupying usable area - ramps, sloping areas and steps within usable area - areas occ'd by ventilation/heating grills - areas occ'd by skirting boards/perimeter trunking - areas occ'd by non-structural walls subdiving accommodation in SOLE occupancy! Excludes: - WC's - lift and plant rooms - staiwells and lift wells - common area corridors - internal structural walls - columns - areas with headroom less than 1.5m - areas rendered substantially unusable with 0.25m distance between opposite faces

Answer 40

the area of a building measured to the internal face of the perimeter walls at each floor level. includes: - area occupied by internal walls and partitions - columns, stairwells, lift wells - mezz floors with permanent access - atria and entrance halls with clear height above (measured at base level ONLY) - internal balconies - structural or stepped floors (treated as level) etc Excludes: - perimeter wall thickness - external open-sided balconies - external covered ways - external fire escapes - canopies **so basically includes everthing but those 5 exclusions above

Answer 41

The area of a building measured externally at each floor level.

Answer 42

Agreed TOE understand client strategy/objectives Get copy of lease and lease plans copy of licenses e.g for alterations/improvments/sub lettings/deeds of variation copy of RR memoranda contact details to arrange inspections

Answer 43

Fixed ie stage 1,2,3 et Incentivised - ie % of saving / increase

Answer 44

Means during negotiations the opposing party CANNOT rely upon any document labelled without prejudice the information is privileged and cannot be used as evidence to show to arbitrator / independent expert

Answer 45

means exactly that, it is subject to the contract

Answer 46

form of licence for unspecified time LL can evict T at any time NO legal interest in land No right to renewal example: allows a tenant early access to undertake fit out works

Answer 47

'passes no interest in the land but makes legal what would otherwise be illegal' e.g car park, pop-up shop in shopping centre 4 Features - a right to enter property - personal arrangement between licensor and licencee - does not acquire any interest in the property - can be terminated at any time

Answer 48

Exclusive occupation specified period of time payment of rent if over 3 YEARS terms must be in writing and signed as a deed

Answer 49

Leases can be assigned - licences cannot Leases terminated at lease events e.g breaks or RR or expiry - licences can be terminated at any time Leases provide an interest/estate in the land - licences only allow the right to use it

Answer 50

Street vs Mountford (1985)

Answer 51

In older leases, some RR clauses required the LL to specify the rent in the trigger notice. If the T does not serve a counter notice within specified time frame - the T will have deemed to accepted the new rent

Answer 52

A temporary right receives an annual payment is personal to the company cannot be transferred to new owner e.g provides a right for a electricity company to install and maintain apparatus

Answer 53

A permanent right receives a capital payment capable of being registered on land reg A prescriptive right of way or prescriptive easement can be obtained due to: continuous and uninterrrupted use proven over at least 20 years A permissive right can be granted by landowner to allow access over the land E.g. utility company allowing them to service pipes etc underground

Answer 54

when someone who is not the legal owner of land can qualify to become the legal owner through possession of the land over a specified period of time without landowners consent If after 2003, is 10 years of occupation if the land is registered, if not, its 12 years **this happened after land registration act 2003 where before it was 12 years for registered land

Answer 55

uncommon as hard for LL to achieve a HLR at RR - UNLESS lease wording is explicit

Answer 56

- basis of valuation ie UO / RPI or CPI linked or turnover rents - 4 assumptions - 3 disregards - hypothetical lease term - Time of the essence

Answer 57

Property is available to let on open market between willing LL & T for term as stated in hypothetical lease term Property is fit and available for immediate occupation All covenants have been observed by the LL or T The property may be used for its purpose set out in the lease

Answer 58

Effect of goodwill with tenants occupation Goodwill attached to the property Tenant improvement (if LL consent granted for it)

Answer 59

the lease term assumed for RR purposes can influence rental value

Answer 60

will be in the RR clause unless the wording is explicit then 'assumption of reality' - ie you the residual of the term is the assumed hypothetical lease term

Answer 61

Canary Wharf (Three) Vs The Telegraph Group ltd (2003) Ritz Hotel vs Ritz Casino (1989)

Answer 62

the presumption that time is not of the essence UNLESS there are sufficient contradictions stating otherwise It will say in the lease if it is or isnt of the essence

