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NZ Registered Valuer Exam study materials
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NZ Registered Valuer Exam practice questions

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Question 1Valuation Principles, Standards and Ethics

Under the International Valuation Standards, what is the primary purpose of stating the 'basis of value' in a valuation report?

  1. To confirm the valuer's professional indemnity insurance cover for the assignment
  2. To list the comparable sales that the valuer considered during the assignment
  3. To identify the type of value being measured and the assumptions on which the opinion rests Correct answer.
  4. To record the fee arrangement agreed between the valuer and the client

Explanation

The basis of value defines the fundamental premise of the valuation, such as market value or market rent, and the assumptions underlying it. Without a clearly stated basis, the reported figure cannot be interpreted meaningfully by the reader.

Question 2Valuation Principles, Standards and Ethics

Which concept best describes 'market value' as defined in valuation standards?

  1. The price a particular buyer is prepared to pay because of special synergies
  2. The replacement cost of the asset less accumulated depreciation
  3. The estimated amount for which an asset should exchange between a willing buyer and willing seller after proper marketing Correct answer.
  4. The value recorded in the owner's financial statements under accounting rules

Explanation

Market value assumes a willing buyer and willing seller, both acting knowledgeably and without compulsion, after proper marketing. It is an estimate of a hypothetical exchange price, not a negotiated or entity-specific figure.

Question 3Valuation Principles, Standards and Ethics

A valuer is instructed to value a property for mortgage lending purposes. Which action best reflects the professional obligation to maintain independence?

  1. Accepting a fee that is contingent on the valuation reaching a minimum figure
  2. Reliance on the borrower's own estimate of value without independent verification
  3. Valuing the property at the figure the lender's credit team has already approved
  4. Disclosing any prior or current relationship with the borrower that could impair objectivity Correct answer.

Explanation

Independence requires the valuer to identify and disclose any relationships or interests that could compromise objectivity. Contingent fees and pre-determined outcomes both create threats to independence that must be avoided.

Question 4Valuation Principles, Standards and Ethics

Which valuation approach estimates value by capitalising the income an asset is expected to generate?

  1. The income approach Correct answer.
  2. The sales comparison approach
  3. The cost approach
  4. The replacement cost approach

Explanation

The income approach converts anticipated future income streams into a present value using capitalisation or discounting techniques. It is the primary approach for income-producing assets such as commercial property.

Question 5Valuation Principles, Standards and Ethics

In a valuation report, what does a 'special assumption' represent?

  1. A factual finding confirmed by the valuer through inspection
  2. A general assumption that applies to every valuation assignment
  3. A limitation on the valuer's liability agreed with the client
  4. An assumption that a condition differing from the actual situation exists at the valuation date Correct answer.

Explanation

A special assumption is adopted where the valuer is asked to value on a hypothetical basis, such as the property being vacant or a planning consent being granted. It differs from a general assumption, which applies routinely to all assignments.

Question 6Valuation Principles, Standards and Ethics

Which of the following best describes the ethical principle of 'objectivity' for a registered valuer?

  1. Ensuring fees are disclosed to all parties
  2. Exercising professional judgement free from bias, conflict of interest or undue influence Correct answer.
  3. Completing assignments within the agreed timeframe
  4. Maintaining confidentiality of client information

Explanation

Objectivity requires professional judgement to be exercised without bias, conflict of interest or the undue influence of others. It underpins the credibility of the valuation opinion.

Question 7Valuation Principles, Standards and Ethics

What is the principal role of a valuer's inspection of the subject property?

  1. To establish the property's rating valuation for local authority purposes
  2. To verify the physical attributes and condition relevant to the valuation Correct answer.
  3. To negotiate a price with the owner on the client's behalf
  4. To provide a building survey covering structural defects

Explanation

Inspection allows the valuer to confirm the property's physical characteristics and condition, which are inputs to the valuation. It is typically limited in scope and does not constitute a structural survey.

Question 8Valuation Principles, Standards and Ethics

Which statement best captures the requirement that a valuer work within their competence?

