1
Q
What is the RICS guidance on Client Money?
A
- Client Money Handling UK 2019
- Professional Standard!
- Ensures client money is kept safe
- Money is used for appropriate purposes
- appropriate controls and procedures are in place to safeguard money.
2
Q
What year was the client money handling document published?
A
2019
Effective 2020.
3
Q
RICS document on complaints?
A
- Complaints Handling UK 2016
- Professional Standard!
4
Q
What is detailed in the Complaints Handling Professional Standard?
A
- Firms must publish a CHP with an ADR provider included
- RICS model form.
- Firms must maintain a complaints log.
- Policy should be in ToE.
- Must be investigated within 28 days.
- Must notify PII provider ASAP
- Must be two stages - CHO then ADR.
5
Q
Can you define client care?
A
- looking after a client’s best interests, providing value for money, and satisfying their needs
6
Q
What are the 5 principles of better regulation?
A
PACTT
- Proportionality
- Accountability
- Consistency
- Targeting
- Transparency
7
Q
What is the RICS document on Bribery?
A
- Countering bribery, corruption, money laundering and terrorist financing Global 2019
8
Q
What are the principles of the Bribery Act 2010?
A
PCRCDM
- Proportionate Procedures
- Top Level Commitment
- Risk Assessments
- Due Diligence
- Communication
- Monitoring and Review
9
Q
What is the RICS document on conflicts?
A
- Conflicts of Interest Global 2017
- Professional Standard!
10
Q
What does the RICS advise on Conflicts?
A
- RICS member or firm must not advise or represent a client where a Conflict is present unless parties have provided Informed Consent
- Members and firms must ensure they advise clients objectively and independently.
11
Q
What is the new RICS document on agency and management?
A
Property Agency and Management Principles Global 2024
- Professional Standard
12
Q
What are the principles of the Property Agency and Management Principles 2024?
A
- Brings together previous agency and management disciplines.
- Focus on Rules of Conduct, Working with Clients and Managing businesses and staff.
- Sets out what members and firms must do, for example members must communicate accurately and transparently, fees, ToE,
13
Q
What are the 4 sections in the Code for Leasing Business Premises?
A
Part 1 - Intro
Part 2 - Mandatory Requirements
Part 3 - Lease Negotiation Best Practice
Part 4 - Appendices
14
Q
What is planned preventative maintenance? and what RICS document can this be found in?
A
- performed to keep a building or site in a satisfactory operating condition.
- Usually periods of 5 to 10 years.
15
Q
How are management fees in a service charge calculated? and What RICS document would you find this information in?
A
- A fixed fee that comprises only the reasonable costs and overheads borne in the process of operating and managing the services.
- Asset management and rent collection should be separate.
16
Q
What is the structure and sections of the Red Book?
A
- Introduction
- Glossary
- Professional Standards
- Valuation technical and performance standards (VPS)
- Valuation Applications
- IVS (International Valuation Standards)
17
Q
What is a valuation model and what are some of it’s characteristics?
A
A quantitative implementation of a method in whole or in part that converts inputs into outputs used in the development of a value.
Characteristics - Accuracy, Completeness Timeliness, Transparency
18
Q
What was the Red Book updated to include?
A
- An alignment with the most recent IVS document.
- Incorporation of AI and ESG.
19
Q
How do you carry out a residual valuation?
A
- Gain gross development value using comparable methods for proposed units to be built.
- GDV - Developers Costs (Professional Fees, Contingency, Finance Costs).
- Less Developers Profit
= Residual Land Valuation
20
Q
How are valuation fees calculated?
A
Should a reasonable reflection of timeframes, distance from office, resources needed and the scope of the work.
21
Q
What is Market Value?
A
The estimated amount for which an asset or liability should exchange
- On the Valuation Date
- Between a willing buyer and a willing seller
- on appropriate terms
- in an arms length transaction
- after proper marketing
- where the parties had each acted knowledgeably, prudently and without compulsion.
22
Q
What is Market Rent?
A
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
- where the parties had each acted knowledgeably, prudently and without compulsion.
