NIESV FEM cheat sheet

Market value is the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, wherein each acts knowledgeably, prudently and without compulsion.

The five methods of valuation are the comparative method, the investment (income) method, the profits method, the cost (contractor's) method and the residual method; method choice is driven by the property type and the availability of comparable evidence.

Investment method: capital value = net income × years' purchase (YP). YP in perpetuity = 100 / yield (%), so a 10% yield gives a 10-year multiplier.

Freehold YP for a term plus reversion = YP for the term at the discount rate + PV of the reversion at the discount rate; the reversion is the freehold value in perpetuity deferred to the end of the lease term.

Gross rent multiplier (GRM) = sale price / gross annual rent; the income approach capitalises net operating income, so a GRM derived from comparable sales must be applied to comparable gross income.

Depreciation in the cost method is split into physical deterioration, functional obsolescence and external (economic) obsolescence; curable items are deducted at cost, incurable items by capitalised loss.

Zoning and planning status, title, encumbrances, easements and statutory designations must be inspected and reported because they can materially reduce value independent of physical condition.

A valuation report should state the purpose, basis and date of valuation, the extent of investigation, assumptions and limiting conditions, and the valuer's opinion with supporting computation.

Land tenure in Nigeria is governed by the Land Use Act 1978: all land in a state is vested in the Governor, who holds it in trust and grants statutory rights of occupancy, while local governments grant customary rights of occupancy.

A statutory right of occupancy is granted for a defined term (commonly 99 years) and is evidenced by a certificate of occupancy; customary rights of occupancy are governed by customary law and are usually perpetual.

Interests in land are classified as estates (freehold, leasehold), lesser interests (easements, profits, restrictive covenants, mortgages, charges) and statutory controls (planning, compulsory acquisition).

A lease requires certainty of term, exclusive possession and rent; a licence merely confers permission to occupy and creates no proprietary interest.

Easements require a dominant and servient tenement, diversity of ownership, benefit to the dominant land, and the right must lie in grant; prescriptive easements arise after long uninterrupted use.

Registration under the Land Instruments Registration Law or the registration of titles system determines priority; notice and caveats protect unregistered interests against subsequent purchasers.

Compulsory acquisition requires a public purpose, notice to the owner, service of a notice to yield up possession, and payment of compensation for the land, unexhausted improvements and disturbance.

Restrictive covenants bind successors in title in equity where the burden runs with the land and the covenant touches and concerns the land; positive covenants generally do not run with freehold land.

Net operating income (NOI) = gross potential income − vacancy and collection loss − operating expenses; debt service, depreciation and income tax are excluded from NOI.

Capitalisation rate = NOI / property value; it is derived from comparable sales (NOI ÷ price) or built up as a risk-free rate plus risk, illiquidity and management premiums, less expected growth.

Gross income multiplier = price / gross income; net income multiplier = price / NOI; the higher the multiplier, the lower the implied capitalisation rate.

Discounted cash flow appraisal discounts each year's NOI and the reversion at a target internal rate of return; NPV > 0 means the price is below the value implied by the discount rate.

Cash-on-cash return = annual pre-tax cash flow / equity invested; the equity dividend rate ignores appreciation, so it must be read alongside total return.

Debt service coverage ratio (DSCR) = NOI / annual debt service; lenders commonly require a DSCR above 1.20, and a loan constant = annual debt service / loan amount.

Loan-to-value (LTV) = loan / appraised value; leverage increases both return on equity and risk, and negative leverage occurs when the loan constant exceeds the property's capitalisation rate.

Payback period = equity / annual cash flow; it ignores the time value of money and cash flows after payback, so it is a screening rather than a decision measure.

Residual valuation: site value = gross development value − total development cost (construction, fees, finance, contingency, marketing) − developer's profit; profit is usually expressed as a percentage of GDV or of cost.

Construction cost is estimated by the unit method, superficial (floor area) method, approximate quantities, elemental cost planning or detailed bill of quantities; accuracy increases down that list.

The RIBA-type plan of work stages run from appraisal and feasibility through design, tendering, construction and handover; each stage gate should confirm cost, programme and funding.

Critical path method identifies the longest path through the network; activities on the critical path have zero float, so any delay there delays practical completion.

Earned value: cost variance = earned value − actual cost; schedule variance = earned value − planned value; CPI = EV / AC and SPI = EV / PV.

