TRAINING AND CONDUCT OF GRADUATE VALUERS

Transcription

1 TRAINING AND CONDUCT OF GRADUATE VALUERS INSTITUTION OF SURVEYORS OF KENYA WORKSHOP FOR PRINCIPALS IN THECHAPTER OF VALUATION AND ESTATE MANAGEMENT HELD AT PANAFRIC SAROVA HOTEL NAIROBI AUGUST 21ST PAUL M.SYAGGA, PhD DEPARMENT OF REAL ESTATE AND CONSTRUCTION MANAGEMENT UNIVERSITY OF NAIROBI.

2 1.Introduction The International Valuation Standards Council(IVSC),recognizes that the valuation profession is not currently uniformly defined or developed across different countries and sectors.those relying on a valuation as the basis for a decision need to be confident that the opinion is free from bias caused by conscious or unconscious influences of the valuer.professionalism in valuation is therefore an essential contributor to the integrity and credibility of the valuation process. IVSC has sets out to build confidence and public trust in the valuation process by creating a framework for the delivery of credible valuation opinions by suitably trained professionals acting in an ethical manner(ivsc,2012).ivsc aims to its objective by : a) Creating and maintaining the International Valuation Standards(IVSs) b) Issuing technical guidance for professional valuers,and c) Promoting the development of the valuation profession and ethical practice globally. IVSC requires that in order to demonstrate competence,a professional valuer must possess the following: a) Professional knowledge b) Professional skills, and c) Professional values,ethics,and behavior.

3 2.Modes of training for valuers The required professional competencies for a valuer should be acquired through: a) Initial Professional Development(IPD), and b) Continuing Professional Development(CPD). 2.1.Initial Professional Development Initial professional development for a valuerincludes: a) a formal education and successful examination at a level required by a university degree and may be attained by a cognate first degree, a postgraduate or Master s degree; or b) a formal or informal course of study while the candidate is attaining practical experience. The education whether through formal or informal study should include but not limited to the following subjects 1) An understanding of economic theory and principles 2) An understanding of financial markets 3) An understanding of recognized valuation concepts and principles 4) The theory and application of valuation methods used in the relevant market 5) The legal framework that is relevant to the respective market, including the property laws, and any other regulatory requirements relating to the practice of valuation. 6) Knowledge of technical standards and guidance relevant to the respective market 7) Pathology of the various types of properties to be valued(land,buildings,movable assets,business and intangible assets,etc) 8) Fundamental principles of ethical conduct,generally and as it applies to valuation profession.these include character and reputation; conduct(ethical principles), and accountability for any failure to comply with the ethical principles of conduct or the competent application of valuation knowledge and skills. 9) Experience in applying 1-8 above in a supervised work environment covering minimum of 1,500 effective hours of work experience over a minimum period of 2 years. 2.2.Continuing Professional Development Continuous professional development starts as soon as the graduate joins the profession as an apprentice,intern or professional trainee in a professional firm, and continues throughout the period of practice of the valuer.it may be accomplished by a combination of attendance at recognized or approved training events and self-study, as well as presentation of relevant papers to journals and workshops/conferences that further the practice of the profession.

4 3. Areas of competence for professional examinations In order for firms and their principals to induct and produce competent trainees as they prepare for their professional competence examinations they need to understand the nature of competencies expected.in the case of the Royal Institution of Chartered Surveyors(RICS) in the United Kingdom, for instance,the required competencies for those preparing for assessment of professional competence(apc) examinations whether graduates or not are categorized into three namely: a) Mandatory competencies.these are non-technical aspects of the profession and include the personal,interpersonal,professional and business competencies required for all candidates.they include for instance,professional ethics,client care,communication/negotiation,teamworking,conflict avoidance,etc. b) Core competencies. These are technical aspects of the profession that include property inspection, property measurement, property valuation and report writing. c) Optional competencies. These are areas of technical competence that may be optional to the candidate depending on the specialization of the firm.for instance,not all valuation firms in Kenya deal in property sales and letting,property management or feasibility studies and appraisals.it is therefore incumbent upon a graduate trainee to be familiar with the professional competencies of the firms they intend to join. The optional competencies therefore include an array in the real estate practice including estate agency,property management,strategic real estate consultancy,corporate real estate, development appraisal and involuntary resettlement RAPs. In the circumstances,the Institution of Surveyors of Kenya needs to provide guidance to principals/firms on how best the apprentices should be trained with respect to mandatory,core and optional areas of competence.

