Q&A PRACTICE – resources.apcguide.com

During this post we’ll run through some practice questions and answers focussed on the Commercial Real Estate pathway. This mock interview will cover the core competencies including Valuation, Purchase & Sale, Landlord & Tenant, Development Appraisal, Legal & Regulatory Compliance, Inspection and Measurement of Land & Property. From my experience of helping colleagues pass their APC over the last 9 years, I compiled the following questions & answers based on past APC interviews and really hope this helps candidates feel better prepared for their final assessment interview. The following Questions & Answers are focussed on the Commercial Real Estate Pathway Purchase & Sale Question) Please explain the different advantages and disadvantages of selling at Auction? Answer) The advantages of selling at auction include:- Competitive Bidding - Auctions often result in the best possible price for the property, especially if there is high demand. Speed and Certainty - The process is typically quick, with contracts exchanged immediately when the hammer falls, reducing the risk of buyers withdrawing. Transparency - The auction process is open, with all bids visible, ensuring fairness and clarity. Ideal for Difficult to Sell Properties - Auctions are often used for properties that have proven hard to sell via private treaty, including mortgage repossessions, distressed sales and properties in poor condition. The disadvantages of selling at auction include:- Higher Costs - Auction fees, including the auctioneer’s commission, legal costs, and marketing expenses can be around 2.5% or more, making this method more expensive than private treaty sales. Public Disclosure - Auction listings require full disclosure of property details, which may highlight potential drawbacks to buyers. Risk of Failure - If the property fails to sell, it may become "blighted," making it harder to attract future interest. Question) What are the different Methods of Sale? Answer) There are several methods of sale to sell a property including:- Private Treaty - The most common method, where a property is marketed at a set asking price, and negotiations take place between the buyer and seller. This allows for flexibility in negotiations, more privacy and less pressure compared to auctions and the seller retains greater control over the process and can accept or reject offers. Formal Tender - This is a structured process where buyers submit sealed bids by a deadline. The bids are legally binding once submitted and the seller chooses the best offer (not necessarily the highest bid). Informal Tender - Similar to formal tender but without legal obligation. Buyers submit best and final offers by a deadline, but negotiations can still occur. Question) Please explain the advantages and disadvantages of selling via Private Treaty? Answer) The advantages of selling via private treaty include:- Flexibility - Buyers and sellers can negotiate at their own pace, allowing time for due diligence and surveys. Lower Costs - Typically less expensive than auctions, with lower marketing and agent fees. Confidentiality - Unlike auctions, private treaty sales are conducted discreetly. No Immediate Obligation - Sellers can withdraw the property from the market at any time before contracts are exchanged. The disadvantages of selling via private treaty include:- Uncertain Timelines - Sales can take longer due to prolonged negotiations and buyer/seller withdrawals. Pricing Risks - Overpricing may deter buyers, while under pricing could result in a lower than expected sale price. Potential for Abortive Costs - If a deal falls through after legal or survey costs are incurred, these expenses are non-recoverable. Question) What is the difference between Sole Agency and Sole Selling Rights? Answer) Sole Agency is where a single agent is appointed to market the property. If the seller finds their own buyer, the agent is not entitled to a fee. Sole Selling Rights are where the appointed agent is entitled to a commission regardless of who introduces the buyer (even if the seller finds the buyer themselves). The seller has no ability to sell privately without paying commission. This can also include a “Ready, Willing and Able Purchaser” clause, meaning the agent may still charge a fee if the seller pulls out after finding a qualified buyer. Question) What do you do if you receive two identical bids for a property you are marketing Answer) The best approach is to invite both bidders to submit revised offers in a second round of bids.This ensures the best possible price is achieved for the seller while maintaining fairness and transparency.Alternatively, the seller may choose to accept an offer based on additional factors such as buyer position (e.g., cash buyers vs. mortgage buyers). Question) What advice would you give a client who wishes to take occupancy of a vacant unit on the high street? Answer) Before committing to a lease or purchase, key considerations I would discuss with the client are whether the unit meets the client’s operational requirements in terms of size, layout, and location. I would also review the lease terms to identify the rental rates, lease duration and break clauses. Planning Permission may also be a consideration in terms of whether the property has the necessary