Unit 4 (PRPM) Example Examination Paper and Mark Scheme Please be aware the live examinations are taken at a Pearson VUE test centre and the layout will be different to this example paper. During live examinations you will not be presented with the Mark Scheme, these are intended to aid your study and not as a practice to guide you on whether you are exam ready. There is only this one example paper available for this unit and there is no feedback provided or discussion around the content. Please do not contact the Awarding Body for feedback or to mark your paper. You will find a sister document which contains example answers, which you can use to see if you could have achieved a Pass or Distinction, again these are not for discussion and should only be considered to aid your practice. See the following pages which contain the scenarios and linked questions which have been created as practice and no content within this document will be presented during the live examinations.
Scenario 1 A landlord has written to their ARLA regulated agent to complain that having visited his property after an absence of two years, he was appalled to see how the property had deteriorated. The landlord now accuses the agent of not carrying out property visits as no visit reports, check-out reports or updated inventories were ever seen. The agent responds by stating that their terms of business do not state they will send reports, inventories etc. to the landlord, so they are not in breach of their terms. The landlord has indicated that he intends to take the matter further. Question 1 of 2 Giving reasons for your answer, consider if the agent is right in stating they are in the clear because their terms were non-specific? Consider also what steps the agent should have taken to prevent accusations of bad management practice? (50% of the marks for this scenario will be The key points to consider in this question which would provide a competent answer include: Should conclude that the agent owes a liability. Agent has a duty of care to be competent and for the avoidance of doubt should have set out clearly in their terms what they will do and also what they will not do. The agency agreement will set down the express requirements of the agency but implied agency terms will lead to best practice requirements i.e. what would be expected of the good agent. Given the agent is acting as a specialist operator the law would presume that he should know how to avoid a misunderstanding occurring. As a matter of good practice, the agent should have kept the landlord informed about the condition of his property and the conduct of the tenant where these cause issues. A distinction answer may build still further with detail on the steps to be taken.
Your answer Strong document trails will be an essential part of the process with some form of recognised reporting mechanisms put in place to handle communication with the landlord. Consideration should also be given to the possibility that may escalate into a dispute.
Scenario 1 A landlord has written to their ARLA regulated agent to complain that having visited his property after an absence of two years, he was appalled to see how the property had deteriorated. The landlord now accuses the agent of not carrying out property visits as no visit reports, check-out reports or updated inventories were ever seen. The agent responds by stating that their terms of business do not state they will send reports, inventories etc. to the landlord, so they are not in breach of their terms. The landlord has indicated that he intends to take the matter further. Question 2 of 2 Explain what options the landlord could follow to pursue his complaint should he not be happy to accept the agent s response and what redress the landlord might expect if his complaints were upheld? (50% of the marks for this scenario will be The key points to consider in this question which would provide a competent answer include: The terms of business should guide on the fact that a complaints handling procedure is available (and should be easily available on request) There should be a two-stage internal procedure for complaints (direct with the agent and then an internal/external review) Subject to ARLA's code of practice, but recognise that a complaint must go through the ombudsman first. Ultimately action could be taken through to court (e.g. for a breach of contract) The outcome of any complaint will centre on (a) possible remedial action and/or (b) a sanction (if the redress scheme provides) On remedial action, the agent could be issued with an informal response of suggestions, a warning, or a formal response to rectify his policies and procedures; the firm may be asked to enter into an undertaking in respect of actions and could pay redress to the landlord (this latter point action probably ranking highest with the landlord). The extent to which the answer gives details will lead the marker to a distinction answer.
Your answer On the sanction side, the landlord might expect the agent to be fined, enter into an undertaking, suspended and expelled/banned from the scheme.
Scenario 2 You have just carried out a property visit to a Victorian detached house which is double glazed and has gas central heating. The kitchen is a single storey extension at the rear. You noted black mould growth on the plasterwork behind a free standing wardrobe in the main bedroom and on the rear wall of the kitchen. In addition the tenant reported that the bulbs for the inset spotlights in the kitchen keep blowing. Question 1 of 2 Explain the possible causes for the mould growth in the two areas mentioned and the remedies that would be required. (60% of the marks for this scenario will be Would make mention of either condensation or penetrating damp for both areas together with a cause and a possible remedy. A better pass would be mention of both with causes and remedies. However the extent of the remedies covered would be more limited than those described below for the distinction answer. Causes to penetrating damp: Poor design and workmanship/deterioration of materials. Weaknesses in a building such as: Solid walls facing prevailing winds/blocked, leaking gutters/poor flashing to chimneys/defective windows, doors/blocked cavities in walls/defective lintels/cracks in walls/holes in roof. Causes of condensation: lifestyle choices with poor heating and ventilation/high levels of humidity/on cold surfaces i.e. windows/cold spots reducing surface temperature i.e. walls or ceilings/extensions to flat roofs due to lack of insulation/portable gas heater usage Remedies for penetrating damp: gutter repaired/flashings repaired/hole in roof repaired/etc. Clean out cavity wall/silicon liquid for solid walls/clad walls in slates or similar/applying render/internal waterproof render doesn t cure just masks. Remedies for condensation: Clean off mould with weak ammonia solution/re-plastering if necessary. Improve ventilation. The distinction answer would not need to cover all remedies given below, but would need to cover the principle points surrounding the damp issue which may have arisen for one or more different reasons. The distinction answer would be highlighting that either area could be condensation or penetrating damp giving reasons and remedies.