5 4. Role of the Principal/Firm Each principal in a firm accepting a graduate Valuer should understand that it is a professional responsibility to ensure that the trainee isprovided a prime opportunity to learn,and develop deep local knowledge and expertise through work exposure. A work-based learning approach and visits to other departments, provides the trainee graduate with a thorough understanding of the business. To enable graduate valuers qualify to practice at the earliest opportunity,there should be a training programme that includes: 1) A supported and planned programme of activities which encourage individual motivation towards completion of ISK professional examinations. Currently,the initiative is with the candidates while the principals merely use them as technicians. 2) Throughout the programme the trainee should gain practical experience underpinned by industry knowledge and technical valuation skills,provided with the right environment to build own professional development, knowledge, expertise and experience. 3) A programmesupport,allowing graduates to gain and develop relevant knowledge, skills and expertise to demonstrate the competencies for the valuation practice. 4) A programmeto help the trainee further develop his/her technical and soft skills so as to hit the ground running as a practicing valuer. 5) A programme for an on going monitoring through regular meetings and communication, a combination of practical on the job work experience alongside experienced valuers and back up support. 6) A programme of access to underpinning knowledge and expertise across all areas of the business through a range of supporting resources including mentoring,study material and training as appropriate.

6 7) The firm should provide the necessary support to maintain the graduate membership of ISK, build on the products and services the trainee can deliver and encourage progress towards the registration. Some property firms offer graduates the chance to 'rotate' around different departments during their training.others offer fixed graduate roles in which one builds skills right from the start. Both are valid ways to train as a valuer, depending on the circumstances. Rotational Model a) Graduates on rotations gain a wide understanding of the firm s business. b) Different departments will have a chance to put graduates through their paces so they can understand where their strengths (and weaknesses) lie. c) At the end of each of the rotations there has been a chance for one to discuss where one wants to work and which areas one needs to build on, so one feels a sense of continuity. d) But there is also the downside of a rotational scheme. For instance, after six months when you are just getting into the work you have to start all over again, getting to know new clients and properties. Non-rotational Model a) Those in the less traditional corner feel that a non-rotational based scheme offers early responsibility, the chance for greater recognition and greater continuity of training. b) They recruit graduates into a specific department, doing a specific job within a team. c) There is a danger though in this type of scheme in that one can start off in a specialism sure that it is for him/her and then find out that it is not. d) It is quite common for graduates to think they want to be say, estate agents, property managers or valuers, but end up preferring an area they had never previously considered. Indeed graduates on rotational schemes are likely to be consulted about their preferences within a framework, unlike non-rotational

7 scheme where graduates are recruited merely for job entry rather than passion for the particular profession. 5.An assessment checklist for trainee performance during the period of internship on the 5point scale Each principal needs to be persuaded by the ISK to develop a checklist for monitoring and documenting the progress and achievements of each trainee. Evaluations should be regularly (every 6 months) discussed with the trainees to enable them style up and improve their performance as they approach the ISK examinations assessment of professional competence for registration as valuers. Results to be presented to ISK at the end of the training period as part of the continuous assessment accounting for part of the examination score(say 20% of total examination score).

8 Trainee performance checklist Assessment Scale Mandatory Competencies 1 Punctuality 2 Adherence to Regulations 3 Improvements in Workmanship 4 Improvements in Workoutput 5 Adaptability 6 Oral Communication 7 Written Communication 8 Reliability 9 Team Work 10 Computer Literacy Core competencies 11 Ability to Undertake Property Inspection 12 Ability to Carry out Comparative Data Analysis 13 Ability to Prepare Property Report Optional competencies 14 Leasing and letting of property 15 Purchase and sale of land 15 Property management 16 Development appraisals 17 Property finance and funding 18 Total Row Score 19 Weighed/Average Score Rating Scale Excellent Good Average Fair Poor % time on specific areas of competence during training Valuation Sales Letting Management Development Appraisal a)assessors General Remarks

9 b)assessors Name Designation.Signature...