Cash flow forecasting for development must include land, professional fees, construction drawdown, interest on development finance, void periods and sales receipts timed to the programme.

Value engineering seeks the required function at lowest whole-life cost; it is not cost cutting, and changes must be assessed for time and quality impact.

Retention is commonly 5% of the contract sum (half released at practical completion, half after the defects liability period), and liquidated and ascertained damages compensate for late completion.

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) is the professional body; its examination of professional competence (the FEM) is a route to corporate membership, and the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) regulates practice and registration.

Core ethical duties are integrity, competence, confidentiality, independence and disclosure of conflicts; a valuer must not act where a personal or financial interest could bias the opinion.

Contingent fees based on the outcome of a valuation, or on a loan or sale value, are incompatible with independence; fees should be agreed in writing before instruction.

Professional indemnity insurance protects against negligence claims; a valuer should decline instructions outside their competence or where adequate information cannot be obtained.

Money laundering controls require client due diligence, identification of beneficial owners, source-of-funds checks and suspicious transaction reporting for estate agency and property work.

A valuer's report must be addressed, dated, signed and state the basis of value; the valuer should record inspection notes, comparables and assumptions in a working file retained for the limitation period.

Conflict of interest in estate agency includes acting for both parties without informed written consent, accepting undisclosed commissions, and misrepresenting a property's condition or title.

Continuing professional development and adherence to the institution's code of conduct are conditions of retaining corporate membership and practising status.

Estate management covers the landlord's duties: rent collection, service charge administration, maintenance and repairs, insurance, statutory compliance and record keeping.

Service charge apportionment must follow the lease; recoverable costs are limited to those the lease permits, and a sinking fund should be separately identified and reconciled.

Rent review clauses specify the review interval, the basis (open market, index-linked, turnover) and the assumptions; upward-only reviews capture market growth but not decline.

Lease covenants include repair, insurance, alienation (assignment and subletting), user and alterations; a schedule of dilapidations records breaches of the repair covenant at lease end.

Property management records should include a rent roll, tenancy schedule, arrears report, service charge budget and variance report, and a maintenance log with statutory certificates.

Yield (capitalisation rate) is the reciprocal of the years' purchase; a property let at a rent below market shows a reversionary value when the lease expires and the rent is reviewed.

Terminal and sinking fund allowances are deducted from net income in the investment method when the landlord must reinstate or replace elements at lease end.

Void, bad debt and management allowances are deducted from gross income before capitalisation; omitting them overstates value.

A mortgage transfers an interest in land as security; a charge does not transfer title but gives the lender remedies of sale, possession and appointment of a receiver on default.

The Governor's consent is required for the assignment, mortgage or sublease of a statutory right of occupancy; failure to obtain consent can render the transaction ineffective.

Adverse possession requires factual possession and intention to possess without the owner's consent, for the statutory period; in Nigeria limitation periods are governed by state limitation laws.

Joint tenancy carries the right of survivorship and requires the four unities of interest, title, time and possession; a tenancy in common has no survivorship and passes by will or intestacy.

A deed of assignment transfers the assignor's unexpired term and, where the lease permits, requires registration and consent; the assignee takes subject to existing covenants.

Planning permission controls development; unauthorised development can attract enforcement notices, stop notices and, in some jurisdictions, planning contravention notices.

A profit à prendre grants a right to take something from another's land (timber, minerals, crops); it differs from an easement, which is a right of use, not of taking.

Deed of lease essentials: parties, demise, term, rent, covenants, and execution; registration protects the lessee's interest against a subsequent purchaser.

Time value of money: PV = FV / (1 + r)^n; an annuity PV = PMT × [1 − (1 + r)^−n] / r, used for lease income and loan amortisation.

Internal rate of return is the discount rate at which NPV = 0; it is compared with the investor's target rate, and the NPV rule is preferred where project scale differs.

The weighted average cost of capital (WACC) = (E/V × cost of equity) + (D/V × cost of debt × (1 − tax rate)); it is the hurdle rate for property investment appraisal.

Risk in property investment includes rental, capital, liquidity, interest rate, tenant default and legislative risk; diversification reduces unsystematic risk but not market risk.

A syndication or REIT pools investor capital; a REIT must typically distribute most taxable income and derives value from yield and net asset value per unit.

