APC by KK > KK SOA > Flashcards

KK SOA Flashcards

(165 cards)

Study These Flashcards
1
Q

What is the purpose of the RICS professional standard: Property Agency and Management Principles (2024)?

A

brings together the different agency and management disciplines in the property sector

two elements: working with clients & managing business and staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the key requirements under the Property agency and management principles standard?

A

In relation to working with clients:
- new business should not be generated using manipulation, dishonesty, deceipt
-communication with clients should be transparent
-fees clear
-advice suitable and accurate
-provide advice on rent or price if knowledgeable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the key objectives for the Code for leasing business premises 2020?

A

The objective of this PS is to improve the qualirt and fairness of negotiations on lease terms and to promote the issue of comprehensive HoTs. I

It seeks to make it a fair process, identifying the terms which are ussually improtant.

It provides in its appenx. HoT and a guide for landlords and tenants.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who does the code for leasing business prem apply to?

A

Applies to business premises in England and Wales let for more than 6 months.

Not to agricultural lettings or premises that are intended to be wholly sublet.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Tell me about the rics prof statement on real estate agency and brokerage

A

This statement outlines the princinles that determine the culture of fairness and transparency that undepins activities undertaken by estate agents.

These incl:
-conducting business in honest, fair, transparent and professional manner.
-carry out work with due skill, care and dilligence
-ensure clients are provided with ToE
-avoid conflicts
-marketing material is honest
-PII adequate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the key takeaways from the PS real estate agency and brokerage 2016?

A

conduct business in a professional, transparent, fair and honest manner

Carry out instructions with care, dilligence and skill.

Fair and clear ToE

I shoukld have adequate PII cover

avoid conflicts.

This way I would promote a culture of fairness and transparency in all real estate activities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What role do HoTs play in the leasing process? (think Code for leasing and letting)

A

Comprehensive HoTs ensure transparency and clarity in the leasing process for both parties.

HoTs make the legal drafting process more efficient

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is key legislation in relation to leasing and letting?

A

The Estate Agents Act 1979 (in eff 1982)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does the Estate agency act do?

A

Promotes honesty and accuracy, clarity in ToE
AGREEMENT AND LIABILITY FOR COSTS
CLARITY IN RESPECT OF PERSONAL INTERESTS
LEGAL OBLIGATION TO TEL THE CLIENT ABOUT ALL OFFERS

Criminal and civil penalties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What section from the EEA specifies the information an agent has to give to the prosp client before entering into an agency contract?
(basis of instruction, expenses, fees)

A

Section 18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Section 18 of the EEA?

A

Clarity in relation to the terms of agency

Fees, the expected expenses as well as the basis of instruction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is s21 of the EEA?

A

Opennes regarding any personal interest and any connected parties.

It can incl spouse, relative, employee

The personal interest has to be reported on the particulars.

The wording is : In acc with s21 of EEA, we declare that X has a personal interest.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the core consumer protection regulations under the DMCC Act?

A

Ban on misleading actions and omissions - do not mislead or omit info
Ban on aggressive practices
Pricing transparency requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Give me an example of the consumer protection regulations under the DMCC act?

A

An example would be where a business uses misleading images of a property for example retouched or overly generous compute generated

Another example is fake reviews

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who enforces the DMCC act?

A

CMA - ENFORCEMENT IS ADMINISTRATIVE NOT COURT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the three forms of dilaps schedule?

A

Interim - whilst the T is in occupation - at least 3 years remaining
Terminal - served normally in the last three years of the lease
Final - after the lease expiry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

How might you draft HoTs differently when dealing with multi-tenanted building?

A

SC
Rights granted - shared access routes, documented facilities (right of way)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How does lease length and break clauses affect rental value?

A

Shorter lease lengths and breaks increase risk and growth and reduce rental value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What info do you incl on HoTs?

A

Parties, opted for tax, address, rent, rent provisions, repairing obl, break notice/clause, insurance, RR, SC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Sizes of marketting boards?

A

2sqm flat
2.3 sqm v board

Resi (0.5sqm)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Lease v licence

A

A lease provides an occupier with an estate in the land, a licence is a permission to make it lawful to use the land.

A lease can be assigned, a licence can’t - it’s personal.

A lease cannot be terminated, a licence can be revoked at any time.

Street v Mountford
the grant of exclusive possession
for a period of time which is certain
the payment of rentResidential Rentals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

When a licence over a lease?

A

Both parties want flexibility

it is a short term agreement

It is most cost and time efficient to draft.

Owner retains control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Taw v licence?

A

Terminated immediately, no notice at all
Notice on licence is prescribed on licence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

When is TaW used?

