Ethics and Standards for Valuation Professionals
Our Commitment to Excellence
The Institute of Philippine Real Estate Appraisers is dedicated to upholding the highest standards of professional conduct and technical competence in valuation practices. Our members are committed to maintaining public trust by adhering to internationally recognized ethics and standards, ensuring credibility, objectivity, and reliability in all valuation assignments.
Core Ethical Principles
Integrity and Objectivity (IVS 101: Scope of Work, IVS 102: Investigations and Compliance)
Valuation professionals must conduct their work honestly, independently, and impartially. Personal interests, biases, or external pressures must never compromise professional judgment. Every valuation opinion must be formed objectively, based solely on factual analysis and an appropriate methodology. Members must comply with IVS 101 in clearly defining the scope of work and with IVS 102 in conducting thorough investigations appropriate to the assignment.
Competence and Diligence (IVS 101, IVS 103: Reporting)
Members shall undertake only those assignments for which they possess the necessary knowledge, skill, and experience. Continuous professional development is essential for maintaining competency in evolving markets, regulations, and valuation techniques. Due diligence and thoroughness are required in all aspects of the assignment, with reporting standards governed by the IVS 103 to ensure clarity, transparency, and completeness.
Confidentiality and Transparency (IVS 103: Reporting)
Client information and assignment details must be treated with strict confidentiality and disclosed only when legally required or with explicit client consent. Simultaneously, valuation reports must be transparent per IVS 103, clearly stating the scope of work, assumptions, limitations, basis of value, and valuation approaches applied to enable users to understand the conclusions.
Professional Conduct (IVS Ethics Standards)
Members must act in a manner that promotes and protects the profession’s reputation. This includes avoiding conflicts of interest, declining assignments where independence may be compromised, and refraining from providing misleading information or advocating valuation services. Adherence to the IVS Ethics Standards is mandatory for all the members.
Technical Standards Framework
International Valuation Standards (IVS)
Our members adhere to the International Valuation Standards, which include:
General Standards:
IVS 101: Scope of Work – Establishing clear terms of engagement, identification of client and intended users, asset to be valued, purpose and basis of value, and valuation date
IVS 102: Investigations and Compliance – Conducting appropriate investigations, inspections, and verification of information
IVS 103: Reporting – Preparing clear, comprehensive reports that are not misleading
Asset Standards
IVS 400: Real Property Interests – Specific guidance for valuing land, buildings, and real property rights
IVS 410: Development Property – Standards for properties under construction or to be developed
Philippine Valuation Standards (PVS)
Members comply with the Philippine Valuation Standards issued by relevant Philippine regulatory authorities, including:
PVS 101: Scope of Work and Compliance
Aligning with international standards while incorporating Philippine legal and regulatory requirements, including compliance with the Real Estate Service Act (RESA) and SEC regulations for specific valuation purposes.
PVS 102: Bases of Value and Valuation Approaches
Recognition of Market Value as the primary basis, along with other bases such as Fair Value, Investment Value, and Liquidation Value. The three approaches–the Sales Comparison Approach, Income Capitalization Approach, and Cost Approach–are appropriate for Philippine market conditions.
PVS 103: Valuation of Real Property
Specific considerations for Philippine real property, including land classification systems, zoning regulations, title verification requirements, and recognition of Philippine property rights and interests, including certificates of title, tax declarations, and relevant property documentation.
PVS 104: Reporting Requirements
Mandatory disclosures for Philippine valuation reports, including appraiser qualifications and PRC license numbers, certifications and limiting conditions specific to Philippine practice, compliance statements with PVS and IVS, and assumptions regarding property rights and legal considerations under Philippine law.
Key Standards in Practice
Valuation professionals must do the following:
Identify Purpose and Basis of Value (IVS 101, PVS 102) – Clearly establish whether valuing for Market Value, Fair Value, or other bases, and ensure the basis is appropriate for the purpose
Apply Appropriate Valuation Approaches (IVS 105, PVS 102) – Utilize the Sales Comparison, Income Capitalization, and/or Cost Approach as appropriate, with proper application of Philippine market data
Conduct Thorough Investigations (IVS 102, PVS 103) – Perform site inspections, verify title and legal documentation, and investigate market conditions
Document Assumptions (IVS 103, PVS 104) – Clearly state all assumptions, special assumptions, and departures from normal conditions
Provide Comprehensive Reports (IVS 103, PVS 104) – Include all mandatory disclosures, methodology explanations, and supporting documentation
Maintain Professional Indemnity Insurance – As required by Philippine regulations and professional standards
Professional Accountability
Institute members are subject to the following:
– Ongoing professional development requirements aligned with IVS competency frameworks
– Regular competency assessments and peer review
– Adherence to a formal complaints and disciplinary process
– Compliance monitoring with both IVS and PVS requirements
– Quality assurance reviews of valuation reports
Violations of ethical standards or technical competence may result in disciplinary action, including suspension or revocation of membership.
Our Promise
By adhering to these ethics and standards, the Institute of Philippine Real Estate Appraisers and its members demonstrate their commitment to serving the public interest, protecting clients, and maintaining the credibility of the profession. We recognize that trust is earned through consistent ethical behavior and technical excellence in every assignment we undertake, guided by international best practices and the Philippine regulatory requirements.
For questions regarding ethics and standards or to report concerns about professional conduct, please contact the IPREA Professional Ethics and Standards Committee.*