Conflict Avoidance

Question 1

What would you do if your client was unhappy about a valuation/dispute about a valuation?

Answer 1

1. Try to negotiate first
2. If client is still unhappy, I must ensure there is CHP in place.
3. If still not resolved, thirty party

Question 2

What can a client do if your valuation is wrong?

Answer 2

They could sue me and take me to court

Question 3

If a conflict of interest arises, can you still act?

Answer 3

Yes, but only if my client gives informed consent

Question 4

What RICS guidance covers this?

Answer 4

RICS PS Conflicts of Interest PS in 2023, 2017 GN

Question 5

When can you act when there is a conflict of interest?

Answer 5

Must have INFORMED CONSENT from client or clients/from all who could be affected

Question 6

What must you do first when you get a complaint?

Answer 6

APOLOGISE!

Question 7

What must you inform your client of?

Answer 7

My company’s CHP

Question 8

What must you understand when a client complains?

Answer 8

Undertsand the situation and what the client wants

Question 9

What should you do before instructing third parties?

Answer 9

Negotiate - only instruct third parties if absolutely necessary

Question 10

Where do disputes get settled?

Answer 10

ADR

Question 11

Can you provide some example ADRs?

Answer 11

Mediation
Arbitration
Adjudication
Expert Determination
PACT

Question 12

What is dispute resolution?

Answer 12

Actions and proccesses taken to resolve contractural disagreements between parties

Question 13

What is negotiation?

Answer 13

Parties come to an agreement through discussion

Question 14

Provide an example of when you have managed a conflict.

Answer 14

During an agency instruction, a buyer sought to reduce the agreed purchase price just before solicitors were instructed. I addressed the issue calmly by referring back to the agreed heads of terms and market evidence, helping manage expectations and enabling the transaction to continue

Question 15

Do you know much about adjudication?

Answer 15

No its more relevant to construction contracts which is outside my area

Question 16

Have you heard of PACT? If so, what is it?

Answer 16

Professional Arbitration on Court Terms

Specific to business tenancy renewals under the L&T Act 1954

Question 17

What is the benefit of using ADR?

Answer 17

Speed
Cost effective
Confidential
Outside court

Question 18

What is good conflict avoidance?

Answer 18

Keeping detailed records of everything

Understanding parties objectives

Understanding what could go wrong in situations

Question 19

What is conflict management?

Answer 19

Involves the use of procceses, tools and skills to help manage disagreements and disputes

Question 20

What ADRs does your firm use?

Answer 20

RICS Dispute Resolution Service
Ombudsman
Institute for ADR (startADR)

Question 21

What can you tell me abut the RICS dispute resolution service?

Answer 21

the world’s oldest and largest provider of ADR services in land property and construction industry

provides: arbitration, independent experts and more ADR services

Question 22

A surveyor can adopt one of two distinct roles in front of a dispute resolver / tribunal. What are they?

Answer 22

Advocate

Expert Witness

Question 23

Which ADR method is best for valuation?

Answer 23

Independent Exper Determination

Question 24

What is conflict avoidance?

Answer 24

Techniques used to avoid disputes

Question 25

What type of conflict is not manageable?

Answer 25

Acting on both sides of a transaction

Question 26

What is the difference between conflict avoidance and conflict management?

Answer 26

Conflict Avoidance = you decline an instruction because your firm is conflicted Conflict management = instruction is accepted but information barriers are in place to manage the conflict. Must have WRITTEN agreement from all parties

Question 27

What is an information barrier?

Answer 27

safeguards that restric information from being passed between departments in an organisation

Question 28

What RICS guidance is there in palce for conflicts?

Answer 28

Professional Standard: CoI 2017

Question 29

What does the PS set out?

Answer 29

- a member or firm must not act if there is a CoI or a significant risk of a CoI unless all affected parties have provided written consent - should only act is conflict is manageable - can only act if not prohibited by law

Question 30

How should informed consent be given?

Answer 30

ONLY in writing by parties who could be affected

Question 31

When should a surveyor seek informed consent?

Answer 31

Only if satisfied that parties affected can still be best served

Question 32

What is informed consent?

Answer 32

Written consent When a surveyor has been entirely transparent and parties ensure they understand what they are doing

Question 33

What other key areas of the PS are there?

Answer 33

1. detailed records must be kept 2. All conflicts must be managed in line with the PS

Question 34

What is negligence?

Answer 34

When a duty of care is breached and a loss is suffered > a claim for damages arises (negligence claim)

Question 35

How do you avoid or reduce negligence claims?

Answer 35

1. ensure you are competent to undertake the instruction 2. Undertake work in accordance with RICS PS 3. Keep detailed notes of everything 4. UNDERSTAND client's objectives

Question 36

What is the Limitation Act 1980?