Ethics and the Statutory Framework
Ethics for the valuer rests on integrity, objectivity, confidentiality, professional competence, and compliance with law and professional standards. Candidates must understand that ethical duties are not merely aspirational: they shape what instructions may be accepted, how conflicts are disclosed, and how opinions are communicated. A valuer who is pressured by a client to reach a predetermined figure must resist, document the pressure, and where necessary withdraw.
The statutory framework refers to the laws and regulations that govern the valuer's work and the property being valued: registration or licensing of valuers, statutory valuation for rating and taxation, expropriation and compensation legislation, and consumer and anti-money-laundering obligations. The valuer must know which statute authorises a valuation (for example, a rating authority's power to value for assessment) and which definition of value that statute imposes, since statutory bases may differ from ordinary market value.
Traps: assuming the professional code and the statute always align - where a statute prescribes a method or date, the statute prevails for that purpose. Another trap is failing to recognise a conflict (e.g. valuing for both buyer and seller, or a family interest in the property) and proceeding without disclosure. A third is treating a client's instruction as overriding a legal requirement.
Rule of thumb: when law and client instruction conflict, the law wins and the client is told in writing.
Worked example: A rating authority instructs a valuation on a statutory assessment date. Even if the market has moved, the statutory date and method govern, and the valuer must state the statutory basis rather than a generic market value.