Interview q&as Flashcards

Question

What are the differences between GIA and NIA?

Answer 1

NIA: excludes columns excludes shared internal walls excludes common areas such as entrance halls, toilets, stairwells, lift. GIA: includes columns includes all internal walls includes common areas.

Answer 2

GIA. Include: columns lift wells mezzanines with permanent access loading bays. Excludes: canopies fire escapes Ancillary offices within an industrial unit would be measured using GIA.

Answer 3

I check that the boundaries matched the title plans and measured the area on Edozo A trundle wheel could also be used.

Answer 4

1: 50 = Room Plan 1: 100 = Building Plan 1: 1250 = Street/Location Plan 1: 2500 = Location Plan 1: 50000 = Road/Walking Map - 1:1250

Answer 5

To ensure the boundaries are correct and that I am correctly measuring the Property.

Answer 6

GIA excludes the external wall thickness whereas GEA includes them

Answer 7

A disto sends out a laser beam and measures the time taken for it to reflect which gives it a distance. We check all distos before use by measuring a known distance in the office. It become less accurate the longer the distance and it is very difficult to use outside over long distances because it is difficult to aim and see the laser.

Answer 8

I check it hasn’t any damage on it (including lens) I measure a know size We send them periodically to the manufacturer to be calibrated

Answer 9

- Moving vehicles - Material lying on the grounds on which I could trip on

Answer 10

Factors which can influence value: location condition specification tenure aspect defects

Answer 11

layout specification defects services fixtures and fittings statutory compliance

Answer 12

method of construction condition access car parking defects site boundaries age of building

Answer 13

Market - location - situation - amenities - surrounding uses - sale boards - vacancy rates Hazards - environmental hazards - contamination - power lines - flooding

Answer 14

Minimum 8m clear eaves height with 10% roof lights Minimum 30 kN / sqm floor loading Plastic coated steel profiled cladding with brick or blockwork walls to approximately 2m Full height loading doors (electrically operated) 3 phase electricity power (415 Volts) 5-10% office content and WC facilities Main services capped off Approximate site cover of 40%

Answer 15

Operation & Maintenance (O&M) manual Asbestos register Title plan Floorplans

Answer 16

- GIA - Eaves height - Loading bay - Mezzanine - Loading doors - Site coverage

Answer 17

Personal Responsibilities for RICS Members and Firms Assessing hazards and risks Workplace Health and Safety Occupational Hygiene and Health Visiting premises and sites Fire safety Residential property surveying Procurement and management of contractors

Answer 18

the duty to ensure safety is extended to all members and not employer the implementation of hierarchy of risk control Visiting site premises and review risk even when on site

Answer 19

The person assumes personal responsibility for their own and colleagues and others health and safety while at work. This is contained within the RICS Surveying Safely Document.

Answer 20

Consider personal safety ( carry out a pre-inspection H&S risk assessment) Inspection of local area External inspection (top-down approach) Internal inspection

Answer 21

Technical due diligence of commercial property 1st edition 2020, The Guidance Note is split into key sections; Types of Inspections, Taking Instructions, The Inspection and The Report. The aim of a TDD report is to facilitate the client (e.g. prospective purchaser or occupier) in making an informed decision from a technical perspective and any risks. The Guidance Note defines four types of inspections, based on various stages in the property lifecycle. These are: Acquisition Occupation and operation Disposal Refurbishment or development

Answer 22

A new purpose built residential block, of 5 storeys with cavity wall constructions The internals of the flats had modern specifications, with modern open plan kitchens and living rooms Bike storage EPC B

Answer 23

cavity walls double glazed UPVC windows UPVC guttering and drainpipes damp course solid floors open plan rooms carpeted / laminate flooring

Answer 24

- Location - Access to transport facilities and other amenities - Energy efficiency - Wear and tear and condition of the property - Age and construction of the property - Specification f the internal

Answer 25

asking the client planning consent land registry information local history records (historical maps) architectural style Lease Date plaque or similar

Answer 26

RICS guidance note: Contamination, the Environment and Sustainability (2010)

Answer 27

A An invasive perennial plant that grows strongly and quickly up to 2m high. It can damage surfaces such as foundations and tarmac.

Answer 28

Japanes Knotweed and Residential Property March 2022

Answer 29

Lone working Asbestos Accessing roofs and roof spaces at height Hazards associated with derelict/empty properties Confined spaces

Answer 30

Yes, The Fire Safety Act 2021 requires all responsible person to assess, manage and reduce the risks of fire posed by the structure, external walls and common areas of a building. RICS Guidance Note: Valuation of Properties in multi-storey, multi-occupancy residential buildings with cladding (2021) The owner of the building had a EWS1 form which confirmed the cladding was compliant with current regulation

Answer 31

Designed to be used for residential properties of any height i.e. blocks of flats, student accommodation. Not designed for use for hotels. Allows a “qualified professional” to confirm that an external wall system on residential buildings has been assessed for safety, in line with government guidance. Considers: the height of building type of cladding & how much presence of balconies & combustible material

Answer 32

Delivers assurance to lenders, valuers, buyers, residents and sellers. It’s purpose is to ensure a valuation can be provided for mortgage purposes for a property with an external wall system. Only used for a valuer & lender in determining if remediation costs affect valuer.

Answer 33

Assess location and condition Assess risk and create an asbestos management plan Produce an asbestos register Make the register available to all who may disturb it Review register regularly (HSE recommends every 6 months)

Answer 34

As picturised in the RICS Surveying Safely 2018, Asbestos can be found in many places. Examples include: roof sheeting and tiles pipe lagging insulation textured coatings and paints cement guttering and drainpipes

Answer 35

The Control of Asbestos Regulations 2012. non compliance is a criminal offence provides obligations to the duty holder and employer duty holder is the owner of the premise if vacant or a tenant if holding a repairing lease. duty holder must undertake a risk assessment all work is to be done by a licensed contractor asbestos register must be produced and kept up to date

Answer 36

Risk assessment for fire prevention in non-domestic properties

Answer 37

- It was in countryside context so the surrounding consisted of parcels of land, divided by post and rail fencing and walls - I was looking to assess the condition of fencing, entrance gates and other boundaries and ground gravel - I undertook a SoC to evaluate the condition of the property before and after of the works and to assess accurately any damage that may had occur

Answer 38

The instructions was for agency purposes; Plot of land within the Green Belt extending 88 acres; The land included 2 developed plot with agricultural sheds covered with metal profile sheets

Answer 39

- I identified the damage as being serious and potentially causing harm so breaching the H&S Act 1974, so advised the to undertake the repair as soon as possible and that I wouldn't be able to carry out viewing until that was repaired. - Under the H&S 1974, the owner would have responsibility to ensure safety in the premise

Answer 40

- That it would need to be resolved asap, as it constitutes breach of public liability warranty and in case of any injuries the insurance wouldn't potentially be able to cover and damages; The option that I advised were to resolve it either by negotiating an extent, move all equipment in.

Answer 41

Tape measure Rod/kebab skewer Disto/Laser device Trundle wheel (used for measuring land) Wooden folding tape

Answer 42

Tollerances are listed under Appendix A of the Property Measurment PS 2018 and are varied depending on the purpose; In my sort of work I would need to adopt =/- 25mm

Answer 43

- Mid-terraced shop unit with - glazed frontage - solid concrete floors - staff facility and kitchen area on 1st floor

Answer 44

- End of terrace unit - Steel portal frame - Insulated roof and elevation cladding - 5% of ancillary office - Front gate yard including car parking - Eaves 7.5mt - GIA 11,000 sqf - Site coverage 45%

Answer 45

A global RICS-led initiative introduced mandatory Internal Property Measurements Standards and practices aiming to avoid current inconsistent definitions of measurement in different countries and bring greater global transparency.

