The timetable for the Rural CAP process is agreed between the impartial professional person and the parties involved. The details of agreed solutions are written into a Recommendation Report, which both parties can formalise into a contract. Timescales for agreed actions can be included in this.
What is it?
The Rural Conflict Avoidance Process (Rural CAP) service is designed by RICS in response to the Rock Review recommendations. Rural CAP helps parties to address emerging disagreements and resolve disputes in the rural property sector proactively. It offers a quicker, more cost-effective, and collaborative approach than formal legal proceedings, helping stakeholders to manage and resolve issues early on, thus preventing the strain on finances and business relationships.
The service works by the introduction of an Impartial Professional Person who will provide parties with a non-binding recommendation on how to resolve the issue they’re arguing about.
Rural CAP fosters a cooperative environment for landlords, tenants, owner-occupiers, family members, and business partners. The appointed Impartial Professional Person works with the parties to define the issues, understand each other's positions, and move towards a resolution. The process is flexible and can be adapted to suit the needs of the parties involved.
Benefits
- Proactive dispute resolution: Tackles emerging issues early, preventing formal litigation proceedings.
- Control and ownership: Parties retain control of the dispute and make informed decisions, determining the outcome that best suits their circumstances.
- Cost-effective: Clear cost structure from the start, often significantly less than the costs associated with litigation.
- Timely: The process is quicker than litigation, with timetables agreed between the impartial professional and the parties.
- Flexible: The process can be adapted to meet the specific priorities of the parties involved.
Fees
1. Appointment fee
RICS charges a fee of £195 plus VAT to administer the nomination of an Impartial Professional Person (IPP) who is suitable to assist with the matter in dispute, and independent of both sides.
2. IPP’s fee
The impartial professional person (IPP), who will be an expert in rural matters and experienced in dispute resolution, will charge a fee based on the value of the dispute. This fee is agreed upon in advance and is often significantly less than the cost of litigation.
The fees are capped according to the value of the dispute:
| Value of Dispute | IPP’s Capped Fee* |
|---|---|
Up to £10,000 |
£2,500 |
£10,001 to £25,000 |
£3,000 |
£25,001 to £50,000 |
£4,000 |
£50,001 to £75,000 |
£5,000 |
£75,001 to £100,000 |
£6,000 |
Over £100,000 |
Negotiable |
These fees exclude VAT and any expenses and disbursements reasonably incurred.
* A capped fee involves billing by the hour up to a specified limit. Any fees incurred beyond this limit cannot be passed on to the Parties and are essentially absorbed by the IPP at no cost.
Frequently Asked Questions
We encourage the parties to share the cost of the appointment fee. If one party completes and submits the application for an impartial professional person, then that party is responsible for ensuring the payment is made.
Either party to the dispute can apply. Rural CAP is a voluntary process, so both parties must agree to use it. A joint application by both parties can be made, signalling mutual agreement to participate in the process.
The Rural CAP process itself is not binding, and either party may withdraw at any time. If the process results in a formal settlement agreement, it becomes a legal document enforceable through the law of contract once signed by both parties.
The Impartial Professional Person does not decide the outcome, they provide the parties with a Recommendation Report. Parties can choose to adopt the recommendations in the report and create a legally binding agreement, use the Report as a basis for agreeing an alternative way forward, or retain the option to proceed to more formal forms of dispute resolution or legal action.
Alternative dispute mechanisms, like Rural CAP, have a strong track record of helping parties reach agreement. If this approach fails to achieve a settlement, parties retain the option to take their dispute to formal legal proceedings.
Download
Download the application form (PDF 0.15MB)
Published date: 03 July 2024
If you require any further information, reach out to our specialist dispute resolution team by emailing drs@rics.org or calling +44 (0) 20 7334 3806 .