A

Before a lease kicked in
Or if they are outside of act and remain in building

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Periodic tenancy?
An outside of the act Lease turns into a periodic tenancy when it expires and rent is charged Can terminate on anniversary date
26
What do you need to prepare marketing particulars?
Unit, EPC, description, rent/asking price, Use Class, SC
27
What are the three misrep types?
Fradulent Innocent negligent
28
How many parts does the code of leasing business premises have?
1. Intro 2. Mandatory requirements 3. Lease negotiation best practice 4. Template HoTs and checklist 5. Guide for landlord and tenants
29
What is alienation?
Refers to the transfer of a tenants interest in a property
30
When might a tenant require an alienation clause in their lease?
To secure flexibility to assign, sublet if their business needs change
31
Does alienation protect landlords?
It could for example when the tenant is unable to meet their obligations under the lease incl rent
32
Consent not be unreasonably witheld? WHich act?
LTA 1927
33
Consent to be given within a reasonable time? Which Act
LTA 1988
34
Can tenant claim for damages if unreasonably witheld/ delayed?
Yes - LTA 1988
35
What are the various agency bases?
Sole (only one agent) Joint (two or more - fee is shared) Multiple agency (many agents but only one gets a fee)
36
Your client is about to complete AML. What are the red flags?
- Inability or unwillingness to provide identity documents - Changes to parties involved - unusual transaction features (urgency, loss making) - payment of fees/rent in unusual currencies
37
What property factors impact rent?
Size, location, condition, submarket trends and vacancies
38
What lease terms affect value?
Breaks, RRs, alienation, lease length, repairing obl, rent free incentives
39
What are the fines when letting or selling a property without epc/epc less than e?
Commercial min 500 and max 5000 per breach - or 12.5% of the rataeble value. LAs enforce this.
40
What would you do if a property is leasehold?
Review superior lease and check if l consent is required and if there are any requirements.
41
You are acting on behalf of the tenant who wants to sublet. What do you do?
Check head lease if subletting is allowed or whether a consent is required, if consent is given, then inspect,
42
RoC?
Came in effect on 2/2/2022, published 2021
43
Tell me about the PS on countering bribery and corruption?
Provides requirements in relation to the subjects, this updates addresss the evolving landscape of financial crimes, including those driven by the rise of new technologies such as artificial intelligence and the increasing use of digital currency.
44
What is your company's gift policy?
Always think think about timing first and who it is from! Proportionality. Reasonable and proportionate Less than £100 - approval from line manager & gift register More than £100 - approval from Compliance Office Lunches less £100 - routine ok Lunches more £100 - approval
45
What are your key takeaways of the Conflict of Interest PS? 2017, eff 2018 Ed 1
Sets out how member and firms should identify manage and avoid conflict.
46
What is a conflict of interest?
Situation where professional duty to one client conflicts with duties to another client. Potentially affecting objectivity and imaprtiality
47
What is the difference between PS and GN?
Mandatory v advisory (best practice)
48
Is there is guidance on client money?
Professional Standard 2019 Client Handling Money
49
What are the key principles of Professional Standard 2019 Client Handling Money ?
50
What does the Prof Standard complaints handling state? reissue 2023 (2016 GN)
51
BATNA and WATNA
52
Negotiation styles?
competing collaborating compromising accommodating avoiding
53
Use of social medica: guidance for RICS members (eff 1.9.2024)
-intends to help understand how the Rules of Conduct (1,4,5) apply to the use of social medi -what RICS will take into account when concerns are reported to us. Has case studies.
54
Generally Accepted Accounting Practice
The body of accounting standards published by the UK's Financial Reporting Council - rule based, more details - Mainly UK private companies and SMEs.
55
International Accounting Standards
A global accounting standards aimed at creating consistency and transparency in financial reporting. IAS was issued by the IASC between 1973 and 2001, while IFRS is the modern, more comprehensive set of standards issued by the IASB since 2001. Today, IFRS encompasses all IAS standards.
56
Three primary financial statements
balance sheets, profit and loss accounts and cashflow statements.
57
profits test
58
Company structures
59
What companies does IFRS (used internationally) apply to?
PLCs or larger international companies
60
balance sheets
A statement of a business financial position showing its assets and liabilities at a given date.
61
Examples of assets/ liabilities
Cash, property, debtors, investments Borrowings, overdrafts, loans, creditors
62
RICS guidance note Conflict avoidance and dispute resolution in construction
63
Professional Arbitration on Court Terms
64
amendments of Arbitration Act (2025)
