PROPOSAL FOR CHANGING THE STATUS OF RESIDENTIAL PROPERTY VALUER
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1 Independent Objective Authoritative The home for property professionals in Australia Australian Property Institute Limited POSITION PAPER PROPOSAL FOR CHANGING THE STATUS OF RESIDENTIAL PROPERTY VALUER Reference Proposal for changing the status of Residential Property Valuer Effective 22 August 2016 Review Owner After close of submissions National Manager Membership Services and Advocacy Australian Property Institute 6 Campion Street Deakin ACT 2600 ACN Telephone: Facsimile: Website: national@api.org.au
2 Contents Feedback from Members... 3 New Proposal... 4 TAFE Graduates... 5 Next Steps... 5 Australian Property Institute Limited Proposal for changing the status of Residential Property Valuer Page 2 of 5
3 Proposal for changing the status of Residential Property Valuer The API issued a discussion paper in April regarding a proposal for changing the status of Residential Property Valuer (RPV). We received a significant number of responses from API members and valuation firms throughout Australia. The responses were varied and in many instances the API was provided with additional suggestions which have led to a revised proposal, detailed below. Feedback from Members Feedback was positive in so far as elevating Provisional Member (RPV) to Associate (RPV). There was significant concern with requiring two within four years of experience before qualifying, which is a minimum requirement for all Associate members. Similar feedback was received for elevating Provisional Member (RPV) to Associate Member (CPV Residential), however, the advantages of the certification Certified Practising Valuer (CPV) Residential are that it aligns with other API certifications and it should address the issue in Western Australia and Queensland where we seek to have our residential valuers recognised by their regulatory bodies which currently require CPV (or the same level of qualification and experience) as the minimum status. There was still support for removing RPV altogether and having CPV as the minimum qualifying standard. The feedback once distilled indicated this was in order to not have exclusively residential valuers at all. In other words, if CPV were to be the only minimum standard it would mean that residential valuers must also be experienced in at least two other asset classes. This was not supported by those working very specifically in residential valuation. Finally, a number of responses sought no change, however, further commentary and questioning indicated that this was because they did not want an additional year of experience being imposed (2 years experience within the 4 years prior to application) before they could work unsupervised. Currently Residential Property Valuers require 1 year of experience within the previous 2 years. Australian Property Institute Limited Proposal for changing the status of Residential Property Valuer Page 3 of 5
4 New Proposal Maintain Provisional Membership (Residential Property Valuer). 1 year within 2 years experience in residential valuation demonstrated by the work experience journal, work samples and professional interview May value residential property as per API RPV Explanatory Notes Increase upper end limit to $2million CPV must supervise and co-sign all valuation reports Apply for or Upgrade to Associate Membership Certified Practising Valuer (Residential) A minimum of 1 year experience in residential valuation as a Provisional Member (Residential Property Valuer) or a minimum of 2 years within 4 years experience in residential valuation, demonstrated by the work the experience journal, work samples and professional interview. May value residential property as per AAPI CPV (Residential) Explanatory Notes 1 No upper end limit No API requirement for CPV to supervise and co-sign reports N.B. PMAPI RPV can only be held for a maximum of two (2) years unless approval is granted by the Australian Valuation Standards Committee (AVSC). PMAPI RPV holders must seek to upgrade within 24 months. This allows for specialisation and recognition of residential property valuation as a valuation outcome endpoint. It aligns with other API certifications i.e., CPV (Plant & Machinery) and CPV (Business). As it is an Associate level of membership, the standard 2 years experience within the previous 4 years is required to align with all other Associate pathways. This experience must include residential (the quantum to be agreed at a later stage and will ultimately be demonstrated via the experience journal and work samples Provisional Member (RPV) is therefore a stepping stone to a CPV career and cannot be stopping point. All members must progress or their membership class will be subject to review. 1 AAPI CPV (Residential) Explanatory Notes need to be written Australian Property Institute Limited Proposal for changing the status of Residential Property Valuer Page 4 of 5
5 TAFE Graduates There remain a number of Sydney Institute graduates who will only be able to upgrade to Associate Member Certified Practising Valuer (Residential) by fulfilling either of the following additional requirements: 10 years residential valuation experience specially designed top up qualification 2 Next Steps 1. Distribution of this paper to those who provided feedback in initial consultation 2. Notification of consultation in Members News with link to this document and an address for feedback. Two week consultation period. 3. Consultation with Australian Valuations Standards Committee and Education Standards Committee. 4. Consultation regarding impact of proposed changes with APIV Ltd and Professional Standards Council. 5. Proposal to Board for Approval. 6. Advise Core Logic in the context of their systems and processes. 7. Present to RVI group with implementation date. 2 top up qualification to be designed Australian Property Institute Limited Proposal for changing the status of Residential Property Valuer Page 5 of 5
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