RICS APC - YN > Submission > Flashcards

Submission Flashcards

(106 cards)

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1
Q

What are the requirements of setting up your own firm?

A
  1. Type of business and staffing details
  2. Name of the responsible principal
  3. Statutory regulated activities e.g. financial services
  4. Nature of Clients
  5. CHP details & records
  6. PPI Details
  7. Whether the firm holds any client money
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2
Q

Can you price match another firm?

A

No - check

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3
Q

What are the RICS Five Rules of Conduct?

A

Rule 1 - Members and firms must be honesty, act with integrity and comply with their personal obligations, including obligations to RICS

Rule 2- Members and firms must maintain their professional competency and ensure that services are provided by competent individuals who have the necessary expertise

Rule 3 - Members and firms must provide good-quality and diligent service

Rule 4 - Members and firms must treat others with respect and encourage diversity and inclusion

Rule 5 - Members and firms must act in the public interest, take responsibility for their actions and act to prevents harm and maintain public confidence in their profession

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4
Q

What are the fines for breach of the bribery act?

A

Maximum penalty of 10 years imprisionment + unlimited fines for individuals and or companies

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5
Q

How do you ensure that you receive a response from every colleague? Do you think this is sufficient for a company the size of Cluttons? - COI

A
  • Send around a company wide email detailing property, borrower and
    any other relevant info
  • The email includes a Microsoft teams link which requires each
    employee to confirm if there is a conflict or not
  • The teams admins will manage it to ensure everyone has responded
  • Yes, I am aware of databases that manage conflicts checks however these information are only as good as the info that is inputted into them therefore, my company my email is a more personal approach and will get a more accurate response
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6
Q

What legislation covers Bribery?

A

Bribery Act 2010

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7
Q

What is your company’s anti-bribery policy?

A

The firm accepts that low value gifts and reasonable levels of hospitality are part of everyday business, however the following are not acceptable:
- any form of money vouchers and/or cash;
- tickets, invitations or passes for any function or event where the donor or representative of the donor is not present;
- use of donors properties (such as a holiday home);
- extension of business trips abroad for leisure purposes which are funded by the host;
- payment of any travel or accommodation expenses funded by the host where it is not an existing relationship
- payment of any travel or accommodation costs for any family member or friends; and
- any visits to a location which is not necessary or related to a genuine business purpose.
A gift register will be held of all “material corporate hospitality” where such a judgement is made.

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8
Q

Why is it important to maintain client confidentiality?

A

It is vital for companies to operate, retain the public’s trust, not damage the business reputation and being trustworthy it is at the core of the RICS Rules of Conduct.

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9
Q

Why would you not provide this advice? (Regards to Summer Event - Market Value)

A
  • It would be a conflict of interest CHECK
  • Wouldn’t be in line with the RICS Rules of Conduct
    It wanted to act with integrity
    Be helpful still - find a surveyor
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10
Q

What is included in ToE?

A

A. Identification and status of the valuer
B. Identification of the Client
C. Identification of any other intended users
D. The asset to be valued - if a portfolio then lotting of assets should be considered
E. Currency
F. Purpose of the valuation
G. Basis of value
H. Valuation date
I. Extent of investigation
J. Nature and source of the information to be relied upon
K. Assumptions and special assumptions to be made
L. Format of the report
M. Restrictions for use, distribution and publication
N. Confirmation of Red Book/IVS compliance
O. Fee basis
P. CHP to be made available
Q. Statement that the valuation may be subject to compliance by the RICS
R. Limitation on liability agreed

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11
Q

Talk me through your company’s complaints handling procedure?

A
  1. In the first instance you should contact the head of the Division with which you have been dealing.
  2. Where your complaint is initially made orally, you will be asked to send a written (paper or email) summary of your complaint to the person dealing with it. We will consider your complaint as quickly as possible and will acknowledge receipt of your complaint within 3 working days of receiving it. Within 14 days of receipt of your written complaint, the person dealing with your complaint will write to you, in order to inform you of the outcome of the investigation in to your complaint and to let you know what actions have been or will be taken.
  3. If you are dissatisfied with any aspect of our handling of your
    complaint, you should write to James Gray, our Managing Partner. - check this He will personally conduct a separate review of your complaint and will contact you within 14 days to inform you of the conclusion of this review.
  4. If we are unable to agree on how to resolve your complaint and you feel we have not sought to address your complaints within eight weeks, you have the opportunity to take your complaint to an independent redress provider, as approved by RICS Regulatory Board. - Check this
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12
Q

Why do we have PII / What is the purpose of PII?

