Valuer's Professional Conduct Guidelines

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a key ethical expectation of valuers to maintain their professional status?

To disclose previous property valuations.

To provide valuations for any property.

To promote their services in any manner.

To uphold ethical standards. (correct)

Which of the following actions would be considered improper conduct for a valuer?

Performing work contingent on the outcome of litigation. (correct)

Signing all written property valuations.

Disclosing pecuniary interests in properties.

Providing expert evidence in court.

What must a valuer provide to be accepted as an expert witness in court?

Evidence from previous valuations.

An advertisement for their services.

Qualifications and experience. (correct)

A legal representative.

Which principle should a valuer NOT follow according to the code of professional conduct?

Solicit employment through commissions. Signup and view all the answers

What constitutes improper self-promotional advertising for a valuer?

Offering misleading information about services. Signup and view all the answers

Why is consistency in valuations important for valuers?

To ensure logical and factual data support. Signup and view all the answers

What should a valuer do promptly when there is a change in their personal circumstances?

Notify the Council of changes. Signup and view all the answers

Which of the following actions signifies an ethical breach by a valuer?

Sharing fees improperly. Signup and view all the answers

What is the primary purpose of cross-examination in legal proceedings involving valuers?

To discredit the valuer's evidence Signup and view all the answers

Which of the following is NOT a suggestion for giving evidence in court?

Guess when uncertain about an answer Signup and view all the answers

In which case was the importance of logical deductions in valuations highlighted?

Union Government v Jackson Signup and view all the answers

What criteria must hearsay evidence meet in legal proceedings to be considered admissible?

It must fall within specified legal exceptions Signup and view all the answers

Under what circumstance can a valuer be found guilty of improper conduct?

Performing work contingent on the outcome of a dispute Signup and view all the answers

What is the role of re-examination in the court proceedings involving valuers?

To clarify previous evidence provided by the valuer Signup and view all the answers

What should valuers avoid during cross-examination?

Speculating about the outcome Signup and view all the answers

Which of the following describes a condition under which a valuer can be suspended?

Working during a designated suspension period Signup and view all the answers

Study Notes

The Legal Relationship Between the Valuer and the Instructing Party

Valuers are expected to uphold ethical standards and be competent in providing valuation services.

Code of Professional Conduct

Follow professional conduct rules even when valuing properties outside their home country
Disclose any pecuniary interests in properties they value
Ensure their name appears on all accounts related to property valuation.
Notify the Council of any changes in address or employment promptly.

Improper Conduct

Performing work reserved for valuers contingent on the outcome of a dispute or litigation.

Conduct Constituting Improper Conduct

Undertaking valuations without proper qualification.
Self-promotional advertising that is misleading or derogatory.
Maliciously harming another valuer's reputation or business.
Criticizing or disparaging another valuer's work without legal basis.
Undermining another valuer's engagement without consent.
Sharing fees improperly.
Accepting remuneration from unauthorized parties.
Disclosing confidential information without consent.
Soliciting professional employment through commissions.

The Valuer as an Expert Witness

Valuers may give expert evidence in court to explain valuations or provide opinions on property value.
Must disclose qualifications and experience to be accepted as an expert.
Must have full and precise instructions from the client, usually through legal representatives.

Evidence Format

Ensure valuations are logical and based on factual data.
Consistency in valuations is critical; previous valuations may need to be produced.
Must understand legal requirements for valuations, especially in expropriation cases.

Legal Process Involvement

Valuers assist legal advisers in case preparation and may advise during cross-examinations.
A comprehensive, motivated valuation report is essential.
Evidence must be relevant and admissible according to legal standards.

Court Procedures

Evidence is presented in a structured format: evidence in chief, cross-examination, and re-examination.
Cross-examination is critical and aims to discredit the valuer’s evidence.

Suggestions for Giving Evidence

Answer questions directly to the judge, not opposing counsel.
Maintain courtesy and respect in court.
Be honest; do not guess or speculate.
Prepare thoroughly to anticipate questions.
Knowledge of legal aspects of valuation is essential for credibility.

Re-examination

Conducted by the valuer's legal team to clarify previous evidence.
Hearsay evidence is generally inadmissible unless it meets specific criteria.

Important Case References

Union Government v Jackson (1956): Importance of logical deductions in valuations.
Davey v Minister of Agriculture (1979): Critique of excessive evidence and the need for relevance.
Lornadown Investments v Minister van Landbou (1977): Hearsay evidence related to buyer/seller considerations.
Southern Transvaal Buildings v Administrator Transvaal (1979): Limitations on using another valuer's conclusions.

Conclusion

Valuers must navigate a complex legal landscape while maintaining high ethical standards and professionalism.
Their role as expert witnesses requires thorough preparation, an understanding of legal principles, and the ability to provide credible, fact-based evidence in court.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the essential ethical standards and conduct codes that valuers must adhere to within their profession. The quiz covers the legal relationship between valuers and instructing parties, along with the implications of improper conduct. Test your knowledge of the rules governing valuation practices and professional integrity.