RICS APC Commercial Property Management 2

Question 1

Under Section 18(1) of the Landlord and Tenant Act 1927, what statutory cap applies to a landlord's terminal dilapidations claim?

Accepted Answer

The claim cannot exceed the diminution in value of the landlord's reversion caused by the disrepair

Answer

The claim is capped at one year's passing rent

Answer

The claim is limited to the actual cost of works carried out by the landlord

Answer

The claim is capped at the rateable value of the demised premises

Question 2

What is a 'break clause' in a commercial lease?

Accepted Answer

A clause allowing one or both parties to terminate the lease before the contractual expiry date

Answer

A clause entitling the landlord to forfeit the lease for persistent non-payment of rent

Answer

A clause that automatically renews the lease unless written notice is served by a specified date

Answer

A clause suspending the tenant's rent obligations during a force majeure event

Question 3

What is the purpose of a 'schedule of condition' attached to a commercial lease?

Accepted Answer

To record the property's condition at lease commencement, limiting the tenant's repairing obligation to no better than that recorded state

Answer

To record all fixtures and fittings included in the letting for inventory purposes

Answer

To schedule planned maintenance works to be carried out during the tenancy

Answer

To document the tenant's proposed alterations that require landlord consent

Question 4

Under the Landlord and Tenant Act 1988, what obligations are placed on a landlord when a tenant requests consent to assign a commercial lease?

Accepted Answer

The landlord must not unreasonably withhold or delay consent and must give a written decision within a reasonable time

Answer

The landlord may withhold consent for any reason, provided written notice is given within 28 days

Answer

The landlord must grant consent automatically if the proposed assignee meets the original tenant's financial covenant

Answer

The landlord has 56 days to grant or withhold consent with no obligation to provide written reasons

Question 5

What does 'alienation' mean in the context of a commercial lease?

Accepted Answer

The tenant's rights to deal with the lease interest by assignment, subletting, or charging

Answer

The landlord's right to forfeit the lease for a material breach of covenant

Answer

The legal separation of the leasehold interest from the freehold title on registration

Answer

The process of removing a tenant who has vacated and abandoned the property

Question 6

Under the RICS Professional Statement 'Service Charges in Commercial Property', when must a service charge budget be issued to tenants?

Accepted Answer

Before the start of the service charge year to which it relates

Answer

Within 28 days of the end of the previous service charge year

Answer

Within three months of the commencement of the service charge year

Answer

At any point during the year provided six weeks' notice is given to tenants

Question 7

What is a 'certified service charge account' in commercial property management?

Accepted Answer

An annual reconciliation account signed off by a surveyor or accountant confirming expenditure is accurate and in accordance with the lease

Answer

An account approved by the Leasehold Valuation Tribunal as fair and reasonable

Answer

A service charge account backed by a performance bond from the managing agent

Answer

An account certified by HMRC as exempt from VAT under property management rules