NIESV PPE key terms

The professional discipline concerned with land, buildings and their economic and legal relationships, covering valuation, agency, management, development and land administration. In Nigeria it is regulated by NIESV and ESVARBON.

The Nigerian Institution of Estate Surveyors and Valuers, the professional body that sets practice standards, admits members and disciplines errant practitioners in Nigeria.

The Estate Surveyors and Valuers Registration Board of Nigeria, the statutory body established by law that registers practitioners, issues practising licences and enforces discipline on registered estate surveyors and valuers.

A policy that protects a practitioner against claims for loss arising from negligent advice or error, such as an overstated valuation relied upon by a lender or purchaser.

A failure to exercise the degree of care and skill reasonably expected of a competent practitioner doing similar work, resulting in loss or damage to a person owed a duty of care.

The legal obligation to take reasonable care towards persons who may foreseeably be harmed by one's acts or omissions, including clients and identifiable third parties relying on professional work.

The ethical duty not to disclose a client's private or commercial information obtained during an engagement without consent, except where required by law or court order.

A situation where a practitioner's personal, financial or other interest, or duty to another client, could improperly influence professional judgement; it must be disclosed and managed, often by declining the instruction.

The remuneration charged for professional services, usually computed on a scale or percentage of value, agreed in writing before work begins and disclosed transparently to the client.

A published schedule of recommended charges for professional services, such as a percentage of property value for valuation or a commission rate for agency work.

Remuneration paid to an agent, typically a percentage of the sale price, rent or transaction value, earned only when the agent has performed the agreed service.

A separate bank account, distinct from the firm's own funds, in which money held on behalf of clients such as rents, deposits and sale proceeds is kept and accounted for.

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, with each acting knowledgeably, prudently and without compulsion.

The price achievable in a free and open market between a willing buyer and willing seller, often used interchangeably with market value in Nigerian valuation practice and mortgage lending.

The amount realisable within a short, restricted marketing period where the seller is under pressure to dispose of the asset, typically lower than market value and used for lending security.

The value of a property to a particular investor based on that investor's own requirements, expected returns and risk profile, rather than the general market level.

The specific date to which the opinion of value applies; it fixes the point in time at which market conditions, facts and assumptions are assessed.

The loss in value of a building from physical wear and tear, functional obsolescence or external factors, deducted from replacement cost in the cost approach to valuation.

The rate used to convert a property's net income into an estimate of capital value, reflecting the return and risk expected by investors in that class of property.

A multiplier representing the number of years' income required to equal the capital value of an interest, derived from the appropriate yield and used in the investment method.

The income remaining after deducting from gross rental income all operating expenses, vacancies and allowances, but before financing costs and income tax.

The current cost of constructing a modern equivalent of the existing building using present-day materials, standards and technology, less deductions for depreciation.

A loss in property value caused by factors other than physical deterioration, such as outmoded design, poor layout or adverse neighbourhood change.

A document issued by a state governor granting a right of occupancy over land, evidencing the holder's title and the terms, duration and conditions of that tenure.

The statutory or customary interest in land granted under Nigerian land law, conferring rights of use and occupation subject to conditions and payment of rent.

A right to use and occupy land held under customary law, enjoyed by communities or individuals and governed by local custom, subject to statutory regulation and possible extinguishment.

Nigerian federal legislation of 1978 that vests all land in each state in the governor, who holds it in trust for the people and grants rights of occupancy.

The statutory power of government to take private land for public purposes, subject to payment of compensation and compliance with prescribed procedures.

Payment made to a person whose land or interest is acquired or injuriously affected by government action, covering land value, buildings, crops and disturbance losses.

A claim for losses suffered by an occupier through being displaced, such as removal costs, business interruption and professional fees, additional to the value of the land taken.

An instruction appointing one agent as the exclusive representative for a sale or letting, usually for a fixed period, with commission payable on the agreed terms.

An arrangement where several agents are appointed to market the same property, with commission going to the agent who introduces the successful buyer or tenant.

A fee paid to secure a professional's availability or services over a period, often credited against later fees, regardless of the volume of work done.

A sum collected from occupiers of a building or estate to cover the cost of shared services and maintenance such as security, cleaning, lifts, power and repairs.

A reserve accumulated from occupiers' contributions to meet future major repairs or replacement of common parts, such as roofs, lifts or generators.

The integrated management of building services, maintenance, security, utilities and workspace support so that a property performs its intended function efficiently and safely.

The most probable use of a property that is legally permissible, physically possible, financially feasible and produces the greatest value on the valuation date.

An analysis of a proposed development testing market demand, technical practicality, cost, funding and expected return before a commitment to proceed is made.

A financial calculation of a scheme's viability, comparing total development cost, including land, construction, fees and finance, with expected completed value or income.

A valuation technique that deducts all development costs and an allowance for developer's profit from the completed value to arrive at the site's residual land value.

A dispute resolution process in which an independent tribunal hears the parties and issues a binding award, usually under an arbitration clause or submission agreement.

A voluntary, confidential process in which a neutral third party helps disputing parties negotiate their own settlement without imposing a decision.

A person with specialised knowledge who gives independent opinion evidence to a court or tribunal, owing a paramount duty to the court rather than to the instructing party.

The final decision issued by an arbitral tribunal, which is binding on the parties and enforceable subject to the applicable arbitration law.

The administrative process by which planning authorities regulate the use and development of land through permissions, conditions and enforcement of planning standards.

Formal consent from a planning authority allowing a specified development or change of use, subject to conditions that must be complied with.

The division of land within a planning area into zones with prescribed permitted uses and development standards, such as residential, commercial, industrial or agricultural.

A structured study identifying the likely environmental effects of a proposed project and the measures to mitigate them, required before approval of certain developments.

Development that meets present needs without compromising the ability of future generations to meet theirs, balancing economic, social and environmental considerations.

A building designed, built and operated to reduce resource use and environmental impact through energy efficiency, water conservation, materials selection and healthy indoor conditions.

A written professional statement of an opinion of value that records the instruction, basis of value, property description, method, assumptions, limitations and the valuer's signature.

The stated premise on which an opinion of value is expressed, such as market value, market rent, investment value or forced sale value, which must be defined in the report.