Sensitivity analysis tests value against changes in one variable; scenario analysis changes several at once; both should be reported in an appraisal.

The reversion is the value of the property at the end of the holding period, typically capitalised from the then-current NOI and discounted to the present at the target IRR.

Stamp duty and transaction costs (legal fees, agency, registration) reduce net proceeds and should be included in the appraisal, not treated as incidental.

Construction cost per square metre is a benchmark for early feasibility; it must be adjusted for location, specification, height, ground conditions and inflation to the tender date.

The tender process may be open, selective or negotiated; a bill of quantities supports lump-sum and remeasurement contracts, while design-and-build transfers design risk to the contractor.

Contract sum adjustments arise from variations, provisional sums, fluctuations, dayworks and extensions of time; the quantity surveyor values these under the contract conditions.

Interim valuations certify work done less retention; the final account reconciles all variations and claims after practical completion and the defects liability period.

Programme float is the time an activity can slip without delaying completion; total float belongs to the project, free float to the successor activity.

Risk register entries record probability, impact, owner and mitigation; construction risks include ground conditions, weather, design changes, labour and material price escalation.

Site supervision should verify setting out, materials compliance, workmanship, health and safety, and progress against the programme, with records of instructions and site meetings.

Whole-life costing includes initial cost, maintenance, replacement, energy and disposal; it can reverse a decision based on capital cost alone.

Negligence requires a duty of care, breach, causation and loss; a valuer owes a duty to the client and, in defined circumstances, to third parties who foreseeably rely on the report.

A valuation must be independent of the instruction's outcome; the valuer should state any departure from the basis of value, assumptions and limiting conditions.

Professional fees are commonly charged on a scale or by time; contingency fees tied to value or to a transaction outcome compromise independence and should be declined.

Data protection and confidentiality require secure storage of client information, restricted access, and no disclosure without consent or legal obligation.

Estate agency duties include verifying title and authority to sell, accurate particulars, handling client money through a designated account, and prompt accounting.

A conflict check should be performed before accepting an instruction; if a conflict arises later, disclose it and withdraw if it cannot be managed.

Disciplinary procedures may follow breach of the code of conduct; sanctions range from caution and conditions on practice to suspension or removal from the register.

A valuer's working papers should be sufficient for another competent valuer to follow the reasoning, and retained for the period required by the institution and insurer.

The comparative method adjusts comparable evidence for differences in time, location, size, condition, tenure and facilities; adjustments are made to the comparable, not the subject.

The profits method values trading premises where value derives from the business; it capitalises fair maintainable operating profit, typically using a years' purchase multiplier.

The cost method: value = replacement or reinstatement cost − depreciation + land value; it is used for special-purpose property with no market evidence.

The residual method is used for development sites: GDV − costs − developer's profit = land value; it is highly sensitive to small changes in GDV and cost.

Gross external area and gross internal area are measured to different standards; net internal area excludes walls, columns and circulation and is used for letting comparisons.

A desktop valuation relies on records without inspection and must state that limitation; a drive-by or exterior-only inspection cannot confirm internal condition.

Leasehold value reflects the unexpired term, rent passing versus market rent, review pattern and repairing obligations; a short lease discounts heavily.

The valuation date is the date of the opinion, not the date of inspection or report; market movement between inspection and report must be addressed.

A certificate of occupancy is prima facie evidence of a right of occupancy; it does not cure a defective title, and the holder's title can be challenged.

The Land Use Act vests all land in the state Governor, so freehold in the strict English sense does not exist for land granted under the Act; practice uses the term loosely.

A leasehold interest is a term of years absolute; a periodic tenancy renews automatically until determined by notice, while a tenancy at will has no fixed term.

A covenant to repair is enforced by a schedule of dilapidations; the landlord may claim the reasonable cost of reinstatement, subject to the lease terms and statutory limits.

Forfeiture for breach of covenant requires a notice specifying the breach and, where required, a reasonable time to remedy before re-entry or court proceedings.

A charge or mortgage over land is registrable; priority depends on registration, and a purchaser takes subject to registered interests.

Planning consent runs with the land, not the owner; conditions attached to a permission bind successors in title.

An easement of way must not substantially interfere with the servient owner's use; excessive use can be restrained as an actionable nuisance.

