Newsletter - November 2005

On Being Professional

As the year winds down to close off an eventful 2005, it is opportune for valuation professionals to look back over their performance and assess how they went this year. The focus here needs to be on the way valuers conducted themselves professionally and not on the dollars earned. Throughout the year, there were a number of reported cases in other professions where some have displayed weaknesses in character and glitches have appeared in the ethical standards they have adopted. Our profession does not need this notoriety and all valuers are encouraged to review their approach to their practice and to stand by their Institutes Code of Conduct.

The Board continues to promote excellence in the profession, as every valuation that valuers make does have an affect on someone's financial situation be it an investor, a corporation, the Government, a financier, a separated party, a retiree or a homeowner. The client engages a valuer for their intellectual ability as a professional in their chosen field and the client's financial security will be influenced by the advice given. The Board is continuing to foster dialogue between the profession and the users of valuation services. We are seeking a forum with the finance industry to seek feedback on how the profession is performing and we will be looking for comment on a range of issues including the workings of panels and consultative bodies.

The professional must always be prepared to defend the opinions included in the advice given and these days, with more accountability and scrutiny by the public and private sector, valuers may find that their reports are vigorously analysed by clients, auditors, the Ombudsman or the courts. The recent review of the NSW Rating Valuation Process by the Ombudsman in that State reinforces the need to ensure that quality processes are to be standard practice in all areas of the profession. The Board continues to encourage applicants for Registration to take matters of concern up with their senior colleagues where they consider a revision of work practices may be relevant in their business, and the Board is optimistic that their initiatives will be given prominence by their employers.

The Boards focus continues to be on high standards of education and experience for graduates seeking Registration. The Board has concern with another jurisdiction that continues to present us with challenges in this area and the Board will address these issues in an attempt to influence debate that might promote a uniform standard to apply across this profession.

Bob Mullins

New panel of investigators

The Board is forming a new Panel of Investigators to assist in the investigation of complaints that continue to come before the Board. Listed below are the names of the Investigators who have joined the panel with their curriculum vitae.

Marcus Johnson

Marcus Johnson holds a Bachelor of Business (Management) and a Bachelor of Laws.

He had 20 years' experience in the property industry as a valuer before entering into legal practice in 1990. He is a fellow of the Australian Property Institute, a member of the Queensland Law Society, The Institute of Arbitrators and Mediators of Australia and The Environmental Law Association.

His practice areas are commercial property transactions and commercial litigation being professional indemnity claims and land resumption/compensation matters. Further details can be found at the Russell Hanley Johnson Lawyers website.

William Pye

Bill was employed as a Property Manager and Valuer from 1952 to 1959. He was employed by the NSW Valuer-General's Department for 25 years as Senior Valuer in charge of City of Greater Newcastle, Sydney CBD and various Metropolitan areas of Sydney. Bill retired from the Valuer-General's Department in 1985.

During his career in the Valuer-General's Department he made many acquisition and resumption valuations for various Government Departments. He specialised in valuation of regional shopping centres, hotels, motels and large industrial properties.
Bill started in private practice in 1986 and was appointed as a consultant valuer for the Department of Housing, Australian Tax Office, Blacktown City Council, Marrickville Council and Sydney Electricity, and also worked for a number of local solicitors.

As a result of valuations for acquisition and resumption purposes, Bill appeared before the Land and Environment Court as an expert witness.

Bill is a Fellow of the Australian Property Institute and was a Board Member of the NSW Division for 4 years.

Ron Youngson

Ron retired recently, after almost 40 years as a practising valuer, working in numerous locations, including New Zealand, Tasmania, Papua New Guinea, New South Wales and Queensland. He has worked at a range of operational levels in both private and government areas of the profession, covering a wide variety of valuation matters including major and complex valuation assignments, covering CBD office buildings, regional shopping centres, integrated resort complexes, hotels, industrial property, rural property, and intellectual property.

Graheme Kroll

Graheme became a registered valuer in November 1967 and worked with the Australian Taxation Office from 1962 to 1974, and then went into private practice.

Graheme has been a Lecturer and Valuation Programme Leader with the University of Qld [formerly Qld Agricultural College] from 1974 to 1996.

Graheme became an Associate of the API in 1967, a Fellow in 1975 and a Life Fellow in 1997. Graheme also served on the Australian Property Institute from 1981 to 1996.

Peter Box

Peter Box has been involved in valuation practice for nearly 40 years. He has held senior positions with the Australian Valuation Office in Brisbane and Melbourne and recently retired from the AVO, where he had been the Australian Manager for Specialist Valuations with responsibility for a national team engaged in major valuations and portfolio assessments.

Peter is a former Director of Valuations with Richard Ellis Brisbane.

His valuation experience covers most types of commercial, industrial and retail properties, development sites, specialized properties, valuations for financial reporting and rental assessments.

