RICS Code of Practice
By admin | August 1st, 2010 | Category: Past Articles | 12 commentsJuly has quickly passed by and it was a relatively quiet month in regards to postings from us, due to holidays and technical difficulties – but we hope to get back up to speed with things in August, especially as we remembered that TTAS had it’s 2nd birthday on the 21 July and we’re looking forward to our third one!
Firstly, those of you that supported the Downing Street Petition will likely have received a reply from No.10.
Admittedly, it wasn’t what we were looking for, but it did at least bring to our attention the RICS Code of Practice (which you have to pay for and also you need to be a member of RICS – but your local RICS member, maybe happy to allow you access to thiers?).
We do recommend that you obtain a copy of this Code of Practice as it does contain some very interesting points, that some of you have already raised and it’s definitely worth going through, so that you can use this information in any complaints to / against Solitaire / Peverel or any of their associated companies.
If your local RICS member won’t let you read their CoP, the following link to the transparency of fees document on the RICS website is of use:
http://www.rics.org/site/download_feed.aspx?fileID=5979&fileExtension=PDF
Yet again, it was satisfying to receive correspondence from Solitaire in regards to IM’s issues that we highlighted on the 21 July 2010.
Once again, as soon as this story was published – Solitaire acted on IM’s complaint, but again why does it have to take TTAS to highlight these issues for them to be acted upon?
Andy was very keen for us to post his reply (which we will do soon) – but as always, it is us having to shame them into acting on the complaint.
That’s all for now, but more will be posted this month
[ADMIN EDIT - 02/08/10]
We were unaware that the CoP was not available for the public to purchase from RICS direct and apologise for any suggestion that it was or that we would distribute without premission (infringing copyright).
We recommend that anyone interested in the RICS CoP, looks on their website for the “Service Charge Residential Management Code” or to view the link above in regards to transparency.
BlocNet fully subscribes to the RICS Code of Practice (CoP). At a minimum we meet, and often well exceed, all that is detailed in the CoP.
This benefits lessees/owners as the RICS CoP provides a minimum set of best practices under which your property is managed and activities are appropriately reported. In the absence of anything better from the government, this is a solid base from which to work if fully adopted by a PMC.
Bob,
We’ve heard from this site that even if we manage to remove our poorly performing (and highly over priced) PMCs and appoint a reputable one, like BlocNet, the new PMC faces pressure from the Freeholder (who was possibly part of the same business group as the removed poor PMC!?) to still exploit their leaseholders! Like for example to still use their insurance brokers (who also could possibly be part of the same business group!) and charge a large, unjustified commission to boost their profits!
Could you please let us know how BlocNet would deal with such a situation? Thanks
It’s a long time since I’ve posted on here, so just catching up with a few blogs. Couple of quick things…
RICS publish a book called: Service Charge Residential Management Code and Additional Advice to Landlords, Tenants and Agents.
You don’t have to be a RICS member to buy one, our RTM company has just dones so: it’s £20. I’m sure it mirrors the code discussed in posts above. Also, if you’re searching for a new PMC, ask the company to send you a copy of the code, with their standard contract.
See: http://www.ricsbooks.com/productInfo.asp?product_id=7552
As for buildings insurance, the RTM company is at liberty to change provider, I believe this is a legal entitlement. We did so when we invoked our right and got a £5k refund from the old company and the new policy (like-for-like) was exactly half what Solitaire were charging through their broker. The refund was also sent direct from the broker to the new PMC. You have to go through a broker as neither a PMC or RTM co can be FSA regualated, so cannot buy a block policy. By the way, we also took out directors liability insurance too.
And a final point on RICS… it’s a big plus to look for a RICS company to take over as your new PMC – especially as RICS has a scheme for bonding your service charge funds. But beware of PMCs that employ RICS qualified surveyors, but are NOT an accredited RICS practice. We nearly got caught with this, and a simple call to RICS or a search on its web will identify those companies duly accredited.
Incidentally, on a recent search for a new PMC, we discovered one RICS accredited practice that was fined £4k by RICS for a disciplinary breach, subsequently upheld on appeal. Anyone ever seen ARMA fine a shoddy property management company? I bet not.