use classification for example retail, office or restaurant etc. I would also ensure the client is aware of additional costs such as service charges, business rates and maintenance fees. Landlord & Tenant Question) What is a protected tenancy and what qualifies it as such? Answer) A protected tenancy is a type of tenancy agreement that falls under the Rent Act 1977 in the United Kingdom. This form of tenancy offers tenants significant rights, particularly in terms of security of tenure, meaning that they cannot be evicted without a legal cause. Additionally, protected tenants are entitled to a fair rent, which is assessed and registered by the Rent Officer, ensuring that landlords cannot charge excessive amounts. These tenancies are standard contractual agreements that safeguard a tenant’s right to remain in the property while the tenancy is in force. However, this category of tenancy only applies to rental agreements that began before January 15, 1989. After this date, the Housing Act 1988 introduced new regulations, shifting the rental landscape towards assured and assured shorthold tenancies, which provide different levels of security for tenants. Question) What is a Tenancy At Will? Answer) A Tenancy at Will is a temporary and highly flexible form of tenancy where either the landlord or tenant can terminate the arrangement at any time without notice. This type of tenancy does not create a legal interest in the property for the tenant, meaning they do not have the same protections as those under more structured tenancy agreements. If the tenant remains in the property after termination, they may be considered a trespasser, potentially leading to legal consequences. A notable case that illustrates the nature of a Tenancy at Will is Cricket v Shaftsbury, which established that a tenant does not acquire security of tenure even if they have occupied the property for an extended period, such as over 12 months. Question) What components must be in place in order to form a tenancy agreement? Answer) For a tenancy agreement to be legally binding, several essential components must be in place. Firstly, the agreement must clearly define the parties involved, specifying both the landlord and the tenant. Secondly, the tenancy must be attached to a physical property with a fixed location; for this reason, tenancy agreements cannot apply to moveable structures like boats, which are instead governed by licenses. Additionally, the agreement must outline the specific terms of the tenancy, including the duration and obligations of each party. A critical requirement is the inclusion of a specified rent amount, even if it is nominal, such as a "peppercorn rent"; without this, the agreement cannot be classified as a tenancy or lease. Another key element is exclusive occupation, meaning the tenant has the sole right to use the premises and can exclude others, including the landlord, from entering without permission. This contrasts with a license, where the occupant is granted mere permission to stay without exclusive possession. A landmark legal case, Street v Mountford, reinforced this principle by ruling that a tenancy is established when an individual pays rent and has exclusive possession, regardless of how the written agreement is labelled. Question) What is a bare licensee? Answer) A bare licensee is someone who occupies or uses land purely with the owner’s permission but without any legal or equitable interest in the property. The license is personal to them and cannot be transferred to another person. Because this permission is informal, it offers no legal protection against a third party acquiring ownership of the land, meaning that if the property is sold, the new owner is not obligated to honour the previous license arrangement. Question) What is a Trespasser? Answer) A trespasser is someone who enters land or property without the owner’s consent and without any lawful justification. Trespassing is considered an unlawful act and legal action can be taken against the individual. The concept of trespass also extends to situations where a person remains on a property after their legal right to be there has ended. In legal disputes, intent plays a crucial role, meaning the individual must have knowingly entered the property without permission. Another important legal consideration is that a trespasser has limited rights if they are injured while on the property, depending on whether the landowner was negligent. Question) What is a Contractual Licensee? Answer) A contractual licensee is someone who has been granted permission to occupy a property under a legally binding contract. Unlike a tenancy, a contractual license does not confer exclusive possession, but it does provide a recognized right to be on the property for a specified purpose. These licenses can either be revocable or irrevocable, depending on the terms of the agreement. A common example of a contractual license is purchasing a ticket for a cinema screening, while the ticket grants entry, it does not provide the holder with any property rights beyond the agreed-upon use. Question) What is a Periodic Tenancy? Answer) A periodic tenancy is a tenancy arrangement that continues indefinitely on a rolling basis, rather than having a fixed end date. Most assured shorthold tenancies (ASTs) automatically become