Ethics Level 2

Question 1

How do you treat others with respect?

Answer 1

1. Value everyone’s contributions
2. Practice active listening
3. Use inclusive language ie gender neutral language.
4. Be mindful of your tone: Communicate with a respectful and professional tone.
5. Address conflicts constructively
6. Promote diversity and inclusion

Question 2

How do you promote diversity and inclusion in the work place?

Answer 2

1. Act like a role model
   Demonstrating inclusive behaviours and hold other accountable
2. Training
   Unconscious bias and inclusive communication
3. Celebrate diversity
   Participate in cultural festivities or attend neuro-diversity sessions
4. Challenge stereotypes

Question 3

What does an inclusive/diverse workplace look like?

Answer 3

Workplace where everyone feels respected, regardless of their background, gender, race, religion, or sexual orientation.

Question 4

What does ‘Subject to Contract’ mean?

Answer 4

Used in negotiations to indicate that the parties do not intend to be bound by the terms of an agreement until a formal contract is signed.

Question 5

How are you adhering to the Rules of Conduct through ‘Subject to Contract’?

Answer 5

Rule 3
- High level of service to my client and protecting their interests
-It allows me to conduct due diligence and ensure that all the terms of the deal are satisfactory before committing to a legally binding agreement.

**Rule 5- responsibility **
Acting responsibly to protect my client’s position for example when rent reviews

It promotes transparency in real estate transactions
This can help to avoid misunderstandings and disputes later on.

Question 6

What does ‘without prejudice mean’?

Answer 6

During negotiations, the opposing party cannot rely upon any documentation which are labelled ‘Without Prejudice’…

…where representations made in litigation to a judicial body.

The information is therefore ‘privileged’

Question 7

How are you adhering to the Rules of Conduct through ‘Subject to Contract’?

Answer 7

Rule 1 – Honesty
Promotes open and honest communication between parties

Rule 3 – Service
- Protects my clients interests
-It allows me to conduct due diligence and ensure that all the terms of the deal are satisfactory before committing to a legally binding agreement.

Rule 5- responsibility
Acting responsibly to protect my client’s position for example when rent reviews

**Transparency and clarity **
This can help to avoid misunderstandings and disputes later on.

Question 8

What is your level 2 example?

Answer 8

Valuation of PBSA Scheme (Market Square House)

Question 9

How did you know you were competent?

Answer 9

S- skills
U- understanding
K- knowledge

• Always peer reviewed work
• Asked supervisor when unsure

Question 10

How did you determine there was no conflict?

Answer 10

• Checked on our internal system
• No conflict

Question 11

What is a conflict of interest?

Answer 11

When a member or firm’s independence and impartiality is threatened…

…due to the existence of a conflict between clients.

Question 12

What is the guidance on conflicts of interest?

Answer 12

RICS Professional Standard ‘Conflicts of Interest (2017)

Question 13

What is the salient point of the CoI RICS Guidance?

Answer 13

A member must not advise or represent a client where doing so would involve a conflict of interest or a significant risk of a conflict of interest
UNLESS
provided informed consent in writing

• Every RICS firm must have effective systems in place to ensure compliance with the guidance.
• All firms must keep records to show compliance.

Question 14

What are the THREE types of conflict?

Answer 14

1. Party conflict
   – same instructions for 2 parties
2. Own interest conflict
   – relating to a personal interest
3. Confidential information conflict
   – relating to work between two parties that is confidential

Question 15

Conflict avoidance

Answer 15

Conflict is irresolvable because your impartiality is compromised

Question 16

When would you consider conflict management?

Answer 16

If it can be properly managed maintaining TRANSPARENCY and OPENNESS.

Question 17

What is the process of conflict management?

Answer 17

WRITTEN ADVICE TO BOTH PARTIES
Set out the following THREE to both parties:
1. Nature of the conflict
2. Be clear, to ensure both parties can make their own decisions.
3. Request written confirmation from both clients of informed consent that your firm can act in accordance with the procedures proposed.

CONFLICT MANAGEMENT
Once written consent is received, set up an information barrier

Question 18

What is an example of conflict management you have faced?

Answer 18

1. CBRE Valuation team carrying out loan security valuation and CBRE Capital Markets team acting to sell site for client.
2. Conflict was managed via separate surveyors/teams/floors, clients informed.

Question 19

What THREE things must be included in a ToE?

Answer 19

1. Clients’ agreement to fee basis
2. Payment of expenses
3. Copy of firms CHP

Question 20

What 3 steps should be followed before starting an instruction?

Answer 20

1. Check professionally competent.
2. No conflicts of interest or personal interest
3. Confirm ToE and get written approval from client, BEFORE working on instruction.

Question 21

What was included in your ToE? (Example)

Answer 21

1. Scope of works
2. The property
3. Valuers
4. CoI
5. Status of the valuer
6. Purpose and basis of valuation
7. Valuation date and timescales
8. ESG and sustainability
9. Reliance
10. Liability agreement (lower of 24% of value or £20,000,000)
11. Fees
12. Valuation standard terms of business