Important Qs Flashcards

Question

In broad terms, how would you undertake an inspection in accordance with Surveying Safely?

Answer 1

* Pre site risk assessment * Inspect local area * External inspection * Internal inspection

Answer 2

o Inherent defect is a defect in design or material which has always been present o Latent defect is a fault to the property that couldn’t have been discovered by a reasonably thorough inspection of the property

Answer 3

* Not to recover more than 100% of the proper actual costs * Service Charges must be issued annually to all tenants. * A signed statement showing actual expenditure must be provided to the tenants annually. * All interest earned on S/C accounts must be credited to the service charge account after appropriate deductions (bank charges, tax etc) have been made. * All costs must be transparent so that parties are aware of how they are made up. * The basis and method of apportionment of costs should be fair and reasonable. * When issuing statements of accounts or certifying expenditure PMs must act in a non partisan way acting as experts. * Independent review of the service charge should be undertaken . * Produce quality service standards to ensure that value for money is achieved at all times = effective value for money rather that the lowest price.

Answer 4

1. Receive written instruction form client 2. Check conflict of interest 3. Terms of engagement? 4. Agree fees 5. Check lease 6. Inspect and measure the property 7. Gather comparable 8. Make calculations 9. Present to client 10. Seek further instructions 11. Negotiate with tenant 12. Sent to solicitor to document in rent review memorandum

Answer 5

* Understand client objectives/receive instruction * Check independence (conflict of interest check) and competence * Send terms of engagement inc complaints handling procedure and the fee basis * Review documentation and the lease (licenses, assignments) – find out if the tenant has security of tenure or if an exclusion clause is in the lease (clauses 24-28). If the lease is inside the act a Section 25 notice will need to be served in order to bring the tenancy to a formal end. * Inspect the local area, exterior and interior of the property * Measure * Gain comparable evidence * Write a valuation report and get it checked for QA * Report to client and advise them of the market value and advise on strategy for when to serve the section 25 notice. * If there is an uplift in rent, the notice should expire in line with the contractual term end date. If no uplift, the date that you serve notice on is less important * If the notice is not served upon expiry of the contractual term, the tenant begins to ‘hold over’ where the existing lease will carry on until a notice is served. * Instruct a solicitor to serve a section 25 notice which will include: Subject property Landlord and tenant details ‘friendly or hostile’ Friendly – notice of new rent Hostile – reason for termination Date for the new lease to begin. Negotiate and agree terms Prepare heads of terms Instruct solicitor to prepare and complete new lease

Answer 6

* Understand client objectives/receive instruction * Check independence (conflict of interest check) and competence * Send terms of engagement inc complaints handling procedure and the fee basis * Review documentation and the lease (licenses, assignments) – find out if the tenant has security of tenure or if an exclusion clause is in the lease (clauses 24-28). * Inspect the local area, exterior and interior of the property * Measure * Gain comparable evidence * Write a valuation report and get it checked for QA * Report to the client on advise of market value * Receive instructions to negotiate with the tenant – landlord has strong negotiating power in this instance * Agree the new rent and terms in advance of the lease expiry date * Instruct solicitors to handle the renewal

Answer 7

1. Read the lease – (alterations clause) can they undertake works 2. Tenant to Provide detailed plans – full proposed specification of works (include existing and proposed) structural calculations if required, confirm they have relevant planning (if required), building regs consent & RAMS. 3. Inform tenant they are NOT permitted to commence works until we have granted permission and to do so is a serious breach of lease terms. Inform tenant you are only considering their proposal until you obtain clients permission. 4. There is no room for discussion. They have to pay the costs and they have to do so upfront unless they give a solicitors undertaking for that amount. 5. Agree undertaking of costs (these fees are none negotiable) Please note these fees are payable even if the license to alter does not complete. Workman also reserve the right to increase their fees if the license to alter becomes problematic and time consuming, I,e numerous tenant queries. o PM’s fee for reviewing the plans and specification and re inspecting £950 plus VAT - check fees o Landlord solicitor’s fee of £1,500 + VAT to be confirmed - check fees o Building surveyor’s fee of £750 + VAT to be confirmed - check fess 6. Subject to the lease allowing works to be undertaken, have a conversation with the client and email them a summary of the works. Ensure reinstatement clause is inserted. 7. Subject to fees being agreed, & obtaining client approval, instruct building surveyors and landlord solicitors to document license to alter.

Answer 8

* Read the lease and check the alienation clause (see if Landlord consent is required) * Landlord can withhold consent if: 1. Any arrears are outstanding 2. Tenant is in breach of the lease 3. Assignee is not of the same financial standing as assignor * Agree undertaking of costs * Ascertain if it is market/passing rent * Check assignee covenant strength. If it is weak then it can be refused * Has a deposit/ AGA been agreed * Produce a recommendation to the client – get it approved * Ensure license to assign is documented via solicitors

Important Qs Flashcards

(32 cards)