Real Estate Management 3rd Edition RICS

1 Professional statementRICS professional standards and guidance, globalReal Estate management3rd Edition , October by the Royal Institution of Chartered Surveyors (RICS) Parliament Square London SW1P 3AD responsibility for loss or damage caused to any person acting or refraining from action as a result of the material included in this publication can be accepted by the authors or Edition published March 2013; second Edition published November 978 1 78321 172 2 Royal Institution of Chartered Surveyors (RICS) October 2016. Copyright in all or part of this publication rests with RICS. No part of this work may be reproduced or used in any form or by any means including graphic, electronic, or mechanical, including photocopying, recording, taping or Web distribution, without the written permission of the Royal Institution of Chartered Surveyors or in line with the rules of an existing licence.

2 Every effort has been made to contact the copyright holders of the material contained herein. Any copyright queries, please get in touch via the contact details above. Real Estate managementRICS professional statement, global3rd Edition , October 2016iiiRICS professional statement, globalEffective from 1 November 2016 Real Estate managementContentsRICS professional standards and guidance ..1 Glossary of terms ..3 Introduction ..41 Ethics ..6 Introduction to ethics and professionalism ..6 Your general duty of care as a real Estate manager ..6 Corporate social Dealing with conflicts of interest ..7 Understanding discrimination ..7 Vulnerable customers ..7 Responsibility for others ..72 Securing Introduction ..8 Types of client ..8 Before taking instructions ..8 Sharing information with your potential Commissioning other documentation or other parties.

3 9 Offering services to other Instructing a New lettings and lease renewals ..10 New lettings ..10 Lease Managing real Estate ..13 General principles ..13 Inventory ..14 Repairs ..14 Access ..15 Service charges ..16 Alterations and improvements ..18 Assignment and underletting ..18 Breach of covenant, enforcement and forfeiture proceedings ..18 Lease restructuring or changes to lease terms ..18 Sustainability ..18 Information D i s p u t e s ..19 Termination of a lease ..195 Portfolio and asset Management ..20 Asset Management ..20 Portfolio Management ..206 Ending the instruction ..23 Written confirmation ..23 Invoice ..23 Handover of documentation .. Accounting for client s monies and service charge funds upon termination.

4 237 Safety and security .. professional statement, globalEffective from 1 November 2016 Confidentiality ..25 Data protection ..25 Health and safety ..25 Personal safety ..258 Business Management ..26 Advertising and marketing your services ..26 Handling complaints ..26 Handling clients money ..26 Recovering outstanding debts ..27 Training and keeping up to date ..27 Acknowledgements ..iiReal Estate management1 RICS professional statement, globalReal Estate managementEfiective from 1 November 2016 International standardsRICS is at the forefront of developing international standards. In addition to RICS Valuation Professional Standards, other international standards are being developed. Working in coalitions with organisations around the world, acting in the public interest to raise standards and increase transparency within markets, International Property Measurement Standards (IPMS ), International Construction Measurement Standards (ICMS), International Land Measurement Standards (ILMS), International Ethics Standards (IES) and others will be published and will be mandatory for RICS members.

5 Most RICS professional statements link directly to these standards and underpin them. Where that is the case, RICS members are advised to make themselves aware of the relevant international standard/s (see www. ) and the overarching principles with which the associated professional statement complies. Members of RICS are uniquely placed in the market by being trained, qualified and regulated by working to international standards and complying with professional professional statementsThis is a professional statement, which RICS members must act in accordance with. Sections within professional statements that set specific mandatory requirements for members use the word must and appear in purple boxes. Members must not depart from specific mandatory requirements. Sections within professional statements that set an expectation or recommend best practice advice use the word should . Where members depart from these, they should do so only for justifiable good reason.