Real estate is an imperfect market: heterogeneous assets, infrequent transactions, high transaction costs and asymmetric information mean appraisals rely on judgement and comparables.

Capitalisation rates move inversely with values; a fall in the cap rate raises value for a given NOI, and cap rate compression is a source of capital growth.

Property total return = income return + capital return; income return = net income / opening value, and capital return = change in value / opening value.

The equity multiple = total distributions / equity invested; it ignores timing, so it should be read with IRR.

Break-even occupancy = (operating expenses + debt service) / gross potential income; it shows the occupancy needed to cover costs and debt.

A loan amortisation schedule divides each payment into interest on the outstanding balance and principal repayment; the loan constant exceeds the interest rate when amortising.

Depreciation allowances and capital allowances affect after-tax cash flow; tax is applied to taxable income, not to NOI, and should be modelled separately.

Market rent is the rent at which a property would be let on the valuation date between willing parties; passing rent is the rent currently payable under the lease.

Feasibility appraisal tests whether a scheme is viable: GDV less land, construction, fees, finance, contingency and profit; a negative residual means the land price must fall.

Development finance interest is calculated on drawn balances; the interest rate, drawdown profile and sales timing materially change the residual land value.

Pre-construction costs include land acquisition, planning and professional fees, surveys and site preparation; construction costs include substructure, superstructure, finishes and services.

The critical path determines the minimum project duration; crashing shortens it at extra cost, and fast-tracking overlaps design and construction at increased risk.

A variation order should be instructed in writing, valued under the contract and recorded; oral instructions should be confirmed in writing promptly.

Practical completion marks the date from which the defects liability period runs and when half the retention is typically released.

Health and safety duties on site include risk assessments, method statements, protective equipment, scaffolding inspection and accident reporting.

Post-completion review compares outturn cost and time with the estimate, capturing lessons for future appraisals.

A valuer must not accept an instruction where the fee depends on the value reported; such contingent remuneration is incompatible with the duty of independence.

Terms of engagement should record the client, purpose, basis of value, valuation date, scope of inspection, assumptions, fee and complaints procedure.

The valuer should verify title and tenure from documents, not rely solely on the client's statement; material discrepancies must be reported.

Professional indemnity cover should match the instruction's risk; large or unusual instructions may require specific notification to the insurer.

Confidentiality does not prevent reporting suspected money laundering or responding to a lawful court order.

Marketing particulars must be accurate and not misleading; material facts such as tenure, planning status and defects should be disclosed.

A valuer should decline or withdraw where information is insufficient to produce a reliable opinion, and state the limitation in the report.

Complaints should be handled through a documented procedure with a right of referral to the professional body, and records retained.

Market rent versus headline rent: incentives such as rent-free periods and capital contributions reduce the effective rent, which is the headline rent less the value of incentives spread over the term.

The investment method for a leasehold interest deducts ground rent and capitalises the profit rent over the unexpired term at a rate reflecting the lease's risk.

A dual-rate years' purchase (Hoskold-type) separates a sinking fund rate from the remunerative rate; modern practice more often uses a single discount rate with an explicit reversion.

Reinstatement cost for insurance = rebuilding cost + professional fees + demolition and site clearance; it is not market value.

Obsolescence includes functional (layout, specification) and economic (external, locational) loss; both reduce value below depreciated replacement cost.

Valuation of development land uses the residual method and must reflect planning permission, affordable-housing obligations and infrastructure costs.

Rent review assumptions commonly include a willing lessee and lessor, the property in its actual state, and disregarding tenant's improvements.

A valuation for secured lending should reflect a forced-sale or restricted basis only where instructed, and must state that basis clearly.

A lease may be determined by expiry of term, notice to quit, surrender, forfeiture, merger or disclaimer; each has different notice and procedural requirements.

A notice to quit a periodic tenancy must be of the length required by law and expire at the end of a period; defective notices are ineffective.

The covenant against subletting without consent is qualified where consent must not be unreasonably withheld; refusal must be justified.

A restrictive covenant may be discharged or modified by application to the appropriate tribunal or court where it is obsolete or confers no benefit.

Compulsory acquisition compensation covers the market value of the land, disturbance, and injurious affection; betterment may be set off.

A deed of gift or assent transfers title on death or gift; it must be executed as a deed and registered to perfect the transfer.