periodic once the fixed term ends unless the landlord and tenant agree to a renewal. This type of tenancy remains valid until one of the parties provides proper notice to terminate it. The length of each tenancy period is determined by the frequency of rent payments; for example, if rent is paid monthly, the tenancy typically runs on a month-to-month basis. Question) What is a Tenancy at Sufferance? Answer) A tenancy at sufferance arises when a tenant remains in a property after their lease has expired without the landlord's explicit consent, but also without immediate eviction. In this scenario, the tenant is not a lawful occupant, yet they are not classified as a trespasser because their initial entry was lawful. The original lease terms, including rent obligations, usually still apply during this period. This differs from a tenancy at will, where the tenant's occupation is permitted by the landlord but is not governed by a formal lease agreement. Question) How could a tenant apply for a new lease? Answer) A tenant seeking a new lease can initiate the process by serving a Section 26 notice under the Landlord and Tenant Act 1954. This notice must specify the proposed terms of the new lease and must be served within the correct timeframe, between six and twelve months before the desired start date of the new tenancy. However, it cannot be served more than twelve months before the original lease's natural expiration. If the landlord refuses to grant the lease, the tenant has the right to apply to the court under Section 29, which allows a judge to rule on whether a new lease should be granted. If both parties agree in principle but cannot settle on the terms, the court may intervene to determine fair conditions for the new lease. Question) Under what grounds can a Landlord object to a new lease? Answer) A landlord can object to a new lease under Section 30 of the Landlord and Tenant Act 1954, which outlines specific grounds for refusal. These include situations where the tenant has failed to maintain the premises in good repair, has persistently delayed rent payments, or has otherwise significantly breached the lease agreement. The landlord may also offer alternative accommodation under similar lease terms and at their own expense. Another valid objection is if the property has been subdivided in a way that makes it economically unviable. Additionally, a landlord may refuse a lease renewal if they intend to demolish or substantially redevelop the premises, provided they can prove genuine intent. Lastly, a lease can be denied if the landlord intends to occupy the premises personally, but this requires at least five years of ownership. Valuation Question) Please explain your understanding of the residual valuation method? Answer) The residual valuation method is used to establish how much a purchaser should pay for a development site. The gross development value is established first of all and there after all the costs associated with undertaking the development are then deducted. This leaves a surplus amount remaining which is also known as the residual value. This represents how much the developer can afford to pay for the development site or property. The GDV or gross development value forms a key part of the calculation and this is the aggregate market value of the development based on the special assumption that the development is complete at the date of valuation. The development costs are then deducted from the GDV and typically include site preparation, construction, sales, marketing, contingency, financing fees and developers profit. Residual valuation method example Question) When is the Profit Method used and how is this undertaken? Answer) The profits method is used for trade related properties where the value is derived from the business and its trading potential. This trading potential is the profit that a reasonably efficient operator would expect to realise from occupying the property. Examples of when the profits method would be used would include for hotels, schools, cinemas and theatres. The common characteristics of these properties is where the property has been designed for a specific use and the value is linked to what the owner can generate from the property. The value therefore reflects the trading potential of the property and it includes the property interest, business and locational good will, fixtures and fittings all reflected as a single figure. The Income and expenditure forecast is based on historical and comparable information. This forecast represents the fair maintainable turnover and fair maintainable operating profit that a reasonably efficient operator would hope to achieve. This is therefore considered a reasonably accurate forecast of the properties trading potential. The actual performance is compared with similar trade properties to determine whether the fair maintainable turnover is realistic based on current market conditions. As a final step the fair maintainable operating profit is capitalised at the appropriate rate of return to reflect the risks and rewards of the property to determine its trading potential. Evidence of accurate comparable market data should be analysed and applied. Question) What is the depreciated replacement cost method of valuation and how does this work? Answer) The depreciated