A

To protect clients, surveyors and third parties against negligence claims when there is a duty of care breached and a claim for damages arises

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13
Q

How would you determine if the PII cover is adequate?

A

Look and assess the firm’s turnover in the preceding year and check the minimum level of idemnity that is required for each and every claim -
If a new business, estimate the turnover and adjust in due course accordingly
CHECK

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14
Q

What strategies do you use for negotiation?

A
  1. Enter negotiations fully prepared
  2. Prepare for best and worst-case scenarios
  3. Take a positive approach
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15
Q

What is the purpose of surveying safely? What does this document set out?

A

Basic, good practice principles for the management of H&S for RICS regulated firms and members

Principles for those engaged in the built environment as property professionals and includes H&S responsibilities:
- At a corporate level (whether small/large)
- At the level of the individual RICS member

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16
Q

What are the employees obligations under the Health and Safety at Work Act 1974?

A
  • to take reasonable care of your own health and safety
  • to take reasonable care not to put other people - fellow employees and members of the public - at risk by what you do or don’t do in the course of your work
  • to co-operate with your employer, making sure you get proper training and you understand and follow the company’s health and safety policies
  • not to interfere with or misuse anything that’s been provided for your health, safety or welfare
  • to report any injuries, strains or illnesses you suffer as a result of doing your job

CHECK

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17
Q

Can you talk me through the duty holders responsibilities?

A

The duty holder must undertake risk assessment - express obligation to manage the risk and a written plan prepared and implementation and reviews recorded - CHECK

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18
Q

Who is the duty holder with regards to asbestos?

A

Duty holder is the owner if the premises is vacant and tenant is holding a repairing lease - CHECK

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19
Q

What are the distinctions between risks and hazards?

A

A Hazard refers to anything that has the potential to cause harm (such as a wet floor) whereas, a risk is the probability/likelihood that someone will be harmed (such as the risk of falling over on the wet floor).

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20
Q

What is your company’s lone working policy?

A

Ensure inspection/appointment in my outlook diary - colleagues have access to my diary
Have contact details of person meeting in my outlook diary
Use staysafe app -CHECK

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21
Q

What is a balance sheet?

A

Is a statement of the businesses financial position showing its assets and liabilities at a given date, usually at the end of a financial year.

Assets can include cash, property, debtors and other investments held

Liabilities can include borrowings, overdrafts, loans and creditors
Needs to be audited

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22
Q

What is a profit and loss statement?

A

A summary of the businesses income and expenditure transactions, prepared usually on an annual basis
Needs to be audited

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23
Q

What is an asset?

A

An asset is something containing economic value and/or future benefit - CHECK

Assets can include cash, property, debtors and other investments held

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24
Q

What is a liability?

A

A liability is something a person or company owes, usually a sum of money.

