RICS Complaints Handling Procedure Quiz

Complaints Handling Procedure (CHP)

• RICS firms must have a published CHP
• CHP should be issued to the complainant on receipt of a complaint, who the firm owes a duty of care to
• Procedure should be quick, clear, transparent, and impartial
• Detail a nominated person who will investigate the complaint (Complaint Handling Office)
• Complaint must be made in writing
• Procedures and strict timescales for investigation should be recorded
• Complaint should be acknowledged within 7 days and investigated within 28 days
• If the complainant is not happy with the review, the second stage is using an independent redress scheme that the firm has chosen
• The name of the appropriate redress mechanism must be provided to the complainant
• Examples of independent redress mechanisms are The Centre of Effective Dispute Resolution (CEDR), The Property Redress Scheme, and the RICS Dispute Resolution Service.

Professional Indemnity Insurance (PII)

• RICS firms must have PII insurance to protect against claims for negligence
• PII insurance should be notified if a complaint is received
• A complaints log must be maintained to show details, progress, and outcome of all complaints
• PII insurance should include RICS Approved Alternative Dispute Resolution (ADR) mechanism
• PII Policies work on a claims-made basis - policies cover claims made during the period of insurance regardless of when the negligent act occured
• PII certificate to be sent to RICS annually as part of the firms annual return to RICS
• Early notification to insurers is required when a potential claim arises
• PII cover is needed for pro-bono (unaided) work
• RICS assigned risk pool is available at a cost for members who cannot arrange cover
• RICS runs a Members Support Service (MMS) for members facing claims for work carried out by an employer who has gone into administration
• Most firms aim to cap their liability with clients for individual instructions

Run-off Cover

• "Adequate and appropriate" run-off cover is required following cessation of trading:
• for consumer claims: a minimum of £1milion of aggregate cover over a period of 6 years
• for commercial claims: firms must consider what is adequate for a minimum of 6 years
• Firms that are unable to obtain run-off cover from their incumbent insurer or the open market will be able to apply for coverage to the RICS Run-off Pool

Liability Caps

• RICS Practice Information: Risk, Liability and Insurance 2021 recommends the use of liability caps to manage risks associated with professional work
• Professional firms should be aware of third party reliance - make it clear that advice can only be relied upon by the client named in the terms of engagement.

Negligence

• Surveyors owe a duty of care to clients and third parties - using reasonable care and skill
• When there is a breach, resulting in a loss, a claim for damages arises
• Yianni V Edwin Evans (1981) - case established a resi valuer instructed by a mortgagor lending institution could owe a duty of care in tort to a mortgagee purchaser relying on a valuation
• Scullion V Bank of Scotland (2010) - a breach of duty of care owed to Mr Scullion in relation to a valuation report prepared for a flat in Cobham, Surrey
• Court of Appeal held that a surveyor who provides advice on value to a lender in respect of a buy to let purchase does not owe a duty of care to the borrower who is seeking funding to purchase the property.

Due Diligence

• Due diligence (DD) should be undertaken prior to and during instructions
• DD can be assessed through implicit assumptions testing

Anti-Bribery Procedures

• If asked about the acceptance of cash/gifts etc, consider the following:
• Bribery Act 2010
• RICS Professional Standard
• Your firms procedures
• Professionalism, objectivity, transparency (RICS Rules)
• Proportionality
• Sanctions

Anti-Money Laundering (AML) Procedures

• If asked about AML procedures, consider:
• MONEY LAUNDERING, TERRORIST FINANCING AND TRANSFER OF FUNDS (INFORMATION ON THE PAYER) REGULATIONS, 2017 (AS AMENDED 2023)
• RICS professional Standard (but law comes first)
• DD procedures (inc. ID of higher risk client)

Teamwork

• Teamwork can be affected by unconscious bias - positive actions need to taken to ensure that these biases do not adversely prejudice people
• RICS have signed a Memorandum of Understanding Action Plan (MoU) intended to create a more diverse, equitable and inclusive sector in order to be more representative of the society it serves.
• The MoU requires organisations to determine reasons for poor performance in this area through data collection and education
• The Bichard Review about the future of RICS also requires RICS to improve Diversity and Inclusion in decisions and action relating to its own governance.

Inclusive Environments

• Designed and managed to allow people with a diverse range of needs and abilities to access and use it
• An environment could be a building or place, including homes, workplaces and shops etc
• Inclusive applies throughout the property lifecycle, through design/refurbishment ensuring accessibility is considered; Occupancy - ensuring users of the space can reasonably do so despite any disabilities
• Important for fire safety / evacuation
• Those responsible must have good awareness of the following issues:
• Different physical and mental health issues which may lead to varying accessibility requirements
• Factors that could lead to social isolation
• Consider how best practices in the design and management of spaces can be implemented
• The value that inclusive environments can bring to owners and occupiers

Legal Framework

• Equality Act 2010
• Inclusive design standards contained in the Building Regulations: Approved Document M: Access to and use of buildings 2015 as amended
• Planning policy and legal requirements relating to accessibility - found in planning policies and National Planning Policy Frameworks

Equality Act 2010

• Provides protection against a wide range of discrimination and inequality, including the use of property as well as when dealing with people
• The act ID's four types of illegal discrimination:
  • Direct discrimination
  • Indirect discrimination
  • Harassment
  • Victimisation
• Extends all obligation to all controllers of let premises
• Unlawful for those managing buildings to discriminate against an occupier
• Lettings, sales etc must not be undertaken in a way which could discriminate or victimise a person
• Landlords need to ensure all dealings with a tenant/occupier who may have protected characteristics are dealt with in accordance with the Act.

Energy Performance Certificates (EPCs)

• The Government scrapped the 2025 proposal that all new tenancies should have an EPC rating of C or above - remains at a minimum of E
• By 2028, this requirement may be extend to all existing tenancies.
• Exemptions under certain circumstances, such as where improvements are not cost-effective/listed buildings etc
• £200 civil fixed penalty

BREEAM - The Building Research Establishment Environmental Assessment Method

• A voluntary environmental assessment tool to rate new, refrub'd and operational buildings
• A building's impact is rated by BREEAM assessors by reference to 9 weighted categories: energy consumption, water use, transport links, waste management, and health & wellbeing
• The five ratings are: PASS / GOOD / VERY GOOD / EXCELLENT / OUTSTANDING

RICS Practice Information: The design delivery and management of healthy buildings: a practical guide, October 2023

• Guidance offers advice for all members working with existing and new buildings
• Sets out how healthy buildings impact our health, relating to building design, construction material, sound, light, water and air quality, building tech and management
• Explores the role of health & wellbeing in ESG

RICS PROFESSIONAL STANDARD: RESIDENTIAL RETROFIT STANDARD, MARCH 2024

• Aims to guide surveyors in the delivery of high quality consistent advice on energy retrofits to resi owners
• Ensures consumers receive professional, regulated guidance on retrofit projects
• Scope: covers aspects such as surveys, inspections, design, project management
• Applies to a range of energy-saving improvements like solar panels, heat pumps and insulation
• Mandatory from 31 October 2024
• "The framework not only reinforces quality, but also aligns with broader industry movements, including potential green mortgages and incentives from lenders"

Valuation

• Internal valuer - employed by a company to value the assets of the company
• For internal use only - no third party reliance

Commencing a Valuation

• Competence - Do you have the relevant skills, understanding, and knowledge (SUK)?
• SUK - This refers to the "Skills, Understanding, and Knowledge" that a surveyor needs to have to competently carry out a valuation.