Property General Knowledge

  1. What is a CVA?
    If your limited company is insolvent, it can use a Company Voluntary Arrangement (CVA) to pay creditors over a fixed period. If creditors agree, your limited company can continue trading
  2. What are the steps of a CVA?
    The insolvency practitioner will work out an ‘arrangement’ covering the amount of debt you can pay and a payment schedule. They must do this within a month of being appointed.

    They’ll write to creditors about the arrangement and invite them to vote on it.

    The CVA is approved if 75% (by debt value) of the creditors who vote agree.
  3. What can client money be held in?
    Client Money Protection Scheme
  4. What is the purpose of this scheme?
    The scheme make sure landlords and tenants are compensated if an agent cannot repay their money, for example if an agent goes into administration. Membership of a CMP scheme is a legal requirement from 1st April 2019.
  5. How do you calculate a WAULT?
    • Calculate the annual rent
    • Calculate the total rent received from all leases until break/expiry
    • Divide total rent received by annual rent to arrive at WAULT.
  6. What are the updates to the International Valuation Standards?
    'General Standards' address maters such as TOE's, approaches to and bases and methods of valuation as well as reporting.

    'Asset Standards' which provide requirements relating to specific types of asset, such as real property and development property.
  7. What is the objective of the IVS?
    The objective of the IVS is to increase the confidence and trust of users of valuation services by establishing transparent and consistent valuation practices
  8. When did IPMS Offices come in?
    1 May 2018
  9. What is the recently published document by the RICS relating to valuation?
    Valuation Practice Alert

    • Commentary that the material uncertainty clause is a disclosure not a disclaimer is withdrawn.
    • Information about reliance on information from third parties
    • Information about market value and worth
  10. What is required if setting up a firm with employees?
    Employers’ liability insurance protects your business against the cost of compensation claims made in the event of an employee injury or work-related illness.
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Property General Knowledge