An overriding interest may bind a purchaser despite not appearing on the register; inspection and enquiries are essential.

Boundary disputes turn on the registered title plan and physical evidence; adverse possession and encroachment can alter boundaries over time.

Portfolio return is the value-weighted average of asset returns; diversification reduces unsystematic risk when assets have imperfect correlation.

Property is a low-liquidity asset; the liquidity premium is reflected in a higher required return and a higher capitalisation rate than for comparable liquid assets.

The risk-free rate plus a property risk premium gives the required return; the capitalisation rate also reflects expected rental growth (cap rate ≈ discount rate − growth).

Sensitivity of value to yield: value = NOI / cap rate; a 50 basis point rise in the cap rate from 8% to 8.5% reduces value by about 5.9% for a fixed NOI.

Debt amortisation: loan constant = mortgage constant = annual debt service / original loan; it is used to derive debt service from the loan amount.

The debt yield = NOI / loan amount; it measures lender risk independent of valuation and is used alongside LTV and DSCR.

A sale-and-leaseback converts owner-occupied property into a leased investment; the appraisal uses the lease income and the covenant strength of the tenant.

Appraisal assumptions on rent growth, void periods, capital expenditure and exit yield should be explicit and tested in sensitivity analysis.

Elemental cost plan allocates the budget across elements (substructure, frame, envelope, services, finishes); cost checks compare design development against the plan.

Approximate quantities estimating uses measured items at a higher level of aggregation; it is more accurate than the superficial method but less than a full bill.

The contract conditions allocate risk: liquidated damages, extension of time, force majeure, possession of site, and insurance are key clauses to review.

A quantity surveyor prepares bills of quantities, cost plans, valuations and final accounts; the estate surveyor's role includes feasibility, valuation and development advice.

Programme logic links activities by finish-to-start, start-to-start and finish-to-finish relationships; lags and leads model overlaps.

Progress reporting compares planned versus actual progress, identifies delays, and records causes for extension-of-time claims.

Value engineering workshops should involve design, cost and operations; proposals are assessed for capital cost, whole-life cost, time and quality.

Defects liability: the contractor returns to remedy notified defects during the period; failure can allow the employer to have the work done and recover the cost.

Integrity requires objectivity in the opinion; a valuer must not be influenced by the prospect of future instructions or by pressure from a lender or client.

Competence means the valuer has the knowledge, skill and experience for the instruction, or discloses the limitation and seeks specialist input.

A written record of the instruction, advice given and decisions taken protects both client and valuer if the opinion is later challenged.

Fees for estate agency work should be agreed in writing, with the basis (percentage or fixed) and the trigger for payment stated.

Client money must be held in a designated client account, separate from the firm's own funds, and reconciled regularly.

Advertising and professional publicity must be accurate, not misleading, and must not disparage other practitioners.

A valuer should not disclose confidential client information obtained in one instruction to another client, even where the properties are similar.

Practitioners must comply with registration and practising certificate requirements; practising without registration is a regulatory breach.

The comparative method requires at least three recent, verified comparables; adjustments are expressed as percentages or lump sums and should be justified.

Adjustment for time uses a price index; if values rose 10% since the comparable sale, the comparable is adjusted upward to the valuation date.

The investment method capitalises net income after deducting outgoings the landlord bears (repairs, insurance, management) but not the tenant's liabilities.

A term and reversion valuation separates the contracted income for the unexpired term from the market rent reversion, each capitalised at an appropriate rate.

The profits method is appropriate for hotels, petrol stations and leisure uses; the multiplier reflects the risk of the trade, not just the property.

Depreciated replacement cost is used for specialised property where no market evidence exists; it is not a market value basis unless the asset is traded.

The valuation report should reconcile the methods used and explain why the selected figure is adopted.

Measurement standards (RICS or local) must be stated; mixing gross and net areas invalidates comparisons.

The Land Use Act requires the holder of a statutory right of occupancy to obtain Governor's consent before alienating by assignment, mortgage, transfer of possession or sublease.

Customary tenure varies by community; family land is held collectively, and alienation usually requires the consent of the principal members.

A deed of assignment should recite the root of title, the consideration, the covenants and the habendum; registration and consent perfect the transfer.

