The lack of a professional valuation body and its implication: the case of Namibia

Many professionals have professional bodies that regulate their working practice and valuation is no exception. One of the leading bodies in the valuation profession is the Royal Institution of Chartered Surveyors (RICS). Generally, countries tend to have a professional body which regulates the domestic valuation practice. Professional bodies play roles by regulating the valuation activities in their countries and protect their members and public interests. They also develop standards of practice and promote code of conducts and ethics. Having well-regulated valuation activities and properly trained practitioners ensures that the land and property market operate efficiently and effectively. Given that land is a factor of production, its efficient use therefore promotes economic development. This dissertation presents the results of a study whose aim was to investigate if the lack of not having a professional body in Namibia has any effect on the valuation practice. A few web questionnaires were issued to individuals working in the valuation industry in Namibia which comprises of; government employees, private firms as well as in the financial institutions. In addition several telephone interviews were conducted with the key players in the valuation industry to follow up on the responses provided in the questionnaires. The study findings reveal that Namibia does not have the relevant legislation regulating the property valuation. As such, there is no requirement to employ a chartered valuation surveyor to do valuation in Namibia. The surveyors that are operating in Namibia are mainly qualified only due to their experience in the field. Although there is no law that regulates the valuation practices, there are statutes that require valuation to be done. The situation has not gone without notice evidenced by some concerns from the country's office of the Valuer General. Such concerns have prompted the VG to initiate The Valuers` Bill which is waiting to be presented to the stakeholder. In addition, the research found that there is a lack of capacity among those who are involved in undertaking the valuation functions. The study further found that people with little or no proper valuation qualifications are employed. Without either the law or the professional body to oversee their activities it has been found that a number of unacceptable practices take place. For instance falsification of valuation qualifications; poorly qualified individuals taking valuation responsibilities without any guidance from qualified professionals for which they are ill-equipped to undertake; financial institution not appreciating the significance of properly qualified valuers whose work is overseen by a professional body and ending up appointing clerks, attorneys and people with grade 12 certificates to perform valuations. The lack of a well-established valuation service, in form of having adequate, properly qualified and regulated valuers, affects the government's economic development objectives or service delivery. This is because one of the three production factors, land is inefficiently utilised.