Liabilities can include borrowings, overdrafts, loans and creditors

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25
What is IFRS 16?
It is the lease accounting standard which all companies have to comply when using the International Financial Reporting Standard. Accounting change which impacted how occupiers regard their property liabilities
26
Are there any exemptions to IFRS 16?
Exemptions exist for leases of 12 months or shorter.
27
How can conflicts be avoided?
- Ensuring clear, concise, careful drafting of the contract or lease and associate documentation - Adopting proactive conflict avoidance risk analysis - Managing all parties expectations requires understanding their objectives and clearly communicating these, as well as implementing early warning systems - including the serving of app notices - Negotiating contractual obligations carefully and transparently - Keeping good records
28
Can mediation be binding?
No - the mediator has no decision-making authority
29
What are the principles of UK GDPR? (seven principles)
Article 5(1) Principles relating to the storage of personal data states that data must be: - Processed lawfully, fairly and in a transparent manner in relation to individuals (Lawfulness, fairness and transparency) - Collected for specified, explicit and legitimate purposes and not further processed in a manner which is not compatible with those purposes (Purpose limitation) - Adequate, relevant and limited to what is necessary for the purpose for which they are processed (Data minimisation) - Accurate and where necessary kept up to date. Inaccurate data must be erased or rectified without delay. (Accuracy) - Kept in a form which permits identification of data subject for no longer than is necessary for the purpose that the personal data is processed (Storage limitation) - Appropriate security of the personal data including protection against unauthorized or unlawful processing and against accidental loss, destruction or damage using app technical or organisational measures. (Integrity and confidentiality (security)) - It is important that the controller be responsible for and be able to demonstrate compliance with the principles (accountability)
30
How do you verify information from third party databases / why is this important?
31
What is unconscious bias?
Attitudes, assumptions or beliefs that influence our thinking without our concious awareness. These are influenced by attitudes formed form our experiences, during our upbringing and education, an the environments in which we work and live.
32
What is the legislation that covers diversity and inclusion?
UK Equality Act 2010
33
What are the 9 protected characteristics?
1. Race 2. Sex 3. Gender 4. Age 5. Disability 6. Religion or beliefs 7. Marriage and partnership 8. Pregnancy and maternity 9. Sexual orientation
34
What is an inclusive environment?
- An environment that is designed and managed to allow people with a diverse range of needs and abilities to access and use it - An environment can mean - building / place including homes, workplaces, shops
35
What are the current MEES regulations?
Require a minimum EPC rating of Level E to let a building from 1st April 2018 onwards 1. New leases from 1 April 2018 (commercial & resi) - including lease renewals / extensions 2. All existing leases from 1 April 2023 for commercial properties (2020 for resi)
36
What is the difference between MV and FV?
Market Value = the estimated amount for which an asset or liability should exchange for WHEREAS Fair Value (IFRS13) = The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
37
What is a Fair Rent?
A fair rent is the maximum rent a landlord can charge a regulated or protected tenant
38
What are the 5 methods of valuation?
1. Comparative Method 2. Profits Method 3. Investment Method 4. Residual Method 5. Contractors Method
39
Any RICS guidance for this? (Comparable Evidence)
RICS Professional Standard: Comparable Evidence in Real Estate 1st Edition, 2019 (reissued as a Professional Standard in April 2023)
40
When is a Red Book valuation not required?
There are five exceptions to the Red Book: 1. Providing agency or brokerage advice for an acquisition or disposal 2. Acting as an expert witness 3. Performing statutory functions 4. Providing a valuation purely for internal purposes, without liability and without communication to a third party 5. Providing valuation advice in the course of negotiations or litigation where the valuer is acting as an advocate
41
Can you talk me through the process of the comparable method?
1. Search & Select them 2. Verify them 2. Assemble them 3. Adjust them 4. Analyse them 5. Report them
42
When inspecting the vacant properties, did you take any extra safety precautions?
43
Why check measurements? Is this compliant?
44
How is an Inheritance Tax Valuation different to a Market Value valuation?
45
What were the weaknesses of the property? (The Circle, SE1)
- No longer considered a new development - On-site leisure facilities are not included within service charge - Requires some updating
46
What was the MV rate per sq ft for this valuation? (The Circle, SE1)
£894 per sq ft
47
Do you have experience of any other valuation methods?
48
Can you describe the investment method of valuation?
Use it for an income producing property Rent received x years purchase = investment method CHECK