Your answer
Scenario 2 You have just carried out a property visit to a Victorian detached house which is double glazed and has gas central heating. The kitchen is a single storey extension at the rear. You noted black mould growth on the plasterwork behind a free standing wardrobe in the main bedroom and on the rear wall of the kitchen. In addition the tenant reported that the bulbs for the inset spotlights in the kitchen keep blowing. Question 2 of 2 You have been approached by a contractor who has just set up in business and you would like to use him for the problem with the spotlights. Explain what information you will need to obtain about the contractor before adding him to your portfolio of contractors. (40% of the marks for this scenario will be Your answer Would go through the basic steps of contractor approval including the essence of taking references, checking out liability insurance and payment terms. Some mention may be made of contractual responsibilities and even Part P qualification, but this will not be taken to any great depth. Would be a detailed coverage of all the requirements for contractors including the terms of the contract, fees and payment terms, contacts etc. and may mention such additional items as VAT registration, risk assessment plans etc. The answer will cover Part P and that this would not be necessary if it is just down to changing cheap bulbs!
Scenario 3 William runs a multi-discipline high street agency which includes surveying, property sales, residential lettings and property management, and insurance broking. He encourages all his staff to become trained in many aspects of the business. Question 1 of 2 Explain the difference between the advice on insurance matters that could be given by an FCA approved employee and one who was not approved. Identify also the various options the firm has in being regulated to give customers advice under the FCA regulations. (50% of the marks for this scenario will be Will state that unregulated employees can give no advice whereas as FCA regulated employee is authorised to give advice on insurance products. Will consider limitations of this on William s firm. Will identify that a firm can be appointed at various levels without giving a full list, each category giving more responsibility and opportunity to advise clients. Will give reasonable detail on scope of advice able to be given by regulated employee and also ability to deal with insurance claims. Will explain that regulated employee will be able to give comparative and product specific advice. Will give categories of authorisation as being a principal firm, appointed rep, introducer appointed rep or non-regulated with brief explanation of each category. Your answer
Scenario 3 William runs a multi-discipline high street agency which includes surveying, property sales, residential lettings and property management, and insurance broking. He encourages all his staff to become trained in many aspects of the business. Question 2 of 2 William runs all sections of his business individually, and keeps a separate account for holding clients money. Explain the term client s money and what rules must be observed when managing this clients account. (50% of the marks for this scenario will be Will correctly identify client money as rent, deposits, money for repairs and other monies held for another party. Will recognise that client money must be kept separately from company funds in a client account identified by the bank as separate from company trading account and ring-fenced in event of the agent becoming bankrupt. Will state that client accounts cannot go overdrawn nor can individuals accounts within the client account pot. Will give more detail using correct terminology and reference to regular reconciliations and annual audit and compliance with ombudsman or professional bodies such as ARLA or RICS. Will recognise that with exception of AST deposits, no statutory controls exist to control agent client accounts except the common law obligation to account in full. Your answer
Scenario 4 A landlord is getting frustrated with continual complaints he has received over the past 3 months regarding the tenants in his property. Most complaints focus on the noise made by the tenant s children (there are five children aged 3-17 years old), but there has now been a complaint to the police regarding a violent incident involving the parents and a neighbour. Question 1 of 2 Although you are not managing the property, the landlord has sought your advice to help him decide how best to deal with this. Referring to relevant authority and current legislation, explain what action the landlord might take. (50% of the marks for this scenario will be Will cover much of the following: Will draft sensible advice giving good and relevant detail Will refer to probable obligations under the tenancy agreement not to cause nuisance or undue noise Will advise personal intervention (personal visit or telephone call) in first instance and try to encourage compliance If personal intervention does not solve problem then to write to tenants to advise specific breach under the tenancy agreement and warn of consequences of not complying Will mention right to regain possession if a tenancy under housing act by serving notice under section 8 (but not referring to which ground) If tenancy is close to expiry could serve section 21 or plan to otherwise end tenancy in event of contractual tenancy Will mention the noise nuisance could be dealt with through local authority under Environmental Protection Act (EPA) 1990 May refer to other legislation including Noise Act 1996 and Anti-Social Behaviour Act 2003. Fail answer will deal with matter briefly and Will stand out by reference to most of the following also: Will reference that action under the tenancy will be determined by the type of tenancy and will not assume tenancy to be under the Housing Act 1988 Courts will expect to see efforts from parties to resolve issue without simple reference to the courts Ground for nuisance under section 8, Housing Act 1988 is Ground 14 of schedule 2 Under EPA1990 local authority can issue an abatement order