  1. A valuer may accept any assignment if another valuer reviews the report afterwards
  2. A valuer should decline or seek specialist assistance where the assignment exceeds their knowledge and experience Correct answer.
  3. A valuer may accept any assignment provided the client signs a disclaimer
  4. A valuer may accept any assignment as long as professional indemnity insurance is held

Explanation

Competence requires the valuer to have the necessary knowledge, skills and experience for the assignment. Where this is lacking, the professional response is to decline or to engage appropriate specialist support.

Question 9Valuation Principles, Standards and Ethics

A valuer is asked to value a commercial building and is provided with a recent lease showing passing rent. Which principle explains why passing rent alone may not equal market rent?

  1. Leases always reflect the highest rent achievable in the market
  2. Passing rent excludes all operating expenses by definition
  3. Market rent is fixed by statute and cannot vary from passing rent
  4. Passing rent reflects the terms agreed at an earlier date and may not reflect current market conditions Correct answer.

Explanation

Passing rent is the rent actually payable under an existing lease, which may have been agreed when market conditions differed. Market rent is the rent achievable at the valuation date between willing parties, so the two can diverge.

Question 10Valuation Principles, Standards and Ethics

When applying the sales comparison approach, which adjustment is most appropriate when the comparable sold some months before the valuation date in a rising market?

  1. A deduction for legal costs incurred by the purchaser
  2. No adjustment, because time differences are irrelevant to comparison
  3. A downward adjustment to reflect depreciation of the comparable since sale
  4. An upward adjustment to reflect market movement between the sale date and the valuation date Correct answer.

Explanation

The sales comparison approach requires comparables to be adjusted to reflect differences from the subject, including timing. In a rising market, a sale that occurred earlier needs an upward adjustment to reflect current values.

Question 11Valuation Principles, Standards and Ethics

A valuer uses a capitalisation rate of 6.5% to value a property with a net operating income of $130,000. What is the indicated value under the income approach?

  1. $1,300,000
  2. $8,450,000
  3. $845,000
  4. $2,000,000 Correct answer.

Explanation

Under direct capitalisation, value equals net operating income divided by the capitalisation rate. Dividing $130,000 by 0.065 produces an indicated value of $2,000,000.

Question 12Valuation Principles, Standards and Ethics

Which situation most clearly creates a self-review threat to a valuer's independence?

  1. Valuing a property the valuer previously advised on for the same client Correct answer.
  2. Valuing a property in a market the valuer has studied extensively
  3. Valuing a property using comparables sourced from a public database
  4. Valuing a property for a client the valuer has never met

Explanation

A self-review threat arises when the valuer must evaluate their own earlier work or advice, which can impair objectivity. Prior involvement with the same asset or client is a recognised threat that must be managed or disclosed.

Question 13Valuation Principles, Standards and Ethics

In a valuation report, which statement best describes the purpose of the 'scope of work' section?

  1. It records the valuer's opinion of the highest and best use of the asset
  2. It describes the extent of research, inspection and analysis undertaken for the assignment Correct answer.
  3. It summarises the client's reasons for commissioning the valuation
  4. It lists the qualifications of the valuer and any assistants

Explanation

The scope of work sets out the nature and extent of the investigation, inspection and analysis performed. It allows the reader to understand the evidential basis of the valuation opinion.

Question 14Valuation Principles, Standards and Ethics

A valuer is valuing a specialised industrial facility with no comparable market transactions. Which approach is most likely to be appropriate?

  1. The sales comparison approach using residential comparables
  2. The market approach using the asset's original purchase price
  3. The income approach based on the owner's budgeted profit
  4. The cost approach using depreciated replacement cost Correct answer.

Explanation

Where an asset is specialised and lacks market evidence, depreciated replacement cost is commonly used as a surrogate for market value. The approach reflects the cost of providing equivalent utility less physical, functional and economic obsolescence.

Question 15Valuation Principles, Standards and Ethics

Which of the following best describes 'highest and best use' in valuation practice?

  1. The use that generates the highest gross rental income without regard to cost
  2. The most profitable legally permissible, physically possible and financially feasible use of the asset Correct answer.
  3. The use that the current owner intends to continue
  4. The use specified in the local district plan regardless of feasibility

Explanation

Highest and best use is the reasonably probable use that is legally permissible, physically possible, financially feasible and maximally productive. It informs the selection of comparables and the valuation approach.

