THE IMPACT OF ESTATE SURVEYING AND VALUATION PRACTICE IN THE SOCIETY
Paper Presented by:
ESV. BAYO ARASHI
HND, BSC (In view) PGDE, ANIVS, RSV
Head of Practice, A.S. ARASHI CONSULTING
Introduction
In 1954, the first Nigerian Estate Surveyor and Valuer, John Wood Ekpeyong, graduated from the
University of London with a Bsc. Degree in Estate Management. Since then, the profession has
witnessed extraordinary and wonderful growth and development.
The profession gained limelight in the country when, in 1969, a group of qualified Chartered
(General Practice) Surveyors, as a non-profit voluntary professional organization to carter for the
interests of the Landed professional in Nigeria formed what is known as the Nigerian Institution
of Estate Surveyors and Valuers NIESV
Estate Surveyors and Valuers refer to professional members of the Nigerian Institution of Estate
Surveyors and Valuers, a body established in 1969 to cater for the interests of the landed
profession in Nigeria. The Institution was accorded official government recognition by the
promulgation of the Estate Surveyors and Valuers Registration decree No. 24 of 1975 (now CAP
13 (LAWS of the Federation of Nigeria, 1990) 2004.
The legislation established the Estate Surveyors and Valuers Registration Board of Nigeria
(ESVARBON) as a corporate body empowered to regulate the profession of Estate Surveying and
Valuation in Nigeria. CAP 111 LFN, 1990 defines the profession of Estate Surveying and
Valuation as the art, science and practice of:
a) Determining the value of all descriptions of property and of the interests therein;
Managing and developing estates and other businesses concerned with management of
landed property;
b) Securing the optimal use of land resources and its associated resources to meet social
and economic needs;
c) Determining the structure and condition of buildings and their services before advising
on their maintenance, alteration and improvement;
d) Determining the economic use of land resources by means of financial appraisal for the
building industry
e) Selling (whether by auction or otherwise), buying or letting (as an agent) of real and
personal property and any other interest therein.
f) any other services or exigencies, which arise from time to time and fall within the purview
of the practice
The objectives of the Institution are four fold, namely:
1. To establish a high and reputable standard of professional conduct and practice in the
landed profession throughout Nigeria:
2. To secure and improve the technical knowledge in all aspects of land economy amongst
its members and facilitate the acquisition of such knowledge by close collaboration with
Universities, other institutions of higher learning and professional bodies:
3. To promote the general interest of the profession, maintain and extend its usefulness for
the public good; and
4. To acquaint the public with the role of the Estate Surveyor and Valuer in the economic
development of Nigeria.
The scope of professional services of the Estate Surveyor and Valuer includes the
following:
a) Valuation of interests in land or buildings, plant and machinery, furniture, fittings,
equipment, motorized vehicles, engineering and infrastructural installations, etc.
b) Valuation for the compulsory acquisition of interests in land and buildings for
compensation purposes.
c) Feasibility and viability appraisal of development projects
d) Valuation for tenement rating purposes
e) Property sales and leases (Estate Agency)
f) Property and Facility Management
g) Project Management
h) Building Maintenance Management
i) Project finance procurement
j) Property inventory and audit
k) Real Estate Asset Management
l) Land Use planning and analysis
m) Advise on property rights and transfer
Arashi explain the Impact of the Profession in the Society
Having dwelt on the responsibilities of estate surveyors and valuers in the profession, I now wish to address how the impacts can assist our society and influence individuals and corporate
organization in the area by Estate Surveying and Valuation Practice
Asset Valuation
Estate Surveyors and Valuers are the only professional that licensed to carry out Asset valuation in Nigeria which involves the process of determining the fair market or
present value of an assets, using book values, absolute valuation models like discounted
cash flow analysis, option pricing models or comparables.
Such assets include investments in marketable securities such as stocks, bonds and
options; tangible assets like land and buildings and equipment; or intangible assets such
as brands, patents and trademarks for different purpose.
Asset valuation plays a key role in financial institutions and often consists of both subjective and objective measurements which are a great impact to the society.
Property Management
Estate Surveyors and Valuers are the major professional in the practice of Property
management to operate, control, maintenance, and oversight of real estate and physical
property. This include residential, commercial, and land real estate. Management
indicates the need of real estate to be cared for and monitored, with accountability for
and attention its useful life and condition considered. This is much akin to what valuers
as being doing in the practice.
