This document introduces the second edition of the RICS Commercial Real Estate Agency Standards (Purple Book). It establishes a hierarchy of mandatory, best practice, and informational standards for RICS members. The Purple Book itself is a mandatory professional statement that applies to all RICS members involved in commercial real estate sales, letting, leasing, and management. It requires members to act with integrity and provide clients with fair, clear terms of engagement that meet legal and regulatory requirements.

1. Introducing the RICS Commercial Real Estate
Agency Standards, 2nd edition (Purple Book)
Simon Wainwright FRICS Director JPW Real Estate
Chairman RICS Commercial Property Board

3. Requires members to act in the public interest
RICS Royal Charter

4. Mandatory, Best Practice or Information
Standards Hierarchy
Standard
► International standard MANDATORY
Professional statement
► RICS professional statement MANDATORY
Guidance
► RICS code of practice MANDATORY OR BEST PRACTICE
► RICS guidance note (GN) BEST PRACTICE
Information
► RICS information paper (IP) INFORMATION
► RICS Insights INFORMATION
► Economic reports INFORMATION
► Consumer guides INFORMATION
► Research INFORMATION

5. RICS Professional Statement - UK Commercial Real Estate Agency
International Standards
►International Valuation Standards
►International Property Measurement Standards
►International Ethical Standards

6. There are five standards
Ethical & Professional Standards
What are the five ethical principles which
all members must comply with?

7. There are five ethical standards
Ethical & Professional Standards
►Act with integrity
►Always provide a high standard of service
►Act in a way that promotes trust in the
profession
►Treat others with respect
►Take responsibility

8. Part 1: Real estate agency and brokerage and real estate
management: RICS practice statement
RICS Professional Statement

9. You have a duty to comply with a number of standards, official codes, redress
schemes and ethical codes.
Real Estate Agency & Brokerage Guidance
These include:
► Real estate agency and brokerage and real
estate management: RICS practice statement,
2nd edition (November 2014).
► Real estate agency and brokerage guidance:
RICS guidance note, 2nd edition (November
2014).
► http://www.rics.org/uk/knowledge/professional-
guidance/practice-statements/real-estate-
agency-and-brokerage-guidance-2nd-edition/

10. This mandatory professional statement applies to all RICS members involved with the sale,
letting, leasing and management of real estate, whatever the form of tenure by which it is held
or occupied. Members are required:
Real Estate Agency & Brokerage Guidance
1 To conduct business in an honest, fair, transparent and professional manner.
2 To carry out work with due skill, care and diligence, and ensure that any staff employed have the
necessary skills to carry out their tasks.
3 To ensure that clients are provided with terms of engagement that are fair and clear. These should
meet all legal requirements and relevant codes of practice including reference to complaints
handling procedures and, where it exists, an appropriate redress scheme.
4 To do the utmost to avoid conflicts of interest and, where they do arise, to deal with them openly,
fairly and promptly.
5 Not to discriminate unfairly in any dealings.
6 In all dealings with clients, to ensure that all communications (both financial and nonfinancial
Subject matters) are fair, clear, timely and transparent.

11. This mandatory professional statement applies to all RICS members involved with the sale,
letting, leasing and management of real estate, whatever the form of tenure by which it is held
or occupied. Members are required:
Real Estate Agency & Brokerage Guidance
7 To ensure that all advertising and marketing material is honest, decent and truthful.
8 To ensure that all client money is held separately from other monies in appropriately designated
accounts and is covered by adequate insurance.
9 To have adequate and appropriate professional indemnity insurance or equivalent in place that
complies with the RICS Rules of Conduct. Having proper cover is a key part of managing your risk.
10 To ensure that it is made clear to all parties with whom you are dealing the scope of your
obligations to each party.
11 Where provided as part of the service, to give a realistic assessment of the likely selling, buying or
rental price, associated cost of occupancy or of the likely financial outcome of any issues, using
best professional judgment.
12 To ensure that all meetings, inspections and viewings are carried out in accordance with the
client's lawful and reasonable wishes, having due regard for the security and personal safety of all
parties.

12. UK Commercial Real Estate Agency
RICS Professional Statement

13. UK Commercial Real Estate Agency
RICS Professional Statement
1. Standards & Ethics
2. Securing Instructions
3. Disposals Marketing the Property
4. Implementing the Disposal
5. Acquisitions
6. Ending the Instruction

14. You have a duty to comply with a number of standards, official codes,
redress schemes and ethical codes.
1.0 Standards and ethics
These include:
► Real estate agency and brokerage and real estate management: RICS
practice statement, 2nd edition (November 2014).
► Real estate agency and brokerage guidance: RICS guidance note, 2nd
edition (November 2014).

15. You have a duty to comply with a number of standards, official codes, redress
schemes and ethical codes.
1.0 Standards and ethics
You are also required to comply with relevant legislation including:
► Bribery Act 2010
► Equality Act 2010
► Estate Agents Act 1979
► Consumer Protection from Unfair Trading Regulations 2008 (when dealing
with consumers)
► Business Protection from Misleading Marketing Regulations 2008 (when
dealing with businesses).

16. Your duties and responsibilities
1.0 Standards and Ethics
► Duty of Care as a Real Estate Agent
► Conflicts of Interest
► Gifts, incentives and hospitality
► Discrimination
► Vulnerable customers

17. Securing Instructions & Statutory Compliance
2.0 Securing Instructions
Securing instructions
► Legal and regulatory requirements
► Matters to be dealt with before taking instructions
► Complaints handling procedure
► Handling clients money
► Money Laundering compliance
► Information and confidentiality
► Health and safety

18. Terms of Engagement
2.0 Securing Instructions
► Prior to agreement
► Lettings
► Fees charges and taxes
► Itemised costs
► Dual fee liability
► Timings
► Penalties
► Cooling off period
► Receiverships
► Types of agency
► Finalising terms
► Offering services to other parties
► Special types of sale or lease
► Off-market transactions

19. You must comply with legislation including:
3.0 Disposals: marketing the property
► Data Protection Act 1998
► Estate Agents Act 1979
► Landlord and Tenants (Covenants) Act 1995
► Misrepresentation Act 1967
► Consumer Protection from Unfair Trading Regulations 2008
► Business Protection from Misleading Marketing Regulations 2008
► Auctions (Bidding Agreements) Act 1927 and 1969

20. You must comply with legislation including:
3.0 Disposals: marketing the property
► Existing lease arrangements
► Inspection and measurement
► Market appraisal
► Documentation about the property
► Marketing the property
► Online marketing
► Advertising signs and boards
► Viewings
► Responding to questions
► Keeping the client informed

21. 4.0 Implementing the disposal
► Legal and regulatory requirements
► Methods of sale
► Sale by tender
► Lettings

22. 5.0 Acquisitions
► Legal and regulatory requirements
► Property search: buying or leasing
► Communication with your client
► Dealing with conflicts of interest
► Leasehold acquisitions
► Progressing purchases
► Holding clients money

23. 6.0 Ending the instruction
► Legal and regulatory requirements
► Written confirmation
► Invoice
► If completion does not take place
► Retention of records

24. Conflicts of Interest
Conflicts of Interest
►Party conflict
►Own interest conflict
►Other involvement conflict
►Confidential information conflict
Information Barrier
Informed consent

25. Introducing the RICS Commercial Real Estate
Agency Standards, 2nd edition (Purple Book)
Simon Wainwright FRICS Director JPW Real Estate
Chairman RICS Commercial Property Board