Question 16Valuation Principles, Standards and Ethics

A valuer is instructed by a lender but the borrower pressures the valuer to increase the reported value. What is the most appropriate professional response?

  1. Withdraw from the assignment without explanation
  2. Increase the value slightly to preserve the relationship with the borrower
  3. Report the higher figure and note the borrower's view in the report
  4. Report the pressure to the lender and maintain the independent valuation opinion Correct answer.

Explanation

Undue influence from any party must not affect the valuation opinion, and the valuer's duty of objectivity requires resisting it. Informing the instructing client of the pressure preserves transparency while maintaining independence.

Question 17Valuation Principles, Standards and Ethics

Which statement about the treatment of GST in a valuation of commercial property is most accurate?

  1. GST must be added to the capitalised value at the valuer's discretion
  2. GST is irrelevant to property valuation and should not be mentioned
  3. Market value is always expressed inclusive of GST regardless of the transaction circumstances
  4. The valuer should state whether the value is inclusive or exclusive of GST, consistent with the basis of value and likely transaction Correct answer.

Explanation

Because GST treatment can materially affect the figure, the valuer must clearly state whether the value is inclusive or exclusive and ensure consistency with the basis of value. Ambiguity on this point can mislead the reader.

Question 18Valuation Principles, Standards and Ethics

Which of the following is the best example of a 'general assumption' in a valuation report?

  1. That the property is free of undisclosed structural defects unless apparent on inspection Correct answer.
  2. That the property will be vacant on the valuation date
  3. That a proposed subdivision will receive council approval
  4. That the property has the benefit of a specified resource consent that has not yet been granted

Explanation

General assumptions are standard statements that apply to most assignments, such as the property being free of hidden defects. They are distinguished from special assumptions, which posit a hypothetical condition specific to the assignment.

Question 19Valuation Principles, Standards and Ethics

A valuer signs a report describing a property as 'in good order' based solely on a drive-by inspection. Which professional concern is most significant?

  1. The valuer has breached confidentiality obligations
  2. The valuer has applied the wrong basis of value
  3. The valuer has exceeded the scope of work without disclosing the limitation Correct answer.
  4. The valuer has failed to disclose the fee arrangement

Explanation

A drive-by inspection cannot support a conclusion about the property's condition, and the report must clearly state the inspection limitations. Describing the property as in good order misrepresents the extent of work performed.

Question 20Valuation Principles, Standards and Ethics

Which statement best describes the ethical duty of confidentiality owed by a valuer to a client?

  1. Client information should not be disclosed to third parties without authority, except where required by law Correct answer.
  2. Confidentiality applies only to the final valuation figure
  3. Client information may be freely shared with any other valuer for benchmarking
  4. Confidentiality ends once the report has been delivered

Explanation

Confidentiality protects client information from unauthorised disclosure, subject to legal or regulatory requirements. The duty extends beyond the final figure and continues after the assignment concludes.

Question 21Valuation Principles, Standards and Ethics

A valuer is engaged to value a property for a client who is also a close family member. Which course of action best addresses the ethical risk?

  1. Disclose the relationship and consider whether the assignment can be performed objectively, declining if it cannot Correct answer.
  2. Proceed without disclosure because family members are entitled to professional services
  3. Proceed but reduce the fee to reflect the relationship
  4. Proceed and rely on the client's assurance that the relationship will not affect the outcome

Explanation

A close personal relationship is a recognised threat to objectivity that must be identified and managed, often by disclosure and possibly by declining. The valuer's own judgement must remain free from personal interest.

Question 22Valuation Principles, Standards and Ethics

A valuer is asked to value a property for a lender and is also engaged by the vendor to market the same property. What is the most significant professional issue?