Modernises the 1996 act Arbitral tribunals can issue a **summary disposal** (dismiss a case with no prospects for success) Documents the process of emergency arbitration which is a fast tracked procedure of cases allowing urgent interim relief (for example freezing assets - before an arbitrator has a chance to hear a case)
65
difference between an Arbitrator and an Independent Expert
66
alternative dispute resolution processes outlined by GN Conflict avoidance and dispute resolution in construction?
67
RICS DRS
68
Health Building Note 00-10
69
Equality Act (2010)
70
What
71
is the practical advice under Rule 4 of RoC?
72
Consider how an existing building can be modified to make it more inclusive?
Hearing loops braille signage signage in other languages gender neutral toilets ramp
73
RICS professional standard regarding ESG and sustainability in commercial property valuation, 4th Edition (2026)
Global standard
74
Sustainability and ESG in commercial property valuation and strategic advice (2021), how does it applies to the valuation of investment property?
ESG factors material obsolescence - whether the building would become uneconomic
75
updated MEES regulations
76
Energy Performance Certificates, and which properties are exempt.
77
BREEAM
Building Research Establishment Environmental Assessment Method
78
SKARating (environmental assessment method )
-RICS-founded -project-driven -non-domestic fit-outs and refurbishments in the UK
79
ESG considerations in Red Book?
80
The different methods of measurement and their limitations
81
What are the differences between NIA and NIA in healthcare?
82
What exclusions did you do to IPMS3?
Shared facilities, common areas... 1.5m, plant rooms,
83
What is the difference between IPMS 3 and NIA?
84
What is duty of care?
A 'duty of care' refers to the obligations placed on people to act towards others in a certain way, in accordance with certain standards
85
Occupiers Liability Act 1957
duty of care towards visitors
86
Occupiers' Liability Act 1984
duty of care towards trespassers
87
What is tresspaser?
a person entering someone's land or property without permission
88
What was the construction type and age of the building in Wisbech?
89
IPS (Integrated Plumbing System or Integrated Panel System)
90
What was your advice for the client in relation to the inspection in Huddersfield?
91
What adj did you make in relation to the car parking? (Huddersfield)
92
What was the RR clause? (Huddersfield)
93
What assumptions did you make? (Huddersfield)
94
Why did the rental value increase of Huddersfield?
95
ESG and dust in com prop val?
4th Ed 2025 Sets out clear framework how ESG and sust should be reflected in valuation Aligns with red book Jurisdiction specific Distinction between val and strategic ESG Global kpi list
96
Health tech memoranda
97
How do you tell the difference between a cavity wall and solid wall?
Cavity walls are made up from stretcher bricks only, are usually thicker, post 1920s and have ventilation and air bricks due to the gap.
98
Tell me about the new SC RICS doc
SC in comm properties is a prof standard 2nd ed For landlords and property managers - demands enhanced operational **discipline** For occupiers, the changes offer greater protection and financial clarity - issuing budgets 1m prior, ye acc 4m - fixed man fee - sc money in discreet acc - apportionment matrix - ADR + pay now argue later (Sara and Hosssein holding v black outdoors retail)
99
Bribery act principles
Proportionality Top level commitment Risk assessment Monitoring and reviewing Due diligence Communication and training
100
UK GDPR and Data protection act 2018
These aim to create a single data protection regime To empower businesses and individuals to take care how their data is used Right to be informed about how data is used
101
Right sunder GDPR
To be informed Access Rectification Erasure Restric processsing
102
Data use and access act 2025
This legislation updates and amends some of the UKGDPR and Data Protection act aspects AI training
103
Property agency and management principles: explain
Two sets of principles Working with clients Managing business and staff 1 2
104
Rule 1
Members and firms must be honest, act with integrity and comply with their professional obligations, including obligations to the RICS.
105
Rule 2
Members and firms must maintain their professional competency and ensure that their services are provided by competent individuals who have the necessary expertise.
106
Rule 3
Members and firms must provide good quality and diligent services
107
Rule 4
Members and firms must treat each other with respect and encourage diversity and inclusion.
108
What makes up ToE?
Aka scope of work Sets out precisely your instruction
109
Rule 5
Members and firms must act in the public interest, take responsibility for their actions, and act to prevent harm, and maintain public confidence
110
What is misrepresentation?
A false statement of fact made by a party during pre-contractual enquiries which has the effect of inciting the party to purchase.
111
Misrepresentation act What is misrep Types of misrep
1967 Relates to misrepresentation The vendor and agent can be sued for damages and the contract rescinded Fraudulent Negligent Innocent
112
Case law misrep Reasonable test
Hadley Byrne v heller and partners 1964 reasonable reliance Assumption of responsibility (by the agent) Special relationship of trust
113
Duty of care
Moral obligation to take steps to prevent harm
114
