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When we are planning to buy or sell a real estate property it is quite obvious that we have to go through a number of processes and steps. It is important to understand that all these processes have a legal angle to it and therefore care and caution should be exercised. Since the processes are extremely complicated and tough in most of the cases customers find it prudent to outsource it to professionals who have experience and expertise in this field. Amongst the various processes there is no doubt that valuation is often considered to be one of the most important. Property valuation is mainly about finding out the fair market value of a property that is being either put up for sale or purchase. Additionally, based on the valuation reports, property tax amounts are calculated and even stamp duty amount payable are also decided. 

In view of the highly critical and vital nature of functions being performed by valuers and appraiser, it is very important that there is always an element of honest, transparency and fair play. To ensure that this happens continuously, there is a need to regulate the functioning of these service providers. The main objective of property regulators is to ensure that these service providers are playing by the rule book as far as valuation is concerned. They ensure this by paying regular visits to the valuers’ office. They examine the entire process flow and pay attention to accuracy of information, correctness of information and also the genuineness with which the information are being generated. 

This process does not take place every day. Whenever a valuer has been given a certificate to operate in this business, he becomes duty bound to subject his processes being examined by government appointed and certified regulators. These regulators usually visit the valuers once or twice in a year. However if there is something wrong or fishy then the regulators have the powers to go deep into the subject. If something wrong or untenable has been found, the regulators have the power to temporarily suspend or even permanently cancel the certification. Hence, the onus lies on property valuers that they are always adhering to the rules and regulations stipulated by the regulators. The main objective is not fault finding to ensure transparency and openness in all property valuation requests.

It is a known fact that valuation forms a very important backbone as far as the entire real estate buying and selling process is concerned. Since the process is complicated and complex to say the least, it is not possible for end customers to do it using their own skills and experience. They will have to depend on qualified valuers and appraiser to do the job. The valuation of the property has to be done accurately after taking into account lot of factors and inputs. Various tools and techniques are used for accurately reporting the fair market value of the property in question. The valuation report plays a big role not only in the buying and selling transaction but also impacts property tax, stamp duty valuation just to name a few other important aspects.

In view of the importance of property valuation, it is very critical that only qualified, experienced and certified valuers handle the job. It is therefore important for having a setup to regulate and monitor the functioning of valuers. This is becoming mandatory in many provinces and regions there are certainly quite a few benefits that could come out of it. First and foremost, it will be a good tool to ensure that the interests of the customers are protected at all points in time. Secondly, it will also help the valuer to find out grey areas in his entire process and ensure that they are ironed out or removed from the system. 

It will also go a long way to ensure that the valuation figures are not under reported or over reported which could cause damage either to buyers or sellers. Such wrong reporting of figures could also have a cascading effect that could impact the property tax calculation and stamp duty agreement related matters. Taking these above facts in to account, it is very important to take the necessary steps to ensure that property monitoring and regulating is done on a regular basis. In a normal situation the regulatory certificate is valid for a period of time after which it has to be renewed subject to meeting some criteria and conditions. At the end of the day, there is no doubt that regulating valuation business is a win-win situation for customers, real estate valuers, banks and other stake holders.

Business Name - Sydney property Valuation

Address -

Suite 16, 323-327 Pitt Street

 

Sydney. NSW 2000

Phone No - (02) 8599 9840

There is hardly any doubt that valuation plays an extremely important role whenever there is a need to buy or sell real estate properties. Apart from helping the stakeholders to have a clear idea about the fair market value of the properties, it also helps in many other ways. It goes a long way in finding out the property tax payable and also for ascertaining the stamp duty payable for executing land transfer agreements. Hence, there is no doubt that valuation has a very important role to play. But it is also equally important for somebody or some authority to keep a watch on the activities of valuers. This is because if there is something wrong going on with them, there has to be some mechanism by which it can be found out and the necessary remedial action taken. 

Towards this objective, the role of a regulator or valuation business is very important. They play a big role in ensuring that the business is run properly and all the required norms and regulations are being followed. In fact it would not be out of place to mention here that very soon the role of valuers would come under closer scrutiny. A day will not be far off when it will become mandatory to regulate the operations of valuation companies and individuals. However, this will happen only when valuers are not only required to be certified but should also posses the desired qualification and education. 

There are certainly a number of benefits and advantages when one get subjected to such regulations. They will help the companies to streamline their operations and ease out the areas where there needs to be some improvement. Hence, it is important for valuers to ensure that they are looked upon as enablers rather than being looked upon someone who is breathing down their neck. The regulators play a very positive and proactive role in ironing out the areas where there needs to be improvement. They will help them to fall in line as far as following the rules and regulations are concerned. So, taking the above points into consideration it is in the interest of the valuers to subject themselves to such regulating authorities on a regular basis. It will certainly help them to become more customer focused and more regulatory compliant.