Answer 46

5 differences: IPMS 3: - measures to the IDF, and not to the internal wall surface - Includes but states separately Limited Use areas, such as height below 1.5 mt, and internal structural walls (whereas NIA excludes them) - Includes columns (and NIA doesn't) - Party walls are measured to the centre line (whereas NIA measures to the internal surface wall) - Includes terraces and balconies (and NIA excludes them)

Answer 47

GIA: - excludes balconies, covered galleries and rooftop terraces. IPMS 2: - Balconies, covered galleries and rooftop terraces are included but stated separately. measures to IDF, window reveals included if IDF

Answer 48

1 acre = 0.4046 hectares. 1 hectare = 2.471 acres

Answer 49

There are various ways: - Adding a percentage to the overall rent or to the ITZA area (say 5%) - Measuring the return affected area and adding a percentage to that affected area (10% say) - Adding an amount per linear metre run if the return frontage to the ITZA

Answer 50

- NIA - shop depth - Gross and net frontage - Any limited use area to deduct from the NIA

Answer 51

- It's a technique used for comparing retail properties - it consist in splitting a retail areas into zones of generally 6.1mt deep. - Zone A is the area closer to the shop frontage and with a higher value, and the zones behid that are valued using a halving back principle - Normally retail shops are split into 3 areas, A, B and C plus remainder - remainder will have normally a 1/10 value of zone A - It allows a valuer to compare any retail shape property as it is assessed on a consistent approach

Answer 52

The Red Book is a framework containing mandatory rules, best practice guidance and related commentary for all members undertaking valuation work across the globe.

Answer 53

- Term of Reference must be clear and unambiguous, in that valuation are either Red Book complaint or not (quasi- or non-Red Book are term not to be used) Sustainability: - VPS2 and 3 puts greater emphasis on Sust and ESG factors - VPGA2: ESG and Sust factors should form an integral part of the valuation approach; commentary may be also be required on the maintainability of income, and on future cost liabilities to meet changing regulations and investors expectations - The inclusion of direct and indirect valuation relevance and physical and transition risks under VPGA8 - Definition and scope of valuations contained within the IVS - VPGA1 (val for finacial reportg) ref to IFRS 13 and IFRS 16 - A non-exhaustive list of properties that require the use of the profit method, such as student housing, self-storage etc

Answer 54

In order to ensure that I am providing accurate, reliable valuations that are in line with the industry standards and best practice

Answer 55

- Asbestos register - Equality Act Compliance - Business rates/Council Tax -Contamination -Environmental issue -Randon Gas -Flood risk -EPC rating -Fire Safety -highways -legal title -tenure -land registry -planning history

Answer 56

The profit method is used for trading related properties, that are designed for a specific use and where its the value reflects in the trading potential i.e. Hotels, restaurants, night clubs. - The valuer needs to first establish the Fair Maintainable Operating Profit (FMOP= Turnover - Business costs) or EBITDA(Earnings Before Interest Taxes Depreciation and Amortization) achieved by a Reasonable Efficient Operator (REO). - Then capitalize the FMOP by the appropriate All Risk Yield (rate of return). - It's always good practice to check result with comparable sales if possible

Answer 57

It's the method used for specialized buildings, where there's limited or unavailable market evidence i.e. schools, fire stations. This method is used for accounting and rating valuations. Methodology: - Determine the existing use of the land - (current costs of replacing the building + fees) - (deprecated and obsolescence/deterioration) - Physical obsolescence - wear and tear of building - Functional obsolescence - where design of the asset no longer fulfils the function of what was originally designed - Economic obsolescence - life cycle of the building

Answer 58

The guide outlines principle of comparable method and provides advice when dealing with little comparable evidence. Any source of rental data can provide good comparable evidence as long as it is fully validated and appropriately analysed. Also sets out a non-perspective hierarchy of evidence that valuer should use:

Answer 59

PS 1 - Compliance with standards and practice statements where a written valuation is provided. Looks at application - when a valuation needs to be Red Book Global compliant. Details the 5 exemptions.

Answer 60

Ethics, competency, objectivity and disclosures

Answer 61

Yes, however it must be: - marked as a draft, subject to completion of the final report - marked for internal purposes only - stated that it cannot be relied upon and can’t be published.

Answer 62

A special assumption is a supposition that differs from reality but is taken to be true and accepted as fact, even though it is not true. e.g. special assumption of a 90 day sale period. A special assumption must be agreed with a client in writing at the commencement of an instruction.

Answer 63

To verify the physical aspect of the property and that the necessary information being relied upon for a valuation to ensure the information is professionally adequate for its purpose

Answer 64

Yes, however the valuer should consider if the restriction is reasonable and confirm this in the limitation sec of ToE

Answer 65

Yes you can, however, you must not be influenced by the client in any way. Any information given by the client in the discussion, must be stated within the report

Answer 66

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

Answer 67

The estimated amount for which an interest in real property should be leased: - on the valuation date - between a willing lessor and a willing lessee - on appropriate lease terms - in an arm’s length transaction, - after proper marketing and - where the parties had each acted knowledgeably, prudently and without compulsion.

Answer 68

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.

Answer 69

The value of an asset to a particular owner, or prospective owner for individual investment or operational objectives

Answer 70

Valuation reports

Answer 71

Valuation reports

Answer 72

VPGA 2 and VPGA 10 of UK National Supplement.

Answer 73

Under RICS Professional Statement: Conflicts of Interest - UK Commercial Property Market Investment Agency (2017). You can be both the agent for the seller and the valuer for the lender/purchaser - however, must be disclosed and agreed in writing.

Answer 74

Flood risk EPC Current and Historic use Contamination Invasive species

Answer 75

When the client has adopted IFRS for their accounts

Answer 76

It's a report commissioned by the SRB and prepared by Peter Pereira Gray to address the process of how to carry out Investment Valuations in view of of the rapidly changing markets; The key recommendations are: - the creation of a Valuation Commission Officer role within regulated valuation providers - Creation of an independently-led valuation regulatory panel - Adoption of DCF as principal model for preparing property investment valuations - Rotation process for valuers

Answer 77

It's a tool that can be used for valuing investment assets, and which involves estimating future cashflows that the asset is expected to generate and then discounting those cashflows back to their present value using a discount rate.

Answer 78

It's a supplement guide to the Red Book Global, which provides 18 valuation practice guidance ( it is not a substitute);

Answer 79

Pros: - DCF includes a detail projection of future costs, growth and therefore more is a more objective method for valuing; - Conventional method, it's a more simple and straight forward valuations method that doesn't need detailed data inputs or assumptions Cons: - DCF needs large amount of data and assumptions - CM requires large amount of comparables and a slightly more subjective assessment

Answer 80

- The profit test is regarded as the the Net Profit being at least 3 time the annual rent for 3 consecutive years or the net asset value to be 5 times the rent for 3 consecutive years. - this is because it takes into account rent rates and staff remuneration

Answer 81

The element of value of land over and above the existing use value which reflects the prospect of potential development/alternative use. Hope value generally lies between the EUV and its Development Value/Alternative Use and can increase as the likelihood of a new alternative use becomes more certain.

Answer 82

- Operational efficiency: properties that are not energy efficient are generally more expensive to run therefore receive less demand from users and reduce value - MEES compliance: property with high EPC rating that fall below the acceptable range cannot be rented so will incur in voids and are subject to large capital expenditure sums to bring them up to standards and therefore negatively impact on value

Answer 83

- A quantitative adjustment consist in quantifying in money terms the adjustment to apply on certain comparable and apply that allowance e.g. if have two comparable properties that in different state of repair, an adjustment could be made to allow for the costs of renovating the property in poorer condition up to the standard of the better building. - A qualitative adjustment are allowances based more on professional judgement and knowledge of the local market where there is no direct evidence to quantify the degree of adjustment required. E.g. view of the property, footfall exposure, tenant covenants

Answer 84

- The importance of verifying evidence - The hierarchy of evidence - Making adjustments and be transparent about the adjustment made - recording clearly the comparable evidence and kept on file.