A mortgagee's power of sale arises on default; the mortgagee must act in good faith and obtain a proper price, and notice requirements must be met.

A lease for more than three years generally must be by deed; shorter leases may be created orally or in writing depending on statute.

Planning and environmental controls can restrict use and development; compliance is a condition of lawful development and affects value.

Co-ownership disputes can be resolved by an order for sale; the court considers the parties' intentions and interests.

Easements and covenants should be disclosed in the valuation report because they can restrict development or use and reduce value.

NPV = sum of discounted cash flows including the reversion, less the initial equity outlay; accept where NPV > 0 at the required return.

IRR assumes reinvestment at the IRR itself; where cash flows are irregular or the project has multiple sign changes, use NPV or modified IRR.

The profitability index = PV of cash inflows / initial outlay; it ranks projects where capital is rationed.

Gearing: return on equity = return on assets + (debt/equity) × (return on assets − cost of debt); positive gearing magnifies returns.

Interest-only debt has a loan constant equal to the interest rate; amortising debt has a higher constant because principal is repaid.

Exit yield assumptions drive the reversion value; a small change in exit yield has a large effect on the discounted reversion and on IRR.

Void and incentive costs reduce net effective income and should be deducted in the cash flow, not ignored in the headline rent.

Tax and depreciation should be modelled after NOI; depreciation is a non-cash allowance and does not reduce NOI.

Development appraisal stages: site appraisal, feasibility, design, planning, procurement, construction, marketing and disposal.

The developer's profit is a return for risk and coordination; it is commonly 15–20% of GDV for speculative schemes and must be tested in sensitivity analysis.

Contingency in the cost plan covers unknown items; it is reduced as design develops but should not be eliminated.

Cash flow for a development shows negative outflows during construction and inflows on sale or letting; peak funding requirement determines the finance needed.

Building information modelling supports coordination and quantity take-off; it does not replace contractual measurement rules.

Extensions of time are granted for relevant events; the contractor must give notice and the employer's representative must assess the delay.

Liquidated and ascertained damages must be a genuine pre-estimate of loss; a penalty clause is unenforceable.

Handover documentation includes as-built drawings, warranties, operation manuals and certificates; incomplete handover delays occupation.

A valuer should record the source and date of comparables and verify them where possible; unverified evidence weakens the opinion.

The basis of value must be stated: market value, market rent, investment value, fair value or forced sale value; each produces a different figure.

Special assumptions (e.g. planning permission granted) must be stated and their effect explained; they are not the same as ordinary assumptions.

A conflict of interest exists where the valuer has a personal interest, a close relationship with a party, or a recent instruction from the other side.

Professional indemnity claims often arise from overvaluation for lending; supporting evidence and clear assumptions are the main defences.

Continuing professional development records demonstrate competence and are required to maintain membership.

Advertising must not claim official endorsement by the institution or registration board.

Complaints and disciplinary matters should be handled transparently; sanctions may include conditions, suspension or removal from the register.

Estate management duties include inspecting the property, preparing a management plan, budgeting, collecting rent, paying outgoings and reporting to the owner.

Service charge budgets should be prepared annually, apportioned per the lease, and reconciled with actual expenditure; surplus or deficit is carried forward.

A sinking fund is a reserve for future major repairs; it should be based on a condition survey and reviewed periodically.

Rent arrears management includes reminder letters, payment plans and, ultimately, forfeiture or debt recovery; each step must follow the lease and law.

A tenancy schedule records tenant, term, rent, review dates, break options and deposit; it is the core management record.

Break clauses allow early termination on notice; the conditions (vacant possession, no arrears) must be satisfied strictly.

Insurance of the building is usually the landlord's obligation; the tenant may covenant to reimburse through the service charge.

Condition surveys at lease start and end support dilapidations claims and avoid disputes.

A statutory right of occupancy may be revoked for breach of conditions, overriding public interest or alienation without consent; compensation rules differ by ground.

The Governor's consent requirement applies to mortgages as well as assignments; an unconsented mortgage may be ineffective against the state.

A certificate of occupancy does not confer ownership of minerals, oil or gas, which are vested in the federal government.

A lease may contain a user covenant restricting the permitted use; breach can lead to forfeiture and affects value.

A right of way granted by deed should be registered; an unregistered easement may not bind a purchaser without notice.