49
When would it be appropriate to use a term and reversion?
Used for a property that is under-rented CHECK
50
Can you describe the hardcore layer method?
Income flow divided horizontallly Bottom slice = Market Rent Top slice = Rent passing less Market Rent until next lease event Higher yield applied to top slice to reflect the additional risk
51
How would calibrate a disto?
Send the disto back to the manufacturer
52
What is included in your inspection proforma?
- Address - Surveyor who carried out inspection - Date & weather of the day on inspection - Number of stories - Age - Construction - Roof Type - Roof Material - Flooring - Fenestration - Glazing - Accommodation - Parking - Outside Space - External Condition - Internal Condition - Defect - Kitchen Description - Bathroom Description - Floor Coverings - Heating - Other Services - Comm Facilities - Any general comments
53
Why is it important to take detailed notes on inspection?
Enable to provide diligent reasoned advice
54
What was the appropriate PPE? (Prospect Place, SW11)
High-vis jacket, hard hat, steel-capped boots & eye protection
55
What do you look out for on an inspection?
I undertake four different types of inspection 1. Desktop 2. Locality 3. Exterior 4. Interior
56
How did you ensure safety at a derelict property? (Surrey, KT2)
Followed the lone-working policy Also, I was accompanied by a colleague Ensured that my mobile phone was charged & had a power My inspection's location & the contact details of the person I was meeting was in my diary which could be accessed by anyone in my team
57
Where are you likely to find JK?
Would typically find Japanese Knotweed growing is near railway lines. Car parks and lay-bys are particularly at risk of knotweed infestations. Japanese knotweed can also be found growing in larger sites such as commercial lands, woodlands and open spaces.
58
Can you describe what JK looks like?
- Purple/green hollow stemmed - Green leaves (shield shaped) - Bamboo-like stems - Clusters of cream creamy white flowers, that appear in late summer and autumn - Rhizome crown at base of plant
59
What would you do if JK was identified?
- I would take photos of the Japanese Knotweed - Make a note on the site plan of where the Japanese Knotweed was identified - Report it to the client I would refer to the decision tree within the RICS Professional Standard - Japanese Knotweed and residential property 2022 to decide
60
How did you identify the property to be neo-Georgian? (Three Colt Street, E14)
61
When assessing the condition of this property, what did you look out for / what did you identify? (Three Colt Street, E14)
62
Can you describe the damage in more detail? How did this impact the valuation? (Three Colt Street, E14)
Flat 4 - We note that the front door of the unit was damaged - Graffiti over the walls - Make the assumption that Flat 4 would be reinstated to the same condition as the other flats prior to being re-let. - We weren't afforded access into the flat had to value on a desktop basis
63
Did you not check the planning before attending the inspection? (PGT, W8)
64
What is the difference between GIA and IPMS 2?
Virtually no difference
65
Have you had experience measuring an asset that is not residential?
66
Can you describe in the inclusions / exclusions of an NIA measurement?
67
When would it be appropriate to adopt a GEA measurement? Can you describe GEA?
The area of a building measured externally at each floor level
68
What is the internal dominant face?
It is the inside finished surface compromising more than 50% of the floor to ceiling height for each IDF wall section - CHECK
69
How do you measure the eaves height?
A. Internal the height between the floor surface and the underside of the roof covering, supporting purlins or underlining (whichever is lower) at the eaves on the internal wall face - CHECK
70
How do you ensure the disto is correctly calibrated?
Do a check measurement
71
What was the scale of the floor plans used?
1:100
72
If you got back to the office after an inspection and noted an error in your measurements, what would you do?
- Scale the room/rooms/property on the floorplan using a scale ruler
73
Please describe VPGA 2
Valuations for secured lending Dealing with conflicts of interest for secured lending valuations Reporting procedures CHECK
74
Is there anything else you must do when accepting an instruction? (Already mentioned Conflict of Interest) Loan Security Level 1
Signed & returned terms of enagement
75
How does a lender mitigate their risk with the valuation?
PPI? margin of error?
76
What is the difference between an assumption and a special assumption?
An assumption is made where it is reasonable for the valuer to accept that something is true without the need for specific investigation whereas a special assumption a supposition that is taken to be true and accepted as fact, even though it is not true
77
Are there any limitations on special assumptions?
They aren't true
78
Why did you select 10%? (Wilbraham Mansions, SW1X)
79
How did you identify that the property was listed? Did this impact the valuation? (Eaton Terrace, SW1W)
Historic England listed buildings Register
80
How did you identify that the market had softened? How did you reflect this? (Principal Place, EC2A)