23
Q
How do you undertake an inspection?
A
- Prior: Due diligence, floor plans, google maps, flood risk, asbestos register, title plans, if necessary undertake a risk assessment.
- Organise the inspection with relevant person
- On site: External - top down, internal inspection
- Inspect the local area
24
Q
What are some common defects in commercial property?
A
- Design faults, poor workmanship, degrading/poor construction materials.
- Damp, Rot, Heave.
- Roof damage and leaks
- Cracks
- Damaged Guttering
- Peeling Paint work
- Poor mortar joints
25
What is heave?
- The upwards movement of the ground commonly caused when soil become wet and expands.
- Tree root removal can cause heave as water is not being absorbed by tree.
26
What are the common categories of office fit out?
- Shell and core – common parts have been completed but office areas are left as a blank canvas concrete walls and floors.
- Cat A – Services are in place and including lighting, air conditioning, fire detection, raised floors but none of the fixtures and fittings.
- Cat A+ - New fit-out where landlord will put in some of the basic fit-out including kitchen area, portioning for meeting rooms, coms room on a generic design
- Cat B – Full fitted space with furniture to the occupier’s specific requirements including branding etc.
27
What is the institutionally accepted specification of an industrial building?
- Steel portal frame with insulated profile metal sheeting
- 8m eaves (minimum)
- Minimum 10% roof lights
- 30kn/sqm floor loading
- Electric Roller Shutter Doors
- 3-phase
- 5-10% office content
- 40% site coverage
28
What is the institutionally accepted specification for an office building?
- Steel or concrete frame
- Raised floor with floor boxes
- Ceiling height of 2.6m and 2.8m
- Ceiling Void 350mm and Raised Floor Void 150mm
- Maximised daylight
- Floor Loading - 2.5 to 3 kN/sq m
- Air conditioning and double glazed windows
- Passenger lift
- Cycle spaces
- 8m^2 to 10m^2 general workspace density
29
What is the institutionally accepted specification for a retail property?
- Street Frontage
- Concrete Floors
- Services capped off
- WC facilities
30
What is the structure of the Surveying Safely Professional Standard?
9 Parts
1. Personal Responsibilities
2. Relevance to RICS Professional Groups
3. Assessing Hazards and Risks
4. RICS Members' Places of Work
5. Occupational Hygiene and Health
6. Visiting Premises or Sites
7. Fire Safety
8. Residential
9. General Procurement and management of Contractors
31
What is an Authorised Guarantee Agreement?
This is where the original tenant (outgoing tenant) guarantees the new tenant's (assignee) performance of lease obligations. It essentially acts as a safeguard for the landlord, ensuring the outgoing tenant remains responsible if the new tenant defaults on the lease.
32
What is the procedure for reporting suspicious activity in regards to Money Laundering?
- Initial suspicion - additional EDD, ensure accurate recording of information.
- Raise with MLRO.
- Submit a suspicion report to MLRO.
- Do not discuss with anyone to avoid raising suspicion.
- MLRO to make decision if to report to NCA or not following due diligence and enquiries.
- Consult with MLRO on how to cease work with client or party without raising suspicions.
33
What is the legislation on money laundering?
- Proceeds of Crime Act 2002
- Terrorism Act 2000
- Money Laundering, terrorist Financing, and Transfer of Funds Regulations 2017
34
What is the RICS document on money laundering?
Countering bribery, corruption, money laundering and terrorist financing professional standard 2019.
35
What are the Money Laundering regulations from 2019?
- Builds on 2017 Regs.
- The 2019 Regulations introduces an explicit CDD requirement for relevant persons to take reasonable measures to understand the ownership and control structure of their customers.
- Relevant persons must also take reasonable measures to verify the identity of senior managing officials when the beneficial owner of a body corporate cannot be identified.
36
What are the levels of Stamp Duty Land Tax for Commercial Property?
Freehold Sales.
Below £150,000 = 0%
£150-£250,000 = 2%
Amount over £250,000 = 5%
37
What is a Ready Willing and Able Purchaser?
