Need to Learn

Question 1

Tell me what you need to consider when taking on a new client?

Answer 1

• Conflict of interest check
• Competency check
• Money Laundering check
• Terms of engagement and fee

Question 2

What is included in standard Terms of Engagement?

Answer 2

• Services included / excluded
• KPI’s
• Fees
• Dispute resolution

Question 3

Can you explain the difference between a CVA and Administration?

Answer 3

• Admin – the administrators take over the company and protect it from legal action of creditors
• CVA – the directors remain in control and a legally binding agreement is struck with unsecured creditors to allow it to continue trading

Question 4

VAT – what is this?

Answer 4

• Tax added to goods and services

Question 5

Why elect for property?

Answer 5

• Can claim back from HMRC on some works and serves

Question 6

When is VAT no chargeable?

Answer 6

• TOGC – Transfer f going concern - where property capable of being run as rental business and buyer intend on carrying on with this.
• Dilapidations

Question 7

What is current Rental values per sq

Answer 7

o Retail – Buchanan Street £280-£300
o Offices – Glasgow City Centre £35 sq ft
o Industrial – Glasgow £9-15 sq ft

Question 8

Tell me about ransom strips?

Answer 8

• It is land needed to access an adjacent property, where the owner is denied access until payment is received.
• Stokes v Cambridge

Question 9

What is the Landlord’s right of hypothec?

Answer 9

• It gives landlords a right of security over moveable goods and property owned by a tenant within leased premises up to the value of any unpaid rent

Question 10

Planning Use classes?

Answer 10

• 1A – Shops, Financial Professional and other services
• Class 4 – Business (Office)
• Class 5 – General Industrial
• Class 7 – Hotels
• Class 11 – Assembly & Leisure

Question 11

8 individual rights within the Data Protection Act?

Answer 11

• Right to be informed
• Right to access
• Right to rectification
• Right to erasure
• Right to restrict processing
• Right to data portability
• Right to object
• Rights related to automated decision making including profiling

Question 12

Why is PII cover important and how do you calculate the level of cover required?

Answer 12

Provides financial cover should the company face financial loss due to negligence, error or omissions
Minimum Cover
* The firms cover is based on their turnover:
* T= £100,000 or less C= £250,000
* T=up to £200,00 C=500,000
* T=£200,000 or above C = £1,000,000
Maximum level of uninsured excess
* T= £10,000,000 or less E = higher of 2.5% or £10,000
* T= £10,000,000 or above E = no limit set

Question 13

What is service charge weighting?

Answer 13

• Weighting is to allow for abnormally sized units to pay what is determined a more equitable level of apportionment and in doing so contribution to the service charge.

Question 14

What do you consider when determining tenant covenant strength?

Answer 14

• credit check
• Profits test =
  o Annual Net Profit = more than the annual amount or rent, sc, insurance and rates for more than three consecutive years previous rental history
• Company accounts

Question 15

How calculate the All Risks Yield?

Answer 15

• Annual Rental income / value of the property * 100

Question 16

What is BREEAM?

Answer 16

• Building Research Establishment Environmental Assessment Method
• Voluntary assessment tool to rate commercial buildings – 5 ratings:
  o Pass, Good, Very Good, Excellent, Outstanding
  o Energy, water use, transport links, wellbeing

Question 17

What should be included in a complaints handling procedure?

Answer 17

The RICS provide a model form
* Must provide a redress mechanism
* Details of the policy should be issued to client
* It must be clear, quick, transparent and free of charge at the first stage
* Must include details of the nominated investigating person
* Must be investigated within 28 days
* All complaints must be recorded
Note the requirement to advise PI insurers

Question 18

When a complaint is received I would:

Answer 18

• Acknowledge receipt
• Forward to the firms designated complaints handler
• Highlight the importance of informing our PI insurers

Question 19

What are the D&B ratings?

Answer 19

• Financial Stability - rating of 5A (£35m+) to H (£0 - £7,999)
• Risk Indicator – 1 – 4 (1 being lowest risk)

Question 20

What are the contents of a credit report?

Answer 20

• Credit rating
• 5 years accounts
• Income statement
• Balance sheet
• Subsidiary / parent company details

Question 21

If the tenant did not leave following the irritation of the lease, what options are available to the Landlord?

Answer 21

• Raise an action for removing
• Serve a charge for removing
• Serve notice of date of removal
• Evict the tenant

Question 22

Rates relief in EK?

Answer 22

• 50% first 3 months
• 10% thereafter

Question 23

Changes to rates relief:

Answer 23

• Now devolved to individual councils
• Listed buildings no longer exempt

Question 24

What is your understanding of RAAC?

Answer 24

• Used during construction between 1950s-1980s
• Aerated structure planks, which water can easily penetrate and weaken.
• Once wet, the planks can sag and bend
• The steel reinforcements don’t extend far enough to hold the weight