VALUATION

OF
LAND AND BUILDING
FOR IBBI EXAMINATION

By:
CEV INTEGRAL APPRAISERS FOUNDATION
REGISTERED VALUERS ORGANISATION

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Chapter PROFESSIONAL ETHICS AND CODE OF CONDUCT 203
8
8.1 Professional Ethics 203
8.2 Changes that will happen 203
8.3 Model Code of Conduct 203
8.4 Ethics in Valuation Profession 207

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 VALUERS ROLE, FUNCTION & RESPONSIBILITIES

CHAPTER 8 : PROFESSIONAL ETHICS AND CODE OF CONDUCT

Professional Ethics

 Professional is a person who converts his training, skill, knowledge, intelligent,

etc., into ‘Service’ which he imparts to the client / customer and in turn earns
money in lieu of his service. Eg. Lawyer, Engineer, Doctor, Charted Accountant
and Valuer
 Ethics in a profession: There should be healthy competition among the fraternity.
To maintain healthy environment in the profession all professionals have to follow
certain norms of professional ethics and observe certain code of conduct in their
behavior .

 Professional Ethics and Code of Conduct have been provided in clause (g) of rule
7 and clause (d) of sub-rule (2) of rule 12 of the Companies (Registered Valuers
and Valuation) Rules, 2017]

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 PROFESSIONAL ETHICS AND CODE OF CONDUCT

 Registered Valuers Organisation lays down and enforces the following code of
conduct for its members who shall comply with the same:

Changes that will happen

 Only Regulated valuers will be accepted by banks, Income Tax and others.

 All reports will be reviewed by peers and others.

 Wrong doings will be punished very hard.

Model Code of Conduct

 Integrity & Fairness

 Professional Competence & Due Care

 Independence and disclosure of Interest

 Confidentiality

 Information Management

 Gifts & Hospitality

 Remunerations & Costs

 Occupation, employability and restrictions.

Integrity and Fairness

 A valuer shall, in the conduct of his / its business, follow high standards of
integrity and fairness in all his / its dealings with his / its clients and other valuers.

 A valuer shall maintain integrity by being honest, straightforward, and forth right
in all professional relationships.

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 PROFESSIONAL ETHICS AND CODE OF CONDUCT

 A valuer shall endeavor to ensure that he / it provides true and adequate

information and shall not misrepresent any facts or situations.

 A valuer shall refrain from being involved in any action that would bring disrepute
to the profession.

 A valuer shall keep public interest foremost while delivering his services.

Professional Competence & Due Care

 A valuer shall render at all times high standards of service, exercise due diligence,
ensure proper care and exercise independent professional judgment.

 A valuer shall carry out professional services in accordance with the relevant
technical and professional standards that may be specified from time to time

 A valuer shall continuously maintain professional knowledge and skill to provide

competent professional service based on up-to-date developments in practice,
prevailing regulations / guidelines and techniques.

Professional Competence & Due Care

 In the preparation of a valuation report, the valuer shall not disclaim liability for
his / Its expertise or deny his / its duty of care, except to the extent that the
assumptions are based on statements of fact provided by the company or its
auditors or consultants or information available in public domain and not generated
by the valuer.

 A valuer shall not carry out any instruction of the client in so far as they are in
compatible with the requirements of integrity, objectivity and independence.

 A valuer shall clearly state to his client the services that he would be competent to
provide and the services for which he would be relying on other valuers or

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 PROFESSIONAL ETHICS AND CODE OF CONDUCT

professionals or for which the client can have a separate arrangement with other
valuers.

Independence and Disclosure of Interest

 No assignment if there is a conflict of interest

 You have worked in that firm

 Relatives are suppliers / buyers from that firm

 Any business relation that was there with the firm in past or near future.

 All valuation to be in an independent manner ONLY.

 A disclosure – of the conflicts to be done to the clients.

 No success based fee, or a percentage fees.

 No “snatching” of assignment – through unfair means & commitments.

Confidentiality

 All data of the client are secure and not to be shared with any party what so ever.

 Valuer has to keep all documents and data secure.

Information Management

 Keep a record of

 Discussions

 Decisions and reason there of.

 Records to be kept for 3 years from date of report

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 PROFESSIONAL ETHICS AND CODE OF CONDUCT

 If there is a court case – then till the court case is going on.

 All papers can be inspected by RVO/Regulators.

A valuer shall appear, co-operate and be available for inspections and investigations
carried out by the authority, any person authorized by the authority, the registered valuers
organization with which he/it is registered or any other statutory regulatory body.

Gifts and hospitality

 A valuer or his/its relative shall not accept gifts or hospitality which undermines or
affects his independence as a valuer.

 A valuer shall not offer gifts or hospitality or a financial or any other advantage to
a public servant or any other person with a view to obtain or retain work for
himself/itself, or to obtain or retain an advantage in the conduct of profession for
himself/itself.

Remuneration & Cost

 Transparent

 As in the work order

 No under the table deals

 Not related to success fee or percentage of the value.

Occupation, employability and restrictions

A valuer shall refrain from accepting too many assignments, if he/it is unlikely to be able
to devote adequate time to each of his/its assignments.

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 PROFESSIONAL ETHICS AND CODE OF CONDUCT

A valuer shall not conduct business which in the opinion of the authority or the registered
valuer organization discredits the profession.

Ethics in Valuation profession

Value involves in financial matter

1. To ensure mutual co-operation amongst members by free interchange of opinion

and experience.

2. To endeavor to protect the profession of valuation concerning all categories from

misrepresentation and misunderstanding.

3. To express an opinion only when it is founded on adequate knowledge and honest

conviction if he is serving as a witness before a court or commission.

4. To hold in regard the professional reputation of other Corporate Members and not
to injure directly or indirectly the professional reputation or practice of another
Corporate Member.

5. To exercise the restraint in criticizing the work of another Corporate Member

6. To refrain from associating in work with other valuer who does not conform to
ethical practice.

7. To refrain from misrepresenting his qualifications to a client or to the profession.

8. To treat all information acquired during the course of the business strictly
confidential unless released b the client or demanded by a court of law.

9. To present clearly the consequence to be expected if the professional judgment is

overruled by a non-professional adequacy of work.

10. To observe integrity and fair play in the practice of the profession of valuation

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11. To refrain from undertaking to review the work of another Corporate Member of
the same client except under Government orders and / or with the knowledge of the
first Corporate Member

12. To present the information to the Council of the Institution for action if a
Corporate Member considers that another Corporate Member is guilty of the
unethical, illegal or unfair practice

13. To order his conduct according to the professional standards and customers of
country when a Corporate Member is engaged in Valuation work in a country
abroad and to adhere as closely as is practicable to the principals of his code.

14. To give unbiased valuation reports conforming to the objective opinion of the
property and not to attempt merely to accommodate the interest of the client

15. To steer clear of situations where interest and duty clash

16. To refrain from entertaining a client who either fails to declare that he had not
engaged another value for the same valuation work or produce a clearance
certificate of non-objection from the Valuer if already engaged.

17. To conduct yourself and the profession in a manner which will not prejudice your
professional status or the reputation of the institution

18. To follow this code as amended and or revised from time to time

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