Answer 63

United Scientific Holding vs Burnley Borough Council (1978) More recently Bello vs Ideal View (2008) - LL initiated RR 13 years after RR date but court held time was not of the essence so was fine

Answer 64

Segama vs Penny Le Roy Ltd (1984) - transactions can be used as comps if after RR date BUT post rent review events (ie covid 19) cannot be taken into account

Answer 65

Reynold and Fenshaw in the 'handbook of rent review' open market letting lease renewal rent review independent expert arbitration court determination hearsay evidence etc

Answer 66

without prejudice = as mentioned before cannot be used as evidence for other party save as to costs = if you go to 3rd party and it was decided your opinion/valuation should have ben accepted, the costs incurred in that time frame goes to the other party who didn’t accept that Calderbank originally

Answer 67

- Lease term - Breaks / RR frequency - Alienation - User clause – if restrictive which means restricted to a certain use. This decreases rental value as restricted on type of occupier – by how much….it depends

Answer 68

gives my client some protection against the costs of dispute resolution can focus attention of parties to reach an agreement

Answer 69

Written letter open for unconditional acceptance is used for dispute RR's - either party can serve one

Answer 70

genuine offer to settle (rent) clear terms set out a reasonable time frame for the opposing party to consider their proposal (normally 3 weeks) must be capable of unconditional acceptance clear client approval

Answer 71

calderbank vs calderbank (1975)

Answer 72

Yes - generally drafted by solicitors (but not always/dont have to be) BUT ONLY FOR PROTECTED TENANCIES or party can use Part 36 from Civil Procedure Rules Must get legal advice on which to use and should be drafted and served by solictor as more prescriptive - to win you also need to win on all the terms whereas calderbanks you just need to win on the rent

Answer 73

yes, can send as many as you want

Answer 74

- part 36 more legal and Calderbank is more flexible - part 36 you have to win on all of the terms not just some of them - potentially carry greater cost sanctions

Answer 75

it will be stated in the lease and so will the role of the dispute resolver ie arbitrator or independent expert

Answer 76

Costs Legislation Evidence Appeal Negligence Disclosure CLEAN'D Both should be experts in the given field/area

Answer 77

can act as an advocate or expert witness

Answer 78

Stated in the arbitration act 1996, so ALWAYS has power to award costs

Answer 79

advocate can provide an opinion on value, BUT the expert witness can advocate duty of care to client (and tribunal) whereas expert witness is to the tribunal expert witness cannot work on a success related fee basis, advocate CAN advocate must be independent, unbiased, within expertise, truthful advocate must act properly and fairly and not let integrity be compromised

Answer 80

Depends who wins the case How do I know whos won? A= Calderbanks

Answer 81

Without prejudice = cannot be relied up on as evidence in arbitration/indep expert (NOT COURT) AND Subject to contract = as means it is not binding BUT DO NOT PUT SUBJECT TO CONTRACT ON CALDERBANK

Answer 82

Usually not, it is used as tactics therefore leave some room for the negotiations it is the minimum or maximum your client is willing to accept before 3rd party – its not a valuation figure. So if acting for tenant you would submit a rent level in Calderbank below the nil increase level as arbitrator will award a rent. Therefore, it would be best to ask for a nil increase, although in the submission your rental level may be well below that.

Answer 83

name of LL and T Property address RR date Lease date confirmation of new agreed rent signed and dated by both parties can also be accepted via indep exp determination / arbitrator award OR written acceptance of a calderbank letter (NOT MARKET SUBJECT TO CONTRACT)

Answer 84

Continuation of a protected tenancy at end of business tenancy which is protected, the tenancy will not come to an end if T remains in occupation will automatically renew on same terms until terminated called continuation tenancy / holding over

Answer 85

Landlord right to refuse or renew Must be served not less than 6 months and no more than 12 months before the date of termination cannot be before contractual expiry - ie the LL cant make the termination date before the contractual expiry

Answer 86

Tenant request for a new business tenancy / notice to renew The T can serve notice requesting a new tenancy beginning with a date: - no more than 12 months - and no less than 6 months after the mkaing of a request **the request cannot be before the contractual expiry ie new term cannot start before current one expires