  1. The conflict is resolved by valuing the property at the vendor's asking price
  2. The dual engagement creates a conflict of interest that impairs independence and should be avoided or managed with informed consent Correct answer.
  3. The valuer may proceed because marketing and valuation are both property services
  4. There is no issue provided the two assignments are billed separately

Explanation

Acting as both independent valuer and agent for the same asset creates a clear conflict, since the agency role rewards a higher sale price. Independence requires avoiding or carefully managing such conflicts with full disclosure and consent.

Question 23Valuation Principles, Standards and Ethics

Which statement best explains why a valuer should reconcile the results of multiple valuation approaches rather than rely on a single method?

  1. Reconciliation guarantees that the final figure will match a subsequent sale price
  2. Reconciliation eliminates the need to disclose the basis of value
  3. Reconciliation allows the valuer to weigh the relevance and reliability of each approach to reach a supportable opinion Correct answer.
  4. Reconciliation is required only when the client requests a range of values

Explanation

Different approaches may produce different indications, and reconciliation weighs their relevance and reliability in light of the asset and market evidence. It supports a reasoned final opinion rather than an arithmetic average.

Question 24Valuation Principles, Standards and Ethics

A valuer's report contains a limiting condition stating that the valuation is not to be relied upon by any third party. Which statement best describes the professional effect of such a condition?

  1. It may limit reliance by third parties but does not relieve the valuer of professional and ethical obligations Correct answer.
  2. It transfers the duty of care to the client's lender automatically
  3. It makes the valuation invalid for any purpose
  4. It removes the valuer's obligation to comply with professional standards

Explanation

Limiting conditions can define who may rely on the report and for what purpose, but they do not override the valuer's duty to comply with professional standards. The valuer remains accountable for the quality and integrity of the work.

Question 25Valuation Principles, Standards and Ethics

A valuer is asked to provide an opinion of value for financial reporting where the asset will be measured at fair value. Which consideration is most important in selecting the basis of value?

  1. The basis should be determined by the borrower's lender
  2. The basis must align with the definition required by the applicable financial reporting framework Correct answer.
  3. The basis should match the price paid by the current owner
  4. The basis should be chosen to produce the highest possible asset value

Explanation

For financial reporting, the basis of value must correspond to the definition prescribed by the relevant accounting framework, such as fair value. Selecting a basis that does not match the reporting requirement would make the valuation unfit for purpose.

Question 26Valuation Principles, Standards and Ethics

Under the professional standards governing registered valuers, which basis of value is defined as the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing, where each party acts knowledgeably, prudently and without compulsion?

  1. Market value Correct answer.
  2. Investment value
  3. Forced sale value
  4. Liquidation value

Explanation

Market value is the internationally recognised basis defined by reference to a willing buyer and willing seller, both acting knowledgeably and prudently, with no compulsion and after proper marketing. The other bases describe price outcomes under constrained or party-specific circumstances and therefore differ from market value.

Question 27Valuation Principles, Standards and Ethics

A registered valuer is engaged to value a residential property and the client instructs that the valuation must be completed in a report format the client has designed, which omits the valuation approach and key inputs. How should the valuer respond?

  1. Follow the client's format but record the approach and inputs in a separate internal file note
  2. Decline to omit required content and ensure the report discloses the approach, key inputs and assumptions Correct answer.
  3. Attach a signed disclaimer stating the report does not comply with professional standards
  4. Adopt the client's format because the client determines the scope and content of the report

Explanation

Professional standards require a valuation report to set out the basis of value, the approach adopted, key inputs and assumptions, regardless of client preference. Scope of work may be agreed with the client, but it cannot be used to strip out content needed for the report to be credible and compliant.

Question 28Valuation Principles, Standards and Ethics

A valuer is asked to provide a valuation for mortgage security purposes. Which factor most directly determines the appropriate basis of value and the level of reporting detail?

  1. The market value of the property relative to the loan amount
  2. The length of the valuer's prior relationship with the lender
  3. The valuer's customary practice for similar property types
  4. The intended use of the valuation and the needs of the intended users Correct answer.

Explanation

The intended use and the intended users drive the selection of the basis of value and the scope of work, including reporting detail. A mortgage security valuation must serve the lender's lending decision, which shapes both the basis and the required disclosure.