Good luck!
Dear Nirmal,
There is nothing legally that the Landlord can do to “force”, for example, the use of a specific insurance company/broker usage. The fact that the building is adequately insured is the important element and one that is almost always a covenant contained in the Lease documents.
We have taken over PPMG managed properties and, to date, received no pressure to use any suppliers (insurance or otherwise) that were previously being used. BlocNet’s competitive tender process is openly available for Lessees to review. Where BlocNet does not propose to select the cheapest supplier, we justify this based on relevant criteria for your property. There is nothing to be gained financially by BlocNet through the choice of one supplier or another for any property under our management.
If we did encounter a situation where we were being “pressured”, we would take all steps necessary (including legal if necessary) to allow ourselves complete freedom to recommend and select the most appropriate supplier for each and every aspect of how we manage each property under our care.
The words I choose here are deliberate. BlocNet does not impose any corporate procurement policies that might benefit our overall management portfolio (or us as the managing agent) but are not in the best interest of a specific property.
As Anon refers to as well, we would be delighted to provide a copy of the RICS CoP to all our Properties under management. Our goal is to meet or exceed all that is contained in this code as we feel it represents the best we have today in the absence of proper sector legislation/regulation.
Bob, Thanks for your comments, which are a ray of light in an otherwise very murky field of property ‘management’!
I have recently found a link to a government document which describes the RICS Service Charge Management Code April 2009, and explains in some detail its value to you and the position it holds in law. This might save you the £20 to buy a copy, plus it adds all sorts of interpretative value:
http://www.legislation.gov.uk/uksi/2009/512/pdfs/uksiem_20090512_en_001.pdf
I would also commend to you the Tribunal case relating to Charter Quay (LON/00AX/LAM/2008/0018), which describes the replacement of the managing agent because of failures under the lease and breach of RICS:
Available downloads from http://www.lease-advice.org, case ref 4347 and see also 5015 and 5250.
Brilliant reading Charles…..of great interest is the following comments regarding income to the managing agent and their requirement to declare it to the tenants
2.6 Insurance commissions and all other sources of income to the managing agent arising out of the management should be declared to the client and to tenants.
RICS stands for “The Royal Institution of Chartered Surveyors.”
The internet quote is,
“The Royal Institution of Chartered Surveyors – is the pre-eminent organisation of its kind in the world. As such, it represents everything that is good in the property….”
Gang, did you know Peverel won an award from RICS in 2007?
The industry use to or still bending backwards, some of you & “dribbling geriatrics …….!!!!!!
Nicky Vogg,
If I recall the ‘award’ was for the IT website – called ‘Avenue’ at the time – and the one that ‘Solitaire’ clients will soon ‘benefit’ from……
I was in the process of buying my property at the time and what should have been a quick 6-week completion ended up taking 11 weeks. At the time I was told by my solicitor that ‘Peverel OM were being slow in releasing the accounts.( I suspect that he hinted that Peverel were notorious for this ) I remember being puzzled by this as I thought that with such a ‘fantastic’ RICS award-winning site that things would be speeded up!!
With the benefit of hindsight, I believe that Peverel OM were slow, but I also suspect that the vendors were reluctant to pay the ‘admin fee’ for the transfer to be agreed!!
2007 – those were the days………..
There is a possiblity they won 2 awards or more. The one I am talking
about was for stagi….planning.I WONDER IF RICS WILL DISCOSE WHO
WON AWARDS FOR THE LAST FIVE YEARS. I will try to do some digging
to see if I can find out exately on what merits they won.
Furthermore, we need to ask RICS how they assess the company for awards.
Archangel, there 2 below I am certain RICS Awards 2007 for
Peverel,
1.Finalist in RICS Property Management Awards 2007.
2.Winners of the RICS Property Management Strategy and Delivery Award 2007
There must be other awards too. RICS most probably will have a listing, who they award each year and will be interesting to find out.
Hello Vicky Vogg,
Thanks for the further info.