Your answer generically without mention of specific legislation or will name wrong legislation
Scenario 4 A landlord is getting frustrated with continual complaints he has received over the past 3 months regarding the tenants in his property. Most complaints focus on the noise made by the tenant s children (there are five children aged 3-17 years old), but there has now been a complaint to the police regarding a violent incident involving the parents and a neighbour. Question 2 of 2 Advised by the agent of his options, the landlord decides he will end this Assured Shorthold Tenancy which is 6 weeks from expiry. Explain how this would be dealt with, detailing an effective check out procedure that the landlord should follow, giving due consideration to the fact that the deposit is held in a custodial scheme and there are expected to be considerable dilapidations. (50% of the marks for this scenario will be This will cover much of the following: Arrangement should be made for collection or depositing of keys If there is an inventory a formal check out will be prepared either by an independent clerk or by the landlord Check out will cover Differences between inventory and condition at the end of the tenancy Final meter readings Details of missing or broken items Details of tenants possessions/rubbish left behind Noting keys returned Should obtain details of tenant s forwarding address Copy of check out findings should be sent to tenant Should negotiate and agree terms for return of deposit and any deductions to be made Tenant must be allowed fair wear and tear and Landlord not entitled to betterment Will recognise that deposit release or deductions will require consent from both parties Deposit scheme will have Alternative Dispute Resolution (ADR) to use if agreement cannot be reached between the parties Must recognise that undisputed sums have to be returned to the tenant within 10 Will be recognised by reference to much of the following in addition: Will mention that check out should be carried out immediately after tenants vacate and tenant should be given opportunity to attend though they have no legal right May mention that remedies for damage are repair, replacement or compensation Landlord must prove any damages claimed Mention apportionment of replacement/ repair cost must be allowed relative to age and condition at commencement of the tenancy and the length of occupation Will recognise that deposit is held by the custodial scheme not the landlord May note that lead legislation for deposit protection is Housing Act 2004
working days. Fail will be due to a lack of detail provided or a coherent procedure. Will not recognise relevance of deposit being held in a custodial scheme nor mention ADR. Your answer
Scenario 5 A large part of Buy2Let s portfolio is property leased to students. This often means that a single property becomes occupied by a number of individual students and their partners. Question 1 of 2 A two storey terraced property is leased to two students. Buy2Let discovers that one of the students has moved their partner into the property. You are not sure whether this is a permanent or temporary situation. With reasons, what advice should Buy2Let give their landlord client should this position arise? (50% of the marks for this scenario will be Your answer Some discussion needs to be considered over the permanent/temporary position and just how temporary this is! Will identify that this would now become an ordinary HMO and planning consent may be required. Landlord should be advised that consent may not be granted and third person should be treated as permitted occupier on a licence to occupy which can be revoked if required. HMO licence unlikely to be required unless location is area under local authority selective or additional licensing order. Will mention some of the requirements of an HMO property. Will give more detail of circumstances that create an HMO and criteria for mandatory licensing (5 persons; 2 or more households, property 3 storeys or more). Best answers will confirm potential penalties for noncompliance. Will give more detail of requirements for an HMO and additional requirements should the HMO require mandatory licensing. Will advise Landlord that best course may be to require restoration of just 2 occupiers.
Scenario 5 A large part of Buy2Let s portfolio is property leased to students. This often means that a single property becomes occupied by a number of individual students and their partners. Question 2 of 2 One of Buy2Let s landlords has just applied for a licence to create an HMO as they understand that the demand is strong for such rental properties. They have asked for advice on the likely requirements for bathrooms, kitchens and any other key requirements. With reasons, what advice would you give your client? (50% of the marks for this scenario will be Your answer Will advise that requirements will vary from local authority. The answer will detail some of the conditions required such as toilets, number of toilets and bathroom amenities, adequate cooking and food storage facilities, gas safety records, furniture safety, alarms and fire issues. Will give more detail and identify more of the items set out in study material including the requirement that all furniture supplied must be safe, both gas and electrical safety certificates are a legal requirement and a fire detection system will be required. Further more specific advice will be covered such as where toilets and bathrooms are positioned and that kitchen fittings must give adequate food preparation and storage areas, that adequate power points are available and that there is a suitably sized sink and draining board.