replacement cost method provides an indication of value based on the buyer paying no more or no less than the cost to obtain the asset based on the current equivalent. The involves calculating the replacement cost of the asset with its modern equivalent including deductions for physical deterioration and all other relevant forms of obsolescence. This method is known as the method of last resort and is used when it is impractical to use all other valuation methods. The cost approach is used to value unusual properties where there is no active market such as mosques, wharfs or refineries. Under the cost approach the capital value is determined by calculating the cost of building the equivalent asset and the purchase land value. The replacement build cost should be calculated using new and cost effective building materials and techniques. The total value of the new property is then adjusted for deterioration using evidential information and recent transaction values to calculate the land purchase cost. Depreciated replacement cost valuation example Question) What is the comparable method of valuation and how does this work? Answer) The comparable method primarily uses sales data of properties that have recently been sold focussing on assets that have a similar size, location, condition, features and specifications. The comparable method is underpinned by comparable evidence which is identified, analysed and applied to the real estate that is to be valued and is therefore fundamental to producing a sound valuation that can stand scrutiny from the client and market. The valuer will compile a schedule of evidence that will contain details about the property such as building age, quality, location, tenure, size, transaction price, date of sale and price per sq ft which can be used for the purposes of comparison with other similar properties. The comparable data gathered should be comprehensive meaning there should be several similar properties being considered, they should also be recent and therefore representative of the current market conditions and consistent with local market practice. Question) What are the different purposes of valuation? Answer) The purposes of preparing a valuation could include:- Valuation for Financial Reporting. Valuation for Commercial Secured Lending Purposes. Valuation for Residential Mortgage Purposes. Valuation for Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax. Valuation for Compulsory Purchase and Statutory Compensation. Question) What steps would you take following your valuation instruction? Answer) The steps I would undertake following receipt of a valuation instruction are as follows:- Obtain Details of The Property – Key information such as address, size, type (residential, commercial, industrial), tenure (freehold or leasehold), and any other relevant details. I would also identify any special features, restrictions, or unique attributes that could influence value. Undertake a Conflict of Interest Check – I would ensure there is no conflict of interest between the valuer and any parties involved for example the client, property owner or any other stakeholders. Letter of Instruction – A signed letter of instruction would be obtained setting out the scope of work, fee structure, terms and conditions, and any assumptions or limitations. Purpose of Valuation – I would determine the reason for the valuation with the client which could include mortgage security, taxation, financial reporting, legal disputes, insurance purposes, market sale or purchase decisions. Information Gathering – Data would be collected on the purchase price, relevant documents such as title deeds, leases, tenancy agreements, planning permissions, easements, legal constraints and environmental reports on the property. Inspection & Measurement – A physical inspection of the property would be carried out to assess its condition, layout, size and any structural issues. This would be carried out inline with the correct measurement standards that apply in the property location for example the RICS Measurement Standards in the UK. Research Market – Recent comparable sales, rental values, and market trends would be analysed in the local area the property is based in. Other factors such as market demand, supply, economic conditions and interest rates would also be considered. Valuation – An appropriate method of valuation would be selected such as the comparable sales method, yield method or depreciated replacement cost method. I would apply my professional judgement to adjust for other factors such as unique property characteristics or special values. Write Up & Issue the Report – Prepare the structured valuation report, including property details, the purpose and scope of the valuation, the valuation methodology used, supporting evidence, market analysis and final valuation figures with any assumptions made. This would be checked with a colleague to ensure compliance with relevant valuation standards (e.g. RICS Red Book). Question) What is the residual method and how is this applied? Answer) The main aim of the residual method of valuation is to establish how much a purchaser should pay for a development site. The gross development value is established first of all and there after all the costs associated with undertaking the development are then deducted. This