Question 29Valuation Principles, Standards and Ethics

A valuer is engaged to value a property and discovers that the client's proposed purchase price is materially higher than the valuer's preliminary market analysis suggests. The client suggests the valuer 'reconsider the comparables' before finalising. What is the most appropriate professional response?

  1. Retain independence, document the analysis, and report the value supported by evidence Correct answer.
  2. Report a range spanning both figures so the client can select the preferred number
  3. Withdraw from the engagement immediately without further communication
  4. Adjust the comparables to align with the purchase price to preserve the client relationship

Explanation

Independence and objectivity require the valuer to reach a conclusion supported by market evidence and to resist client pressure on the outcome. Documenting the analysis demonstrates the reasoning and protects the integrity of the opinion.

Question 30Valuation Principles, Standards and Ethics

A valuer is valuing a leasehold interest subject to a ground lease with 12 years remaining and a market ground rent review in 3 years. The freehold capitalisation rate for comparable properties is 6.0%. Which reasoning best explains why applying the freehold rate directly to the leasehold net income would misstate value?

  1. The leasehold interest carries additional risk from the finite term and rent review exposure, so a higher rate reflecting that risk is generally appropriate Correct answer.
  2. The leasehold interest should always be capitalised at a lower rate because the ground rent is a deductible expense
  3. The freehold rate applies only to vacant possession, so any tenanted property requires a different rate
  4. The capitalisation rate is irrelevant because leasehold value must be calculated by discounting only the reversion

Explanation

A leasehold interest is subject to termination risk and to the effect of rent reviews within a finite term, so it generally attracts a higher capitalisation rate than the corresponding freehold. Applying the freehold rate would overstate value by ignoring those additional risks.

Question 31Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Under the Valuers Act 1948, which body is responsible for registering persons as registered valuers in New Zealand?

  1. The New Zealand Institute of Valuers
  2. The Real Estate Authority
  3. The Valuers Registration Board Correct answer.
  4. The Ministry of Business, Innovation and Employment

Explanation

The Valuers Act 1948 establishes the Valuers Registration Board as the statutory body that considers applications and maintains the register of registered valuers. The Institute is a separate professional membership body, not the statutory registrar.

Question 32Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A registered valuer is preparing a valuation for a client and wants to know the statutory basis on which the Board may discipline a valuer. Which Act provides the disciplinary framework for registered valuers?

  1. The Lawyers and Conveyancers Act 2006
  2. The Financial Markets Conduct Act 2013
  3. The Real Estate Agents Act 2008
  4. The Valuers Act 1948 Correct answer.

Explanation

The Valuers Act 1948 contains the registration and disciplinary provisions that apply to registered valuers, including grounds for complaints and the Board's powers. The other statutes govern different occupational groups or financial products.

Question 33Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which statement best describes the composition of the Valuers Registration Board as contemplated by the Valuers Act 1948?

  1. It includes registered valuers and members appointed to represent the public interest. Correct answer.
  2. It is a committee of MBIE officials chaired by a public servant.
  3. It consists solely of registered valuers elected by the Institute's membership.
  4. It is made up entirely of High Court judges appointed by the Governor-General.

Explanation

The Board is structured to combine professional valuation expertise with public-interest representation, reflecting its dual registration and disciplinary functions. It is not an elected body of the Institute nor a purely official committee.

Question 34Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A client believes a registered valuer's report was prepared negligently and wants the complaint heard under the Valuers Act 1948. To which body should the complaint ordinarily be made?

  1. The Commerce Commission
  2. The Disputes Tribunal
  3. The New Zealand Institute of Valuers' council
  4. The Valuers Registration Board Correct answer.

Explanation

Complaints about the conduct or competence of a registered valuer are made to the Valuers Registration Board, which has statutory authority to investigate and hear them. The Disputes Tribunal handles civil claims, not professional discipline.

Question 35Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which of the following is a ground on which the Valuers Registration Board may take disciplinary action against a registered valuer?

  1. Charging a fee higher than the Institute's recommended scale
  2. Declining to accept a particular instruction
  3. Negligence or incompetence in performing valuation work Correct answer.
  4. Advertising services in a local newspaper

Explanation

The disciplinary grounds under the Valuers Act 1948 focus on conduct and competence, including negligence or incompetence in carrying out valuation work. Charging above a recommended fee, refusing an instruction, or advertising are not in themselves disciplinary matters.

