rics cpd day april 2016

Introducing the RICS Commercial Real Estate Agency Standards, 2nd edition (Purple Book)Simon Wainwright FRICS Director JPW Real EstateChairman RICS Commercial Property Board

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Requires members to act in the public interest


RICS Royal Charter

Mandatory, Best Practice or Information

Standards Hierarchy

Standard► International standard MANDATORYProfessional statement► RICS professional statement MANDATORYGuidance► RICS code of practice MANDATORY OR BEST PRACTICE► RICS guidance note (GN) BEST PRACTICEInformation► RICS information paper (IP) INFORMATION► RICS Insights INFORMATION► Economic reports INFORMATION► Consumer guides INFORMATION► Research INFORMATION

RICS Professional Statement - UK Commercial Real Estate Agency

International Standards

►International Valuation Standards►International Property Measurement Standards►International Ethical Standards

There are five standards

Ethical & Professional Standards

What are the five ethical principles which all members must comply with?

There are five ethical standards

Ethical & Professional Standards

►Act with integrity►Always provide a high standard of service►Act in a way that promotes trust in the profession

►Treat others with respect►Take responsibility

Part 1: Real estate agency and brokerage and real estate management: RICS practice statement


RICS Professional Statement

You have a duty to comply with a number of standards, official codes, redress schemes and ethical codes.

Real Estate Agency & Brokerage Guidance

These include:

► Real estate agency and brokerage and real estate management: RICS practice statement, 2nd edition (November 2014).

► Real estate agency and brokerage guidance: RICS guidance note, 2nd edition (November 2014).

► http://www.rics.org/uk/knowledge/professional-guidance/practice-statements/real-estate-agency-and-brokerage-guidance-2nd-edition/

This mandatory professional statement applies to all RICS members involved with the sale, letting, leasing and management of real estate, whatever the form of tenure by which it is held or occupied. Members are required:


1 To conduct business in an honest, fair, transparent and professional manner.2 To carry out work with due skill, care and diligence, and ensure that any staff employed have the

necessary skills to carry out their tasks.3 To ensure that clients are provided with terms of engagement that are fair and clear. These should meet all legal requirements and relevant codes of practice including reference to complaints

handling procedures and, where it exists, an appropriate redress scheme.4 To do the utmost to avoid conflicts of interest and, where they do arise, to deal with them openly, fairly and promptly.5 Not to discriminate unfairly in any dealings.6 In all dealings with clients, to ensure that all communications (both financial and nonfinancial

Subject matters) are fair, clear, timely and transparent.

This mandatory professional statement applies to all RICS members involved with the sale, letting, leasing and management of real estate, whatever the form of tenure by which it is held or occupied. Members are required:


7 To ensure that all advertising and marketing material is honest, decent and truthful.8 To ensure that all client money is held separately from other monies in appropriately designated

accounts and is covered by adequate insurance.9 To have adequate and appropriate professional indemnity insurance or equivalent in place that

complies with the RICS Rules of Conduct. Having proper cover is a key part of managing your risk.10 To ensure that it is made clear to all parties with whom you are dealing the scope of your obligations to each party.11 Where provided as part of the service, to give a realistic assessment of the likely selling, buying or rental price, associated cost of occupancy or of the likely financial outcome of any issues, using best professional judgment.12 To ensure that all meetings, inspections and viewings are carried out in accordance with the

client's lawful and reasonable wishes, having due regard for the security and personal safety of all parties.

UK Commercial Real Estate Agency



UK Commercial Real Estate Agency


1. Standards & Ethics2. Securing Instructions3. Disposals Marketing the Property4. Implementing the Disposal5. Acquisitions6. Ending the Instruction


1.0 Standards and ethics

These include:

► Real estate agency and brokerage and real estate management: RICS practice statement, 2nd edition (November 2014).

► Real estate agency and brokerage guidance: RICS guidance note, 2nd edition (November 2014).


1.0 Standards and ethics

You are also required to comply with relevant legislation including:

► Bribery Act 2010► Equality Act 2010► Estate Agents Act 1979► Consumer Protection from Unfair Trading Regulations 2008 (when dealing

with consumers)► Business Protection from Misleading Marketing Regulations 2008 (when

dealing with businesses).

Your duties and responsibilities

1.0 Standards and Ethics

► Duty of Care as a Real Estate Agent► Conflicts of Interest► Gifts, incentives and hospitality► Discrimination► Vulnerable customers

Securing Instructions & Statutory Compliance

2.0 Securing Instructions

Securing instructions► Legal and regulatory requirements► Matters to be dealt with before taking instructions

► Complaints handling procedure► Handling clients money► Money Laundering compliance ► Information and confidentiality► Health and safety

Terms of Engagement

2.0 Securing Instructions

► Prior to agreement ► Lettings► Fees charges and taxes► Itemised costs► Dual fee liability► Timings► Penalties

► Cooling off period► Receiverships► Types of agency► Finalising terms► Offering services to other parties► Special types of sale or lease► Off-market transactions

You must comply with legislation including:

3.0 Disposals: marketing the property

► Data Protection Act 1998► Estate Agents Act 1979► Landlord and Tenants (Covenants) Act 1995► Misrepresentation Act 1967► Consumer Protection from Unfair Trading Regulations 2008► Business Protection from Misleading Marketing Regulations 2008► Auctions (Bidding Agreements) Act 1927 and 1969

You must comply with legislation including:

3.0 Disposals: marketing the property

► Existing lease arrangements► Inspection and measurement► Market appraisal► Documentation about the property► Marketing the property

► Online marketing► Advertising signs and boards► Viewings► Responding to questions► Keeping the client informed

4.0 Implementing the disposal

► Legal and regulatory requirements► Methods of sale► Sale by tender► Lettings

5.0 Acquisitions

► Legal and regulatory requirements► Property search: buying or leasing► Communication with your client► Dealing with conflicts of interest► Leasehold acquisitions► Progressing purchases► Holding clients money

6.0 Ending the instruction

► Legal and regulatory requirements► Written confirmation► Invoice► If completion does not take place► Retention of records

Conflicts of Interest

Conflicts of Interest►Party conflict►Own interest conflict►Other involvement conflict►Confidential information conflictInformation BarrierInformed consent

Introducing the RICS Commercial Real Estate Agency Standards, 2nd edition (Purple Book)Simon Wainwright FRICS Director JPW Real EstateChairman RICS Commercial Property Board