The biggest benefit of having a regulator for valuation business is to ensure that there is honest, transparency and ethics being followed while customers are being served. Valuation is a very important task because based on the report a lot of decisions are taken. The buyers make up their mind whether or not to buy a particular property. The stamp duty payable, the property tax payable are a few more important things which are also dependent to a large extent on the valuation report. Hence it is important to ensure that the reports are true representations of the fair market value of the property in question.

Further, there are also many subjective pieces of information from the valuer which again could impact the decision to buy or not to buy a property. Hence, it is important to be sure that the valuer represents only the facts. This is done by the valuers who check on their operations every now and then. They go deep into each and every process of valuation and confirm that they are in line with accepted methods of valuation. 

The valuers should also adhere to certain code of ethics failing which their certification is liable to be suspended or even cancelled. This again is done with the active participation and supervision of regulators. Hence, there is no denying the fact that regulators are not an impediment but work as enablers for smooth functioning of the entire business of valuation. They point out grey areas where correction is necessary. Therefore at the end of the day, the onus lies on the valuers to take the initiative and look for regulators. These regulators should spend quite a few days and look at each and every aspect of valuation. It will over a period of time stand in good stead for the valuers and help them to be more successful and customer focused.

Given the importance and significance of valuation, there is undoubtedly a big demand for valuers across the board. Hence today it is quite common to come across a valuer almost at each and every street bend. Given the plethora of valuers who are serving their customers, there is the need to ensure that they are all brought under one umbrella. This is important to ensue that they perform well as far as professional ethics and morals are concerned. As we have regulators for the financial and insurance sectors there is a need for regulating the valuers business. Let us over the next few lines try and find out how they can play a big role in making it sure that the business runs properly.

The main job of any regulator or valuation business is to ensure that the right norms and processes are being followed. All valuers are required to work under a set guidelines and laws and it is the role of these regulators to see that these guidelines and laws are being followed. Another important job of regulators is to examine the various process flows that are being followed by valuers and to point out any discrepancies wherever there are. 

Further it would also be pertinent to point out here that the role of regulators is not to supervise or breath in the neck of valuers. Their job is to ensure that proper processes are in place and they are being followed regularly. They are more of enablers than anything else. Regulators of valuers are appointed by government authorities and here too there are some strict pre-requisites that need to be followed before they are offered this job. In fine, the role of regulators as far as valuers are concerned will only get more focused over the years to come.

The main role of a regulator is to ensure that the property valuer acts according to the laws and rules prevailing in the city where he is running his business. Secondly, the job of these regulators is to find out whether they are certified and have the required permission to carry on the job that they are supposed to do. Further monitoring their performance on a regular basis is also the role of a good regulator. Quite often many valuers mistake the role of a regulator as that of a policeman or inspector who is there to find faults and look at only the negative aspects of their business. This is not exactly right because good regulators play the important role of enablers and help the valuers to run their business properly, ethically and professionally. They try and point out the grey areas so that the same can be ironed out and perfect services can be offered to the customers. 

It would also be pertinent to mention here that performing the role of a regulator is not very easy. While they should not be seen breathing down the necks of valuers, at the same time they must have their own ways and methods of monitoring the performance of valuers and pointing out mistakes or slip-ups if they take place. They also play a big role in helping the valuers to streamline their entire operations. This is bound to take time and could call for spending quite a bit of time in the valuers’ place and setting things right. Hence it is quite normal for many regulators to spend quite a few months at the valuation companies’ places to see that things move in the right direction. Once perfection is achieved the role of these regulators is all about monitoring and overseeing their role and preventing any slip-ups once again. Hence, the role of regulators is very important in the real estate valuation business.

The main reason why there is need to regulate property valuation is to ensure that they perform their duties properly, ethically and professionally. The role of property valuers is extremely critical and hence the report that they dish out should also be factually correct and there should not be any mischief or foul play in such reports. Further the valuation reports should be given only after going through the entire process in its full. There are a number of important steps that need to be followed. The property should be measured, the details should be checked with the revenue department and there should also be some subjective pieces of information in each and every valuation report. Last but not the least, the valuation report should reflect only the fair market value of the property and nothing else. 

To enable this to happen on a continuous basis there is a need to constantly monitor the performance of real estate valuers and that is the main function of the valuation regulators. In fact their role should be looked at from a positive frame of mind rather than accusing them of being inward looking and trying to point out mistakes. Most valuers take the inputs from these regulators quite seriously and implement them with the least possible wastage of time. This is because they know that these suggestions and advices will go a long way in increasing the reputation and goodwill of valuers and will play a big role in increasing new business prospects while keeping in place the existing groups of customers.

The main role of a regulator is to ensure that the valuers are playing by the role books when it comes to valuing a real estate property or even other movable and immovable properties. The report that is submitted by valuers is often treated as the bible and hence good and professional valuers are those who are able to be true to the faith that is being reposed on them. They should ensure that only the right rules and regulations are being followed for valuation. The regulators will also look into the other aspect of such valuers. They will find out if they are registered and certified under the law. Further they will discover whether the valuers or those who run the business have the right kind of qualification to undertake complex and difficult valuations. 

