Flashcards
Practice relations to Residential Property Management
Cards in this deck (104)
- 1Under common law, whose interests must the agent put first?Landlord's
- 25 requirements for the Agent under common law relevant to property management?- Act with reasonable skill and care
- Not to make a secret profit
- Account to client in full
- Not to delegate instruction
- Not to allow a conflict of interest - 3Examples of using reasonable skill and care?Advising LL of legal obligations
Using app't contractors
Aware of appliance guarantees
Repair rather than replace - 4Examples of secret profit?Contractor offers financial incentive
- 5Account to client in full includes?Pay LL rent asap
Pay rent in advance at once
CPUTR 2008 - pay rent within 1 month - 6Why is 'delegation' in the terms of business?Without, it would not be possible for agent to to instruct a contractor
- 7Overriding responsibility to LL is? x 31. Meet statutory obligations
2. Use LL's resources effectively
3. Maximise LL's investment - 8Obligations under the terms of businessAgent must follow terms of business e.g periodic visits
CPRs require client to have full details of the management service before commitment - 9Redress schemes - date and names of schemes?1st October 2014 agents must belong to a dress scheme
- The Property Ombudsman TPO
- Ombudsman Services
- Property Redress Scheme PRS - 10Complaint to the redress scheme can result in...? x 5- Apology from agent
- Reprimand
- Compensation to the complainant
- Fine up to £25,000
- Expel member
Complainant can still go to court
Penalty of £5k if agent not a member - 11What is the purpose of a routine property visit?- See if tenant is in breach of agreement
- Report any maintenance issues - 12Notice of a visit must be?24 hours written notice
Deemed served by hand next day before 5
Visit in line with time away from property
Courts can sanction a visit - 13Main legislation covering LL's obligations to look after the property are ? x2LL and Tenant Act 1985
Housing Act 2004 - 14Section 11 LL and Tenant 1985 x 3 responsibilities of the LL?- Fabric and STRUCTURE of the property
- Supply of SERVICES, inc sanitary ware
- Supply of space HEATING & hot water
Tenant must allow access under Sec 11(6) of LL and Tenant act 1985 - 15HHSRS introduced under which legislation? 3 main types are?Housing Act 2004
Dwelling house free from 29 hazards -
1. physiological,
2. psychological and
3. harm/infection
LA can issue improvement notices or hazard awareness. Cat 1 & 2 hazards - 16What should LL do re legionella?- Risk assessment
- Ensure hot water is 60 degrees +
- warn tenants re infrequent showers
- keep records of checks
- undertake periodic inspections - 17Property defects - leans to walls are caused by?Roof spread - can worsen. Not urgent repair of rafters
Bulges - gable wall not restrained
Outer leaf of cavity walls - too few ties - 18Types and causes of wall cracksHorizontal cracks - due to vertical mov't
Vertical cracks - due to horizontal mov't
Settlement - takes place when property built
Steel lintels rust over doors & widows
Vertical cracks - due to heating/cooling - 19Diagonal cracks are due to?Forces that act at an angle - when part of a building moves
Or timber lintel failure - 20Subsidence is?When weaker ground causes movement - eg burst water main, defective drain or tree root
Diagonal cracking at ground level - 21Problems of flat roofs? x 3Ponding
Blistering
Ridges - 22Defects associated with the damp proof course?- Blocking of the cavity
- Breakage of the DPC
- Breaching DPC by build up of soil by wall - 23Causes of wet rot to timber?Roof leak
Gutter leak
Pipework leak
Condensation
Defective/missing DPC - 24Where is Dry rot found?Starts in dark unventilated spaces eg under floors
Extends beyond the damp area - 25Distance for positioning flues away from doors and windows?300mm from doors and windows
- 26NICEIC recommend inspection of electrical every?10 years or change of ownership
HMOs every 5 years - 27Part P electrical work regulations cover?From January 2005
Notifiable work
Work in special locations
Must be done by a competent person
All work must comply with BS7671 - 28Competent person is someone registered with schemes...? x 5NICEIC
BSI
Napit
Bre
Elecsa - 29Notifiable work includes...?New circuit
New consumer unit
