Propertymark / NAEA Qualification (Level 3 Estate Agency) Property Condition, Surveys and Compliance Obligations Flashcards

24 sample cards from the Property Condition, Surveys and Compliance Obligations deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. How is a 'higher-risk building' defined under the Building Safety Act 2022 (occupation/in-use threshold)?

   In England, a building at least $18\text{ m}$ in height, or having at least $7$ storeys, that contains at least $2$ residential units.

2. What new regulator did the Building Safety Act 2022 establish, and who is it?

   The Building Safety Regulator, operating within the Health and Safety Executive (HSE), responsible for overseeing the safety of higher-risk buildings and the wider built environment.

3. What is the role of the 'Accountable Person' under the Building Safety Act 2022?

   For an occupied higher-risk building, the Accountable Person (typically the owner/landlord responsible for the structure or common parts) must assess and manage building safety risks, register the building, and hold a safety case.

4. What is a Building Regulations completion certificate and why does it matter on a sale?

   It is the certificate confirming that building work has been inspected and complies with the Building Regulations. Buyers/conveyancers require it as evidence that works (e.g. extensions, electrics) were lawful and properly carried out; its absence can stall a sale.

5. What is the distinction between planning permission and Building Regulations approval?

   Planning permission controls the use, appearance and impact of development on the area; Building Regulations control the technical construction standards (structure, fire, energy, safety). A project can require one, both, or neither, and they are granted under separate regimes.

6. What are 'permitted development rights'?

   Rights granting deemed planning permission for certain types of minor development (e.g. some extensions, loft conversions) without a full planning application, subject to limits and conditions; they can be removed by Article 4 directions or on certain property types.

7. What is the risk of 'unauthorised works' discovered during a transaction, and how is it commonly resolved?

   Works done without required planning permission or Building Regulations approval may be subject to enforcement and are hard to mortgage. Resolution options include obtaining a regularisation/retrospective certificate, a Lawful Development Certificate, or indemnity insurance.

8. What is the standard planning enforcement time limit after which most breaches become immune (in England, post-2024)?

   $10$ years for most planning breaches (the previous $4$-year rule for operational development and changes of use to a single dwelling was aligned to $10$ years under the Levelling-up and Regeneration Act provisions effective 2024).

9. What does current law require for smoke alarms in rented residential property in England?

   At least one smoke alarm on each storey of the property used as living accommodation, with landlords responsible for ensuring alarms are present and in working order at the start of each tenancy.

10. What are the carbon monoxide alarm requirements for rented homes in England (from 2022)?

    A carbon monoxide alarm must be fitted in any room used as living accommodation that contains a fixed combustion appliance (excluding gas cookers), e.g. a boiler, wood burner or gas fire.

11. How often must a landlord obtain a gas safety check, and who can carry it out?

    Annually — a Gas Safety Record (CP12) is required every 12 months on all gas appliances and flues, carried out by a Gas Safe registered engineer, with a copy given to tenants.

12. Under the Electrical Safety Standards (private rented sector) regulations, how often must rented homes have an EICR?

    At least every $5$ years (or sooner if the report specifies), with the report provided to tenants and any C1/C2 remedial work completed within 28 days.

13. What is buildings insurance and who is typically responsible for arranging it in a sale?

    Insurance covering the physical structure (and often permanent fixtures) against risks like fire, flood and subsidence. The buyer is usually advised to insure from exchange of contracts, as risk in the property commonly passes to the buyer on exchange.

14. What does the reinstatement (rebuild) value on an insurance valuation represent, and how does it differ from market value?

    The reinstatement value is the cost to rebuild the property from scratch (including demolition, materials, labour and fees); it is for setting the buildings sum insured and is usually different from — and often lower than — the open-market value, which includes land.

15. What is contents insurance and how does it differ from buildings insurance?

    Contents insurance covers movable possessions and personal belongings inside the property (furniture, electronics, valuables), whereas buildings insurance covers the fixed structure and permanent fixtures.

16. What is Professional Indemnity Insurance (PII) and why must estate agents carry it?

    Cover protecting an agent against claims of negligence, errors or omissions in their professional advice or services (e.g. negligent valuation or misdescription). It is a requirement of professional bodies (e.g. Propertymark/NAEA membership) and protects both agent and client.

17. On what basis is most Professional Indemnity Insurance written, and what does that mean?

    On a 'claims made' basis — the policy that responds is the one in force when the claim is made (notified), not when the work was done. This makes maintaining continuous cover (and run-off cover after ceasing trading) essential.

18. What is a Client Money Protection (CMP) scheme and what does it do?

    A scheme that reimburses landlords and tenants if an agent misappropriates or loses client money (e.g. rent, deposits, fees) held on their behalf, protecting consumers against agent insolvency or fraud.

19. Is membership of a Client Money Protection scheme mandatory for letting agents in England?

    Yes — since April 2019 it is a legal requirement for letting and property management agents in England who handle client money to belong to a government-approved CMP scheme and display proof of membership.

20. What is the difference between a warranty and a guarantee on building works?

    A guarantee is generally a free promise from the contractor/manufacturer to remedy defects for a period; a warranty is typically a backed insurance-type product (often insurance-backed) that protects the homeowner even if the original contractor ceases trading.

21. What is a structural warranty (e.g. NHBC Buildmark) and how long does it typically last?

    An insurance-backed warranty on new-build or converted homes covering major structural defects; the NHBC Buildmark provides a typical $10$-year cover (with the first $2$ years being the builder's defect liability period).

22. Why should buyers be advised to check that guarantees on works (e.g. damp-proofing) are transferable and insurance-backed?

    A guarantee from a firm that has since ceased trading is worthless unless it is insurance-backed (so a third party honours it), and it must be assignable to the new owner to be of value on resale.

23. When comparing a Level 2 (HomeBuyer) survey with a Level 3 (Building) survey, what are the key differences in depth and reporting?

    Level 2 is a 'surface-level' visual inspection with condition ratings and is non-intrusive, suited to standard modern homes; Level 3 is far more detailed, may investigate the construction and likely causes of defects, advises on repairs and timescales, and suits older/unusual/altered properties — at a higher cost.

24. What is an 'indemnity policy' in conveyancing and when is it commonly used?

    A one-off insurance policy that protects the buyer (and lender) against financial loss arising from a defect in title or compliance — such as missing Building Regulations certificates, breach of restrictive covenant, or unauthorised works — where the issue cannot otherwise be regularised.

What this deck covers

Property Condition, Surveys and Compliance Obligations flashcards FAQ