Answer 85

- End of terrace, light industrial unit - Portal frame construction with insulated cladding elevation and roof coverings - GIA 11 sqft, 7.5 mt eaves height going - Front gated yard including parking - SIte coverga 45% - Presence of mezzanine - 1 Loading door with eletric shutter (3.5h x 3.8w) - EPC rating D - Good accessibility to A12

Answer 86

T&R I capitalised the passing rent for the unexpired term but defferred Reversion by 9 months to incorporate a void (6 months) and rent free period (3months) at the start

Answer 87

I would either recommend the client: - to obtain a cost estimate for bringing the EPC rate of the building up to compliant standards and reflect the impact of those costs in the valuation - or if there are sufficient comparables of similar property with low level energy rating, I will adopt a similar rate

Answer 88

A property with low EPC rating may reflect a risk with regards to the maintainability of the income over the life of the loan; for example: - a low energy efficiency building my have high operating costs and therefore affect the profitability of a tenant and therefore its ability to pay the rent to the borrower - A low energy rating that is due to fall outside the MEES, can have a short term income generating potential and therefore not guarantee it's ability to repay the loan through its income

Answer 89

A sensitivity analysis allows a valuer to test the the profitability of a scheme by changing key inputs of an appraisal, such as GDV, yield, build costs, finance rate or phasing. It's used to identify the level of risks and uncertainty associated with the project and allow developers make informed decisions about the level of investment

Answer 90

Weighted Average Unexpired Lease Term - WAULT is calculated by multiplying the remaining term of each lease by its rental value - adding all lease values figures together - and then diving it by the total annual rent - This calculation takes into account that longer leases provide greater income security than sorter leases, and thus have a greater impact on the overall value of the building/potfolio - WAULT is a useful metric for property investors to assess the income profile and for comparing against other multi-let properties

Answer 91

- An OML would normally have more wait as this type of value is being determined openly between two parties without any special conditions or restrictions; - the rent review is a value determined by taking into account certain terms and restriction contained in an existing lease

Answer 92

A SWOT analysis can help identify the internal and external factors that affect value of a property, such as tenants covenant, market conditions, conditions etc

Answer 93

- A headline rent(or face rent) is the quoted rent by landlords which does not include any incentives or discounts, such as rent free periods, fit-out periods, service charge waivers, that the landlord may offer to attract tenants - NER is actual rent paid by the tenant over the term of the lease, after deducting an incentives or discounts that the landlord may have provided. NER can be determined with a Straight line method, Straight line method assuming time value of cash flow using a yield(n will be the no. of years and i the inflation) or by using a DCF.

Answer 94

Any form of inducement or concession made by either party: - Rent free periods -Stepped rents -Capital contributions -Premiums

Answer 95

It is a measure of investment return, expressed as a percentage of capital invested * Calculated as income divided by price x 100

Answer 96

It's a financial metric that measures the profitability of the scheme and potential returns. It is the interest rate at which the net present value of all cashflows is equal to zero. That means that the higher the IRR the more profitable a scheme is.

Answer 97

- Sustainability and ESG in Commercial Property Valuation and Strategic Advice 2021.

Answer 98

- I confirmed the suitability of property for lending purposes, as the asset offered good a marketability profile - I confirmed that there were no physical, environmental matter that would have a significant impact on the value

Answer 99

- I confirmed the suitability of property for lending purposes, as there was a general strong demand for that type of property with good energy efficiency - Under VPS2 and VGA8, I confirmed that there were no environmental and physical matters that could have a material impact the property value

Answer 100

- Case law: Singer & Friedlander vs JD Wood (1977) The acceptable margin of error varies depending on the type of asset to be valued. For example, the margin of error for a standard residential property with a good level of evidence is +/- 5% ; for a one-off commercial property can go to +/- 10%, but courts have accepted up to 15%;

Answer 101

- summary of occupation leases - commentary on passing rent vs market rent - Comment on the market's view with respect to the quality and strength of the tenants - Comment on the maintainability of income over the life of the loan - Consideration of maintainability of income in the context of ESG and sustainability

Answer 102

It depends but normally between 10-20%, due to the facts that new built flats are normally provided with better energy efficiency systems, modern fittings and there is absence of wear and tear. Also, new built flats would a NHBC warranties that cover against any defects.

Answer 103

- In respect of the retail unit I have assumed: o On the reversion of current lease an average of 6 months void period + 6 months’ rent free o Applied an average 7% Y on term due to the security of income and rental growth o and 8.5% on reversion due to the uncertainty of covenant strength, risk in re-letting the property and dilapidation issues

Answer 104

- I checked the lease terms and established that the repairing liabilities were tenant’s responsibilities so assumed that the tenant would bring the property back to its conditions

Answer 105

- I was unable to assess some of them on D&B so I looked at their accounts on Company House and verified that their net profit was proportionate to the rent obligation and also verified their history and spoke to local agents

Answer 106

- Flood risk was very low being on a hill - Tenure FH was confirmed - Physical site boundaries complied with the title plans - Plans of internal layout was also compliant - No contamination or other environmental matter that could impact the value - From our research all planning conditions were fully discharged so we assumed that the houses all benefitted from full planning permission and Build Regulation consent

Answer 107

- From the due diligence undertaken, I verified that there were no environmental circumstances that could severely affect the value of the property - From a market analysis, I established that there was strong demand for energy efficient residential properties - All of the EPC ratings were within the MEES standards

Answer 108

- 1980s inner terrace block with cavity wall construction along Billericary highroad, with 4 retail units on GF and 3 offices on the upper floors

Answer 109

It’s a graph showing the patterns of cashflow of a typical development project Typical scenario of curve: - The usual curve will normally start at a low level and increase gradually as the project progresses. The curve will reach its peak during the middle of construction, when the majority of costs occur and then tail off towards the end of the development period, to reflect the completion of the project and the realisation of revenue

Answer 110

The S-curve is useful for assessing cashflow requirements over the development time period and tailor eventual loan to it

Answer 111

Risk profile of the development project Risk profile of the developer, whether they are an established company or not

Answer 112

It includes social and affordable housing provided to eligible households whose needs are not met by the market and therefore it’s provided at an affordable price.

Answer 113

By comparable evidence extracted from similar developments in same area By capitalising the net annual rents and summing those up with the capital receipts from initial equity Adopting the subsidy provided by Registered Providers

Answer 114

Community Infrastructure Levy, and It’s a fixed planning payment obligation for new development to help fund new infrastructure in the local area;

Answer 115

S: to verify whether the asking price proposed by the client would be able to attract a sufficient level interest and provide appetite for multiple buyers, in the current market conditions T: Carry out an appraisal based on various assumptions, and fixing the asking price to see what level of profit would the site generate A: Collate key inputs to include in the appraisal; cross checking the Build costs provided by the client with the BS surveying team to ensure this was appropriate R: I determined a Profit on Cost of 10% which I believed would be seen too low for attracting a good level of demand / high risk of becoming unviable

Answer 116

The asking price was too high for attracting demand from developers (Profit generated 10% on Cost), as I believed that the expected profit level for that scheme in current market condition should have been of 15-18% of Costs

Answer 117

18-20% of Cost 16-18% of GDV The target profit will depend on the risk profile of the development, the size and its complexity

Answer 118

The costs associated with selling the units such as advertisements, show homes, brochures, EPCs 2.5-3.5%

Answer 119

GDV Build Costs (contingency 5% but varies) Professional fees (8-12% based on complexity) Planning cost (S106, CIL, S278 for highway) Finance costs (7%) Sales and marketing (2.5-3.5% of GDV + legal fee £750 per unit) Profit Land acquisition costs ## Residual land

Answer 120

It is a type of sensitivity analysis which is based on a statistical model. It estimate the likelihood of achieving certain financial outcomes, based on the low and high markers range that I set out. Is used to evaluate the risks and uncertainties associated with a development.

Answer 121

My advice was that the appraisal, based on the historic land price, had shown a increase of profit due to an increase in sales values, reduce marketing costs and a shorter borrowing period which reduced the total amount of interest and fees paid over the construction period

Answer 122

It indicates the time it takes for the proft to erode from the completion of the development, due to empty rates, service charges and interest costs, following the completion of the scheme

Answer 123

My advice indicated that the development design proposal prepared by the client had high chances of becoming unviable. The scheme included a number of renewable environmental features such as solar panels and heat source pump which were pushing costs up and consequently producing slim margins.

Answer 124

I undertook a comparable method to determine the GDV, which indicated that premium sales values achieved in that weren’t high enough for justifying the type of design proposed.

Answer 125

Profit on Cost or GDV Profit Erosion IRR

Answer 126

Development appraisal: establish the viability/profitability of a proposed development and helps developer choose from different sites Residual valuation: establish the market value of the land and is based on mainly market inputs

Answer 127

Demolition, remediation works, landfill tax, site clearance, levelling, fencing and provision of services Obtain a contractor’s estime for these works

Answer 128

Usually based on a GIA basis Obtain monthly updates from Quantity Surveyors / Building Surveyors recent contract prices / tenders agreed

Answer 129

legal arrangement for the sharing of any extra receipts received over and above the profits originally expected, as dictated by a pre-agreed formula Usually shared between vendor/landowner and developer in a pre-arrangement apportionment

Answer 130

RICS Valuation of development property, 2019

Answer 131

Value of the land + costs expended at the valuation date and/or Completed development value - costs remaining to be expended at the valuation date

Answer 132

Discounted cash flow (DCF) technique. Simple residual method can be used in other cases

Answer 133

Assumes 100% finance

Answer 134

The aggregate market value of the proposed development, assessed on the special assumption that the development is complete on the date of valuation in the market conditions prevailing on that date.