6 Where, in the professional judgment of the member, the departure may have a material impact on the surveyor s advice, the client must be informed in writing of the departure and the reason/s for the departure. Any content that does not use the word must or should is considers that professional statements are technical standards for the purposes of Rule 4 of both the Rules of Conduct for Members 2007 and the Rules of Conduct for Firms 2007 (as amended from time to time). Members should note there may be legal and/or disciplinary consequences for departing from professional statements. When an allegation of professional negligence is made against a surveyor, the court is likely to take account of relevant RICS professional statements in deciding whether or not the surveyor acted with reasonable competence. Failure to act in accordance with professional statements may, accordingly, lead to a finding of negligence against a surveyor.

7 In the opinion of RICS, a member acting in accordance with relevant professional statements should have at least a partial defence to an allegation of negligence. In some cases there may be existing national standards that take precedence over professional statements. These can be defined as professional standards that are prescribed in law or federal/local legislation, or are developed in collaboration with other relevant bodies. It is the duty of members to be aware which standards apply. Members should be up to date and have knowledge of professional statements within a reasonable time of their coming into effect. It is the member s responsibility to be aware of changes in case law and legislation since the date of publication. RICS professional standards and guidance2 RICS professional statement, Estate managementEffective from 1 November 2016 Document status definedRICS produces a range of professional standards, guidance and information documents.

8 These have been defined in the table below. This document is a professional of documentDefinitionStatusStandardInternat ional standardAn international high-level principle-based standard developed in collaboration with other relevant statementRICS professional statementA document that provides members with mandatory requirements or a rule that a member or firm is expected to adhere term also encompasses practice statements, Red Book professional standards, global valuation practice statements, regulatory rules, RICS Rules of Conduct and government codes of and information RICS code of practiceDocument approved by RICS, and endorsed by another professional body/stakeholder, that provides users with recommendations for accepted good practice as followed by conscientious or recommended good practice (will be confirmed in the document itself).Usual principles apply in cases of negligence if best practice is not guidance note (GN)Document that provides users with recommendations or approach for accepted good practice as followed by competent and conscientious best principles apply in cases of negligence if best practice is not information paper (IP)Practice-based information that provides users with the latest technical information, knowledge or common findings from regulatory and/or recommended best principles apply in cases of negligence if technical information is known in the insightIssues-based input that provides users with the latest information.

9 This term encompasses thought leadership papers, market updates, topical items of interest, white papers, futures, reports and news economic/ market reportA document usually based on a survey of members, or a document highlighting economic only. RICS consumer guideA document designed solely for use by consumers, providing some limited technical independent peer-reviewed arm s-length research document designed to inform members, market professionals, end users and other only. 3 RICS professional statement, globalReal Estate managementEfiective from 1 November 2016 Glossary of termsClient: anyone instructing a real Estate manager to act on their behalf for the Management of real money: money received by a firm, in the course of its business activities, that does not wholly belong to it or any principal or principals of the providing Management services: companies undertaking real Estate of interest: where an agent acts for clients who have competing interests, or where an agent s personal interests conflict with those of their : anyone with whom the real Estate manager has dealings.

10 This will include clients, landlords, tenants and in real Estate : real Estate held under any form of : the owner of a property who grants the right to occupy and use property to another by way of a lease agreement. Can also be known as the : an agreement whereby the lessor grants to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. Can also be known as a tenancy. NB for the purposes of this professional statement the term lease is intended to include other forms of occupancy agreement and fractional ownership (where relevant).Lease term: the period of the : possession and use of a property by virtue of a : see : see evidence: details of properties with the same or similar characteristics, in the same or similar location to the client s property, that have been sold within a reasonable timeframe, and the price or rent work: formal valuation and/or advice regarding a building, upon which a client relies, and which could lead to a claim of financial loss in the event of being carried out Estate Management : any person who, in the course of a business (including a business in which he or she is employed), is instructed to manage an interest in real Estate on behalf of the owner of the Estate manager: company or individual employed to manage an interest in real Estate on behalf of the owner of the party.