RICS Assessment of Professional Competence (APC) Planning, Development and Land Flashcards

24 sample cards from the Planning, Development and Land deck

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

1. What is the "profit on cost" vs "profit on GDV" comparison, and how do you convert between them?

   Profit on cost = Profit / Total Cost; Profit on GDV = Profit / GDV. Since GDV = Cost + Profit, profit on cost is always higher than profit on GDV for the same scheme. E.g. 20% on cost ≈ 16.7% on GDV: $\frac{0.20}{1.20} = 0.167$.

2. In appraisal risk analysis, what is sensitivity analysis and what is its main limitation?

   Varying one input at a time (e.g. GDV, build cost) to see the effect on the residual/profit. Limitation: it changes variables in isolation and ignores correlations and probabilities; scenario or Monte Carlo simulation addresses this by varying multiple inputs together.

3. What is a Compulsory Purchase Order (CPO) and what must an acquiring authority demonstrate to obtain one?

   A legal order allowing an authority to acquire land without the owner's consent. The authority needs statutory powers, a "compelling case in the public interest," and the CPO must usually be confirmed by the relevant Secretary of State, with human rights (Article 1, Protocol 1) considered.

4. Outline the main stages of the CPO process from making to taking possession.

   (1) Resolution and making of the CPO; (2) notification/service on owners and publication; (3) objection period; (4) public inquiry/hearing if objections; (5) confirmation by Secretary of State; (6) service of Notice to Treat and Notice of Entry (or General Vesting Declaration); (7) taking possession; (8) compensation assessed/agreed.

5. What is the difference between a Notice to Treat and a General Vesting Declaration (GVD)?

   Notice to Treat invites the owner to negotiate compensation; title passes only on completion/entry. A GVD vests legal title in the acquiring authority on a specified vesting date without a conveyance. Both are mechanisms to implement a confirmed CPO.

6. What is the "compensation code" and what is its overriding principle?

   The body of statute and case law (chiefly the Land Compensation Acts 1961 & 1973, Compulsory Purchase Act 1965) governing CPO compensation. Its overriding aim is the principle of equivalence: the claimant should be neither better nor worse off in money terms than before the acquisition.

7. List the main heads of claim for compensation on compulsory acquisition.

   (1) Value of land taken (open market value); (2) Severance and injurious affection (loss to retained land); (3) Disturbance and other losses (e.g. relocation, business losses); plus statutory loss payments (basic/occupier's/home loss payments). Together often summarised as "value + injurious affection/severance + disturbance."

8. State Rule 2 of the six rules in section 5 of the Land Compensation Act 1961.

   The value of land is taken to be the amount it would realise if sold on the open market by a willing seller (open market value).

9. What is "injurious affection" and how does it differ from "severance"?

   Severance is the loss in value to retained land caused by splitting a holding when part is taken. Injurious affection is the reduction in value of retained land caused by the use/works on the land taken (or, under s10 CPA 1965, where no land is taken). Both compensate damage to land not acquired.

10. What is "disturbance" compensation and name two typical disturbance items.

    Compensation for losses, other than land value, that flow naturally from being disturbed from occupation. Examples: removal/relocation costs, business losses/loss of profits, professional fees, temporary loss of trade, adaptation of new premises.

11. Explain the "no-scheme principle" (Pointe Gourde) in compulsory purchase compensation.

    Compensation is assessed disregarding any increase or decrease in value caused by the scheme underlying the acquisition. The land is valued in the "no-scheme world" so the claimant neither gains nor loses from the scheme itself — codified as the no-scheme principle in ss14–17 LCA 1961 (as amended by the Neighbourhood Planning Act 2017).

12. How does the no-scheme principle relate to the principle of equivalence?

    The no-scheme principle is a tool to achieve equivalence: by stripping out scheme-driven value changes, it ensures the claimant is put in the same financial position as if the scheme (and acquisition) had never happened — neither better nor worse off.