Answer 135

Title Number Property Registry - describes the land Proprietorship Register - identity of owner Charges Register - matters which affect the land

Answer 136

Title Number North Point Red Line Boundary Administrative Area Scale

Answer 137

Data protection means using and storing information about people fairly and responsibly. It involves being open and accountable, and recognising and complying with individuals’ rights over how their personal details are used, accessed and shared.

Answer 138

Personal data is information about a specific living person, such as name, address or date of birth

Answer 139

right to be informed (know how data is collected and used) right to access (request access to data held about them) right to have data erased right to have data rectified, if is inaccurate right to restrict processing of their data in specific circumstances right to data portability (so they can reuse data across different services or for their own purposes) right to object decisions results if data is being processed through only automated systems which affect legal rights or financial circumstances (i.e. mortgage application)

Answer 140

It’s the UK data protection framework which is based on Data Protection Act 2018 and UK GDPR; It’s a privacy and security law designed to protect personal data and how is this used by organisations, businesses and government

Answer 141

- Limited purposes: personal data can only be collected for specified and legitimate purposes. If original purpose changes a new consent is required; - Data minimisation: personal data shall be adequate and limited to its purposes; no additional info should be collected/stored if not needed - Accuracy: data must be accurate and kept up to date - Storage limitation: data must be kept only for the required time and not hold for longer than necessary - Securely processed: data must be kept safely and be protected by unauthorised access and accidental losses - Accountability: the controller and processor are responsible for adopting adequate and secure system for using personal data - Lawfulness, transparency: data shall be processed lawfully, fairly and in user friendly manner, that allows comprehensive understanding from the individual

Answer 142

- Have policies and procedure for data protection in place - Keeping data security measures up to date - Carry out data protection impact assessment, to test and check the measures are effective, and improve them where necessary - Train staff - Employ an independent Data Protection Officer (DPO) to monitor internal compliance (compulsory for public organisation)

Answer 143

- Compensation claims (i.e. compensate for the loss of money or distress caused) - Negative publicity - Financial penalties

Answer 144

- Data subject: living person whose personal data is processed - Data controller: an organisation or individual that decides why and how to process personal data - Data processor: An organisation or individual that process the data on behalf of the controller

Answer 145

- Client details - Values - Plan info - Project details - Build costs (BCIS) - Planning info - EPC rating

Answer 146

Only when there is a statutory right overriding the client's confidentiality, such as a request from the police or HMRC

Answer 147

Inform the Information Commissioner’s Office not later than 72 hours after becoming aware of it.

Answer 148

from a variety of sources including construction professionals' surveys, accepted contracts and tenders and government agencies

Answer 149

It's a security tool for any organisation that want to protect its computer networks and data from unauthorized access or malicious attacks (viruses)

Answer 150

- Company name, number and registered office address - Directors names and addresses - Shareholder names and addresses - Accounts and annual returns filed by the company - Memo and articles of association - any charges or mortgages over the comapny assets - Person of Significant interest - details of any insolvency proceedings or liquidation - statutory filings made by the company

Answer 151

- Freeholds - Leasehold over 7 years - Easements - Restrictive covenants

Answer 152

Are attached to the land and restrict / prohibit certain things. i.e. could restrict development or use but are identifiable as they do not consist in a financial liabilities. They are retained even when sold and passed on.

Answer 153

It’s an easement = a right to use part of another person’s property in a particular way even though they don’t own it.

Answer 154

Green = removed Brown = right of way Pink = restricted covenant

Answer 155

I would consider a few factors: - Scalability - how much data is going to be stored - Security - what type of data is stored and therefore the adequate type of security in place - Accessibility - Who are the authorized people who needs to access it and how do we make this practical for them at the same time as secure - Reliability - the storage should be reliable and have back up systems in place Cost-effectiveness:

Answer 156

It's a secure online space where confidential documents and info related to a property can be shared between parties/potential buyers; This space can enable collaborative activities from various stake holders and allow access from remote locations; It's a more safe, cost practical way for sharing numerous documentation;

Answer 157

- Hard disk - attached to a computer - Network storage system - storage system that is connected to a network and which various computers can have access to - Cloud storage systems - storage system that uses remote servers hosted by a third-party provider accessible via internet (Amazon Web Servce, Google Cloud) - Physical Storage system - data organised into objects that can be accessed using a unique identifier

Answer 158

A CCP system is a software platform that is used to manage and track the progress of projects. It's a tool used mainly by project managers and engineers for construction projects. Helps improve project efficiency, reduce costs and minimize errors

Answer 159

- Land Registry - Zoopla - Rightmove - Office National Statics - MSCI index (on subscription) - BCIS (on subscription) - HMRC - Company House

Answer 160

Assuming consent from the Data Subject os given, however, GDPR restricts transfers of personal data outside the European Economic Area unless the rights and systems provide sufficient level of security.

Answer 161

- Give individuals the right of access to information held by public bodies

Answer 162

- Public body must tell any individual requesting sight of info whether it holds it - Info is normally required to be supplied within 20 working days from the request - It can charge for the provision of the Information

Answer 163

-Contrary to the GDPR requirements - It would prejudice a criminal matter under investigation - It would prejudice a person/organisation commercial interest

Answer 164

- Disk encryption - Regular backups off site - Password protection updates - Use of Anti-virus software protection - Firewall and disaster recovery - Confidential Waste Bin

Answer 165

- Companies Act 2006 - Consumer Protection Act 1987 - Intellectual Property Laws

Answer 166

Non Disclosure Agreement; It's a legal contract between two or ore parties that outlines confidential information that is to be kept secrete and not shared with others;

Answer 167

Professional Statement on Data Handling and Prevention of Crime.

Answer 168

- S: extract data for my client on bus sites and understand info rights and ownership - T: gather all the data from various sources and organise it in user friendly and intuitive system

Answer 169

- Given the large volume and type of data requested, - I advised to arrange a digital filing system based on a geographical structure of folders and sub-folders - This would provide an organised, user friendly and protected system to enable the client to access the information sheet;

Answer 170

Create a central project system that contained all inform within one place and give an overview of risks for each scheme based on accessibility and land permission required; This would facilitate the management and procurement of maintenance contracts,

Answer 171

Goad Plan Data is a dataset that covers retail areas within urban areas and includes info such as retail occupancy, category, floor space, fascia name and a wealth of other detail.

Answer 172

Primary source of data refer to information obtained directly from the property being valued or from the parties involved in the transaction, while secondary source of info refer to data obtained from external resources; Primary: info from tenancy document or seller or buyer interview Secondary: property transaction database, market reports

Answer 173

- Primary data may have inaccuracies due to human error - Secondary data may be outdated

Answer 174

CoStar is database that provides a range of data on properties, transactions, leases and tenants. Fro this software you can extract: - Property info, such as size, construction type and amenities - Transaction data: info on sale prices, dates and buyer and seller info - Lease data: lease transactions and info on lease terms and tenant - Market reports: property trends, vacancy rates and absorption rates

Answer 175

Pros: - Comprehensive coverage across the UK - Regularly updated with info on new transactions - Quality and robust control process Cons: - High costs and less accessible for small firms - Limited data on small properties and off-market transactions - Potential inaccuracies on property classification and other info

Answer 176

Stand for Build Costs Information Services and provides costs, price data of the construction industry It can include: - Build costs indexes and inflation rates - Average costs psm or per unit for different type of properties and locations - Trends and forecast - Data on construction material, labor rates - Cost breakdown for different types of building projects, such a new build, refurb and extension

Answer 177

- Tender prices submitted from contractors - Projects previously completed - Cost data provided by suppliers - Surveys undertaken by professionals (QS, architects) - Government statistics (Office National Statistics)

Answer 178

- There may be significant differences in design and specification between the subject development and the average cost provided by BCIS - Time lag factor in collecting data, therefore the costs adopted may not be up to date with current conditions - Limited scope: BCIS costs may not cover all the type of aspects that my subject require

Answer 179

Company's reliability and financial stability

Answer 180

It's the term to describe the technologies and practices designed to protect devices, networks from attacks, damage or unauthorized access

Answer 181

Because cybercrimes have become very common and ave become one of the most common criminal offence. Most organisation have now been subject to it. As technology evolves even hacking are getting more sophisticated so there is a need to secure information to avoid breaches and protect everyone

Answer 182

- Hacking - Malware/viruses - Phising emails - Breach of copyright

Answer 183

- Keep operating systems and antiviruses always up to date - not open attachments before verifying and from unfamiliar sources - Have firewalls - Be suspicious of techniques that create a sense of urgency - Use secure websites

Answer 184

Preliminary inquiries CPO preparation and submission Notification, and Objecting to a CPO (21 days) - & eventual inquiry Decision (confirmation/modify) Possession and acquisition Compensation

Answer 185

Bluur them, same as car plate

Answer 186

All email marketing must be undertaken using databases sourced from Prism, which is a GDPR compliant repository,

Answer 187

It's a Data Subject Request Access which consist in explicit request of their own personal data; Need to respond n 2-3 weeks

Answer 188

Legislative powers which enable public bodies to acquire land compulsorily. Used to help deliver social, environmental and economic change.