Question 36Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A registered valuer is convicted of an offence involving dishonesty unrelated to valuation work. How does this most likely engage the disciplinary framework?

  1. It automatically cancels registration without any Board process.
  2. It may constitute a ground for discipline because conviction for a dishonesty offence bears on fitness to practise. Correct answer.
  3. It can only be addressed by the criminal court's sentence.
  4. It is irrelevant because the offence was unrelated to valuation work.

Explanation

Conviction for an offence involving dishonesty is relevant to a valuer's fitness to practise and can found a disciplinary proceeding before the Board. The Board still follows a process; cancellation is not automatic.

Question 37Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

What is the primary purpose of the disciplinary process for registered valuers under the Valuers Act 1948?

  1. To resolve contractual disputes between valuers and clients
  2. To recover compensation for aggrieved clients
  3. To increase the Institute's membership revenue
  4. To protect the public and maintain professional standards Correct answer.

Explanation

Professional disciplinary regimes are protective in nature: they safeguard the public and uphold standards rather than punish or compensate. Compensation and contract disputes are handled through other civil avenues.

Question 38Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which penalty is within the range of outcomes the Valuers Registration Board may impose following a disciplinary finding?

  1. An order for specific performance of a valuation contract
  2. A term of imprisonment
  3. An award of punitive damages to the complainant
  4. Cancellation of registration or suspension for a period Correct answer.

Explanation

The Board's disciplinary powers include cancelling or suspending registration, censuring the valuer, and imposing conditions. It cannot imprison, order specific performance, or award damages.

Question 39Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A valuer facing a disciplinary hearing before the Board is concerned about procedural fairness. Which principle is most likely to apply?

  1. The Board may decide without disclosing the substance of the complaint to the valuer.
  2. The valuer is entitled to know the case against them and to respond to it. Correct answer.
  3. The complainant must prove the case beyond reasonable doubt.
  4. The hearing must be held in public in every case.

Explanation

Natural justice requires that a person facing disciplinary allegations be informed of the case and given a fair opportunity to respond. The standard of proof is the civil balance of probabilities, and hearings may be held in private.

Question 40Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which of the following best describes the role of a professional indemnity insurance requirement in the regulatory framework for registered valuers?

  1. It replaces the need for the Board's disciplinary oversight.
  2. It protects clients by providing a source of redress for negligent valuation work. Correct answer.
  3. It guarantees that a valuer will never face a negligence claim.
  4. It is a voluntary arrangement with no regulatory significance.

Explanation

Professional indemnity cover supports consumer protection by providing a fund against which meritorious negligence claims may be met. It complements, but does not replace, disciplinary oversight.

Question 41Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A person wishes to be registered as a valuer. Which requirement is central to eligibility under the Valuers Act 1948?

  1. Membership of a political party
  2. Residence in the same city as the Board's office
  3. Ownership of real property in New Zealand
  4. Demonstrated qualifications, experience, and fitness for registration Correct answer.

Explanation

Registration turns on the applicant's qualifications, practical experience, and fitness, which the Board assesses. Property ownership, political affiliation, and locality are not eligibility criteria.

Question 42Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

What is the effect of the register of valuers maintained under the Valuers Act 1948?

  1. It lists only valuers who hold current Institute membership.
  2. It is a confidential document available only to the Board.
  3. It provides an authoritative public record of persons entitled to be registered as valuers. Correct answer.
  4. It records the fees each valuer has charged clients.

Explanation

The register is the authoritative record of registered valuers and supports public confidence by allowing verification of registration status. It is not a fee record, nor is it limited to Institute members or kept secret.

Question 43Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A registered valuer is alleged to have breached the profession's code of ethics. Which statement about the code's regulatory status is most accurate?

  1. The code is purely aspirational and can never support a disciplinary finding.
  2. The code has no connection to the Board's disciplinary function.
  3. The code is enforced by the police.
  4. The code sets expected standards of conduct and may inform disciplinary proceedings before the Board. Correct answer.