81
If the property has fallen in value and the market was struggling, why did you advise that the property was still suitable for the loan? (Principal Place, EC2A)
82
Can you talk me through the regulations regarding EWS1 forms?
- To get an EWS1 form, "a qualified professional" needs to confirm that the external wall system on residential buildings has been assessed for FIRE safety, in line with gov. guidance. The criteria considers: - The height of the building - The type of cladding and how much of it there is on the building - The presence of balconies and combustible material - One EWS1 form covers the whole building and is valid for five years in England and Wales.
83
What was the method of sale? (Porchester Place, W2)
Private Treaty
84
Why informal tender over formal tender? Why did you deem this most appropriate? (Gloucester Place, W1U)
To get the best value for the Charity
85
How did you ensure the data was accurately uploaded? (Bespoke, Residential Valuation Software Package)
86
How did you ensure the data was secure? (Operational Portfolio Data Review)
87
When will the next RICS Red Book?
Likely be published in early next year
88
What is a Right-to-Rent check?
- When you check the tenant or tenant's (+18) identity documents in person to check they have to have legal status to live in the UK and can legally rent your residential property .e.g. passport - Private landlords and letting agents must check that you are allowed to rent in the UK
89
What is an an inventory check?
Record of the condition of the property at the start of the tenancy.
90
Is there a limit on the amount of a holding deposit?
The law caps holdings deposits at the equivalent of one week’s rent for the whole property. (Tenant Fees Act 2019)
91
What is a tenancy deposit?
A sum of money that you pay to your landlord or letting agent before you move in.
92
What is the difference between a holding deposit and a tenancy deposit?
Holding deposit = secures the property for that tenant (legally be no more than one week’s rent) Tenancy deposit = a sum of money that you pay to your landlord or letting agent before you move in In England tenancy deposits are capped at five weeks’ rent where the annual rent is less than £50,000, and six weeks’ rent where the annual rent is £50,000 or more.
93
What are some examples of other deposit schemes across England and Wales apart from TDS?
- Deposit Protection Service (DPS) - My Deposits
94
How many days does a landlord/letting agent have to arrange a tenant deposit scheme/protect the tenant's deposit?
They must arrange a tenancy deposit scheme within 30 days of receipt.
95
How can a landlord gain possession at the end of the lease? (end an AST)
1. Section 21 notices 2. Section 8 notices 3. Mutual agreement CHECK
96
What are some examples of landlord responsibilities?
- keep their rented properties safe and free from health hazards - make sure all gas equipment and electrical equipment is safely installed and maintained - provide an EPC for the property - protect your tenant’s deposit in a government-approved scheme - check your tenant has the right to rent your property if it’s in England - give your tenant a copy of the How to Rent checklist when they start renting from you
97
Does a landlord need a reason for giving you a section 21 notice?
NO - Your landlord doesn't need a reason for giving you a section 21 notice
98
What main change is proposed under the Renters' Reform Bill?
The abolition of section 21 (the end of “no-fault” evictions)
99
When you can get a section 8 notice?
You might get a section 8 notice at any time during your tenancy
100
Does a landlord have to give you a reason for giving you a section 8 notice?
YES - there are lots of reasons your landlord can use section 8: (split into mandatory grounds and discretionary grounds) mandatory ground e.g. The tenant is in rent arrears discretionary grounds e.g. damage your landlord's property
101
What main change is proposed under the Renters' Reform Bill to section 8 ?
The Bill also proposes to expand the section 8 grounds for possession, while improving the court process for landlords.
102
What is the aim of the Tenant Fees Act 2019?
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy.
103
Who does the Tenant Fees Act apply to?
The Act applies to both landlords and letting agents.
104
What fees can a landlord or letting agents charge a tenant in relation to new contracts?
- Rent - Refundable tenancy deposit - Refundable holding deposit - Early termination of the contract - Changes to the tenancy contract e.g name - Utilities – (electricity and gas) - Communication services, TV Licence + Council Tax - Default fees for late payment of rent and replacement of a lost key/security device
105
What are the penalties for breaking the Tenant Fees Act?
- Considered a civil offence for the first instance and breaking them again can lead to a criminal conviction - The penalties for breaching the Tenant Fees Act apply to landlords and lettings agents. - £5,000 for an initial breach - £30,000 for any subsequent breach within five years
106
What the different types of period property?
- Tudor (1480’s – 1603) - Stuart Period (1603 – 1714) - Georgian (1714 – 1830) - Victorian (1837-1901) - Edwardian (1901 – 1914)
RICS APC - YN
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