Open up valuers’ boards and up fines

The Property Council says lack of transparency and accountability means the valuer registration boards’ operations need overhauling.

The comment from the Property Council comes as part of its submissions on a review of the Valuers Act 1948.

Valuer registration boards are currently comprised solely of valuers.

A change favoured by Property Council would see laypeople with specialist expertise included on the boards and they would serve a maximum term of five to 10 years.

Mandatory membership of a professional body is another prerequisite. 

But the Property Council submission says opening up membership to other organisations aside from the NZ Institute of Valuers would bring about competition and potentially increase the level of service to members.

At the same time as lifting competition and service, the entry of new membership organisations would mean a reduction in cost of membership, according to Property Council. Also on the wish list is a tiered complaints system the Property Council thinks would result in efficiencies and would enable complaints to be handled more quickly.

“The current process has been highlighted as being inefficient in terms of time and cost, as well as being open to abuse by frivolous complaints.”

The range of sanctions should be raised above a proposed increase in the fine to $20,000 (from $10,000 currently), and compliance monitoring should be carried out by the industry via a registration scheme.

The title of registered valuer should be retained as a protected title but minimum age requirement should be removed, the current three year supervised experience period is adequate, and a tiered registration system should be introduced for provisional registration.

More details about the submission are available on the Property Council website. (see Property Council's submission to the LINZ document below)

In other valuation news, Auckland Council is revaluing all the region’s properties as part of its three yearly cycle with revaluation notices going out in mid-November. Because of such large increases in property values since 2011, the council says it is working to help ratepayers understand that a rise in their value does not necessarily mean an increase in rates. 

The council rates and valuations set the share of rates each property owner will pay but the overall amount is decided by councillors annually.

The council is also highlighting that the “improvement value” printed on the notice should not be used for insurance purposes.

According to the council, there is significant value movement across the region. 

Auckland Council’s registered valuer, Peter McKay, says he is looking at an upward movement of an average 30% since the last revaluation in 2011 – the largest increase in residential land value in nine years.