leaves a surplus amount remaining which is also known as the residual value. This represents how much the developer can afford to pay for the development site or property. The GDV or gross development value forms a key part of the calculation and this is the aggregate market value of the development based on the special assumption that the development is complete at the date of valuation. The costs considered and deducted from the GDV will include – site preparation, construction, sales and marketing, contingency, financing fees and developer’s profit. Question) When is the Profit Method used and how is this undertaken? Answer) The profits method is derived from trade related properties where the value is derived from the business and its trading potential. This trading potential is the profit that a reasonably efficient operator would expect to realise from occupying the property. Examples of when the profits method would be used would include for hotels, schools, cinemas and theatres. The common characteristics of these properties is where the property has been designed for a specific use and the value is linked to what the owner can generate from the property. The value therefore reflects the trading potential of the property and it includes the property interest, business and locational good will and fixtures and fittings all reflected as a single figure. The Income and expenditure forecast is based on historical and comparable information. This forecast represents the fair maintainable turnover and fair maintainable operating profit that a reasonably efficient operator would hope to achieve. This is therefore considered a reasonably accurate forecast of the properties trading potential. The actual performance is compared with similar trade properties to determine whether the fair maintainable turnover is realistic based on current market conditions. As a final step the fair maintainable operating profit is capitalised at the appropriate rate of return to reflect the risks and rewards of the property to determine its trading potential. Evidence of accurate comparable market data should be analysed and applied. Question) What is the depreciated replacement cost method of valuation and how does this work? Answer) The depreciated replacement cost method provides an indication of value based on the buyer paying no more or no less than the cost to obtain the asset based on the current equivalent. The involves calculating the replacement cost of the asset with its modern equivalent including deductions for physical deterioration and all other relevant forms of obsolescence. This method is known as the method of last resort and used when it is impractical to use all other valuation methods. The cost approach is used to value unusual properties where there is no active market such as mosques, wharfs or refineries. Under the cost approach the capital value is determined by calculating the cost of building the equivalent asset and the purchase land value. The replacement build cost should be calculating using new and cost effective building materials and techniques. The total value of the new property is then adjusted for deterioration using evidential information and recent transaction values to calculate the land purchase cost. https://www.youtube.com/watch?v=iua517hkvOQ&t=15s Development Appraisal Question) What is a development appraisal? Answer) An objective financial viability test of the ability of a development project to meet its costs including the cost of its planning obligations, whilst ensuring an appropriate site value for the landowner and a market risk adjusted return to the developer in delivering the project. Question) When is a development appraisal useful? Answer) Development appraisals can be used in order to:- Establish the level of affordable housing. Assess the level and nature of planning obligation contributions. Review land uses. Inform a potential purchaser prior to acquisition of the site. Question) What is a sensitivity analysis? Answer) A sensitivity analysis is where you re-calculate the appraisal with different assumptions on inputs, for example an increase in build costs or a decrease in gross development value can identify what effect this has on the potential profit and the residual land value. Question) How would you calculate the sum of money available to purchase the land? Answer) The sum of money available for the purchase of land can be calculated from the value of the completed development (GDV) minus the costs of the development process (including profit). Question) What are some of the disadvantages of the Residual Valuation Method? Answer) Disadvantages of the Residual Valuation Method include:- Inflexibility in dealing with the precise timings of costs and revenues resulting in inaccuracies. Single best estimates hide uncertainty and the main variables cannot always be estimated with accuracy. Small changes in some of the variables can have a significant impact on the final residual value. Question) What key market conditions would you highlight when providing Development Appraisal advice to a client? Answer) I would highlight the importance of considering current rising interest rates and high levels of inflation that result in the following:- Rising borrowing costs depending on the financing model being