DIASPORA PROPERTY TRANSACTIONS A MULTI MILLION POUND BUSINESS…….MANY CONTINUE TO SUFFER HEAVY LOSSES.
This Caribbean Enterprise Network (CENUK)/ Priority Group column is designed to assist persons in the Caribbean Diaspora to secure free information and guidance on all matters relating to Property Transactions both in the UK Diaspora and the Caribbean.
A team of certified practitioners on both sides of the Atlantic, attached to the Caribbean Enterprise Network (CENUK) and Priority Group International (PGI) will respond to general queries and give guidance on these matters.
Best practice in Valuation Surveying processes, choosing the best Professional.
By implementing some simple processes, members and firms can ensure that they follow best practice procedures.
The Royal Institute of Chartered Surveyors (RICS) has visited Registered Valuers to identify common areas where, it is believed by implementing some simple processes, members and firms could ensure that they are following best practice.
By raising awareness of these areas, both can raise the level of compliance and continue to improve quality.
A surveyor must not only attain his core profession competences as set out within his or her specific faculty, but must be able to judge each case on its specific merits through experience.
1. Confirm the valuator’s qualification and demonstrate expertise and competence.
Clive Thompson
The terms of engagement and valuation report must confirm that the valuator possesses the necessary skills to undertake the task in hand. Valuators operating in geographic or specialist areas for which they do not possess the requisite skills pose a claims-related high risk to the client, the valuator and their firm. Firms and individual valuators should both ensure and document that the valuators are suitably qualified.
2. Confirm conflict of interest checks
Any case file must be able to confirm the independence of the valuator. Firms should use audits or file checklists to achieve this and keep a consistent approach to recording information. Valuators 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 valuators should use terms of engagement that comply with RICS valuation standards and ensure that a signed and dated copy is always kept on file, standard template should be used which comply 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.
Clive Thompson
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.
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.
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.
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.
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.
Clive Thompson BSc (Hons) MRICS is a Jamaican and a Chartered UK Surveyor / Valuator, currently also partnering in the Caribbean with Priority Group www.prioritycompanies.net.
PLEASE EMAIL YOUR QUESTIONS TO CLIVE or [email protected]
Clive Thompson
BSc (Hons) MRICS
PRINCIPAL SURVEYOR
CORINTHIAN SURVEYORS
0795 868 3898
0800 002 5688
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