Answer 189

- From the red line plans and other sources of information, I was able to extract relevant information which would then feed into a PCE and allow me to assess compensation for each qualifying interest

Answer 190

Government (various departments) Local authorities (national park authorities) Statutory undertakers Government executive agencies (e.g. Homes England) Health service bodies

Answer 191

Royal Prerogative Private Act (Special Act) Public General Act Transport and Works Act 1992

Answer 192

They are stated under Sec.5 of the Land Compensation Act 1961: R.1 No scheme world (CP to disregarded) R.2 Market Value (as if sold on Open Market) R.3 Special Value/suitability to be disregarded (Point Gourde Principle) R.4 Any uplift from illegal use must be disregarded R.5 Equivalent reinstatement (when there’s no market evidence) R.6 Disturbance - based on the value to claimant (and R.2 shall not affect the assessment or any other matter directly based on the value of land)

Answer 193

GVD Notice to Treat and Entry Notice for temporary occupation – Neighbourhood Planning Act 2017 (3 months notice)

Answer 194

General Vesting declaration – used to transfer the ownership before the compensation is agreed. NTT is legal notice to inform the owner that the AA intends to take possession and buy the land, and states a date when the entry will be made for the purpose of carrying out the works. Another difference is that the NTT will have details of the compensation that will be paid, whereas a GVD will not state any sums.

Answer 195

A GDV allows the authority to acquire a clean title of the land regardless of any type of title/interest (even the ones not spotted) and sets a transfer date before the compensation is agreed; However, the GDV cannot be withdrawn so has no flexibility once served; NTT needs to be served upon all land interest present on the land and can be modified or withdrawn if needed; If any parties are left out the AA it can cause big issues;

Answer 196

Key principles that are manadatory to follow: - Competence - understand statute and CPO code - Duty in providing advice - advise on assumptions made / estabilsh material evidence / provide balanced advice - Changes to instruction - ensure no conflict arises - Inspection - adequate to provide advice, record of condition - Reporting - consider all matters relevant to instruction - Fees - must be reasonable / client liable for fees not borne by AA - Recording time - Disputes - through Upper Tribunal or ADR (RICS)

Answer 197

VPGA 16 Global Standards UK Supplement General requirements of PS1 and PS2 VPS 1-5 not mandatory – VPS 1 and 3 provide a useful checklist

Answer 198

Market Value Severance and Injurious Affection Disturbance Loss Payments Interest

Answer 199

Land Compensation Act 1961 Compulsory Purchase Act 1965

Answer 200

A Home loss Payments: 10% of MV subject to a cap (£78,000 or 7,800), regularly reviewed. Claimant must be in occupation as main residence for 1 year prior to displacement. Basic Loss Payment: 7.5% MV subject to cap (£75,000). Applies to all claimants with interest in land held for at least 1 year before relevant date (date of valuation). Occupier’s loss – greater of (subject to max £25,000): 2.5% of the value of the interest £2.5 psm of land £25 psm of GEA of building or min £2,500 Qualifying interest – freehold or interest as tenant for longer than one year prior to displacement

Answer 201

Betterment occurs when there is an uplift in value on the retained land as a result of the scheme/development. Any value uplift is to be offset against the compensation for the land taken. S7 Land Compensation Act 1961

Answer 202

Yes, 3 years

Answer 203

Disturbance comprises any additional costs related directly to land taken through compulsory purchase, such as relocation, temporary disruption to business or business or total extinguishment. Disturbance can be claimed by freeholder and occupier, that can prove a loss arising from the scheme.

Answer 204

Severance is the decrease in value of the retained land as a result of physical impact of the land taken Injurious Affection is the decrease in value of the retained land as a result of use of the scheme (nuisance).

Answer 205

Material detriment occurs when a claimant suffers additional damages/losses to the remaining land as a result of the land required to be CPOed. e.g. if a part of a land is taken but the remaining part is heavily affected and devalued (loss of access), the AA must acquire the whole land plot

Answer 206

Section 5A Land Compensation Act 1961 * NTT – Date acquiring authority enters/takes possession or date when assessment is made * GVD – Vesting date or date when assessment is made

Answer 207

The value of a ransom strip can be calculated by following the principles in the following case law: * Stokes v Cambridge (1961): 1/3 of the uplift of the unlocked development value. * Ozanne v Herts (1991): where access is sole key to unlocking development value deduction should be higher proportion – increase in value split equally between both parties to reflect equal negotiating positions, 50%. * Batchelor v Kent (1992): ransom value much lower where there is more than one possible access, even if ransom strip most convenient (15% here).

Answer 208

Blight notice is served by the claimant to the AA and is triggered when the potential acquisition of land by the acquiring authority to construct a development scheme has caused a fall in property values and made them unsaleable.

Answer 209

When no land is taken, but a result of the scheme use the landowner suffers a depreciation of value of its property which can be caused by: noise vibration smell fumes smoke artificial lighting discharge of solid or liquid substance

Answer 210

In respect to professional fees incurred in negotiating a claim for compensation, the Acquiring Authority will usually pay the reasonable surveyor’s (and legal) fees which are incurred in negotiating the claim. However, the position can change if settlement of the claim cannot be agreed and the matter is ultimately referred to the Upper Chamber (Lands Tribunal) for determination.

Answer 211

I had to assist with a compesation settlement for land acquired. In order to mitigate the loss of land and I and the engineers came up with accomodation works that essentially replaced the parking area elsewhere in the units I carried out a before and after assessment and established that the remianing land had increased in value so no compesation was payable

Answer 212

Client objectives Desired timescale Public accountability Current and likely future market

Answer 213

Parties are free to negotiate on their own time, without commitment in the open market. It is the most popular method.

Answer 214

A Pros: flexible parties control the process no obligation to sell confidential Cons: potential for gazumping/gazundering late decisions not to buy associated abortive costs

Answer 215

It’s an invitation to submit best offers by a specific deadline It’s a flexible sale process because allows further negotiations as the vendor is not obliged to accept the highest offer

Answer 216

A Pros: - Enhance competitions between sellers and brings negotiation to eventually an end Flexibility, as it allows further negotiation and allows the vendor to have more control of the sale process and timescales Limited upfront costs given that a informal tender can be triggered without a full legal pack Cons: - can be difficult to manage bids as they are not legally binding - parties may have insufficient time to arrange lending facilities

Answer 217

Deadline for bids name of applicant Finance arrangement, with solicitor cover letter condition attached specify which type of offers are strongly desired that the vendor reserve the right to not accept the highest offer

Answer 218

Title deeds: to prove ownership Reports on inquiries Leases and other tenancy agreements Other property information, including it fixtures and fittings EPC Contract for Sale and other documents with conditions attached (if it’s a formal tender)

Answer 219

It’s a similar process to the informal tender (so invitation to bid), however, parties must submit their offer through a prescribed form and provide the necessary deposit when placing their bid, so it becomes a legally binding process if one of the bids is formally accepted by the vendor. The bid is sealed and will be opened in front of the vendor together with all the others bids, and there’s no opportunity to increase the bid

Answer 220

Formal tender: - By selecting a bid, under a formal tender, the vendor can potentially enter into a binding contract; and there is no opportunity to further increase the bid once submitted; Informal tender: - Does not legally bind the parties to the sale until contracts are exchanged and there is an opportunity to further negotiate the bid Both methods can reserve the right of not accepting the highest offers.

Answer 221

Pros: - completely transparent and accountable Cons: - no flexibility - need to prepare various documentation (full marketing material and legal pack) ahead of the sale so can be costly

Answer 222

It’s a public sale where the property is offered to the highest bidder. Parties will need to register before bidding and will be allowed to inspect the property before the auction day. The contracts are potentially exchanged at the fall of the hammer.