adopted for the development could mean a lower level of return. Falling demand for commercial office space following the impact of Covid-19 and a shift towards home working could result in lower levels of rental income, longer void periods and a reduction in the Gross Development Value. There has been recent pull back of borrowing products from specialist lenders who are withdrawing competitive borrowing rates and being much more selective. High levels of inflation and a strong demand for specialist labour and building products has resulted in building costs remaining high resulting in increased build costs and lower levels of return for developers. Legal & Regulatory Compliance Question) What are the Building Regulations? Answer) The Building Regulations are made under powers provided in the Building Act 1984 and apply in England and Wales. They exist to ensure the health and safety of people in and around all types of buildings (domestic, commercial and industrial). They also contain provisions for energy conservation, access to and the use of buildings. Question) What is deemed to constitute Building work under the Act? Answer) Building Work is defined in Regulation 3 of the Building Regulations. The definition means that the following types of project amount to 'Building Work':- The erection or extension of a building. The installation or extension of a service or fitting which is controlled under the regulations. An alteration project involving work which will temporarily or permanently affect the ongoing compliance of the building, service or fitting with the requirements relating to structure, fire, or access to and use of buildings. The insertion of insulation into a cavity wall and the underpinning of the foundations of a building. Question) What are the approved documents? Answer) The approved documents provide guidance on how the Building Regulations can be satisfied. They have legal status under the Building Act 1984 and there are 14 Approved Documents in total. Question) Can you please name some of the approved documents? Answer) A — Structural. B — Fire Safety. C — Site preparation and resistance of moisture. D — Toxic Substances. E — The resistance to the passage of sound. F — Ventilation. G — Hygiene. H — Drainage and waste disposal. J — Combustion appliances and fuel storage systems. K — Protection from falling, collision and impact. L — Conservation of fuel and power. M — Access to and use of buildings. P — Electrical safety. Q – Security. Question) Who is responsible for ensuring compliance with the Building Regulations? Answer) The primary responsibility for achieving compliance with the regulations rests with the person carrying out the building work. If a client is carrying out the work in their name, the responsibility will be theirs. If the client employs a builder, the responsibility will usually fall to the builder they are appointing however they should confirm this position at the very beginning. Client’s should also bear in mind that if they are the owner of the building, it is ultimately the Client who may be served with an enforcement notice if the work does not comply with the regulations. Question) What are the 2 types of Building Regulations Application? Answer) The two types of Building Regulations Application include:- Building Notices – which are more suitable for minor residential alterations or extensions. No formal plans need to be issued for approval as the work is reviewed via site inspection. Work can commence 48 hours after issuing the building notice however the Building Control Officer must be notified when the works are being carried out so they can undertake an inspection. Full Plans application - where detailed plans, specifications and structural calculations are submitted to the council. These are checked by the local authority to ensure they meet the necessary regulations. Generally approval is given within 8 weeks although this can vary between local authorities. When the plans are satisfactory a formal approval is provided. In some cases a notice of rejection may be issued if they are not satisfactory. Question) What enforcement options are available under the building regulations? Answer) If a person carrying out building work contravenes the Building Regulations, the local authority or another person may decide to take them to the magistrates' court where they could be fined for the contravention. This action will usually be taken against the builder or main contractor, although proceedings must be taken within 6 months of the offence (section 127 of the Magistrates Courts Act 1980). Alternatively, or in addition, the local authority may serve an enforcement notice on the owner requiring them to alter or remove work which contravenes the regulations (section 36 of the 1984 Act). If the owner does not comply with the notice the local authority has the power to undertake the work itself and recover the costs of doing so from the owner. Question) Please provide four examples of work where planning permission is required? Answer) Planning permission is required in the following examples:- A new build construction situated on a vacant site. A new build extension that is not a permitted development. A change of use that is not a permitted change of use. The increase in the height of a fence adjacent to