Frequently asked

Question 1

What was included in your terms of engagement for (Cambridgeshire, Sandy or Harston) valuation purposes?

Answer 1

• The Client name
• The Property name
• The purpose of the valuation
• Date of valuation
• Bases of valuation
• Tenure
• Conflicts
• Relevant PII cover
• How expenses are treated
• Fee value
• Information on CHP

Question 2

What was included in your terms of engagement for (Potton, Guilden, GreenEnd) p&s purposes?

Answer 2

• Agency basis
• Agency rights
• Proposed fee
• Marketing costs and disbursements
• Confirmation no CoI
• AML Regs
• Timescale for payment of fees & dsibursements
• CHP

Question 3

What RICS guidance do you follow when valuing a property?

Answer 3

1. RICS Valuation – Global Standards 2022
2. RICS Valuation Global Standards – UK National Supplement (2019)
3. RICS Guidance Note: Comparable Evidence in Real Estate Valuation (2019)
4. RICS Guidance Note on the Valuation of Development Property (2019)

Question 4

What is the definition of Market Value?

Answer 4

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and willing seller in an arm’s length transaction after proper marketing and where the parties had acted knowledgably, prudently and without compulsion.

Question 5

What is the definition for Market Value if for inheritance tax?

Answer 5

The price which the property might reasonably be expected to fetch if sold in the open market at that time; but that price must not be assumed to be reduced on the ground that the whole property is to be place on the market at one and at the same time.

Question 6

What are the main factors that make good comparable evidence for RESIDENTIAL properties?

Answer 6

Location is vital in terms of residential value: the property’s position in the country and factors such as aspect, outlook and the immediate environment are
important.
Physical condition of the structure and services, facilities provided and energy
efficiency will also affect value.

Question 7

What would you do if you wished to start your own practice?

Answer 7

• Inform RICS
• Appoint a principle
• Register
• Arrange PII, CHP, CMH
• Complaints log
• Appoint CHO
• Logo kit
• Plan for succession
• Ensure CPD logged online
• Staff training plan
• Complete RICS Annual Return

Question 8

What statutory compliance is there when starting your own practice?

Answer 8

• Disclose business name
• Compliance with acts: Equality Act, Bribery Act, Money Laundering Regulations, Health and Safety, GDPR, Data Protection, Fire Safety etc.)
• Inform HMRC (VAT and Tax)
• Employer and public liability

Question 9

How would you close a practice?

Answer 9

• Inform RICS
• Ensure clients are informed and work is taken over
• Return any client money
• Inform insurers
• Retain client files for minimum 6 years