Answer 223

Needs to: - Provide legal pack - Fix a reserve price below which the property will not be sold - Prepare the auction particulars in line with CPR

Answer 224

Arrange a 10% deposit Undertake an AML

Answer 225

Pros: - It’s useful to use for achieving a quick sale, - It gives certainty that the price will only be sold if the reserve price is reached - Useful for selling unusual properties which are difficult to value Cons: - Costs of promotion and publicity - Lack of confidentiality over price achived - Cannot choose the purchaser

Answer 226

Agency basis (sole / joint) Agency rights (sole selling / sole agency) Proposed fee Marketing costs & disbursements Confirmation of no COIs Money Laundering regulations requirements Timescale for the payment of fees and disbursements Details of CHP

Answer 227

Vendor Purchaser Property & Adress Tenure Purchase price Legal costs (each party responsible for their own ones) VAT details Timetable (exchange, completion etc) Conditions Solicitors details

Answer 228

£0 - £150k = 0% £150 - £250k = 2% £250k + = 5%

Answer 229

EG Data Room Photography Planning briefing paper Promap plans

Answer 230

Fixed fee Percentage fee Tiered fee: different fees for different levels of service Hourly fee Performance fee: incentive to finalise the deal by a certain period

Answer 231

Applies during the sale or purchase period and applies to any: Disposal or acquisition of an interest in land Freehold property Leasehold property with a capital value land as well as buildings

Answer 232

The act ensures that agents act with: - Clarity as to the terms of the agency (Section 18) - Honesty and accuracy - Agree in advance liability for costs - Are Open regarding personal interest (Section 21) - Do not act with discrimination - Legal obligation to tell client about offers received - Keep clients’ money separate

Answer 233

Sole Agency rights: fee will only be owed if the agent introduced the buyer (during contract period only) Sole Selling rights: fee will be owed regardless of whether the agent introduced the buyer - additionally, a fee is due after rights period ends if the purchaser/tenant was originally introduced by the agent. Ready able and willing purchasers’ clause: an abortive fee is due to the agent if the an applicant is ready and able to proceed with a purchase, but the client decides to withdraw

Answer 234

Sole: exclusive rights appointed to one agent Joint: two agents are appointed to act together and the fee is split on a pre-agreed basis Multiple: more than one agent is appointed but only the agent who finds the buyer is paid a fee Defined in EEA 1979

Answer 235

Specify all costs/fees in advance, in writing in the Terms of Business Itemise all payments - no global budget is allowed

Answer 236

Disclose any personal interest - a “connected person” is someone who benefit financially from the transaction such as a relation or business associate Any personal interest should be declared on the ToE as a minimum and if appropriate not continue to act

Answer 237

Trading Standard Estate & Letting Agency Team (Operated by Pows County Council, who work closely with LA that have enforcement responsabilities)

Answer 238

Prohibition order to prevent the agent practicing Warning order gives an agent a written warning not to undertake the action again

Answer 239

Agency Basis (Sole/joint agency) Agency rights (sole selling or sole agency rights) Proposed fee Marketing costs and disbursements Confirmation of no conflicts Money laundering checks requirements Timescale for the payment of fees & disbursements Complaint Handling procedure details

Answer 240

Check for competence and interest AML check Agree ToE Establish the client client’s objectives and parameters Consider technique to find properties (cold calling, advertising, websites etc) Measurement and valuation Check planning/use/conditions Due diligence checks in respect of asbestos, title, contamination, flooding, covenant strength and potential arrange for detail survey to be taken Check for any rent or service charge arrears Negotiation and instruction of solicitors Conditional contracts to be arranged if necessary

Answer 241

Mandatory Professional Statement for RICS members. Provides mandatory standards for those involved in agency work. Has 12 core principles: Act in an honest, fair and transparent manner Ensure client’s are provided with Terms of Business Do upmost to avoid conflicts Have adequate PII Do not discriminate unfairly any dealings Also advices on key agency matters i.e. acting ethically, securing instructions, marketing, gifts etc.

Answer 242

Summary: Relates to the misrepresentation or a fake statement made by a party during pre-contractual inquiries. Duties: - Agent has a duty of care to check the advice and information given An agent must not give misleading information which may induce the party to purchase the property. Disclaimers: - Disclaimer clauses may protect the agent from information included in the marketing particulars, as long as it fair and reasonable

Answer 243

Foreseeability (predictability of damage) Proximity of relationship Fairness (or reasonable) The party suing must demonstrate that the other party induce them to enter into a contract through a misleading advice

Answer 244

contract rescinded sued for damages

Answer 245

offers broader, non-specific consumer Protection for estate agents agents. relates to potential buyers and vendors Extends the duty of care owed to all consumers, including potential clients, viewers, buyers and actual buyers Need to give accurate and/or necessary ‘material’ information and not make any mis-descriptions. Agents must declare everything known about the property (good and bad) Agents can’t put undue pressure on potential buyers. If something is discovered during the agency process it must be reported to al interested parties Full due diligence is required for all new instructions

Answer 246

My reasoned advice was: - Advised: - an informal tender would be more suitable based on client requirement I advised on the guide price to be adopted and what type of buyers would be more attracted Advised that the third highest offer would provide best value, as the offer was made unconditionally by an established and reliable party with verified funding

Answer 247

My reasoned advice was: - I advised on the strategy to adopt, in which more than one land could be identified in order to reinforce our negotiation position - Give an opinion of likely value of land - Negotiate the acquisition on the land with one of the landowner based on terms suitable to my client

Answer 248

For a number of reasones: - it would allow my client to test the market place and adjust accordingly prices, marketing, strategy etc, so more control of process and timescale - Given the number of asses to be sold, this method allows for several negotiations to run in parallel while kept discreet and confidential

Answer 249

I reviewed the affordability assessment report prepared by a registered broker which contained the salary of the interested party, likely scenario of costs (mortgage rates and other expenses) and a confirmation that the party was able to obtain a mortgage for the purchase price agreed.

Answer 250

A Customer Due Diligence which consisted in: Reservation Fee Obtaining purchaser details, such as name, address etc Proof of ID Proof of address, a utility bill or bank statement from the previous 3 months

Answer 251

Legal name of the organisation Company registration number Meet with the purchaser and have evidence that the person I am dealing with has delegated authority to purchase Obtain purpose and nature of the transaction, to ensure is consistent with purchaser business profile Address of registered office Structure chart of ownership, directors, shareholder holding more than 25% any ultimate beneficial owners

Answer 252

By making reasonable endeavors with the client Or by looking for the “Person of Significant Control” on Company House

Answer 253

Meet the potential purchaser in person Obtain and verify client’s identification check if potential purchaser is a PEP or a close associate or family member of a PEP Check if the potential purchaser is under relevant sanctions (through Gov Consolidated Sanction List) Check what other countries the company operates in to ensure these are not high-risk Ascertain the purpose of the transaction to ensure it’s consistent with the transaction Regularly monitor if the purchase goes ahead

Answer 254

Uncon Sale with Pre-App Uncon Sale with Planning Consent Conditional (STP) Sale Join Venture

Answer 255

S: Central location, and strong appetite from a number of potential purchaser, Housing Associations and BTR funds W: Present in conservation area, therefore limitation in development and higher construction cost to achieve required standard O: Potential redevelopment through permitted development rights T: Rising build costs and housing market

Answer 256

Agree ToE, marketing particulars and price Pre-Marketing: collate info re site, commission any survey required and upload the info into a bespoke data room Marketing period: Data room goes live, contact the targeted parties, undertake viewings, populate the database with parties that visit the dataroom, provide regular udates, invite interested parties to submit offer Evaluation: evaluate bids, AML checks, Interview selected party, provide recommendation to the client Agreement and monitoring: Issue HoTs and instruct solicitor, review legal docs and assist solicitors through the entire period

Answer 257

Purchase Price Source of funding and cover letter from the solicitor Track record of their business and developments Any terms and conditions attached to the offer

Answer 258

It’s formed by Local Plan (2006), Core Strategy (2010) and Site Allocations Local Plan (2016)

Answer 259

Various scenarios which included uses such as residential, retail and office space; However the one selected consisted of : 75% Resi 15% Retail 10% Office

Answer 260

Someone who could benefit financially from the transaction, such as a family member or a business associate

Answer 261

It consist in a criminal offence: Unlimited fine Prohibition Order Up to 2 years in prison. Policed by Local Authority

Answer 262

The particulars are set indicative and do not constitute part of, an offer or contract All info included in the particulars are believed to be correct but any interested party should not rely on them and must undertake their own investigations None of the utilities have been tested and cannot give warranty to their operations or efficiency We have not made any enquiries to the LPA, therefore prospective buyers should rely on their own due diligence

Answer 263

Property description Property address Property price Floor plans Photographs EPC Tenure: frehold/leasehold Local amenities The info provided must be accurate, fair and transparent and statement are based n reasonable grounds (not misleading).