What can you find under alienation provisions?
The provisions advising whether and how the lease can be assigned, whether sublets are allowed, and whether consent is required and if there are any conditions
115
What are the exceptions to the red book
116
What can you find on a val file
117
RICS guidance on PACT
118
What is the RICS guidance on acting as advocate
119
Surveyors acting as witnesses?
120
ESG and dust in commercial prop val?
121
Arbitration Act
122
Responsible use of AI ? Doc name and principles
123
Social media RICS guidance?
124
What is yield
The annual rate of return from an investment expressed as a %
125
What is ARY
A metric expressing the total return of an investment, considering all risks and uncertainties
126
NIY
the current rent expressed as a %of the cap val after adjusting for purchasers costs
127
Reversionary yield
The market rent expressed as a % from the cap val
128
What risks do you consider when adjusting the yield?
Covenant strength UXT Prospects for rental and cap growth Sector risk & use premises Lease terms Voids Obsolescence Liquidity (ease of sale) Legislation risk (up down RR) Legal risks (tenure + restriction)
129
Explain hardcore layer
130
Stat DD for vals
Asbestos Business rates Contamination EPC Environmental Flooding
131
Walk me through a val process
132
What are some costs associated with development?
Build costs Professional costs Finance costs Demolition costs Contingency
133
What is a residual valuation
134
Term and reversion
135
What is an assumption and what is a spec assumption? Examples
Assume : clean title, no planning issues, covenants under lease are met, no environmental issues Special: vacant/ let, planning consent, completed development
136
What role do HoTs play in the leasing process?
137
What does the EEA apply to?
Buildings and land Leaseholds with cap val Freehold Disposal or acquisition of interest
138
What is YP?
A rate derived from dividing 100 to the yield. This shows the years required for an assets income to repay its purchase price
139
Profits methods
Annual turnover Less costs/purchases Less reasonable working expenses Less operator’s remuneration = Fair maintainable operating profit FMOP Then capitalise by yield Also expressed as EBITDA
140
What is EBITDA
Earnings before interest taxation depreciation and amortisation
141
Types of obsolescence
Physical (wear and tear, determination) economic (changing market cond for use of asset) functional (design or spec doesn’t fulfil function)
142
Depriciated replacement cost
Measure on GEA and calculate Reinstatement value (speak to QS) -depreciation costs -value of the land =value as existing
143
Special assumption
A supposition that is taken to be true and accepted as fact even though it is not true
144
Asssumption
Is where it is reasonable for the valuer to accept something as true without the need for specific investigation
145
146
What is one difference in the submissions to Arb and IE?
With arb you would present Caldrrbanks and proformas. With IE it is best practice to submit proformas and Calderbanks may not be required unless the lease provides for the IE to award costs
147
What would be the effect of presenting evidence as an advocate surveyor?
148
How do you inspect a retail shop and what do you note?
I’ll measure and zone 6.1/20ft Note location Front to depth ration Width Masking
149
What do you exclude from IPMS 2?
150
How do you do DRC method?
151
Talk me through a val?
Deffo look at lease terms and break down passing before doing a comp search. Do not say legal pack
152
Is there a limitation to the rent you could take to PACT? Depends on the level of dispute ?
153
Expert witness?
154
When would you advise a landlord not to seek to optimise their rental income via RR?
Looking at impact on L&T relationship Assess risk When T can’t pay Look at market cond (ie high street)
155
What other ADR methods are available in RR?
156
How do you complete AML?
157
What was incl on your ToE for Taynes Park? X8
Proposed fee Agency rights Agency basis Marketing costs and disbursements Timeline for payment of above ML requirements Confirmation no conflict CHP
158
What is the purpose of Code for leasing (2020, updates to PS in 2023)
To improve the quality and fairness of neg And to provide a set of comprehensive HoTs
159
What is the structure of CfLBP?
Intro Mandatory req Lease neg best practice Appendices Guidance for L/T Model HoT
160
161
What are the mandatory req under CfLBP? X5
1. Collaborative and constructive negotiations 2. Doc should be shared with other party if unrepresented 3. HoTs recorded in writing, STC, to incl all relevant terms 4. Terms should comply with HoTs except for reasonable modernisation 5. Balance between parties objectives
162
What is profits test?
The net profit of the proposed tenant should exceed 3 times the rent for three consecutive years. NAV of business must be 5 times the rent
163
What classes in lease can have ToE?
Rent review clauses Deeming rent Break clause
164
Why do you want to be a member?
-
165
What is PII?
It protects Surveyors clients and public against negligence claims where doc is breached and a claim for damages arises
APC by KK
flashcards
Decks in class (9)
# Cards
Brainscape helps you reach your goals faster, through stronger study habits.
© 2026 Bold Learning Solutions. Terms and Conditions