Swimming pool/sauna room
Circuit in a 'special location' - 30Gas boilers must be replaced by a...?Condensing boiler, since 2007
Should have TRVs - 31Hazardous materials? x 2 Register?Radon - odourless, colourless gas, ventilation or membrane
Asbestos - if not releasing fibres, leave. Special Waste Regulations 1996
Must keep a register of any asbestos since 2004 - 32Obligations on the tenant to take care of the property would be:- Covenants in the tenancy
- Implied obligations; not to damage the property, maintain garden, repair/replace any damages
To carry out small jobs, pay rent, report faults - 33Obligations of the agent regarding maintenance are? x 3Not to allow LL to breach obligations
Spend clients' money wisely
Identify who is responsible for costs - 34Landlord's choice of contractors - what should be included in the terms of business?Suitably qualified for the work
Evidence of qualifications
Refuse to instruct if unqualified
Instruct different contractor if unavailable - 35Name of the scheme to insure properties in high risk flood areas?Flood Re
Excludes houses built after 1/1/09
Excludes highest council tax band H - 36Check buildings insurance covers what?Kitchen and bathroom fitments
White goods, curtains, carpets - 37Types of insurance are for LLs? x 6Buildings
Contents
Public liability - usually contents
Appliance insurance
Legal protection - fees and court costs
Rent guarantee - 38Types of insurance for an agency? x 5Employer's liability - legally required
Professional indemnity - no legal req't but demanded by professional bodies-neglgnc
Buildings and contents
Fidelity - client money protection ins
Car - 39Advice to LL regarding insurance under duty of care?In tenancy LL contracts to insure the property
Also included in agents terms of business
LL must inform own insurance co
PI required - 40What insurance activities are regulated by the FCA?- By way of business
-Giving ADVICE, eg insurance is high/low
- ARRANGING insurance as go-between
- ADMIN ins contract, claim, negotiation - 41Insurance levels of service x 4PRINCIPAL firm - directly reg'd by FCA
APPOINTED rep - reg'd by principal
INTRODUCER appointed rep - gives leaflets for principal firm & pass customer details on
NON-REG'D introducer - leaflets to take away - 42If asked, agent can carry out non-regulated activity such as...? x 6Advise LL to take out insurance
Pay an initial premium
Pay a renewal premium
Instructing contractor in emergency
Getting quotes in emergency
Forwarding completed claim form in emergency - 43Contractors working on gas appliances must be registered with?Gas Safe Register
and work on appliances under
National Accredited Certification Scheme or ACS - 44Qualification for electricians is?Part P qualified
Member of approved body - 45Contractors working on windows and doors must be members ofFENSA - fenestration self assessment scheme
Sign off work & register with LA - 46Inventory providers may be registered with?Association of Professional Inventory Providers APIP
- 47Choosing contractors- Public liability insurance
- Employers liability
- Recommendations
- Safety policy
- Companies house search
- Professional indemnity insurance? neglign - 48Terms of engagement with a contractor will include...?- Method of payment
- Detailed invoice
- carry ID
- phone from site if problem or no access
- not to use tenants' goods
- recall if work unsatisfactory
- any guarantee
- out of hours work
- key collection
- Public liability insurance
- No instructions from tenant
- Risk assessment or method statement - 49Why is the invoice from the contractor needed?Shows LL carrying out repairs not improvements
May be a guarantee - 50Client money include ..? x 4 TYPESRent
Deposits for applicants and tenants
Contingency for repairs
Any money held for another - 51For the client account, the agent must..Be able to identify the money for client/tenant
Reconcile account
Not to deduct fees without authority
Audit annually - required by professional body
Terms of business state how money is to be paid to client - 52who gets the interest on deposits?- Agent for LL - whoever receives the money
- Stakeholder - usually the agent
Best to include in contract terms of business
Tenancy deposit scheme - will depend on scheme used. Written consent - 53Can charges be made for writing debt chase letters?Yes, if it is in the tenancy contract and charges are fair (UTCCR 1999)