Property management is also the management of personal property, equipment,
tooling, and physical capital assets that are acquired and used to build, repair, and
maintain end item deliverables. Property management involves the processes, systems,
and manpower required to manage the life cycle of all acquired property as defined
above including acquisition, control, accountability, responsibility, maintenance,
utilization, and disposition to secure an optimum returns for the investors.
Auctioneering
An auction is usually a process of buying and selling goods or services by offering them
up for bid, taking bids, and then selling the item to the highest bidder or buying the item
from the lowest bidder. Some exceptions to this definition exist and are described in the
section about different types.
Project Management
Project management is the process of leading the work of a team to achieve all project
goals within the given constraints. This information is usually described in project
documentation, created at the beginning of the development process. The primary
constraints are scope, time, budget
The secondary challenge is to optimize the allocation of necessary inputs and apply
them to meet pre-defined objectives.
The objective of project management is to produce a complete project which complies
with the client's objectives. In many cases the objective of project management is also to shape or reform the client's brief to feasibly address the client's objectives.
He Further more discussed that once the client's objectives are clearly established they should influence all decisions made by
other people involved in the project for example project managers, designers, contractors and sub-contractors.
Property Rating
Property Rating and Taxation is a process of assessing landed properties by qualified
Appraisers/Valuers with the aim of billing and collecting rates from the occupiers or the
owners of such assessed properties, depending on the enabling laws of the affected
state.
The current Nigerian Constitution confers the right to embark on property rating
and taxation on the local government councils. It is presently relegated to the
background as the local government councils pay more attention to their shares of
Revenue Allocation from the Federation Accounts.
Rating and Taxation enhances the Internally Generated Revenue (I.G.R) of the Local
Governments in addition to providing the following: employment opportunities,
manpower development, easy enforceability and accountability due to fixity of landed
properties as well as regularity of yearly collectible rates.
Real Estate Brokerage
A real estate broker, real estate agent or realtor is a person who represents sellers or
buyers of real estate or real property. While a broker may work independently, an agent
usually works under a licensed broker to represent clients. Brokers and agents are
licensed by the state to negotiate sales agreements and manage the documentation
required for closing real estate transactions. Buyers and sellers are generally advised to
consult a licensed real estate professional for a written definition of an individual state's laws of agency, and many states require written disclosures to be signed by all parties outlining the duties and obligations.
Compensation and Acquisition Valuation
Compensation is an integral part of estate surveying and valuation firm in the process of
compulsory acquisition of land in Nigeria.
Its importance cannot be overemphasized as a failure to compensate the occupier
renders the acquisition a nullity.
Section 44 of the 1999 Constitution of the Federal Republic of Nigeria (as amended)
provided that no individual land should be acquired without compensation.
It should as well be noticed that payment of compensation for lands acquired should be
prompt and not delayed unnecessarily.
Facilities Management
Facilities Management can be defined as the tools and services that support the
functionality, safety, and sustainability of buildings, grounds, infrastructure, and real
estate. Facilities management includes: Lease Management, including Lease
Administration and Accounting, Capital Project Planning and Management
Maintenance and Operations, Energy Management, Occupancy and Space Management
Employee and Occupant Experience, Emergency Management and Business Continuity
Real Estate Management
Conclusion
It is in recognition of the untapped potentials of our land resources and the administration by
the Estate Surveyor and Valuer who placed and provide necessary advice and guidance to the
government, individuals and corporate bodies on the impact of the professional to them on real
estate investment and development which the opinion of achieving an optimum return on
investment ROI.
*Biography*
Bayo Arashi bagged HND holder in Estate Management from Kwara Polytechnic Ilorin and also a Bachelor of Science Degree (BSc) Estate Management (in view) from Ajayi Crowther University, Oyo.
He is an Associate Member of our Institution and Member of Corporate Affairs Committee, Nigerian Institution of Estate Surveyors and Valuers (NIESV) National.
The Assistant Coordinator of Young Estate Surveyors and Valuers Forum Kwara State Branch and also The Honorary Publicity Secretary, NIESV Kwara State Branch
He is The Head of Practice of A.S. ARASHI CONSULTING a leading Chartered Estate Surveyors and Valuers and A Lecturer in Estate Management and Valuation Department, Harvard Polytechnic, Ilorin.
He is a Rotarian from The Rotary Club of Ilorin New Dawn, A Board Member of Lincoln Height Hotels, Ilorin and also a philanthropist.
He's an highly respected noble colleague creative with unique ideals and committed to providing the highest level of professional services with Impression.
www.asarashiconsulting.com