13. What is a "certificate of appropriate alternative development" (CAAD) and why does it matter for compensation?

    A certificate (under s17 LCA 1961) stating what planning permission would have been granted in the no-scheme world. It establishes the planning assumptions for valuing the land taken, potentially increasing the value reflecting hope/development value.

14. Distinguish registered and unregistered land in England & Wales, and name the governing statute.

    Registered land has title recorded at HM Land Registry with a guaranteed title; unregistered land's ownership is proved by deeds. The Land Registration Act 2002 governs registration, which is now compulsory on most dispositions ("triggers").

15. What are the three registers that make up a registered title at HM Land Registry?

    (1) The Property Register (describes the land/estate and rights benefiting it); (2) the Proprietorship Register (owner's name, class of title, restrictions); and (3) the Charges Register (burdens such as mortgages, covenants, easements).

16. Distinguish freehold and leasehold tenure.

    Freehold (fee simple absolute in possession): ownership for an indefinite period. Leasehold (term of years absolute): a right to occupy for a fixed term granted by a landlord, subject to rent and covenants, reverting to the landlord at expiry.

17. What is the legal definition of an easement and the four essential characteristics from Re Ellenborough Park?

    A right enjoyed by one landowner over the land of another. The four characteristics: (1) there must be a dominant and a servient tenement; (2) the easement must accommodate (benefit) the dominant tenement; (3) the two tenements must be owned/occupied by different persons; and (4) the right must be capable of forming the subject matter of a grant.

18. How does a restrictive covenant differ from an easement, and can the burden of a positive covenant run with freehold land?

    A covenant is a promise in a deed restricting (restrictive) or requiring (positive) use of land; an easement is a property right of user over another's land. The burden of a restrictive covenant can bind successors in equity (Tulk v Moxhay); the burden of a positive covenant does not run with freehold land at common law.

19. What is a wayleave, and how does it differ from an easement?

    A wayleave is an agreement (often a personal licence) allowing a utility/statutory undertaker to install and access equipment (e.g. cables, pipes) over private land, usually for an annual payment and typically terminable. An easement is a permanent property right binding successors; a wayleave is generally temporary/personal.

20. What is the purpose of the Party Wall etc. Act 1996 and the key first step a building owner must take?

    It regulates works to party walls/structures, excavation near neighbouring buildings, and new walls at the boundary, providing a framework to prevent and resolve disputes. The building owner must serve a Party Wall Notice on adjoining owners before starting notifiable work (generally 1 month for line-of-junction/excavation, 2 months for party structure notices).

21. Under the Party Wall etc. Act 1996, what happens if an adjoining owner dissents from the notice?

    A dispute arises and is resolved by surveyors: the parties either agree a single "agreed surveyor," or each appoints a surveyor and those two select a third. The surveyor(s) produce a binding Party Wall Award setting out the works, access, and costs.

22. How is a boundary determined when the legal boundary is disputed, and what is the difference between a general and a determined boundary?

    HM Land Registry plans show "general boundaries" only (the exact line is undetermined). A "determined boundary" is a precise legal line fixed by application under the Land Registration Act 2002. Disputes are resolved by reference to deeds, plans, the "hedge and ditch" presumption, and evidence of use, potentially via the First-tier Tribunal.

23. What is a public right of way and what are the main classifications recorded on the Definitive Map?

    A highway over which the public has a right to pass. Classifications: footpath (on foot), bridleway (foot, horse, bicycle), restricted byway (non-mechanically propelled vehicles), and byway open to all traffic (BOAT). They are recorded on the Definitive Map and Statement maintained by the highway authority.

24. What rights do statutory undertakers have over land, and give two examples of statutory undertakers.

    Statutory undertakers (e.g. electricity, gas, water, telecoms, railway operators) have statutory powers to install, access and maintain apparatus, acquire wayleaves/easements and sometimes use compulsory powers. Examples: a water company or a National Grid electricity operator.

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