- 54Why should the agent communicate terms of business in writing before the start of a business relationship?- Under terms of professional bodies
- Under terms of redress scheme
- Under CPR - 55Why does the agent have to declare any conflict of interest or connected person?- Common law requirements
- Regulatory bodies
- Redress scheme
- Under CPR - 56Consumer Protection from Unfair Trading Regulations 2008To be open and honest to LL and tenant
Fees
Explicit at an early stage
In written form & on website
Rounded view of the property
Advise on tenant giving notice
CMA - Guidance for lettings professionals - 57Competition and Markets Authority guidance dochttps://www.gov.uk/government/news/cma-publishes-consumer-protection-guidance-for-lettings-industry
- 58Taking a complaint at face value when not true breachesHarassment - Protection from Eviction Act 1977
- 59Remedies for the LL for breach of the contract?Damages eg loss of rent
Specific performance -fulfil obligations
Injunction eg stop making noise
Possession - 60Noise coming from 'fixed premises' is covered by?- Environmental Protection Act 1990
Environmental department at LA can issue abatement notices
Or individual can take action through court - 61Noise from dwelling AT NIGHT is covered by?The Noise Act 1996
Between 11:00 p.m and 7:00 a.m.
Police can confiscate equipment - 62Actions following discovery of damage to the property by tenant?Discuss with tenant
Confirm in writing for tenant to repair
Visit property
If not complete, write to tenant
Give notice that contractor will do work
If access denied, make file note
Make claim at end of tenancy, deposit - 63Breach by having pets?Court not likely to see this as serious
Unless serve S21 notice - 64Examples of LL breaches? x 6- Quiet enjoyment
- Maintenance to property
- Insuring property
- Repairing electrical equipment
- Repair in line with Section 11 LL&T 1987
- Not providing LL's address Sec 47 LL&T 1987 - 65Options for the tenant if LL breaches the lease?- Withold rent. Must demonstrate money is put aside
- Offsetting rent for work to be done
- Repudiation of the lease, if severe breach - 66Role of agent at end of tenancy will be ?Establish any breach by tenant
Assess damages and prepare cost schedule
Assess if costs are LL or tenant - 67Lord Denning 1953 said?To use the premises in a tenant-like manner
Do little jobs which a reasonable tenant would do
Not damage wilfully or negligently
If damaged, by family/friends, then repair - 68Fair wear and tear, based on?Length of tenancy
Number and age of tenants
Condition, age, cost of item at start
Useful lifespan of item
Reasonable usage of the item - 69What is Voluntary waste?Tenants cause damage to the property by their action. Or anyone who came into to do work on the tenant's property
- 70What is permissive waste?Inaction of the tenant has caused damage
- 71What are the 3 remedies for damage by the tenant?Repair
Replace
Compensate - 72Return of deposits - StakeholderGet agreement from both parties
If not agreed, Alternative Dispute Resolution process via scheme
Pay out non-disputed amount within 10 days of agreement - 73Process for deposit return for stakeholder not protected by a scheme?Get parties to agree
Part/all distributed
Receive notification of agreement both
If not agreed, go to court or use ADR - 74Betterment means? Apportionment is?Betterment - LL cannot expect improvement
Apportionment - allow for fair wear and tear - 75What is a renewal?A further fixed term tenancy
- 76What is an extension?Becomes periodic - statutory periodic for a HA tenancy
- 77Does deposit need reprotecting?Only if parties to tenancy change or property changes
- 78How often are electrical tests required for HMOs?Every 5 years
- 79Requirements for HMO management? x 5 For NON-licensed and licensedElectrical installations
Fixtures, fittings, appliances
Information to occupiers
Waste disposal facilities
Fire safety arrangements - 80NATIONAL Statutory requirements for a licensed HMO? x 6- Provide gas certificate to LA annually
- safe furniture
- automatic fire detection system
- declare fire alarm locations to LA
- tenants must have a tenancy agreement
- Property must be in good repair - 81LA's own HMO conditions for bathrooms?- Bathroom not more than 1 floor away