Answer 87

Tenant notice to terminate a lease

Answer 88

provided by competent landlord be in prescribed form must state if hostile or non-hostile (friendly) if hostile = must provide grounds for refusal if friendly = must provide terms for the new lease

Answer 89

15 years granted by county court can be longer if parties agree to

Answer 90

tenant automatically loses security of tenure UNLESS new lease is in place either party has applied to court parties agreed in writing to an extension of deadline to apply to court for a new tenancy

Answer 91

Name and address of L+T Property address notice of date to end tenancy confirm whether lease is to be opposed or granted - if friendly add new terms, if hostile add grounds for refusal a recommendation to seek specialist advice confirm date by which the T must ask court for a new tenancy (unless parties agreed beforehand)

Answer 92

- in prescribed form - must state T's proposal for a new lease - included proposed rent

Answer 93

Must be countered within 2 months

Answer 94

Landlord ground for refusal of a new lease - 7 of them from A-G ie section 30a etc.

Answer 95

a) Breaches in repairing covenant b) Peristent delay in paying rent c) Other covenant breaches d) Providing alternative accommodation e) Uneconomic Subdivision f) Demolition / reconstruction g) Owner occupation

Answer 96

Fault: (ie T breach of the lease) a) Breaches in repairing covenant b) Peristent delay in paying rent c) Other covenant breaches Non fault: d) Providing alternative accommodation e) Uneconomic Subdivision f) Demolition / reconstruction g) Owner occupation

Answer 97

- proof of funding - proof of planning - proof of substantial work - proof of necessity to gain Vacant Possession - Proof of ability to redevelop provided VP is secured - Firm intention

Answer 98

E,F,G e) Uneconomic Subdivision f) Demolition / reconstruction g) Owner occupation this occurs when landlord successfully opposes a business tenancy

Answer 99

Depends on the prior period of occupation if >14 years - it is the rateable value of the property x 2 if <14 years - it is the rateable value **the rateable value is taken at the date of the hostile S25 or S26 counter notice T tenant needs to be in occupation at the the end of the current tenancy to be entitled to compensation --> T can lose right to compensation if vacates well ahead of the tenancy

Answer 100

if over 21 years old potentially also if LL did not provide consent for them

Answer 101

32-35 Must be at MR Max term 15 years can be granted by country court - but parties can agree to longer if wish to

Answer 102

O'May vs City of London Real Property CO (1982) Any departure from current lease MUST be fair/reasonable the party wishing to change terms MUST bear the burden of purusading court to change the terms must be party proposing the changes changes will not be accepted if not reasonable

Answer 103

when LL has already sublet parts of the demise and it’s the subtenant who wants a new lease, but landlord may say no as I want to let it as a whole. THIS IS V RARE as normally subtenants don’t have security of tenure

Answer 104

3 months and 2 weeks after the court hearing

Answer 105

PACT – professional arbitration on court terms – ie arbitrator deciding not a judge

Answer 106

the valuation date of the new rent is date of court hearing but lease itself starts 3 months and 2 weeks after date of the court hearing

Answer 107

s44 Competent landlord is a freeholder or superior tenant with unexpired term of >14 months is someone who can serve a notice and whom can be served a notice

Answer 108

S34 - must be agreed between L&T - determined by court if cant agree - should be that amount at which the property may reasonable be expected to be let at in the open market by a willing lessess 4 things to disregard - any effect on rent of T occupation - any goodwill in the tenant's business attaching to the premises - anyaffect on rent of T improvements - UNLESS undertaken as obligation by LL or over 21 years before date of application for new tenancy - For licenced premises – any effect on rent of additional value because of the licence

Answer 109

the rent paid by T after expiry of contractual term (of 1954 protected lease) and before a formal lease renewal has been completed IR is usually the same as the new rent in the new lease, for a renewal of the same demise where terms have not materially changed UNLESS demise has changed/terms have changed/significant market change between effective date of the IR and start of the new lease, it could be different to new lease rent Same as the NEW rent in the NEW lease unless market conditions have changed significantly between the end of the previous tenancy and the start of the new tenancy! Or if there are differences in the lease terms.

