ESV. Chudi Ubosi |
INTRODUCTION
The
title of the paper, I want to say, has been well chosen and is very apt at this
point in time in the history of our profession and practice (for those of us in
private practice). This is a period when we are faced with incursions and
bombardments from all comers from within and without, and there are numerous
cases of malpractices and unprofessionalism leveled against practitioners.
We
really don’t have to look very far to see that ethical standards in the
profession have been more or less thrown to the dogs. From the huge number of
cases brought before the Professional Practice Committee (PPC) regularly, the
obvious multiple boards on properties by surveyors, to the loud complaints
emanating from the nation’s financial institutions about the quality of our
valuation reports and values appended to these assets, it is clear to all.
YEAR
AND NUMBER OF CASES REPORTED TO PROFESSIONAL PRACTICE
COMMITTEE (PPC)
2008: 18 cases
2009: 21 cases
2010: 11 cases
2011: 17 cases
2008: 18 cases
2009: 21 cases
2010: 11 cases
2011: 17 cases
2012:
10 cases
2013: 8 cases
Source: NIESV
2013: 8 cases
Source: NIESV
None
of us here, in particular the Estate Surveyors and Valuers amongst us can deny
knowledge of these issues. The poor ethical standard is felt in every sphere of
our profession – from agency to valuation to management etc. Whilst we may ask
ourselves how we got to this state of affairs, you will observe from the next
paragraph that many of the challenges are a carry-over from the larger society.
CHALLENGES
TO ETHICAL STANDARDS.
LACK
OF KNOWLEDGE OF ETHICAL STANDARDS
One
of the many challenges facing the profession of Estate Surveying and Valuation
today is the proliferation of Estate Management courses in the educational
institutions of higher learning all over the country. Whilst this is good for
the profession it has produced a large number of graduates who understand
little about the profession they have found themselves in. Many qualify even
professionally with the erroneous misguided belief that Estate Surveying and
Valuation is a profession where one sale transaction can make you wealthy for
life. They are therefore in a hurry to close that “sale” and in the process
every bit of decorum and decency is thrown to the wind.
CUT
THROAT COMPETITION.
One
of the major factors that has given rise to the poor and low ethical standards
amongst Estate Surveyors and Valuers is the cut throat competition amongst
professionals. There are many variants to this competition which manifests
itself in various ways but invariably it ends up the same way.
Firms
compete for limited briefs from clients – private and public – and in the
process of securing same, make all manner of compromises. These compromises
include huge discounts on professional fees, such that when one sometimes hears
of these one is at a loss as to how the firm intended to prosecute the job and
make adequate profit to remain in business.
Other
forms of poor ethics will include promises that cannot be delivered upon, all
in a bid to secure an instruction. Some of our colleagues will readily confirm
to a client that rent achievable on his property will be twice the market value
all in a bid to secure the brief. Some
others will offer to append values to an asset knowing fully well that the
values are far in excess of the market value. All these examples are
highlighted because they are the most common forms of malpractice and
unprofessionalism currently prevalent and the reason why this is so can only be
ascribed to poor ethical standards.
INADEQUATE
NUMBER OF BRIEFS
Following
on (2) above, one of the reasons given for the cutthroat competition amongst
surveyors which invariably leads to lowering of our ethical standards is the
absence of enough briefs to go round the number of practicing firms. The point
must be made that there has been a lot of incursions into our professional
duties by other professionals thereby limiting the number of activities that
can be undertaken by Estate Surveyors and Valuers. Our members have also not
been engaging in business development to develop other areas of the profession
which have now been “lost” to other practitioners like project management,
appraisals, facility management etc.
POOR
KNOWLEDGE AND PERCEPTION OF THE ROLE OF ESTATE SURVEYORS AND VALUERS.
Following
from (3) above, one of the reasons why there are fewer and fewer professional
briefs for Estate Surveyors and Valuers remains that the public is not fully
aware of our role in real estate related transactions besides estate agency. Therefore,
jobs that ordinarily should rightfully be that of the Estate Surveyor and
Valuer are given to other professionals who more often than not then turn round
and employ a real estate firm as professional to assist or oversee the
execution of same.
CORRUPTION
WITHIN THE LARGER SOCIETY
It
is not uncommon these days for surveyors to be given briefs and at the end of
the day the firm or the individual from whom the job is originating is
demanding as much as 75% of the professional fees as “public relations” or
“introductory fee”. This has become so prevalent that more often than not the
norm is that the firm or valuer is being subcontracted to execute the
professional assignment. The cancer of corruption does not only include
concession on fees, but also over charging and loading of professional fees
because due diligence and ethics and integrity are compromised.
LIVING
BEYOND ONES MEANS.
One
of the reasons why Estate Surveyors and Valuers have found it more and more
difficult to maintain ethical standards is that many of us have lost track or
are unaware of the conservative nature and responsibilities thrust upon us by
virtue of the profession we have chosen. What obtains in Nigeria today is a
situation where we want to copy the lavish and ostentatious lifestyle of
majority of our clients (who invariably because real estate is capital
intensive are usually very wealthy) and in the process, forget that it is what
we earn from them (a minute percentage of their wealth) that we can spend in running
our offices and our lives.
A
lot of Estate Surveyors and Valuers are now competing with their clients in the
purchase of cars, extravagant lifestyle etc. In the process and to keep up this
lifestyle we forget that there are different sets of rules guiding not only our
corporate existence but invariably our lifestyles. In the strive to maintain
the ostentation, some of our colleagues dip their hands into clients rents,
sale proceeds or generally compromise on standards and ethics.