a highway above 1m in height. Question) What information is contained within a planning application? Answer) A planning application typically contains the following:- Name of the client. Name of the agent. Site address. Details of the works. Details of proposed materials. Plans and elevation drawings. Access statements. Inspection Question) What equipment would you take with you during a survey? Answer) Typically I would take the following equipment however this would depend on the nature of the inspection:- Pen. Paper or tablet to make notes. Camera. Disto or tape measure. Damp meter. Ladder. Question) What do you need to consider before going to site to carry out an inspection? Answer) I would firstly consider whether I am competent to undertake the inspection depending on the scope of service being provided. I would also need to ensure that I am properly insured to carry out the inspection. I would check that a formal appointment has been agreed and signed. A risk assessment and method statement should also be carried out to determine what risks are involved. I would ensure I know the kind of survey that is being provided and review all relevant existing building information available. Question) How do you undertake an inspection? Answer) Personally I prefer to undertake an inspection of a building from the top down. I would normally walk around the building externally a couple of times to get my bearings and get an initial understanding of:- An indication of the building’s age. Its form of Construction. Any additions or abnormal factors. I would then start the inspection externally and inspect each elevation in turn looking at the roof, elevations, windows, doors, drainage and rainwater goods. Then I would move inside and again start from the roof space and move down through the floors. Question) Have you heard of a theodolite and how does this work? Answer) A theodolite is an optical instrument consisting of a small mounted telescope that is rotatable in horizontal and vertical planes. They are mounted on a tripod with adjustable legs, the theodolite is used in the field to obtain precise angular measurements for triangulation. Levelling is accomplished with the aid of a spirit level where crosshairs in the telescope permit accurate alignment with the object sighted. Question) What precautions would you take if you were inspecting a flat roof with a stepped ladder on your own? Answer) I would prepare risk and method statements before undertaking the survey. I would consider the height of the roof if it was more than a single storey and look to arrange alternative access. The type of ladder being used should also be considered to ensure it is capable of being placed against the wall at an angle of 70 degrees and allows the surveyor to be able to inspect the roof without standing on the last four rungs of the ladder. Consideration would also be given to the condition of the roof in terms of whether it is fragile or suitable to be walked on. Question) What would you look for when inspecting a slated pitched roof covering and what would you look for within the roof space? Answer) I would consider:- The age of the property and roof. Whether the roofing materials are original. Whether the ridge is straight. Identify and consider any deflections or distortions. Identify any slipped or missing slates. Determine if previous repairs have been undertaken and consider specifically if repairs are numerous and to what standard they have been carried out. Identify if the leadwork to valley gutters, chimneys and other penetrations is in good condition. Identify if the chimneys are in good condition or whether they are leaning or require repointing. Visually inspect whether any light is identifiable from the outside when it is dark inside. Question) What advice would you give if slates were to be replaced by concrete tiles? Answer) Firstly concrete tiles are heavier than slates and may therefore impose a significant additional load that the roof structure, structure and foundations of the building have not been designed to take. It would therefore require a structural engineer to confirm if the existing roof structure, structure and foundations could accept this additional weight as it could lead to deflections in the roof, roof spread or settlement. Question) What would the statutory implications be when replacing slates with concrete tiles? Answer) If you are replacing the roof covering then you will be required to undertake thermal improvements to the roof under Part L of the Building regulations. This requires you to meet current guidelines as long as it is feasible and will provide pay back over a 15 year period. The change in roof covering could require consent from the local council if it is within a conservation area or it is a listed building. Measurement of Land & Property Question) When undertaking the measurements of a building, what factors are you governed by? Answer) When undertaking the measurement of a building, surveyors must adhere to the RICS Code of Measuring Practice, which provides clear and precise definitions to ensure the accurate measurement of buildings and land. The purpose of this code is to establish a standardised method for measuring sizes, areas, and volumes, ensuring consistency across the industry. This standardisation is particularly