Answer 110

after serving of S25 or S26 notice and is payable from the earliest date specified in the notice Only payable when the party makes an application to the Court for interim rent to be determined and a s.25/26 has been served so it starts the earliest a notice could expire ie 6 months after notice but can't start before contractual expiry. -->ie its either 6 months from serving notice (as that’s the earliest it can expire cos s25/26 must be served within 6-12 months) and cant start before contractual expiry. The IR goes from then, until the new lease which is 3 months and 2 weeks after the court date.

Answer 111

request for information by either party so either can check exactly who is the competent LL or T can serve during tenancy -> the other must respond within 1 month and if DO NOT then can be taken as breach of statutory duty not limited to one, can issue multiple

Answer 112

determination by County Court alternative is PACT, subject to both parties agreeing

Answer 113

after service of a valid S25/26 one party (usually tenant) is required to apply to court for a new tenancy (issue proceedings) and then serve proceedings to the opposing party court process: - starts with pre-trial review (via phone/teams) where timescale for each stage of case is agreed - hearing date is fixed and if matter goes to court, then lawyers/witnesses present a case - county court orders new tenancy Trial judge has discretion over costs once decision make, T decides if what to take the lease or not on the terms ordered - cooling off period

Answer 114

- joint initiative by RICS and Law Society - both parties must agree to it - encouraged as an ADR mechanism for unopposed business tenancy lease renewals - non rent issues = decided by solictor - rent issues = decided by surveyor - parties decide if resolver acts as abr/indep exp - can be appointed by RICS DRS or by application to law society Benefits - cost - speed - quality of decision making - more flexibility and control

Answer 115

Review of Part 2 in March 2023 Aim: ensure part 2 works with today's commercial leasehold market Next steps likely stated to be in mid/late November

Answer 116

Order by court for new tenancy

Answer 117

32-35 *34 basis of valuation for new rent

Answer 118

Basis of valuation for the new rent

Answer 119

section 37

Answer 120

Notice requesting info about the other party

Answer 121

defines a competent landlord

Answer 122

- requirement of the headlease to grant any sublettings outside the act - LL wants to reoccupy in due course - LL wants to redevelop property at lease end - LL wants future flexibility - rent may be lower

Answer 123

T has not stautory right to remain in occupation No compensation is payable LL must ensure premises is vacant OR ensure new lease is in place at expiry **IF LL accepts rent, a protected tenancy may be created so need to be careful

Answer 124

can provide tenancy at will whilst

Answer 125

as acceptance of rent can lead to a protected new tenancy

Answer 126

LL must serve notice on prospective tenant, warning the lease will not be protected (called a health warning) proposed T must make declaration in response, confirming receipt of notice and accept its terms above MUST be done before lease is signed

Answer 127

simlpe declaration - given when parties have at least 14 days prior to committing to lease statutory declaration - given when parties have less than 14 days prior to committing to lease

Answer 128

Forefeiture surrender and negotiation merger break clauses lease expiry and service of notices

Answer 129

the L & T agree to not include the security of tenure provisions provided by the 1954 Act.

Answer 130

Holding Exclusive possession (otherwise you have a licence) business tenancy occupation for at least 6 months pays rent if a lease is silence then generally it is protected, if it is not protected it will state its not protected/excluded

Answer 131

If a lease is silent, then generally it is protected, if it is not protected it will state its not protected/excluded

Answer 132

is possible but rare, would state it in the lease if so

Answer 133

Have to apply to court prior to expiry of section 26, or agree to extensions of timescales – otherwise will lose security of tenure. Serving the S26 itself is not sufficient, you HAVE to apply to court prior to expiry of that S26 (either LL or T can apply to court but T must make sure that application has been made – you apply to court via a solicitor (same case for S25)– THIS IS FUNDAMENTAL - be in occupation when served notice. - must be a business tenant. - Must be in occupation for at least 6 months

Answer 134

Arbitrator I would have preferred an arbitrator as my client was a tenant and it was a rising market. As an arbitrator only looks at the evidence provided it would provide better chance of the rental value not increasing. In rising market LL would prefer indep exp as they can undertake own investigations which would likely demonstrate a rental increase.

