VOCATIONAL EDUCATION AND TRAINING STANDARD FOR A PROPERTY VALUATOR

Transcription

1 THE REPUBLIC OF LITHUANIA MINISTRY OF EDUCATION AND SCIENCE MINISTRY OF SOCIAL SECURITY AND LABOUR VOCATIONAL EDUCATION AND TRAINING STANDARD FOR A PROPERTY VALUATOR Vocational education level 5 Vilnius, 2008

2 EUROPOS SĄJUNGA PROFESINIO MOKYMO METODIKOS CENTRAS Europos socialinis fondas ŠVIETIMO IR MOKSLO MINISTERIJA KURKIME ATEITĮ DRAUGE! Development of the Standard was financed by European Union and by the Republic of Lithuania under the Project No BPD2004-ESF /0156 Development of the System of VET Standards Development of the Standard was coordinated by the Methodological Centre for Vocational Education and Training Profesinio mokymo metodikos centras, 2008

3 APPROVED by Order No ISAK-1970/A1-279 of the Minister for Education and Science of the Republic of Lithuania and of the Minister for Social Security and Labour of the Republic of Lithuania of 8 October, 2007 VOCATIONAL EDUCATION AND TRAINING STANDARD FOR A PROPERTY VALUATOR I. PARTICULARS OF THE VET STANDARD 1. Vocational education level 5 th. 2. State code S Qualification awarded a property valuator. 4. Basic education secondary. II. CONTENT OF THE VET STANDARD 5. Brief description of occupational activity: 5.1. The VET Standard for a property valuator (hereinafter referred to as the Standard ) defines activity areas, professional competencies, study objectives and final assessment of a property valuator. The Standard has been developed taking into account changes on the labour market and the findings of the qualification study carried out by the Standards Development Working Group The present Standard serves as a basis for the development of a higher nonuniversity study programme of a property valuator Upon completion of the study programme of a property valuator, governed by this Standard, a person acquires professional competencies in the following activity areas: identification of the property object to be valuated; assessment of the state of the property market and economic conditions; calculation of ; preparation documents A property valuator is a physical person of impeccable reputation, with appropriate education obtained in an officially recognised training institutions, a qualification certificate and sufficient experience and competencies to be able to valuate property Upon acquisition of higher non-university education, a property valuator will be able to work as the following: a property sales manager and an assistant to a property valuator, a property sales broker, a specialist and an officer in various agencies and organisations. Property valuation is an impartial calculation of, including a description of the valuated property, valuator s opinion about the condition of the property, its fitness for using and potential monetary value on the market Property valuators will be capable of performing in a professional and independent manner for the purpose of sale, insurance, mortgage, exchange, donation, property disputes, taxation, declaration and in other cases Based on his/her specialist knowledge and experience and upon appropriate identification and definition of the property object, a specialist will be capable of using a database accumulated on the market, will have to select methods, allowing each owner to determine the value of their property. The qualification of an independent property valuator allows taking important personal decisions regarding property acquisition or sale,

4 its maximum effective utilisation or investment into promising property in order to obtain credit funds from banks A property valuator performs expert examination of the assessment of the valuated object s condition, age and other peculiarities, taking into regard current laws, other legislation, notices about the dynamics of property condition and changes in its price. This means that s/he must regularly monitor the legal framework and its updates inasmuch as this is related to the valuation within his/her field, as well as the price of the valuated object A property valuator requires the following personal skills: continuous improvement in the areas of learning and application, using feedback, improving learning and work skills, working as part of the team with others to achieve common goals and allocating personal responsibility, problem identification and decision making, and the following personal qualities: self-confidence, analytical thinking, energy, trustworthiness, activeness, accuracy, a sense of responsibility, respectability. 6. The purpose of a property valuator is to determine. 7. Activity areas and competencies of a property valuator are listed in Appendix 1 to the Standard. 8. Range of competencies, study objectives and competency assessment of a property valuator are provided in Appendix 2 to the Standard. 9. Successful work as a property valuator requires the following general skills: 9.1. trustworthiness, 9.2. integrity; 9.3. activeness; 9.4. discretion; 9.5. accuracy and expedience in performing tasks; 9.6. team work; 9.7. using information technologies; 9.8. mathematical literacy; 9.9. communication. 10. Final qualification assessment: The qualification of a property valuator is awarded to a student who has completed the whole study programme, acquired competencies defined in the Standard and has been given a positive final qualification evaluation In accordance with the competency assessment criteria listed in the Standard, the following is tested and evaluated: during the study process - all competencies defined in the Standard; during the final qualification assessment - selected competencies Organisation and performance of the final qualification assessment and issuance of documents is regulated by the Ministry of Education and Science of the Republic of Lithuania.