- Max no people per bath/shower
- Tiling to bathroom
- Ventilation, heating, flooring
- Max no people per toilet
- Hot/cold hand washing per toilet
- Facilities fit for purpose - 82Local Authorities also have HMO conditions for kitchens?- Adequate space for food prep & cooking
- Provision of cookers
- Elec sockets in room
- Food storage
- Work surface, sinks, draining boards
- Impervious floor coverings
- Fire detection and fire blankets - 83PLANNING restriction for HMOs?Permitted development to change from Planning category C3 (ordinary residential) to C4 (HMO)
LA may require planning permission for ordinary HMO - 84If planning is required, what do you do about extra occupier?Issue licence to occupy, in case planning turned down or costs are prohibitive and need to terminate license
- 85HMO breaches by LL might include?- allowing too many to occupy
- not having a licence
- refusing to repair
- build up of rubbish - 86Actions by agent if LL in breach of HMO?- Write to LL
- Advise LA can carry out the work OR serve an improvement notice OR take over management of property
- Disinstruct LL
- Agent has equal responsibility as LL - 87From what date must all agents belong to an approved redress scheme?October 2014
- 88What are the 3 regulatory bodies?ARLA
RICS - blue book, ARLA endorsed
NALS (National Approved Letting Scheme) - 89Regulatory body sanctions include...?- Suggest changes to practice
- Formal warning
- Fine unto £200 per breach
- Disciplinary hearing £5k per breach
- Suspending membership - 90What are the 3 redress schemes?TPO (most popular)
Ombudsman Services Property
PRS - 91Requirements for membership of TPO?- Display ombudsman logo
- Advise at point of instruction
- Leaflets available on request
- Acknowledge written complaint in 3 days
- Respond to complaint in 15 days
- Review procedure if not satisfied
TPO notified within 6m of final offer from member - 92Maximum award from TPO compensation is?£25,000 but most less than £500
- 93Ombudsman will reject cases ...? x 4- Raised maliciously
- More than 12m after event
- 9m after complaint raised
- 6m after agents' final response - 94Ombudsman sanctions are...? x 7- Agent rectifies problem
- Agent apologises
- Written explanation
- Informal warning
- Fine
- Compensation up to £25k
- Banning agent from scheme - 95Mediation/conciliation is?- Independent 3rd party negotiates dispute
- Voluntary
- Encouraged by courts
- Private interviews
- Not very common
- Not binding on the parties - 96Adjudication is...?- More formal than mediation
- Results are binding
- Common in construction industry
- Used in tenancy deposit scheme
- Evidence based - 97Arbitration/independent expert?- More formal still
- Written submissions
- Indep experts use own knowledge - 98Small claims court if no recognised body or redress scheme ...?- Claims less than £10k
- Claim interest
- Claim form, cost fee
- Defendant can not respond, acknowledge, admit claim, enter defiance, counterclaim - 99If a complaint is likely to result in a compensation claim, what should the agent do?Put their professional indemnity insurance on notice
- 100What can a Principal firm do?Regulated directly by the FCA
Offer a range of insurance products
Range of insurance providers
Handle claims
Large firms, insurance brokers - 101Appointed representatives?Regulated by a chosen principal firm
Offer certain products from principal
Can take premiums
Can claim settlement cheques
Can be appointed to several firms - 102Introducer appointed representatives can?Gives out information from principal firm
Generally leaflets
Pass customer details to principal firm - 103Non-regulated introducer?ONLY provides leaflets to take away
NO intro, negotiation, selling, admin - 104Consumer protection Regulations CPRs require the agent to be?Open and honest with all parties
Charges
Terms of business must be explicit
what fees will be charged
Sufficient info given to make decision
Include detracting features
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- ARLA Property Flashcards on Practice relations to Residential Property Management, created by Katie Shellard on 26/05/2018.
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- Katie Shellard
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