It is also important for regulators to have a close look at the entire process of property valuation. This should start from the time a valuation report request lands on the table of valuers. It will look into the entire process flow, the checks and controls that are in place, the time taken for issuing the valuation report, the kind of reports that are available in valuation reports just to name a few 

In most cases the regulators spend at least a few days at the valuers place trying to fully understand the processes and the safeguards that are in place. They usually perform the role of enablers rather than someone who is there to hinder the entire valuation process. They will point out the mistakes and shortfalls if any and will also suggest remedial action to take care of the same. Hence, there is no doubt that these valuers have a very proactive role to play as far as monitoring the role of property valuers and appraisers are concerned.

It is likely that publishing houses of repute must be running their business successfully for many decades solely on the strength of the authors, writers, singer and musicians who make up their clientele. Hence, it is not expected that even the best of publishing houses will have assets worth millions of dollars. Most of the assets that they will have would be intangible in nature and would mostly be restricted to contracts that are in force with them and the various writers, and authors. The more the number of such writers and authors and the higher their reputation, the better the quality of such publishing house would be.

Hence, if you are planning to buy out a publishing house, you should certainly take the services and help of good property valuers. However, it may not be very useful if you look out for conventional real estate valuers who are more experienced in valuing buildings and other such mmovable assets. As mentioned above, when it comes to valuing a publishing house, it is the intangible assets that make up the major chunk of the value of any publishing house.

Hence, as valuers it is expected that these valuers should be in a position to come out with valuation based on such intangibles rather than anything else. However, it does not mean that the other immovable assets should be left behind. They should be also valued efficiently using the right methods and tools and the total value of the publishing house should then be established. It certainly is a process that is quite complicated and does take a lot of time and effort.

In this article we will try and find out why there is a need for regulating property valuation companies and individuals. We will also try and get to understand what the main roles are of these regulators and what should be their scope of functions. The main role of a property valuation regulator is to ensure that valuation companies and individuals play by the rule book as far as valuing or a property is concerned. This is because even if there is a slight misrepresentation or facts or if there is a camouflaging of information it could prove very costly both to the buyer and seller.

Even though there could be genuine mistakes and errors from the valuers’ perspective there must be checks and balances to ensure that such errors are very few and far between. The main objective of such regulators should be to ensure zero error in reporting of valuation figures and also zero tolerance towards misrepresentation or false representation of facts by these professionals. 

There are many ways and means by which regulators can go about performing their jobs. As a first step they should invite application from valuers. Once the applications are received from valuers, the regulators should go about and register such valuation companies and individuals in their database. Once this is done, the regulators could go about checking on the various parameters which would make these valuers regulatory complaints. 

When regulating or inspecting a valuation company there are a number of factors that should be taken into account. As a starting point, it is important to have a look at their entire process flows from the time a valuation request lands on the table of such valuers. Once the entire process has been gone through and if it is found okay, the valuers would give a compliance certificate. However, if there are some lacunae in the process they should suggest remedial and corrective steps. They should give a reasonable to the valuer to make such corrections and changes. Once these have been completed, the regulators should again inspect or audit the processes to ensure that they are fully in compliance with the guidelines set down by them.

The sheer importance and critical nature of any property valuation is perhaps the biggest reason that it should be regulated and supervised. Whenever a property is valued it has quite a few ramifications and consequences. Buyers take decision to buy properties which could run into thousands or even millions of dollars. Capital gains tax or property valuation taxes are also dependent on such valuation reports. Hence, there are a lot of monetary and commercial interests involved in a small paper called the valuation report.

Because of this there is a need to ensure that valuers do a thorough and honest job of property valuations. While there is no doubt that a majority of property valuers are very professional and ethical about their property dealings there could be a few who could be spoiling the broth. Hence, a good regulatory and monitoring mechanism could go a long way in ensuring that property valuation is done the way it should be keeping the customers interest and other stakeholders’ interest top most in mind. 

When regulating a property valuation company there are quite a few important factors that must be taken into account. As a starting point it is very important to be sure that the company or individual in question has the right credentials to do the business. They should be registered and certified under the laws of the land. Secondly, the main stakeholders who are running the valuation business should be qualified and have a certificate on the subject matter. 

Apart from these basic requirements, once the regulatory compliance certificates are issued to the valuer, the responsibility of regulatory bodies does not end here. There should make it a point to ensure that they follow up the performance of the valuer on a regular basis. Regular audits and checks should be conducted to ensure that everything is fine. The regulator should don the mantle of an enabler rather than someone who is snooping down the shoulders of valuation companies. Genuine errors and mistakes should not be made a big issue but at the same time mistakes that are done purposefully should be dealt with an iron hand. Hence the regulator should know how to do a fine balancing act.

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