5 Appendix 1 to the VET Standard for a property valuator AREAS OF ACTIVITY AND COMPETENCIES OF A PROPERTY VALUATOR Activity Areas 1. Identification of the property object to be valuated Competencies 1.1. Preparing terms of reference for property valuation 1.2. Preparing a contract 2. Assessment of the state of the property market and economic conditions 2.1. Assessing the influence of macroeconomic factors on the state of the property market 2.2. Assessing the influence of specific economic factors on the 3. Calculation of 3.1. Analysing and assessing data on the influence of external and internal factors on 3.2. Identifying peculiarities of the valuated property 3.3. Selecting estimation method 3.4. Identifying the current and future property value in accordance with the appropriate valuation method 4. Preparation of documents 4.1. Applying legislation and norms governing 4.2. Formalising documents regulating property relations 4.3. Storing, systematising and summarising information 4.3. Communicating and cooperating in problem solving and decision making

6 Appendix 2 to the VET Standard for a property valuator RANGE OF COMPETENCIES, STUDY OBJECTIVES AND COMPETENCY ASSESSMENT OF A PROPERTY VALUATOR Activity Areas 1. Identification of the property object to be valuated Description of Competencies Competencies Range of Competencies 1.1. Preparing terms of reference for property valuation 1.2. Preparing a property valuation contract The course of preparation of the terms of reference: setting the objective for property valuation; identification of the form of ownership of the object; property owner identification; the procedure and conditions for disposing of property; identification of other factors influencing the ; identification of the type Property valuation conditions: conditions and terms for performing ; size of remuneration; other conditions. Property valuation formalisation documents: a contract; an inspection statement or sheet, terms Study Objectives Knowing property categories and types distinguished by various features Understanding the legislation on disposing of property Formulating a property valuation objective and criteria Identifying the object of Defining terms and conditions for performing Calculating the size of remuneration for the property valuation services provided Identifying other conditions influencing the functional property environment Assessing the functional property environment Competency Assessment The definition of explained. A property valuation objective and criteria identified and formulated. Features of objects identified and described. The types of identified. The terms of reference for property valuation prepared. Conditions for performing property valuation described. The timeframe of identified. The size of remuneration for the services provided

7 2. Assessment of the state of the property market and economic conditions 2.1. Assessing the influence of macroeconomic factors on the state of the property market 2.2. Assessing the influence of specific economic factors on the of reference; property valuator's work schedule. National and global economic indicators: gross domestic product; employment and unemployment levels; overall price level; a databank of factors Specific factors: socioeconomic indicators of the location; national or local market conditions; demand and supply; social expectations. A databank of factors Knowing the macroeconomic factors Knowing the methods applied for assessing the impact of macroeconomic factors Assessing the impact of macroeconomic factors on the state of the property market Accumulating data on macroeconomic factors Knowing the economic factors Knowing the methods applied for assessing the impact of specific economic factors Assessing the impact of specific economic factors on Accumulating data on specific factors calculated. Other conditions influencing the functional property described. A property inspection statement or sheet prepared. A property valuation contract prepared. Macroeconomic factors influencing activity described. The methods determining the impact of macroeconomic factors defined. The impact of macroeconomic factors on the property market evaluated. The system of specific factors influencing property valuation activity described. The methods applied for assessing the impact of specific economic factors

8 3. Calculation of 3.1. Analysing and assessing data on the influence of external and internal factors on Indicators of external factors: competition; fashion and taste; demographic factors and migration; technological changes; rental rates; property transactions; other indicators. Methods: mathematical statistical methods; financial analysis methods. Indicators of internal factors: replacement by another property; property improvement; the influence of rising income; physical, functional and economic depreciation; property liquidity; other indicators. Methods: mathematical statistical methods; financial analysis methods Defining and selecting external indicators influencing Knowing mathematical statistical and financial analysis methods Gathering, systematising and processing information about the impact of external factors on property value Assessing the impact of external indicators on Selecting internal indicators influencing the Knowing statistical and financial analysis methods Gathering, systematising and processing information about the impact of internal factors on property value Assessing the impact of internal indicators on identified. The consequences of the impact of economic factors listed. The system of external indicators influencing property value described. Mathematical statistical and financial analysis methods named and presented. Analysis of the research into the impact of external indicators on property value calculation performed using appropriate methods. The system of internal indicators influencing the described. Analysis methods for internal indicators influencing the named and described. Analysis of the research of impact of internal indicators on