Answer 264

The Town and Country Planning (Control of Advertisement) Regulations 2007

Answer 265

Only 1 board allowed for commercial properties. Must remove signs 14 days after completion.

Answer 266

Non-residential boards under: 2sqm (flat) 2.3sqm (v-board) Residential boards under: 0.5sqm (flat) 0.6sqm (v-board) Must not project more than 1 mt from the face of the building & not above 4.6 mt from ground in a safe condition

Answer 267

The surveyor needs to support the client and solicitor in completing the sale: Assist the solicitor with title investigation Assist the solicitors with all Commercial Property Standard Enquiries (CPSEs) An indemnity policy may need to be granted Transfer deed Establish Exchange and completion date Registration and SDLT

Answer 268

- Land registry title - Site inspection - Lease summaries - Floor areas - Contact with tenants (CoI)

Answer 269

- Location description - Description of property and areas - Boundaries and ttile description - Any RoW and easmenets, leases - Contamination or environmental issues - Current use and potential - Repair condition of property - planning info - Market assessment - EPC - Recommendations

Answer 270

Chairman’s statement Independent auditor’s report Income statement (profit and loss account) Statement of financial position (balance sheet) Corporate governance report Remuneration report Other statutory information

Answer 271

Statement of the business’s financial position showing its assets and liabilities at a given date, usually at the end of a financial year * Assets: cash, property, debtors and other investments * Liabilities: borrowings, overdrafts, loans and creditors

Answer 272

– A summary comparing a business’s income (revenue) and outgoings (expenditure) statements (usually annual) Demonstrate how the revenue is transformed into the net income - how the actual income the business receives transfers into profit for the year. On statutory accounts

Answer 273

Prepared for internal use by the business and are not audited - help info internal decision for the company

Answer 274

Chartered or Certified Accountant

Answer 275

International Financial Reporting Standards

Answer 276

Full cost of the lease has to be accounted for on the balance sheet. Occupiers obligation to pay rent will have to be recognised as a liability Effective after 1 January 2019. Brought in as transparency measure. All leases over £500/12 months now recorded on balance sheet, as NPV of the full lease cashflow. - New definitions of financial metrics e.g. Gearing ratio and EBITDA

Answer 277

Ability of a tenant to meet the covenants of the lease. Includes rents, service charge, repairing and insuring obligations and statutory obligations

Answer 278

Current = to be converted to cash within 1 year, e.g. a property sold soon. Non-current = not likely to be converted to cash within 1 year e.g. trademarks, property, plant and equipment

Answer 279

Management – prepared for internal use by a business and are NOT audited Statutory – mandatory for limited companies, generically formatted, requested by HMRC

Answer 280

Generally Accepted Accounting Practice in the UK (UK GAAP) - body of accounting standards published by UK’s Financial Reporting Council (FRC).

Answer 281

Affects the perception of risk; particularly in relation to default on leases financial commitments. Knowing a prospective tenant’s covenant strength can help to mitigate risk and help a valuer to comment on suitability for lending.

Answer 282

We on the general market perception of the tenant not on specific aspects

Answer 283

On the profit and loss accounts (income statement)

Answer 284

Provides a report on company reliability and financial stability. It provides the size and financial strength (5A-H) and a number for risk of business failure (1-4). Other letters used are N - Negative net worth, O - net worth undetermined, NB - new business and NQ - business no longer trading

Answer 285

- Company profile - Business activities - Company risk and failure score - Delinquency score (ability on making payments) - Paydex (how quickly payments are made) - Rating (Financial strength and risk indicator)

Answer 286

- Comapny House - Trade payments from suppliers and vendors that report their experience - Other public records

Answer 287

Asset - things the business owns that you get a future benefit from e.g. physical assets like property and non-physical assets like brand and goodwill.

Answer 288

Liability - amounts a business owes due to past transactions e.g. wages and loans

Answer 289

UK public listed companies adopt IFRS as their financial reporting standard. (Some listed companies are requirement to adopt this). IFRS 16 from 1st January 2019

Answer 290

Under the Companies Act 2006 private limited companies are required to have their accounts independently audited on an annual basis. This is subject to an existing exemption for small businesses.

Answer 291

Depreciation is the systematic reduction in the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are furniture and IT equipment.

Answer 292

Any outstanding costs which are yet to be paid.

Answer 293

Gross profit is the revenue less cost of goods sold.

Answer 294

Net profit is often referred to as the bottom line, calculated by subtracting a company’s total expenses from the total revenue. It shows what a company has earned over the period.

Answer 295

Earnings Before Interest Tax Depreciation and Amortisation (and Rent)

Answer 296

3 parts: Assets Liabilities Ownership Equity Main categories of assets usually listed first, and typically in order of liquidity. Assets are followed by liabilities.

Answer 297

It's a buyer who is willing to buy an asset at price over and above its MV, for specific objectives

Answer 298

TW was an office block with serval opportunities to be redevelop and achieve a mixed use scheme. I appraised the site with various potential outcomes and the GDV generated by each to understand what sort of developer would be more interested I then gave various disposal routes scenario such as: Uncon with pre-app: strict disposal timeframe, quick bankable figure, but risk of not maximizing site value Uncon with planning consent: more control over the planning process and enhance value but could be costly, longer and project not suitabel to all STP sale: Higher value achieve but no control over the planning process and timescale JV: more control over the process, developer liable of planning costs, share of future profits on pre-agreed basis, but very complicated and not suitable to all developers

Answer 299

Economic, Enviromental and social When looking at developement appraisal: Social: look at planning policy and come up with a tenure mixture that satisfy local needs Environmental: I have consideration of energy efficiency, renewable materials and construction process to reduce carbon footprint Economic: Need to consider the viability of site

Answer 300

Minimum Energy Efficiency Standards (MEES) requires privately rented non-domestic properties in England and Wales to have a minimum Energy Performance Certificate (EPC) rating of E, unless the property qualifies for an exemption. This regulation was introduced on April 1, 2018, and applies to all existing tenancies from April 1, 2023.

Answer 301

The EPC rating is a measure of a building’s energy efficiency, with A being the most efficient and G being the least efficient.

Answer 302

could include measures such as installing insulation, upgrading lighting and heating systems, or improving air tightness.

Answer 303

Last for 5 years: - when the improvments costs do not meet a 7-year payback (require 3 quotes) - when the property devalue of 5% or more if improvments are implemented - when a landlord who spends the full £3,500 on a property is unable to bring the rating up to E Permanent: - Where the tenancy is less than 6 months with no security of tenure - Where the tenancy is for more than 99 years - Industrial units or workshops with a low energy demand (e.g. no heating or cooling) - If a building does not need an EPC - Places of worship

Answer 304

Breach has lasted less than 3 months – up to £5,000 or (if greater) 10% of the Rateable Value with a maximum penalty of £50,000 Where a breach has lasted more than 3 months – up to £10,000 or (if greater) 20% of the Rateable Value with a maximum penalty of £150,000

Answer 305

Ensure the EPC is commissioned BEFORE marketing. However, EPC can be in some instances commissioned within 7 days of the commencements of marketing (28-day limit for procurement if after using all reasonable efforts the EPC cannot be obtained within 7 days) Agents are responsible for procuring EPCs The EPC rating must be displayed on property and advertisements as a numerical rating, and not just the energy efficiency band (e.g. A, B, C, etc.). Where space allows, the graph should be shown as well All online marketing material must have a link to the EPC to show the front page of the EPC

Answer 306

Address of property and floor area EPC certificate and reference number Technical information on the property’s energy provision Estimation of energy running costs An energy performance rating from A+ to G Benchmarking information

Answer 307

The EPC must be carried out by an accredited energy assessor.