Answer 135

Property address Lease info e.g date and RR date, passing rent, whether it is for an arbitrator or independent expert information of both the LL and T e.g name, address, email the adviser details as above too for both the LL and T And any COI, if any

Answer 136

Yes - if they can award costs, even if its just their own NO - if they have no power to award costs - would be better off serving an open negotiation letter THEREFORE check first if the Indep Exp has the right to award costs (in lease). if they do, then it's appropriate to serve the Calderbank. If doesn’t have rights to award costs, then the Calderbank doesn’t really mean anything

Answer 137

There objectives: Which were to stay in occupation at a reduced rent or passing rent for further 5 years

Answer 138

Advised on market conditions informing client a lower rent should be achievable so a section 26 notice should be served

Answer 139

Served S26 with 6 month notice

Answer 140

the tenant wanted to rent to be settled as soon as possible as they were a proactive client

Answer 141

Liked the location and the building and were put off by the monetary cost of moving and the impact on staff

Answer 142

User clause - can be restrictive Restrictive alienation - ie assign/sublet - ie absolute alienation clause repairing could be something to do with hypothetical lease term

Answer 143

This was because the landlord's advisor was making negotiations tough, therefore, I looked up the form and familiarised myself with it incase it went to arbitration. Then, save as to costs, I wrote a calderbank letter because if it does go to 3rd party than I have banked my position on the letter to get costs back if did go to arbitration. However, the calderbank was then agreed at nil increase meaning there was no need to look into arbitration/DRS1 form.

Answer 144

provides tenant with security of tenure so when lease comes to end they can continue on that lease and hold over / continue their tenancy

Answer 145

serve 27 If LL beat me to it and wanted me to renew, they could serve a S25.

Answer 146

5 year term below current passing rent LL wanted it to be at passing rent

Answer 147

My client was proactive and property was overrented and therefore wanted to agree new term. As market was rising so wanted to agree asap before rents rise even further.

Answer 148

- clarify purpose of RICS to act for public advantage - make reco's on governing structure

Answer 149

- recruited new management board - recruited new S&RB - elected new GC - RICS agreed to adopt all the BR reco's - RICS recruited DEI and Sustainability panel chairs - maintain self regulation via greater independence - increased focus on DEI - empower members via support for regional boards and more focus on young members - undertake review on governance structure and its effectiveness every 5 years - show greater leadership on key issues e.g sustainability and climate change

Answer 150

5 future foundations published in Nov 2023 follwing BR Vision - sust built enviro for all Mission - inspire, advanca knowledge and uphold standards Values -professional/ collaborative / inclusive and ambitious Strategic Goals - lead on sust, diversity, trust in profession, enhance member value/engagement A word class organisation -

Answer 151

if no RICS members in firm cannot register if at least 25% of principals are MRICS then can register if 50% of principals are MRICS then MUST reigster

Answer 152

sole practitioner leadership position board member director partners someone who can act autonomously

Answer 153

Sets out professional obligations for RICS M&F Members: - comply with CPD - cooperate with RICS - provide all info requested by S&RB firms: - cooperate with RICS - provide all info requested by S&RB - publish CHPP - all current and previous work covered by appropriate PII - If sole princiapl have locrum in place - ie someone to replace you if absent for any reason - designation to denote they are regulated - in accordance with RICS - report to RICS any matter they are required to report under

Answer 154

To: - protect public - uphold public confidence in the profession - uphold professional standards

Answer 155

- someone complaining to RICS - an allegation by client or 3rd party - because of info received or established to the RICS not all shortcomings result in disciplinary procedures

Answer 156

out lines regulatory approach by RICS of regulated members, non-members and firms

Answer 157

Action by head of regulation Disciplinary Panel Appeal Panel

Answer 158

investigation by Head of Regulations - nigel clarke he can then initiate one of 4 actions: - serve fixed penalty notice - make RCO - refer matter to single member of Regulatory Tribunal - refer matter to disciplinary panel

Answer 159

breach of rules relating to supply of into to RICS by M/F = fine or caution

Answer 160

regulatory compliance order low level breaches of rules e.g. minor breach that can be easily corrected is a written doc outlining actions to take or stop taking over time period AND fine e.g failing to undertake appropriate CPD - but this can lead to expulsion ie in the case with Jacob Lunding who in 2024 was expelled for failing to do CPD for 2 years