9 3.2. Identifying peculiarities of the 3.3. Selecting property value estimation method Peculiarities of : property use; physical planning; territory management; restrictions on disposing of the property; rights of other persons with regard to this property (rent, mortgage, servitude, etc.); injunctions; owner's obligations; valuation model, other peculiarities Methods of property value estimation: of comparative value; replacement value; disposable income value; special value; other methods approved by the Government of the Republic of Lithuania and recognised internationally. Method selection criteria: valuation purpose; property type; type of ; a feature reflecting the on the Defining peculiarities of Understanding legislation governing peculiarities of valuated property Identifying peculiarities of specific Assessing the impact of the peculiarities of on Knowing estimation methods Knowing the criteria for selection of the estimation method Selecting an appropriate estimation method Applying estimation methods calculation performed using appropriate methods. The peculiarities of named and described. Regulatory legislation governing peculiarities of named and described. Documents prepared, based on the assessment of peculiarities of the. Property value estimation methods explained and defined. Criteria for selection of the estimation method identified and selected. A estimation method applied for specific cases.

10 4. Preparation of documents 3.4. Identifying the current and future in accordance with the appropriate valuation method 4.1. Applying legislation and norms governing market concerned best. Property value estimation phases: data collection and accumulation; data analysis; making calculations; preparation of a report. Property valuation documents: estimate documentation; property value estimation certificate; property valuation report; real s maps. Property valuator's rights and duties. Legislation and norms governing property valuation: property taxation and legal regulation; legal regulation laying down property insurance against risks; national property and business valuation standards; international property Performing analysis of data collected on the Selecting an appropriate method Analysing data on historic purchase-sale transactions of similar properties Performing calculations required for estimating Defining property valuator's activity, his/her rights and duties Knowing the system of appropriate legislation and their adoption and amendment procedure Knowing legal provisions governing procedures and knowing how to apply them in practical property valuator's activity Using legislation governing and applying it in the activity valuation standards Applying international and national standards Data on the collected. A specific property valuation method selected. A property valuation report prepared. Property valuator's rights and duties identified. The system of legislation and norms governing property valuation procedures described. Actions taken to valuate the property defined. Examples of statements examined. The system of international and national standards defined.

11 4.2. Formalising documents regulating property relations 4.3. Storing, systematising and summarising information Analysis of Formalising property relations. Document types: administrative; organisational; information, personal. Document management requirements: document authenticity; document trustworthiness; integrity; fitness for use. E-document management: relationship between the medium and the content; method of information capturing on the medium; document form; relationship between the metadata and the document; document storage. Statistical reports. Computer data processing programs Defining document types Providing accurate information about the in documents Preparing documents governing property relations Preparing documents in accordance with the document management requirements Knowing types of statistical reports Building a databank for analysing indicator changes Using computer data processing programs Types of documents governing property relations named and described. A estimation certificate prepared. The main document management requirements described. Organisational and administrative documents for the prepared. Statistical report types described. Information required for property valuation captured. A databank built. A data processing program used for systematising information.

12 4.4. Communicating and cooperating in problem solving and decision making Types of communication: verbal communication; written communication; business communication; commercial communication; group communication; formal; informal. Negotiations tactics: take it or leave it ; stonewall ; good Samaritan ; power position, piece by piece ; mixing up the focus. Conflict types: personal; interpersonal; personality and group, inter-group; social. Conflict resolution methods: rivalry; adaptation; avoidance; cooperation; compromise Managing means of verbal and written communications Understanding the motives behind the behaviour of the property valuation process participants and assessing them Analysing and managing conflicts Applying behaviour regulation methods Communicating in foreign languages Decisions regarding team member duties and competency allocation taken. Review of the process and its management organised. Goals and objectives of work of process participants identified. Activity and results of property valuation process participants examined and evaluated. A conflict named and conflict resolution methods presented. Business communication in a foreign language demonstrated.