The doctrine of part performance can enforce an oral agreement where the purchaser has taken possession and paid, depending on the jurisdiction.

A charge by way of legal mortgage gives the lender the same protections as a mortgagee; registration perfects the security.

Planning enforcement can require demolition or restoration; unauthorised works reduce value and may be uninsurable.

Real estate investment vehicles include direct ownership, joint ventures, syndications, REITs and property companies; each has different liquidity and tax treatment.

A REIT typically must distribute a high proportion of taxable income and derives value from dividend yield, net asset value and gearing.

Core, value-add and opportunistic strategies differ in risk, leverage, asset quality and target return; the required return rises with risk.

The capitalisation rate reflects the market's required return and growth expectations; it is not a measure of the investor's actual return.

The going-in cap rate uses first-year NOI; the exit cap rate is applied to the reversion and may differ because of expected market change.

Sensitivity analysis on rent, yield, void and cost identifies the variables that most affect value and should be reported to the client.

Transaction costs (stamp duty, legal, agency, registration) reduce net proceeds and should be included in the appraisal.

A valuation for financial reporting may require fair value under accounting standards, which differs from market value in some respects.

Site acquisition due diligence covers title, planning, ground conditions, services, access, contamination and environmental matters.

Planning applications require drawings, a design and access statement, and supporting reports; approval may carry conditions and obligations.

Procurement routes include traditional, design-and-build, construction management and management contracting; each allocates design responsibility differently.

The bill of quantities is a measured schedule of work; it supports tendering, valuation of variations and the final account.

Interim certificates are issued by the contract administrator based on the quantity surveyor's valuation; the employer pays within the stated period.

Delay analysis methods include as-planned versus as-built, time impact analysis and windows analysis; the choice affects the extension-of-time entitlement.

Cost escalation should be allowed for in the appraisal through a tender inflation allowance to the mid-point of construction.

Post-occupancy evaluation assesses whether the building performs as intended and informs future briefs.

Ethical practice requires honesty in reporting findings, including defects and title issues that reduce value.

A valuer must not accept an instruction where the fee is contingent on a predetermined value or on the loan being approved.

The terms of engagement should state the complaints procedure and the professional body to which a complaint may be referred.

Confidentiality applies to client information; disclosure is permitted where required by law or to prevent a crime such as money laundering.

Client due diligence includes verifying identity, understanding the transaction and checking source of funds.

Professional indemnity insurance should be maintained at a level appropriate to the practice's turnover and risk profile.

Marketing material must not misstate tenure, planning status or condition; material facts should be disclosed.

Practitioners must hold a current practising certificate and comply with the institution's code of conduct.

The comparative method adjusts for time, location, size, condition, tenure, facilities and market conditions; each adjustment should be supported by evidence.

The investment method: value = net income × YP; YP = 1 / (i − g) where i is the discount rate and g the growth rate, giving the capitalisation rate i − g.

The profits method capitalises fair maintainable operating profit; the multiplier reflects the trade's risk and the property's location and quality.

The cost method: value = replacement cost − depreciation + land value; it is used for specialised property without market evidence.

The residual method: land value = GDV − construction and fees − finance − developer's profit; it is sensitive to small changes in inputs.

A valuation must state the basis, date, extent of inspection, assumptions and limiting conditions, and the valuer's opinion with computation.

Reinstatement cost for insurance differs from market value; it includes rebuilding, fees and demolition but not land value.

Leasehold value reflects the unexpired term, rent passing versus market rent, review pattern and repairing obligations.

The Land Use Act 1978 vests all land in the state Governor, who grants statutory rights of occupancy; local governments grant customary rights of occupancy.

Governor's consent is required before assigning, mortgaging or subletting a statutory right of occupancy; failure can invalidate the transaction.

A lease requires certainty of term, exclusive possession and rent; a licence creates no proprietary interest.

Easements require a dominant and servient tenement, diversity of ownership, benefit to the dominant land, and the right must lie in grant.

A mortgage transfers an interest as security; a charge gives remedies without transferring title; both should be registered.

Compulsory acquisition requires public purpose, notice, service of notice to yield possession, and compensation for land, improvements and disturbance.

Restrictive covenants bind successors in equity where the burden runs with the land and the covenant touches and concerns the land.

Planning permission runs with the land and binds successors; unauthorised development can attract enforcement action.