Following an article published last Sunday by Dhalia CEO Chris Grech about his reactions to the newly announced legislation concerning property valuations, we feel obliged to clarify some points raised as well as to share some relevant experiences.

In short, Mr Grech would like to see the role of the architect in valuing properties diminished and replaced solely by the estate agent.

We can understand why an estate agent would be uncomfortable with a potential buyer bringing an architect along with him.

After some sober advice by the professional, it is a possibility that the buyer has a change of heart and might not pursue the sale – to the detriment of the estate agent.

While it may be the case that some contractors consult their estate agents, one finds that banks, auditors, the Malta Financial Services Authority, other financial controllers and the courts of law refer exclusively to and accept valuations solely by warranted architects. And understandably so, because unlike the impression which was given in the article, architects are held legally and professionally accountable for their valuations.

The property market isn’t as volatile as one might be led to believe, so much so that a well-equipped architectural office has databases which, when plotted, show recognisable patterns and can determine causes for fluctuation over a good number of years.

Seasonal changes are visible, a far cry from ‘day-to-day’ changes. With these records and a scientific approach, an architect can even methodologically help his client forecast the future value of an investment.

While Malta is small, the sample size for data to be collected is very generous. If the market were too volatile, developers and individuals would surely not bother investing in it.

The idea that an estate agent should be allowed to determine a property’s final value is as ill-advised as allowing a builder to come up with the structural design of building.

If an estate agent, while showing a property, is asked to provide the property’s actual value, this is tantamount to asking a car salesman if the car for sale is ‘any good’

In both cases, the engaged individual has an inherent, vested interest in the client paying more than he should. This is where the qualified architect and civil engineer (perit) is trained, qualified and even warranted to give professional unbiased advice to his client. Estate agents have a direct commercial interest, conscious or not, but ever present in these declarations.

If an estate agent, while showing a property, is asked to provide the property’s actual value, this is tantamount to asking a car salesman if the car for sale is ‘any good’.

While we do not wish to go into any detail, there are numerous cases of estate agents who ingeniously manipulate the market for their sole financial gain. This is why the government’s direction is to place its trust in the hands of the self-regulating architects.

An appointed architect is remunerated for his professional advice irrespective of the deal going through or not, a point which should not be taken lightly. The relationship with the estate agent ends the moment the contract is signed, while the professional relationship between an architect and his clients lasts for much longer.

The rights, investment and interests of the buyer can only be safeguarded by the trusted appointed architect who is also bound by a Code of Professional Conduct regulated by the current legislation. In the worst case scenario, an architect’s warrant can be revoked if found in breach of this Code .

Another distinct difference between architects and estate agents is the training each receives. The Chamber of Architects (Kamra tal-Periti) has over the past years assiduously striven to keep its members up to date on this subject matter not least with the publication of a reference document titled Valuation Standards for Accredited Valuers in 2012, which is also regularly used by the courts of law.

We do agree with Mr Grech that there is room for improvement in the field of estate agency. While their commission is guaranteed by law, their legal responsibilities towards their clients are not.

We thus urge the government to propose legislation which safeguards clients of estate agents/agencies against the pitfalls highlighted above. We express this in the knowledge of seeing far too many young families misled by estate agents (sometimes ill-informed themselves), resulting in loss of time and money, borne only by the clients.

The Kamra tal-Periti reiterates its position that it is confident that the government will continue to recognise the sterling work provided by its warranted members and will ensure that property valuations remain the sole responsibility of the perit.

To do otherwise would lead to a Pandora’s box of potential abuses such as rampant under-declarations and unethical conflicts of interest.

This is certainly a scenario not in the interest of the common good of society.

Stephen Farrugia and Christopher Mintoff are president and vice president of the Chamber of Architects respectively.

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