Answer 308

A voluntary environmental assessment tool to rate new and refurbished commercial and residential buildings. They are commonly being required to support planning applications

Answer 309

UKGBC and RICS have partnered up to come up with a data base that helpidentify where carbon reduction can be made throught the constrcution progress. Improvements relate to: Reduce Construction Impacts – developers need to focus on changing the material they use as well as building (and their systems’) designs Reduce Operation Energy Use – landlords need to consider how to best retrofit efficiency measures into their buildings and how to work with occupiers to make these work Increase Renewable Energy Supply on-site and offsite Offset any Remaining Carbon – e.g. planting trees. This is the last resort

Answer 310

Published in 1987 by the UN. Defined the principles of sustainable development.

Answer 311

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Answer 312

The Energy Performance of Buildings (England and Wales) Regulations 2012 under the Energy Act 2011.

Answer 313

Where the l/l and tnt agree to have green terms written into a lease. These are rarely used in practice.

Answer 314

It will affect the property firstly in terms of its desirability to a tenant or buyer. MEES may have resulted in capital deductions included with valuations of EPC F & G rated properties.

Answer 315

The report collected the sentiment of 4,000 professionals over 30 countries and highlighted the increasing need for sustainable strategies across the built environment to meet net zero commitments. The report focused on the built environment’s role in addressing climate change and sustainability issues. It highlighted the need for the property sector to take a leadership role in achieving net-zero carbon emissions by 2050, and outlined RICS’s efforts to promote sustainability through research, education, and professional standards.

Answer 316

ESG stands for - Environmental - Social - Governance, and it’s a framework to evaluate the sustainability and ethical impact of companies, investments and other organisations. ESG measures issues such as: - CO2 emissions - waste management - Diverity in workplace - business ethics - excutive compensation

Answer 317

With the built environment estimated to be responsible for around 40% of global carbon emissions, RICS is taking a proctive apprach to incorporate sustainability into practices. Some of the initiatives include: Updated the Red Book’s VPS2 & 3 and VPGA 2 & 8 section for enabling valuers to give increase consideration to sustainability aspects when valuing property Conducting research on climate change issues (The 2022 RICS sustainability report, Cities Climate Action report) RICS is committed to supporting global sustainability goals, including the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on climate change. Introduced courses and guidance such as RICS Certificate in Energy Management and Inclusive Environments Guide introduced initiatives and guidance to support sustainability in property management, such as RICS Responsible Business Guidance for Commercial Property, Sustainability and ESG in commercial property valuation (2021), 3rd Edition

Answer 318

Guide Note: Sustainability and ESG within Commercial Property Valuation (2021)

Answer 319

It is becoming increasingly important in the business world as companies are expected to take responsibility for their impact on the environment, society, and their own governance. The ESG framework can also help companies identify and manage risks and opportunities, and improve their financial performance over the long term.

Answer 320

LSH have recently joined Planet Mark’s program which aims to achieve Net Zero by 2030.

Answer 321

Net Zero means achieving a balance between the amount of CO2 emission produced and the amount removed from the atmosphere. To achieve Carbone Zero an entity needs to start by reducing GHG emission through renewable enerergy and other measures and then offset the remaining emissions by investing in carbon removal projects such as reforestation, carbon capture etc.

Answer 322

Duty to every employer to ensure safety and welfare at work of all employees Must report injuries and dangerous occurrences (1995 regs) Must undertake, record and regularly review a risk assessment (1999 regulations) H&S information is to be held on site, usually in the Operations & Maintenance Manual

Answer 323

identify hazards present identify the people at risk evaluate the risk, considering the likelihood and severity of any accidents; and existing controls in place should be identified and evaluated Record the findings on a suitable form review the risk assessment regularly

Answer 324

If I think that presence of asbestos constitutes a serious and immediate risk to health, I am required to inform the person in control of the premises asap and advise them on the emergency measures required and who to contact.

Answer 325

Part M - Access to and use of buildings

Answer 326

The Equality Act 2010 is designed to legally protects people from discrimination, promote fairness and provide equal opportunities in the workplace and in wider society. It identifies a number of protected categories (9).

Answer 327

1-Age 2-Disability 3-Gender reassignment 4-Race 5-Religion or belief 6-Sex 7-Sexual orientation 8-Marriage and civil partnership 9-Pregnancy and maternity

Answer 328

An inclusive environment recognises and accommodates differences in the way people use the built and natural environment. It facilitates dignified, equal and intuitive use by everyone

Answer 329

The perception we make of others subconsciously or stereotypes of people which have an impact on our decision making - leading often to unfair decisions. These perceptions are often caused by our upbringing /background, personal experiences, societal stereotypes and cultural context.

Answer 330

- Welcoming to everyone - Responsive to people’s needs - Intuitive to use - Flexible - Offer choice when a single design solution cannot meet all user needs - Convenient so they can be used without undue effort or special separation and so that they maximise independence

Answer 331

- Service providers: to make reasonable adjustments to ensure their services are accessible to people with disabilities - Employers have a duty to eliminate discrimination, harassment and victimisation in the workplace - Public Authorities: have a duty to consider their policies and ensure they provide equality - Education providers: similar to the above

Answer 332

Direct Discrimination Indirect Discrimination Harassment Victimisation

Answer 333

The action is financially viable and practical

Answer 334

Reasonable adjustments are changes or adaptations that for example enable disable people to access a service or to carry out their work on an equal basis I.e. - Physical adjustments: ramp - Technological adjustment: assistive technology - Policies

Answer 335

For example beauty bias, if someone comes into the office every day with their hair unkempt, you might assume that they are lazy or careless. Likewise, you might assume that an attractive, well-dressed colleague is more organised and professional.

Answer 336

* Be self-aware – internal dialogue * Slow-down decision making – use a step-by-step approach * Reconsider the reasons for decisions * Monitor each other for unconscious-bias – have someone else check your reasoning

Answer 337

Diversity is about recognising that we are different from each other. It is acknowledging the benefits of having a society and workforce made up of people with different qualities.

Answer 338

Inclusion goes beyond simply having a diverse workforce. Inclusion: * giving everyone equal opportunities * encourages us to value each other’s differences and work towards creating an environment where everyone can reach their full potential and feel that they belong, irrespective of their differences * encourages us to appreciate and promote the unique qualities, characteristics that everyone has to offer

Answer 339

Building a workforce of people from a wide range of backgrounds and skills to enhance the working environment, the health and wellbeing of staff, and drive engagement, creativity and innovation and problem solving.

Answer 340

* Use inclusive language to promote respect and inclusivity. * Encourage people to offer different perspectives, and praise and celebrate each other’s accomplishments.

Answer 341

- Conflict avoidance is when you do not accept the instruction. - Conflict management is where you accept the instruction and steps are agreed and put in place to manage the conflict such as information barrier. A written agreement is required to establish a conflict management.

Answer 342

- Speed – takes less time than lengthy court proceedings following the Civil Procedure Rules - Confidentiality - Cost – less money spent on professional fees for litigation - Quality of decision making – as outcome or award can be made by a surveyor rather than a judge - Informality – outside a court - Greater opportunity for negotiation

Answer 343

A neutral mediator is used to facilitate discussions. It is informal and confidential. Parties are not bound by the decision. Conducted on a ‘without prejudice’ basis. RICS Guidance Note ‘Mediation’ 2014.

Answer 344

- Arbitrator have specialist knowledge - They rely on evidence presented by the parties so these are more involved - Can involve a hearing - Their decision is binding but the decision can be overruled by the court of Appeal - Often chose for a making a decision on a broad range of disputes, damages or contractual breaches - Cannot be sued

Answer 345

- In expert determination a third party is appointed (expert) - They can review evidence but will often rely on their experience to determine an outcome, so parties have a more limited role - Decision is based on a written submission so less formal - Parties are bound by the decision - Often chose for a making a decision on a particular area (i.e. lease renewal, valuation) - Can be sued

Answer 346

Negotiation Mediation and Conciliation Expert Determination Adjudication Arbitration Litigation

Answer 347

It's an RICS department that offers various ADR mechanism to help parties resolve thier dispute; DRS offers a range of ADR including Expert determinatin, mediation etc

Answer 348

Centre for Effective Dispute Resolution The property Ombudsman The property Redress Scheme Financial Ombudsman Service Local Government Ombudsman Adjudicators Office Contained within the RICS Guidance Note - ‘Complaints Handling’ 1st Edition 2016

Answer 349

- Mediation: a trained mediator is appointed to facilitate the discussions with the goal of reaching a solution - Expert determination: A third party, expert in the subject, is appointed to resolve a dispute - Arbitration: A third party makes a binding decision on the dispute

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