PROLIFERATION
OF MUSHROOM PRACTICES
One
of the many challenges to ethical standards in real estate transactions today
is the proliferation of mushroom one man practices. Whilst this write up is not
meant to cast aspersions on any Estate Surveyor and Valuer and free entry and
exit in the profession through setting up of practices is actually an
indication of free enterprise and capitalism, the problem is that a lot of
these practices have been discovered to be just offices where even the
proprietors understand little of the responsibilities of professionalism. At
the end of the day a lot of ill is done to the profession in these mushroom
practices because there are virtually no checks and balances by other partners
who have an interest in the practice.
RECOMMENDATIONS
Having
examined the various challenges of ethical standards by Estate Surveyors and
Valuers in real estate transaction, it is important to make recommendations for
the way forward.
FINISHING
SCHOOL
It
is important and recommended that Estate Surveyors and Valuer should be put
through a finishing school before they are confirmed as professionals by the
Board and their seal handed over to them. This Finishing School would run a
program which curricula would include ethics, ethical standards etc in real
estate practice. This Finishing School will be similar in nature to the Law
School that exists for the legal profession.
THE
HALLMARK OF PROFESSIONALISM IS TRUST
At
every fora of Estate Surveyors and Valuer, we all must continue to harp to
ourselves that the hallmark of professionalism for the present and the future
is trust. And the only way this trust can be maintained is through integrity,
accountability and keeping of high ethical standards. This message must be
implanted in our consciousness.
EFFECTIVE
DISCIPLINARY COMMITTEE.
The
Nigerian Institution of Estate Surveyors and Valuers must have an effective
disciplinary organ. Today we have the Professional Practice Committee (PPC)
that reviews cases of malpractices and complaints against Estate Surveyors and
Valuer. Whilst we cannot claim that they have not been effective, it is also
important to point out that not many professionals are today afraid of being
taken before the Professional Practice Committee. It is almost as if the
Professional Practice Committee has become a dog whose bark is worse than its
bite. The Institution must strengthen the Committee so that it becomes more
effective and efficient such that even the consuming public will know that they
can get fair resolution of issues from our hallowed and noble chambers.
INCREASED
PUBLICITY
One
of the major problems we suffer today as Estate Surveyors and Valuers is the
very poor level of public awareness of who we are and the services we offer.
This is one of the reasons why many of the jobs which should rightfully be ours
are given to other more visible professionals. Whilst the code of ethics allows
advertisements to a certain extent, we must urgently review the current
parameters and limited with a view to making it easier and increasing
flexibility for advertisements by practitioners. This is important because it
will not only expose us more and direct numerous more briefs to our firms, but
also with the increased number of briefs competition will become a lot
healthier with reduced reason for unethical practices and standards.
GREATER
INTERFACE WITH GOVERNMENTS AT FEDERAL AND STATE LEVELS
It
is also recommended that the Estate Surveyors and Valuers interface with
governments at all levels on a more regular and sustained basis. The public
sector is not only one of the largest employers of labour in Nigeria today, but
also the largest consumer (user) of our professional services (fee wise). We
must continue to educate governments on who we are, our role and the
implication of not using our professional services, in executing public works
etc. In the final analysis we (Estate Surveyors and Valuers) will be better off
for it with improved standards and ethics.
BUSINESS
DEVELOPMENT BY ESTATE SURVEYORS AND VALUERS
One
of the major reasons given for the cut throat competition and therefore
lowering of standards and ethics is insufficient jobs for Estate Surveyors and
Valuers. Whilst I may agree slightly with this, I would hasten to add that we
have brought the current state of affairs upon ourselves. Two decades ago,
there were few firms, but just as many briefs. What obtained was that Estate
Surveyors and Valuers were involved in every aspect of our profession and were
in the driving seat. Firms were involved in feasibility and viability
appraisals, project management, property and facility management (though known
as the former), developments, valuations, raising project financing, agency
etc.
Today,
we have all been boxed into a corner, of valuation and agency only and even
with these two the next decade portends great danger of loss for us all if we
do not tighten our belts and up our game. Many young firms are not even aware
that these area mentioned in the preceding paragraph are rightfully ours as
professionals. We are however all quick to claim that there are not enough
briefs to go round. In the meantime other professionals such as lawyers,
accountants, engineers are making huge in roads into what is ours. Will
valuations be there at 10 years from now? Will we be relevant?
CONCLUSION
In conclusion, it can be discerned that the challenges to ethical standards in real estate transactions are numerous. One of the major findings is that the Estate Surveyor and Valuer cannot operate in isolation of the larger environment in which we exist. The influence of the larger society (negative and positive) generally sips into our professional consciousness. The impact of the larger society has led to the erosion of standards and ethics. It is not too late to stop the downward slide. We as a body only need to determine to do so. Once the will is visible amongst us all, half the work is done.
In conclusion, it can be discerned that the challenges to ethical standards in real estate transactions are numerous. One of the major findings is that the Estate Surveyor and Valuer cannot operate in isolation of the larger environment in which we exist. The influence of the larger society (negative and positive) generally sips into our professional consciousness. The impact of the larger society has led to the erosion of standards and ethics. It is not too late to stop the downward slide. We as a body only need to determine to do so. Once the will is visible amongst us all, half the work is done.
In
the final analysis, each and every surveyor must realize that each time we
interact with the public we carry not only the image of our persons and
practices but also the responsibility of the image and perception of the
profession into that transaction. We must realize that the future growth and
well being of the profession rests with us and what we do today. It is a
responsibility which we must never take lightly and in doing so we will uphold
the ethics and standards of our profession.
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