Determining the value of a property is a crucial aspect of the real estate industry. As such, it is vital that the process is put through rigorous regulation, with all valuers in Dubai needing to adhere to a strict set of codes and standards that ensure industry transparency and ensure that all of their work valuers provide is to the highest standards. The local government in the UAE has embedded international standards of best practice in this process by developing and continuously improving what is known as the ‘Emirates Book’. This document mandates the rules and regulations and the correct procedures that all valuers in Dubai must adhere to.
This ‘Emirates Book’ is based upon the International Valuation Standards (IVS). The leader in the industry is The International Valuations Standards Council (IVSC). The international community recognised this council as the global standard setter, responsible for developing guidelines for valuations to ensure quality assurance and to implement a high level of standardisation of valuations across the globe, strengthening the valuation profession.
The ‘Emirates Book’ has three distinct sections
1. The general framework of real estate appraisal
This section presents the general bases for valuers who follow this book regarding objectivity, judgement, jurisdiction and acceptable exceptions to the International Valuation Standards.
2. The general standards for Emirates Book valuation standards
These look into the standards of real estate appraisal tasks, including valuation contract terms, value determination bases, methods and valuation approaches, and preparing reports.
3. Other standards in the Emirates Book valuation standards
This part of the book looks at other standards related to real estate, ownership and controlling interests. This section also discusses concepts related to local laws, such as freehold, leasehold, non-freehold and real estate development concepts.
In addition, there is the Royal Institute of Chartered Surveyors (RICS) Valuation Global Standards, better known as the ‘Red Book’, which fully incorporates IVS. RICS awards professionals an accreditation to Chartered Surveyors after professional assessments. These chartered surveyors are qualified in their domain.
Through developing the Emirates Book, valuation experts in Dubai can have a clear set of instructions on how to provide the highest quality of valuation services that are in compliance with both local UAE law and the International Valuation Standards as laid out by IVSC. Creating a handbook that all valuers are mandated to follow ensures high accuracy, transparency, efficiency and professionalism, ensuring that all valuation-related services are of the highest quality.
What is more, not only do the individual valuers and surveyors need to be qualified, but the companies they work for also need to be certified by the Real Estate Regulatory Agency (RERA) in Dubai. In order for a company to be accredited, it will need to submit specific documentation and meet the specified criteria.
The individuals performing the valuations will also need to provide an accredited university degree, certificates of experience, among others, to register a valuations company. There will also be a check for any conflict of interest. As per Dubai law, an individual cannot work as a valuer and a broker at the same time, and companies that offer brokerage services cannot provide valuation services except through a separately licensed valuation company with separate staff.
It is very important that when choosing a valuation company, you choose one that is accredited by RERA and the Royal Institute of Chartered Surveyors (RICS). This will ensure that any valuation reports or advice you receive will not only be objective and trustworthy but will also guarantee that you will be able to use the report for cases such as securing a bank mortgage. RERA displays all companies certified to perform valuations on their website, which you can check here, where you will also find CRC listed.
Once a company is certified, it would have to register its dedicated valuers with Taqyeem at the Land Department. Taqyeem will ensure that each valuer has the correct professional valuation experience and education. Before being legally allowed to conduct valuation services, all individuals must attend and pass an intensive course that familiarises future valuers in Dubai with the laws and ensures that they are well versed on best practices and regulations, including the standards set out in the Emirates Book.
These stringent measures will help guarantee that all their work will be of the highest quality. The course covers aspects relevant to the local market and international standards. This includes Valuation Standards, Valuers’ responsibilities, conflict of interest avoidance, ethics, reporting, and legal matters. Upon passing the course, the individual will be able to become a certified valuer who can legally conduct valuation services in Dubai.
As you can see, the Dubai government has worked diligently to ensure that all valuation practices within the Emirate are of the highest quality and standards. If you want to find out more information or require valuation services, contact us today to book a consultation with one of our highly qualified and experienced Chartered Surveyors.