Evaluating the valuer : property valuations in Malta and the role of the perit

Abstract

Purpose: The introduction of the White Paper of Malta's Property Code and Regulations sparked much debate through various media regarding whether the role of property valuations should remain the sole remit of the Perit. Given the important role the property sector and construction industries plays in Malta, this research has set out to determine what would be needed to give a professional service for property valuations; and to gain a solid understanding of the theory and practice of property valuation In Malta. It also sought to compare this with International standards and benchmarks of theory and practice of this important discipline. Design: Information was gathered through an extensive literature review, an on-line survey questionnaire and interviews. This was done in order to study the professional training, competences and regulatory framework of the valuer in a selection of major EU countries considered to be at the forefront of international best-practice and compared these to the current Maltese system. It also undertook in-depth interviews of professionals in the local property industry in order to understand the contemporary views of these important stakeholders. The guided interviews were undertaken as face-to face discussions and were designed to provide both structure around the issues under exploration and flexibility for individual feedback. Findings: This work revealed that, in the training and practice of property valuations in Malta, there are major variations in comparison with international best practice which are creating a number of challenges. These can be broadly classified along three fronts: 1. Education, training, and ongoing professional development; 2. The regulatory environment including licencing and legal responsibilities; and 3. 'Real-world 'practice of property valuation.