The peer review component of registration

For a candidate seeking registration as a valuer it is a requirement that they obtain three Referee Reports. Two of those reports need to be completed by Registered Valuers, and those reports must attest to the candidate's suitability for registration as a valuer.

The Board relies on this peer review process as part of its registration procedure, and the Board needs to have a high level of confidence in the content of these reports.

The reports, when completed by a valuer, need to be from a valuer of considerable experience. The reports should come from the valuers who have been most active in the training and development of the applicant.

This training needs to be detailed and cover every aspect of the future valuers' knowledge requirements. The Board from time to time sees applicants who come to the Board with a level of training that is not fully rounded out and this is usually betrayed by their lack of general property industry knowledge at their interview.

It is also considered essential that the referee has known the candidate for a significant period of time, and can subjectively complete the report with regard to the level of competence the candidate has attained with regard to valuation practice skills.

The Valuers Registration Board of Queensland impress on all valuers who complete a referees report for a candidate that frank honest and factual disclosure is required as it is in the best interest of the candidate, the profession and those for who that candidate as a Valuer will work for in the future.

Library

The Board is forming a library of sample valuation reports which are available to assist applicants in their application for registration, and these reports can be accessed at the Board's office. The reports are not to be taken from the office or photocopied, but applicants are able to peruse them and make notes. If an applicant wishes to take advantage of perusing these reports, he/she needs to telephone the Secretary, Julia French, to arrange an appropriate time to call at the office.

Registration numbers

Please ensure that your reports contain all vital information and you are not in contravention of Section 10 of the Regulations. This section states:

10 Valuation Report

A registered valuer who prepares a valuation report must-

[a] include in the report-
- [i] details of the valuer's qualifications relevant to the valuation; and
- [ii] the valuer's number in the register; and
[b] sign the report.

Valuation and heritage registered properties

Having regard to the often expressed concerns of owners of heritage registered places, the Queensland Heritage Council proposes to investigate and identify ways in which heritage listing may be taken into account in land valuations used for taxing and rating purposes, so that the owners of these places are not disadvantaged by the valuation system.

Issues Regarding Valuation and Heritage Properties

Many owners of places on the Queensland Heritage Register are concerned that the local government levying of rates is tied to land valuations that reflect
the development potential of land. Under the Queensland Heritage Act 1992, in most cases the maximum allowable development is not an option for the owner if the heritage aspects of the registered place are to be conserved. The property is often rated as if it is a potentially unrestricted development site.
Land valuations form the basis of a range of decisions including fulfilling legislative requirements, e.g. for taxation, rating or compensation.
There are a number of approaches to determining the value of land. Valuations for different purposes may follow different formats, employ different criteria and methods and result in different estimates of value.
Presently, there are no specific guidelines for the appropriate land valuation method for heritage properties for calculating valuations required for statutory purposes.
The state government does not offer any land tax rebates or concessions for heritage registered properties.
Political and economic pressure for economic growth encourages active land markets and higher values for land that is determined to have development potential.
Areas of development potential often contain places of cultural heritage significance. Cultural heritage significance is often disregarded in situations where there is an overwhelming pressure for development and associated financial gain. If the owner opts to conserve the cultural heritage significance and not to realise the full development potential of the land, the rates levied on the property are likely to be those that would be levied as if it were developed or it had that development potential.

Investigations Under Way

The investigations commencing now include consultation with industry experts. The findings will inform the Queensland Heritage Council so that it can advise the government on proposals for changes to how the Valuation of Land Act 1944 is applied to places on the Heritage Register.

Move with the times

The Board is still experiencing examples of applicants not keeping up to date with changes in property terminology.

It is important that as experts in the valuation of land in Queensland that any changes in Government Department names, legislation and planning schemes be adopted immediately and incorporated into reports.

Beware of standard clauses

Many report templates contain standard clauses. However, the valuer must ensure that the clauses are appropriate to the particular valuation. All too often, reports are submitted containing qualifications and disclaimers which have nothing to do with the property, displaying a lack of attention to detail.

A conscious review of every individual report is essential and if possible, the report should be checked by a pier prior to delivery.

Address of the Board

Some valuers are still trying to send mail to our old post office box at Spring Hill which ceased to exist nearly two years ago.

Please Note that we no longer have a post office box and all mail needs to be forwarded to our street address which is:

Level 2, The Mansions
40 George Street
Brisbane 4000

Your address

You need to keep the Board up-to-date with your current address. You may have changed employment or your correspondence address and not notified the Board, so please be mindful of this so that notices don't go astray.

Web address

Remember to check our website for "What's new?". We are now posting decisions of Disciplinary Hearings which are available from our Complaint section.

The Guidelines for Registration also contain a Policy on Practical Experience which will be of benefit to new applicants.

The website is a convenient place to check if someone is a current registered valuer. It's also good practice to check your own details and let the Secretary know if any section needs alteration.

We're always looking for articles of interest and we'd love to hear from you if you've got one to share.

Cheers until next time!

Julia French

Last updated 10 March 2006