A buyer who is legally prepared and capable of completing on the purchase of a property.
38
What is a Private Treaty?
Method of sale that allows negotiations to happen with multiple parties.
Allows agent to explore market to gain the best price however, longer time frames and chances of being gazumped.
39
What is an informal tender?
- Method of sale where interested parties submit their best offers.
- Allows for multiple bids to be received and reviewed. However, no guarantee of offers.
40
What is a formal tender?
Method of Sale used where there is an element of public accountability and transparency is required.
41
What is an auction?
Method of sale where property is sold to the highest bidder. Used when a client wants to move quickly and it will sell if the reserve price is set low enough.
However, there is often a short marketing period which may deter purchasers as they have limited time to carry out due diligence.
42
What is a Calderbank Offer?
It is an offer to settle. Marker 'Without Prejudice Save as to Costs'.
Strategic tool to motivate parties to come to an agreement.
43
What is included in a Section 25 Notice?
- Termination Date
- Landlords Intent (Friendly/Hostile)
- Grounds for Opposition/ Terms for new Lease.
- Legal Script on what the letter means.
44
What is included in a Section 26 Notice?
- Proposed start date
- Proposed terms.
- Property details.
- Compliance with L&T Act 1954.
- Information for Landlord regarding their 2 month timeframe to oppose the renewal.
45
What is an interim rent?
- the rent that is paid between the end of the original lease term and the start of the new lease.
- Interim rent is payable from the expiry of the contractual term of the current tenancy, this, therefore, being the earliest date that could have been specified in section 25 or section 26 notice
46
What is the purpose of the Landlord and Tenant Act 1954?
- to provide security of tenure for business tenants, granting them the right to renew their leases at the end of the contractual term. This essentially protects businesses from being evicted at the end of their lease.
47
What are the sections of CDM?
5 Parts:
1. Introduction
2. Client Duties
3. Health and Safety Duties and Roles
4. General Requirements for all construction sites.
5. General.
48
When does CDM apply and when is it notifiable?
- Applies to all construction projects.
- HSE should be notified if construction work will last more than 30 working days and involve more than 20 workers at any one time, or where the work exceeds 500 individual worker days
49
What are the options for recovering non payment of rent?
- Gather Tenant information, Check Lease and Companies House
- Payment Plan
- Pre-Legal Letter
- CRAR
- Statutory Demand
- CCJ
- Rent Deposit
- Guarantor
- Forfeiture
50
How do you pursue non payment of service charge?
- Initial Legal Letter (£60 fee)
- CCJ
- Statutory Demand/Winding Up
- S146 then Forfeiture
51
What is the process of CRAR?
Introduced in Taking Control of Goods Regulations 2013.
- Used where rent owed is equal or more to 7 days rent.
- 7 day notice service on debtor
- Visit Site/Take Stock
- Removal/Sale
52
What is a pre-legal letter?
- gives 7 days notice to pay.
- threat of CCJ or stat demand.
53
What is a CCJ?
- County Court Judgements
- Make claim either online or in court.
- Given 28 days to pay.
- If paid before then deemed as satisfied.
- No reply/payment can result in High Court Enforcement to the property.
- Fee for this can be up to £10,000 demanding on level of sums owed.
54
What is a statutory demand?
- First step in the winding up process
- Gives them 21 days to pay. (£450)
- Failure to pay within 21 days then issue Winding Up petition.
- Winding Up Petition cost £4,000
55
How would you pursue a sub-tenant for rent?
- S81 Notice of the Tribunals Courts and Enforcement Act 2007.
- Essentially diverts the rent that the Sub-Tenant is paying to the Landlord.
56
When would you utilise a deposit for non-payment of rent?
- Last Resort as deposits usually require topping up.
- Pursuing a failure to top up a rent deposit is legally more challenging than the other options available.
57
How would you pursue an Authorised Guarantee for non-payment of rent?
- S17 Notice (Landlord and Tenant (Covenants) Act 1995)
- Only within 6 months
- If AG pays then they can take an overarching lease.
58
What is forfeiture?
