The Spring General Assembly of TEGoVA, Brussels, Belgium 12 th – 14 th May 2016

BECOMING A ‘TRV’ IN IRELAND Paul Campbell MSc FCIOB MSCSI MRICS

Institute of Technology Tallaght Established in 1992 Programmes in Business, Accountancy, Management, Humanities, Applied Science, Computing, Mechanical Engineering and Electronic Engineering Offer awards at Higher Certificate, Ordinary Degree, Honours Degree, Masters and PhD levels Student population of 5,200 – full & part-time

Institute of Technology Tallaght / IPAV 2013 – ITTD started offering the IPAV Certificate in Auctioneering and Estate Agency ITTD validated the programme and accredited it at Level 6 (Higher Certificate) on the National Framework of Qualifications - received approval of the Property Services Regulatory Authority - September - programme started in ITTD - Programme run over 2 years – part time - graduates eligible to apply for all 4 categories of license graduates to date

The Central Bank of Ireland The 2012 Central Bank of Ireland’s ‘Lessons Learned’ document stated that there were many weaknesses in the entire secured lending valuations processes. It states (among several findings) that: “…[there was a] lack of appreciation of the significance of the valuation document as independent evidence of risk mitigation effectiveness. Many bankers did not fully regard the valuation report as a key document underpinning the basis on which they were acquiring the risk”. The Central Bank of Ireland Valuation Processes in the Banking Crisis – Lessons Learned – Guiding the Future (Final 18 December 2012) (IPAV contributed to this report)

The Central Bank of Ireland “Examples of valuation standards consistent with the principle rules of International Valuation Standards and considered to be appropriate practice include; the Royal Institution of Chartered Surveyors (RICS) “Red Book”, the European Group of Valuers Associations (TEGoVA) “European Valuation Standards Blue Book”, and The International Valuation Standards Council’s “International Valuation Standards White Book”. The Central Bank of Ireland Valuation Processes in the Banking Crisis – Lessons Learned – Guiding the Future (Final 18 December 2012)

The Irish Banking Inquiry Report of the Joint Committee of Inquiry into the Banking Crisis Houses of the Government (Inquiries, Privileges and Procedures) Act, Pat Davitt summoned to attend Among its many finding were: “As the property boom took hold, reliance on informal ‘desktop’ and ‘drive-by’ valuations, which did not involve any physical inspection of a property, became more prevalent”.

European Mortgage Credit Directive STATUTORY INSTRUMENTS.(S.I.) No. 142 of 2016 EUROPEAN UNION (CONSUMER MORTGAGE CREDIT AGREEMENTS)REGULATIONS 2016 Property valuation 20. Now Irish Law since 21 st March 16 (1) A creditor shall use reliable standards, such as those developed by the International Valuation Standards Council, the European Group of Valuers’ Associations or the Royal Institution of Chartered Surveyors, when carrying out a property valuation of residential immovable property for credit purposes, or take reasonable steps to ensure that reliable standards are applied where a valuation is conducted by a third party. (2) A creditor shall ensure that internal and external appraisers conducting property valuations are professionally competent and sufficiently independent from the credit underwriting process so that they can provide an impartial and objective valuation, which shall be documented in a durable medium and of which a record shall be kept by the creditor.

IPAV / TEGoVA IPAV affiliated to TEGoVA May 2013 IPAV certified first REV’S November 2013 IPAV certified first TRV’S Oct 2015 IPAV not happy to Accredit Valuers unless they completed a Valuer’s Course IPAV needed a programme to instil confidence into the relevant banks and authorities in Ireland as ‘Red Book’ very prominent

IPAV – REV & TRV REV – 2 courses - Autumn 2013 & Spring REV Valuers TRV – 3 courses in Autumn 2015 in Spring 2016 and June TRV Valuers Both programmes take place in ITTD

IPAV – TRV CV 500 words & Application form - 10 hours Tuition - 30 hours Valuation Projects - 2 no. -10 hours Total - 50 hours (REV programme requires 80 hours of tuition & study)

IPAV – TRV Open to IPAV Valuers with 6 years valuation experience Each course takes place 4 weekends over 6 weeks period 2 Friday evenings and 4 Saturdays – 30 hours of tuition 2 weekends on – 2 weeks study period – final 2 weekends

IPAV – TRV Applicants must submit a registration form and detailed CV including: - Academic & Professional Qualifications - Employment and Insurance ‘PII’ and ‘Liability’ - Details of residential valuation experience - Understanding of the local property market - Demonstrate ability to produce valuations to EVS standard - Knowledge of property & planning law - Understanding of construction including materials

IPAV – TRV - Knowledge of low energy building, contamination etc. - Knowledge of the Blue Book and EVS standards - Knowledge and commitment to TEGoVA/TMA code of ethics Details of 12 valuations completed within the last year Commitment to 20 hours CPD per year Agreement to ad-hoc inspection of valuations Following satisfactory completion – students are accepted on to the programme. Students complete a contract with IPAV

IPAV – TRV During the first 2 week study period the students complete a Residential Blue Book Valuation. On completion of the second 2 weekend element, the students complete a 2 nd Residential Blue Book Valuation of a different property. This is supervised by the IPAV Compliance Department who ensure that the valuation is to the required standard. Students complete a weekly work log throughout the 4 weeks of the programme.

IPAV – TRV TRV Timetable 1. TEGoVA – Aims & Objectives – Code of Ethics – Pat Davitt 2. Marketing Yourself – Mark Thornton 3. Introduction to the Blue Book – EVS Standards 1-5 – Niall Brereton 4. Energy Rating & Building Regulations – Barry McDonald 5. Construction, Building Surveys & Defects – Paul Campbell

IPAV – TRV 6. Economics & Property Investment – Gerry Phelan 7. Law – agency & ownership & transfer of land – Kira Byrne 8. Planning Law – residential & one-off houses – Jong Kim 9. Property Registration Authority – online facility – Carmel O’Shea 10. Residential Valuations & EVS – John Hockey 11. Mortgage Valuation Directive – Central Bank – Kira Byrne

IPAV – TRV 12. Valuation Office – Occupier Assisted Valuations – Terry Fahey / Declan Lavelle 13. Blue Book compliance – IPAV Compliance Officer – Ed McDonald 14. Terms of Engagement – Completion of Valuations to Blue Book Standard – Niall Brereton 15. Insurance: Professional Indemnity – Larry Fenelon Each lecture is followed by an examination – min. 50 % to pass Lecturers - practitioners & ITTD academics

IPAV Findings & Feedback Very positive feedback received from: Financial Institutions – Bringing up valuation standards Member Valuers – the course gives a valuable learning experience and a much needed qualification Lecturers – Students/Valuers learn a lot Central Bank of Ireland – Extending Valuers Knowledge Department of Finance – Brought in new S.I. Member Valuers – Great networking Events Member Valuers – Head above our competitors