Answer 161

for more serious breaches Head of reg can consider hearing membership of DP includes lay members penalties to a Regulatory Tribunal Disciplinary Panel can penalties inc: - issue RCO - Reprimand - fine - unlimited fine per breach (proportionate) - impose conditions on future RICS registration - expel M/F - publish hearing results to website, Modus mag or local news paper

Answer 162

considers M/F appeal membership inc lay members review evidence previously presented and any new evidence can vary penalty first imposed

Answer 163

- issue RCO - Reprimand - fine - unlimited fine per breach (proportionate) - impose conditions on future RICS registration - expel M/F - publish hearing results to website, Modus mag or local news paper

Answer 164

set of requirements / expectations for RICS M/Fs include mandatory requirements using 'must' AND recommend best practice using 'should'

Answer 165

supports can include good practice/info/insights DO NOT CONTAIN ADVICE

Answer 166

web page published in aug 2023 alerts M/F to emerging areas of risk e.g for expert witness shortfalls

Answer 167

ad hoc market based healthy competition encouraged must be completley transparent w client

Answer 168

price fixing aggressive fee cutting collusion w competitors

Answer 169

yes, you can enter into further negotiations if you have submitted initial fee but must act in a professional manner can also vary level of service but still have to provide high standard of service

Answer 170

buzzword for COI q's = consent given willingly by a party who may be affected by a Conflict of Interest sought only when surveyor satisfied proceeding despite COI is in interests of all those affected only given in writing by party

Answer 171

conflict avoidance = decide to accept or decline if accept wrriten advice to both parties = inform both parties of nature of conflict, be clear and request written informed consent then... conflict managemet = set up info barrier with provisions agreed

Answer 172

- mandatory - members not to advise where COI or significant risk, unless got informed consent - all 3 types of conflict - record keeping - party conflicts - informed consent - info barriers other key parts - all conflicts managed in accordance to the prof standard - every rics firm must have systems and controls appropriate to size / complexity of their business (ie BAIT) - all firms must keep records

Answer 173

when agent has competing contractual relationships with severy buyers for CRE investment opps when client appoints agent can be on exclusive or non-exclusive basis - confirmed in TOE if exclusive = cannot act for anymore clients if non-exclusive = agent must get informed consent to act for another buyer

Answer 174

where agent approached by another party to provide advice inc vals/ BS / planning related to purchase/disposal e/g agent acting for seller is approached by buyer to value that building - can only do with informed consent

Answer 175

make them simpler for professionals and the public by building the rules on ethical principles combining the requirements for members and firms. replaces: - Rules of Conduct for members, - Rules of Conduct for firms - global ethical principles.

Answer 176

- apologise to client and inform them they can speak to the partner in charge of the instructio, or the CPO (George Roberts Head of UK&I) - acknoweldged in 7 days - investigated in 21 days (rics 28 days) - If not satisfied with outcome of how we handled the complaint - then may refer to one of following ADRS: RICS DRS Property or Financial Obudsman Services"

Answer 177

that confidentiality must be maintained for all client affairs - historic and current

Answer 178

inform PII insurers

Answer 179

stage 1 - in house stage 2 - ADR - 3rd party resolution stage 1: issue CHP details when receive valid complaint, acknowledge in 7 days and investiagted in 28 days stage 2: if not satisfied with the complaint handling, use independent redress scheme chosen by firm e.g RICS DRS

Answer 180

duty of care breached > loss > damages claim arises

Answer 181

Yianni vs Edwin Evans (1981) this case established that a resi valuer instructed by mortgagor lending institution could owe duty of care in tort to a mortgage purchaser who is relying on valuation

Answer 182

understand clients objectives ensure competence undertake work in accordance with rics guidance up to date on legislation / knowledge and CPD make detailed notes and take photos cap professional liability excess on PII policy in TOE

Answer 183

provides periods for negligence contract - 6 years from date of negligent act tort - 6 years from date the claimaint suffered the loss tort = breach of duty, not of contractual agreement contract = breach of contractual agreement

Answer 184

Protects surveyors, clients and 3rd parties from negligence claims where duty of care is breaced and claim for damages arises. RICS Regulation PII Requirements 2024 All members must ensure adedquate/appropriate levels of PII for each instruction and all policies underwritten by RICS approved insurer ie AXA/AIA/Aviva