- Legal process of terminating the lease and regaining possession of the property.
59
How would you forfeit a lease?
- Check lease to see if it is expressly permitted.
- If non-payment of rent then peaceable re-entry
- Other breaches - S146 Notice must be served first then High Court to implement Forfeiture.
For non-payment of rent, "Grace Days" given. (14 days to pay).
60
How long does a Tenant have to apply for relief from Forfeiture?
- 6 months
- All arrears must be paid.
61
Can you define Client Care?
- Looking after the clients best interests, providing value for money and providing an appropriate service that satisfies the clients needs.
62
What is a Profit and Loss Account?
- financial statement that summarizes a company's revenues, costs, and expenses over a specific period
63
What is a Balance Sheet?
- outlines what a company owns (assets), what it owes (liabilities), and the ownership stake in the company (equity).
64
What is in an annual return to the RICS?
- Type of business and staffing
- Nature of clients
- Training provisions
- complaints handling procedure details and records
- PI insurance details
- whether the firm holds clients' money.
65
Can you tell me the RICS requirements regarding Complaints Handling Procedures?
- RICS provides a model form
- Must include redress mechanism
- Detailed within ToE.
- Must be clear, quick, transparent and impartial. Free of charge within the first stage.
- Nominated investigating person must be stated.
- Must be investigated within 28 days.
- Must be recorded.
- PI insured to be notified immediately.
- Two stages min - 1, Complaint considered by senior member or CHO. 2, referred to an independent 3rd party.
66
What is business planning?
- a roadmap for a business, providing a framework for managing and growing the company effectively
67
Why is business planning important?
- Provides direction
- Aids in decision making
- measures growth and success.
- important for ensuring sustainable growth of the company.
68
What is the difference between a capitalisation rate and a NIY?
- Cap rate is a measure of potential return based on current value, while NIY is a measure of initial return based on purchase price.
- Cap rate is a more dynamic measure, fluctuating with changes in market value, while NIY is more static, reflecting the initial investment.
69
What is an equivalent yield?
- represents the overall weighted average return of a property investment, considering both the current income (initial yield) and potential future income (reversionary yield)
70
What are the costs of the various arears remediation options?
- Pre-Legal Letter = £65
- CRAR = 1st Letter £75, First Visit £235 if arears less than £1,500.
If more, then £235 + 7.5% of arears.
- Statutory Demand = £450. (Winding Up Petition Cost is £4,000)
- CCJ = 5% of arears. (Up to £10,000)
71
What are differences between an Independent Expert and an Arbitrator?
- Evidence - IE can use own research
- Appeal - IE (No Appeal), Arb (Only on point of law).
- Negligence - IE (can be sued) , Arb (Cannot be sued)
- Disclosure - IE (No disclosure), Arb (Has disclosure)
- Law - IE (No law), Arb (AA 1996)
- Outcome - IE (Determination), Arb (Award)
- Costs - IE (Power over their own costs), Arb (Power over all costs)
72
What RICS documents are there for Arbitrators and Independent Experts?
- Surveyors acting as arbitrators in commercial property rent reviews. 2013 Professional Standard.
- Independent expert determination 2016 Professional Standard
73
What is the current position of the Arbitration Act of 1996?
- Emerging Act of 2025 has been given Royal Assent but there is no date yet for when this will be implemented.
74
What are the penalties of money laundering?
- Unlimited fine and up to 14 years imprisonment
- Unlimited fine and up to 5 years imprisonment for ‘tipping off’ someone who has been reported
Technical Competencies (KB)
flashcards
Decks in class (14)
# Cards
-
2025 Current Topics19
-
Weak Areas From Questioning74
-
RICS Documents and Legislation50
-
Inspection (Level 3)29
-
Measurement (Level 2)21
-
Valuation (Level 2)64
-
Landlord and Tenant (Level 3)31
-
Property Management (Level 3)60
-
Property Management SOE18
-
Leasing and Letting (Level 3)39
-
Purchase and Sale (Level 2)23
-
Case Study Questions28
-
Data Management Level 228
-
CPD Questions13
