Last April 4, the Royal Institution of Chartered Surveyors (RICS) held an ASEAN Conference 2013 at Dusit Thani Hotel. Topics on the Philippine real estate were discussed and centered on the theme, “Building a Sustainable Future: A Philippine Perspectives”.
It was a fruitful forum as RESPs got some real estate pointers from Bill Jones, Director of RICS Singapore; Alan Hearn, President of Langdon & Seah Philippines; Marissa Benitez, Director of Valuation and Advisory Services of Colliers International; Ms. Joyce Areola, Regional Director of Langdon & Seah; G. Segar, Director of Engineering and Operations Solutions of Jones Lang Lasalle Singapore; and David Stollard, Asset and Investment Finance Lead for South East Asia of EC Harris Consultancy.
Ramon CF Cuervo III also took part in the forum, answering the question and answers from the participants regarding the green building innovation. Mr. Cuervo and Ms. Benitez are the only Filipino members of RICS and were special privilege and earned the prestigious designation as a chartered surveyor by RICS.
Mr. Jones presented and discussed the perspectives on ASEAN and Philippines, Mr. Hearns on Application of Engineering, Procurement and Construction (EPC) contracts, Ms. Benitez on Valuation of green commercial property in Manila, and Ms. Areola on QS/ Construction/ design insight – current ‘’green’’ initiatives
RICS is an independent professional body that regulates property professionals and surveyors in the United Kingdom and other countries and it represents everything that is good in property profession. The British company also protects consumers with strict codes of practice and advises governments and business. RICS also has specialist designations such as ‘Chartered Building Surveyor’ and ‘Chartered Quantity Surveyor’.
A renowned international organization, RICS is a finest organization in the world. The company operates in 146 countries with regional offices in every continent.
In order for RICS’ members and firms provide their clients a trusted valuation advice, RICS Valuer Registration helps raise confidence in valuation advice. It is an independent system of regulatory monitoring, which includes a register of valuers. Monitoring by RICS Regulation begins as soon as members sign up to Valuer Registration.
By implementing some simple processes, members and firms can ensure that they follow best practice procedures as part of their Registered Valuer status.
RICS has visited Registered Valuers to identify common areas where, by implementing some simple processes, members and firms could ensure that they are following best practice.
Overall, the findings have been very positive and demonstrated good compliance, with 80% of visits rated from ‘satisfactory’ to ‘very good’. The following findings apply to both the firm and the Registered Valuer. By raising awareness of these areas, both can raise the level of compliance and continue to improve quality.
1. Confirm the valuer’s qualification and demonstrate expertise and competence in areas of skill, knowledge and/or geography
The terms of engagement and valuation report must confirm that the valuer possesses the necessary skills to undertake the task in hand. Valuers operating in geographic or specialist areas for which they do not possess the requisite skills pose a claims-related risk to the client, the valuer and their firm. Firms and individual valuers should both ensure and document that the valuer is suitably qualified.
2. Confirm conflict of interest checks
Any case file must be able to confirm the independence of the valuer. Firms should use audits or file checklists to achieve this and keep a consistent approach to recording information. Valuers must inform the client of the check – a requirement under RICS valuation standards – and should include a statement to this effect in the terms of engagement and the final valuation report.
3. Terms of engagement
Firms and individual valuers should use terms of engagement that comply with RICS valuation standards and ensure that a signed and dated copy is always kept on file in an appropriate place. Using a standard template that complies with these standards and is adaptable to specific cases produces a consistent approach and protects the firm in the event of a claim.
4. Inspection notes
Use a dedicated inspection note template so that your notes are structured and all the required information is included consistently. Use file checklists to make sure these notes are always completed appropriately and kept on file. If site notes are unclear, unstructured or insufficient, future questions relating to the scope of the inspection cannot be answered – leaving the firm or valuer at risk of a potential claim.
5. Record, reference and analyse comparables
Keep comprehensive records of comparables on file using a dedicated comparable table template. Having all comparables clearly documented and referenced, together with the analysis and record of how they influenced the valuation, support the valuation if there is a claim in the future.
6. Quality of reports – meet RICS standards and/or clients’ specialist requirements
Use a framework or template for reports and establish a robust quality assurance procedure to ensure that all reports meet RICS minimum requirements and/or client’s specialist requirements. Where advice is not clear, poorly structured or non-compliant with RICS valuation standards, it can lead to bad decisions by clients and their lenders. Furthermore, it can make defending a claim very difficult due to any failure to follow prescribed standards.
7. Manage your files
The best files show an audit trail of information from first contact with the client through to eventual report, with reasoning clearly demonstrated. A suitable file checklist approach ensures that this happens on every file.
8. Establish quality assurance processes
Firms should use a suitable framework or file checklist approach to ensure all their valuers are working to the same standard. If your firm can provide administrative support, it’s good to have a dedicated file manager who can ensure that the framework is adhered to and every task complies with both the firm’s protocols and RICS valuation standards.
9. Link comparables with the valuation figure
The file must link the comparables with the valuation figure clearly and transparently: set out the thought processes and reasoning used to arrive at the valuation. This will be vital if your firm needs to defend itself against any future claim.
10. Valuation calculation or methodology
This should always be the final part in providing an audit trail for the valuation figure. The best files set out a clear valuation calculation, including reasoning and process. This will assist in defence against any future claims.
International property standards are crucial to industry, governments, the economic climate and the wider public interest. These are the key drivers behind our focus on creating international standards.
Currently, property is measured using different standards around the world, which leads to inconsistencies in the market.
As a result, RICS is leading a coalition of professional organisations who are working to develop and promote high-level, international standards in asset valuation, property measurement and ethical behaviour.
RICS focuses on creating international standards on valuation, measurement and ethics.
With sources from: http://www.ricsasia.org/
With permission from: Mr. Bill Jones