Answer 185

min based on turn over £100k = £250k £100,001 - £200k = £500k £200,001 + = £1m its the min level of indemnity required for each and every claim

Answer 186

this is the part of the sum uninisured - ie the part the firm is responsible to pay out if indemnity is: up to £10m - then its 2.5% of the sum unisured or £10k if £10m+ - no set limit = the amount of money you pay towards an insurance claim when your policy doesn't cover the cost, or when you have to pay your own excess

Answer 187

retroactive by definition just means taking effect from a date in the past so retroactive PII policies mean policies cover claims that are made during the period of insurance, regardless of when the negligent act occurred

Answer 188

= insurance following cessation of trading insurance that protects against claims made after a business has closed, an individual has retired, or a professional has stopped practicing must be adequate/appropriate for consumer claims = min £1m of aggregate cover for 6 years for commercial claims = firm decide amount, for 6 years

Answer 189

apply for coverage from RICS Run-off Pool

Answer 190

RICS Assigned Risk Pool is available at a cost

Answer 191

recommends use of liability caps make it clear that advice can only be relied upon by the client named in TOE

Answer 192

RICS Prof Standard: Client Money Handling sets out 6 main areas of good practice

Answer 193

A CHIRP Accounting records and controls Compliance handling client money Provide information to clients Receipts of client money Payments from client accounts

Answer 194

1) client accounts seperate and identifiable 2) word client on check book and bank account 3) account for single client only 4)payment of interest agreeed with clinet 5) 2 signatories of authorised personnel 6) Money can be withdrawn if required 7)firms handling client money must publish clients money handling procedure on website 8) clients must be able to get monies on request 8)keep accurate records

Answer 195

Registration with HMRC Equality Act 2010 complinace - e.g offices Bribery Act 2010 compliance H&S compliance Register for data protection Ensure compliance to current employment law ie min wage, gender pay gap reporting

Answer 196

inform RICS inform insurers and arrange run off cover inform clients and of the hand over process to new firm return monies held by clients to their own accounts retain copy of files for 6 years

Answer 197

aims to reduce bribery in business in UK and abroad sets out 4 offences of a bribe and the 6 key principles states firm responsible for corrupt actions of employees - unless can show adequate policies to combat bribery

Answer 198

states hospitality/other low value business expenditure is acceptable and key part of doing business - as long as it is to genuinely promote and improve firms image and must be registered by the firm certain lavish corporate entertainment can be bribery but hospitality not prohibited - must be reasonable and proportionate and must be logged in firms gift register

Answer 199

communication monitoring and review proportionality top level commitment Risk assessment due diligence

Answer 200

bribing receiving a bribe failing to prevent a bribe bribing a foreing public official

Answer 201

the promsing, offering, giving or receiving of an advantage e.g payment/gift for an action which is illegal or a breach of trust

Answer 202

10 years prison or unlimited fine unlimited fine for firms Policed by serious fraud office

Answer 203

Money Laundering, Terrorist Financing and the Transfer of Funds Regulations (2017) as amended 2023 ML = when proceeds of criminal activities are disguised/converted into legitimate assets regs cover EA work

Answer 204

- have written ML/TF RA - implement systems, controls, procedures to address ML and TF - internal controls - staff training - comply with CDD and EDD requirements - compy with requirements relating to PEPs - ensure record keeping - AML checks required to identify proposed purchaser of property and chcek source of funds before contracts exchanged - include high risk factors when assessing need for EDD and seek extra information and monitoring in certain cases ie high risk third countries

Answer 205

- Requires letting agents to register with HMRC if let indiv properties for >€10k pcm = £6,666 pcm - Indivivs and businesses need to be approved by HMRC in order to trade - undertake CDD checks on vendors, purchasers, L & T's on new sales and any letting or reletting (>€10k pcm) - EDD checks if red flags occur ie involving high risk countries or non face-to-face business relationships - limit of €10k cash acceptance - detailed record keeping required - senior member takes responsibility for compliance - ML Reporting Office is nominated and reports suspicions to Suspicious Activity Report to National Crime Agency - firm maintains records for 5 years - firm must report any discrepancies between info recieve and that on Companies House to Companies House