important for professionals involved in valuation, property management, conveyancing, planning, taxation, sales, lettings, and acquisitions, as it creates a common framework that enables comparability and reliability. The code follows a hierarchy of definitions, which includes gross external area, gross internal area, and net internal area. These classifications allow surveyors to define the scope of a property’s measurement based on its intended use, whether for valuation, design, or planning purposes. Question) What is the definition of GEA? Answer) The gross external area refers to the total enclosed space within the external boundary of a building, measured externally at each floor level. This measurement includes all built elements that form part of the structure, such as canopies, external balconies, fire escapes, and garden stores. Gross external area is often used in planning and development contexts, particularly when assessing total building footprints, density, or site coverage. Question) What is the definition of GIA? Answer) The gross internal area, on the other hand, measures the total floor area within the internal face of the external walls. Unlike gross external area, this excludes external elements but includes internal structural features such as columns, mezzanines with permanent access, loading bays, and lift wells. Gross internal area is a crucial metric for architects and developers when calculating usable floor space, particularly for commercial and industrial properties. Question) What is the definition of NIA? Answer) The net internal area represents the usable space within a building, measured up to the internal face of external walls, and excludes areas that do not contribute to usable floor space. This includes atria with clear height above, measured only at base level, as well as kitchens, built-in cupboards, and notional lift lobbies. Net internal area is particularly relevant for lettable office space, retail environments, and any property where the amount of usable space directly impacts rental value. Question) What are the NRM? Answer) The New Rules of Measurement, introduced by the Royal Institution of Chartered Surveyors, provide a structured approach for measuring building works. The rules of cost estimating and elemental cost planning create a consistent framework for estimating costs and defining measurement standards. These rules are widely used in construction cost management, allowing professionals to apply a systematic approach when dealing with cost estimation and planning. Question) What are measured surveys? Answer) A measured survey is the process of accurately documenting the dimensions of a building or site to produce detailed drawings. These surveys are conducted to an agreed level of detail, ensuring compliance with specified accuracy tolerances, scales, delivery formats, and costs. Historically, measured surveys were presented as two-dimensional hard-copy line drawings, including topographical plans, floor plans, sections, and elevations. However, with advancements in digital technology, modern surveys now frequently use three-dimensional models, providing enhanced visualisation and integration with building information modelling. Question) What is Building Information Modelling? Answer) Building information modelling is a digital approach to creating and managing information throughout the lifecycle of a built asset. It is based on an intelligent model, supported by a cloud-based platform, and integrates structured, multi-disciplinary data. Building information modelling facilitates improved planning, design, construction and operational efficiency by allowing stakeholders to collaborate using a shared digital model. This approach helps to minimise errors, improve cost management, and enhance the overall efficiency of a project. Question) What information would you typically look to obtain from a seller or occupier? Answer) When obtaining information from a seller or occupier, it is essential to gather details that help assess the history and condition of the property. A key question is how long the seller has lived in the property, as this provides context for any changes or issues that may have arisen. Information on structural alterations, including approximate dates, planning permissions, and building regulation approvals, is crucial for ensuring compliance and assessing the impact of modifications. Additionally, it is important to inquire about any known defects or recurring problems that the property may have experienced. Understanding the age and maintenance records of service installations, particularly for central heating boilers, helps gauge the remaining lifespan of critical systems. For properties with private drainage systems, sellers should confirm the usual emptying arrangements, ensuring that new owners are aware of ongoing maintenance responsibilities. Finally, establishing ownership and maintenance obligations for shared boundaries and access areas is essential to prevent disputes and clarify responsibility for communal spaces. Commercial Real Estate Questions & Answers Free PDF To receive a PDF copy of the above questions and answers via e-mail please click here RICS APC Q&A STUDY GUIDES QUANTITY SURVEYING BUILDING SURVEYING COMMERCIAL REAL ESTATE VALUATION PROJECT MANAGEMENT