| Menu Section |
 |
|
|
| Property Search |
|
|
|
| Sale Information |
|
 |
|
|
|
 |
| Properties Appraisal |
Property Valuation:
“ ...valuation is the heart and soul of all economic activity. Everything we do as individuals or as groups of individuals in business or as members of society is influenced by the concept of value. A sound working knowledge of the principles and procedures of valuation is essential in all sorts of decisions relating to real estate buying, selling, financing, developing, managing, owning, leasing, trading, and in the ever-more-important matters involving income tax considerations. Sound valuation is basic to zoning, ad valorem taxation, city planning, and to effective management of urban affairs.....”
Valuer should be as and independent and experience professional valuer in Cambodia. My independent opinion is offered for the sake of the standardization and improvement of real estate valuation practices in Cambodia. Although it is an individual’s opinion, I hope it will be beneficial to the field of real estate valuation as a whole. To all those who are involved in this field, I respectfully ask that you, please kindly give careful consideration to the proposals made in this content.
Professional and accurate valuation is needed at all times, not only in the current bust period but also in boom times. In fact, valuation is at the heart of all economic activities and everything in society is influenced by the concept of value as mentioned above. Internationally-accepted standards of valuation practices are needed in all civilized countries. This implies trust among people in a single society, a single region and a single world.
It is not beyond the present capacity of all parties involved in the valuation industry in Cambodia to promptly help standardize real estate valuation practice. Thus, this task of standardization an be achieved successfully and quickly.
Although this paper focuses on standardizing valuation practices, this does not imply that most Cambodia values are under-qualified resulting in unreliability and bad practices. In fact, there are quite a number of knowledgeable, internationally-trained and widely-accepted Cambodia values. In various international valuation-related firms, most, if not all, valuation tasks are normally conducted by Cambodian values.
In countries where the valuation profession is well entrenched, qualified valuers need to be in practice in a locale for a reasonable length of time. Therefore, an experienced and well-qualified British valuer cannot automatically be qualified to conduct valuation in the United States of America or Australia. they needs some minimum period of experience in a foreign country and they must be accepted by the local valuation institute or other ratifying body.
In fact, scandals and bad practices can occur in any country and any profession. this can often be observed in the case of finance, medical doctors, architects and the like. This content is this an attempt to propose some necessary protective apparatus to make valuation practices in Cambodia more internationally accepted and reliable for all local and international investors and society at large. However, the assertion that valuation in Cambodia is sub-standard and that Cambodian valuers are under-qualified, is untrue. However it must be recognized that there is a lack of formal valuation education at an appropriate level in Cambodia, resulting in disparities in the professional knowledge base which need to be dealt with. This issue is addressed later in the paper.
The triggering point for doubts about Cambodian’s professional valuation practices was scandals involving financial loans, resulting in the arrest of some valuers. This led to some valuation firms currently appearing on a number of institutional, but unpublished, blacklists. Some of these are even international firms. Bad practices in valuation can be 1) valuers acting alone 2) valuer and clients, where clients successfully bribe the valuers, 3) valuers, clients and officers who all cheat the financial institutions or other authorities involved in collusion. As mentioned, scandals and bad practices can be successfully avoided to a large extent. This involves 1) the establishment of some protective apparatus, 2) the establishment of guidelines and standard practices, 3) adequate, systematic and updated databases for valuation purposes and 4) the long-term strengthening of the valuation profession by appropriate education.
An independent opinion of value derived by a professional valuer is not merely an ordinary opinion. It must be an honest opinion of true market value on a particular date by a professional who is competent and possesses skills adequate for valuation. Those who lack adequate skills or fail to exercise proper care and diligence in conducting valuation can be liable to prosecution within existing Cambodia law.
“... the standard of the ordinary skilled man exercising and professing to have that special skill. A man need not possess the highest skill; it is well established law that it is sufficient if he exercises the ordinary skill of any ordinary competent man exercising that particular art... Mr. Sophy, (the valuer) had the necessary special skill.
I am sure, what the accepted practices of expert valuers were, but I fell well below accepted practices to such a degree that he produces negligently a valuation which could not have been produced by a valuer of average competence using the reasonable skill and care which could reasonably be accepted of him”. ( cell phone: 016 72 62 62, 013 661 777 E-mail: sophy@cppinvestment.com )
There is no doubt that any professional valuer must be financially liable to plaintiffs in cases of proven lack of care and diligence in conducting valuations. This is simply a case of a valuer falling below standard practices. Such a valuer will be fully responsible for his guilt. An act of negligence will result in punishment if damage is caused to the client.
It must be stated that the key is the proven lack of care and failure to follow standard practices. “ One has also to bear in mind very carefully the fact that valuation is very much a matter of opinion. We are all liable to make mistakes, and a valuer is certainly not to be found guilty of negligence merely because his valuation turns out to be wrong. He may have taken too optimistic or too pessimistic a view of a particular property”
“ However, in contemporary financial crimes, the parties involed e.g. the clients, the valuers, the officers of government organizations and financial institutions involved should all be examined in cases of bad practice.
Generally, guilty valuers are not the only, nor the principal criminals but, are often only the accomplices.”
By KONG VANNSOPHY, Managing Director, CPPI Co., Ltd. |
|
|
|
| HOT PROPERTIES FOR SALES |
> MORE |
|
|
|
|
|
|
|
|
|
|