Answer 206

CDD = all new sales and any letting and reletting - vendors/purchasers/LL&T EDD = if red flags occur

Answer 207

complex/unusually large no economic/legal purpose unusual patterns

Answer 208

customer due diligence - identify client and verify identity via independent source e.g passport/ driving licence make reasonable endeavours to identify benefical owners of client - if cant - check persons of signficant control register on companies house

Answer 209

name company address company number names of directors (unless listed on regulated market ie LSExchange) info on purpose and intended nature of business

Answer 210

enhance due diligence = additional procedures required for any transaction/business relationshio involving - high risk third country e.g iran/syria/haiti - PEP or PEP family member/business associate basically just requires additional evidence and monitoring

Answer 211

politically exposed person someone entrusted with prominent public function presents higher risk for bribery/corruption given their position and influence

Answer 212

max 14 years prison +/or unlimited fine for assisting in ML max 5 years +/or unlimited fineif tip someone off they are being investigated for ML

Answer 213

london stock exchange listing

Answer 214

Govt ownership / control

Answer 215

full name registered office registered number business and adress name of directors and shareholders with 25% or more holding identification of higher risk client

Answer 216

copy of valid passport/drivin licence (with photo) copy of bank statemnt, credit card bill showing evidence of address - not more than 3 months old

Answer 217

paying fees in unusual currency inability/unwillingness to provide identity documents unusual transaction features e.g. unexpected urgency or unusual transaction for that client changes to parties involved in transactions

Answer 218

wider sanctions issued in light of geopolitical activities in Ukraine for example HM Treasury Office for Financial Sanctions (OFSI) provides updated list of countries, companies and individuals with financial sanctions

Answer 219

gives enforcement authorities more power to recover criminal proceedings in UK creates set of 3 criminal offences: - concealing - criminal property - arrangements - if involved in arrangement you know/suspect facilitates use of criminal property - acquisiton, use and possession of criminal property

Answer 220

inc measures for beneficial ownership register of overseaes entities owning property in UK strengthens investigation powers allows easier prosecution

Answer 221

RICS Professional Standard: Countering Bribery, Corruption, Money Laundering and Terrorist Financing (2019) sets our mandatory and globally applicable requirements in relation to above things 3 parts: Part 1: Mandatory requirements for B,C and ML &TF Part 2: Guidance - good practice Part 3: Supplementary Guidance

Answer 222

RICS Firms must: Bribery - not accept/offer something that could constitute a bribe - procedures to comply with law - report suspicion - act with DD - perform written evaluations of risks firm faces - retain records to show they've met requirements in the prof standard

Answer 223

mostly same as bribery Corruption - not facilitate / be complicit in ML & TF - procedures to comply with law - report suspicion - perform written evaluations of risks firm faces - retain records to show they've met requirements in the prof standard **all same as above** different ones to B/C - use 3rd party reliance where u trust that 3rd party's information - understand client and purpose of instruction - verify client using ID checks

Answer 224

H&S at work Act (1974) Corporate Manslaughter and Corporate Homicide Act (2007) Smoke Free (Premises and Enforcement) 2007 RIDDOR (2013) Construction Design and Management (CDM) Regs (2015) Fire Safety Act (2021) PPE at work regulations (2022)

Answer 225

IVS 101 - Scope of Work IVS 102 - Investigations and Compliance IVS 103 - Reporting IVS 104 - Bases of Value IVS 105 - Val Approach and methods 103-105 exact same as VPS 3-5

Answer 226

yes, consultation for new RBG occured in September this year likely to be published November 2024 and will be effectice 31 Jan 2025 unconfirmed details but likely to include changes such as: 1) increased focus on sustainability in vals 2) increased focus on automated val models 3) increased encouragement for DCFs

Answer 227

Yes in October 2024 RICS published new Professional Standard called 'Property agency and management principles' Key areas: - openness / transparency - protect consumers - enhance reputation of industry - stems from RoC Structure - Intro - Working with clients - ie unbiased advice, perform obligations, dont accept instructions beyond expertise - managing buisness and staff

Answer 228

- secure VPN - password protected files - 2 factor authentication for phones and apps on phone and laptop - password change for laptops every month - Training for staff