Explanation

A professional code of ethics articulates expected standards of conduct and can be relied on when assessing whether a valuer's behaviour falls short. It is not merely aspirational and is not criminally enforced.

Question 44Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which of the following is an example of conduct that would most clearly undermine public trust in the valuation profession and thus attract disciplinary scrutiny?

  1. Attending a professional development seminar
  2. Charging a fee that is higher than a competitor's fee
  3. Declining an instruction because of a pre-existing personal relationship with the vendor
  4. Preparing a valuation report with a deliberate misstatement of comparable sales to inflate a value Correct answer.

Explanation

Deliberately misstating comparable evidence is dishonest and strikes at the integrity of valuation work, making it a clear disciplinary matter. Declining conflicted instructions, attending training, and charging competitive fees are legitimate.

Question 45Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A valuation report is challenged on the basis that the valuer lacked the necessary competence for the type of property involved. Which concept is most directly engaged?

  1. The valuer's choice of office location
  2. The valuer's fitness to practise and competence Correct answer.
  3. The valuer's membership of a social club
  4. The valuer's advertising budget

Explanation

Competence to undertake particular work is central to fitness to practise and can be examined in disciplinary proceedings. Peripheral matters such as advertising, social memberships, or office location are irrelevant.

Question 46Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which statement best captures the relationship between the Valuers Act 1948 and other legislation affecting property valuation, such as the Resource Management Act 1991?

  1. The two Acts are mutually exclusive and never interact.
  2. The Valuers Act 1948 overrides all other legislation in valuation matters.
  3. The Valuers Act 1948 sets professional registration and discipline, while other Acts set substantive valuation and planning rules. Correct answer.
  4. The Resource Management Act 1991 governs the registration of valuers.

Explanation

The Valuers Act 1948 is concerned with who may practise and how they are regulated, whereas substantive requirements for particular valuations come from other legislation and standards. The regimes operate together rather than excluding one another.

Question 47Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A client complains that a valuer's report was late and overpriced but makes no allegation about the report's accuracy or the valuer's conduct. What is the most appropriate characterisation of this complaint?

  1. It is a clear disciplinary matter for the Board.
  2. It automatically triggers cancellation of registration.
  3. It is a criminal offence by the valuer.
  4. It is likely a contractual or service complaint rather than a professional disciplinary matter. Correct answer.

Explanation

Delay and pricing are generally matters of contract and service quality, not professional misconduct. Disciplinary jurisdiction focuses on conduct and competence, so such a complaint would usually be pursued through ordinary commercial channels.

Question 48Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which body hears appeals from certain decisions of the Valuers Registration Board?

  1. The Court of Appeal
  2. The District Court
  3. The Disputes Tribunal
  4. The High Court Correct answer.

Explanation

Appeals from specified Board decisions proceed to the High Court, reflecting the significance of registration and disciplinary outcomes. Lower courts and tribunals do not hear these statutory appeals.

Question 49Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

A valuer believes the Board's disciplinary decision was wrong in law. What is the typical avenue for challenging that decision?

  1. Complaining to the Institute's council
  2. Seeking judicial review in the High Court Correct answer.
  3. Writing to the Minister of Justice
  4. Filing a claim in the Disputes Tribunal

Explanation

Judicial review in the High Court is the standard route for challenging a statutory decision-maker's errors of law or process. Internal complaints to the Institute, ministerial correspondence, or the Disputes Tribunal are not appropriate vehicles.

Question 50Statutory and Regulatory Framework (valuation legislation, professional regulation, disciplinary and complaints processes)

Which statement about the threshold for the Board to take disciplinary action is most accurate?

  1. The Board may act only if a criminal conviction has already been entered.
  2. The Board may act only with the Institute's prior consent.
  3. Any client dissatisfaction, however minor, must result in a finding.
  4. The Board must find the valuer's conduct fell short of the standard expected of a reasonably competent registered valuer. Correct answer.

Explanation

Disciplinary liability generally depends on whether conduct fell below the standard expected of a reasonably competent practitioner. Minor dissatisfaction or the absence of a conviction does not control the outcome, and the Institute has no veto.