APC Pathway Guide For Valuation

Your pathway to qualifying in
Valuation
• Assessment of Professional Competence
• Assessment of Technical Competence
July 2006
www.rics.org
Valuation
RICS Property Group
Contents
Introduction 2
Pathway requirements 5
Valuation APC 5
Valuation ATC 6
Competency guidance 7
Access and rights over land (T001) 8 Development appraisals (T023) 19 Planning (T061) 28
Accounting principles Indirect investment vehicles (T043) 20 Property finance and funding (T069) 29
and procedures (M001) 9
Inspection (T044) 21 Property management (T070) 30
Auctioneering (T004) 10
Insurance (T045) 22 Property management accounting
Building pathology (T006) 11 (T071) 31
Investment management
Capital taxation (T009) 12 (including fund and portfolio Property records/information systems
management) (T046) 23 (T072) 32
Compulsory purchase
and compensation (T011) 13 Landlord and tenant Purchase and sale (T073) 33
(including rent reviews
Conflict avoidance, management Strategic real estate consultancy
and lease renewals) (T048) 24
and dispute resolution procedures (T079) 34
(M006) 14 Leasing/letting (T050) 25
Sustainability (M009) 35
Contaminated land (T015) 16 Local taxation/assessment (T052) 26
Valuation (T083) 36
Corporate real estate management Measurement of land and property
(T019) 17 (T057) 27
This guide is produced by the RICS Valuation Faculty

in conjunction with RICS Education and Training.
Published in November 2006 to support the 2006 Assessment of

Professional Competence and Assessment of Technical Competence.
1 © RICS 2006
Introduction
About the APC and ATC How to use this guide

The RICS Assessment of Professional Competence (APC) This guide supports the core 2006 APC and ATC
and Assessment of Technical Competence (ATC) ensure that documentation. It is designed to help you understand more
those applying for RICS membership are competent to about qualifying as an RICS member in valuation practice.
practise and meet the high standards of professionalism The guide is based on UK market practice and may be
required by RICS. There is a wide range of pathways unsuitable for candidates based in other countries. The
available to qualify as an RICS member covering 19 material is set out in three sections.
different areas of practice, at APC (Chartered), and ATC
Section one – provides information on this area of practice
(Technical) level.
with a general overview of the valuation pathways.
The APC and ATC normally consists of:
Section two – lists the competency requirements of the
• a period of structured training
valuation APC and ATC pathways (as set out in the
• a final assessment. APC/ATC Requirements and competencies guide July 2006).
The structured training is based on candidates achieving Section three – describes the main technical competencies
a set of requirements or competencies. These are a mix associated with valuation practice, providing expanded sector
of technical, professional, interpersonal, business and specific guidance on each of them. This forms the main part
management skills. of the guide.
You MUST use this guide in conjunction with the 2006 core APC and ATC
documentation which is available on the RICS website and comprises:
• APC/ATC Requirements and competencies guide – July 2006.
• Candidate guides (2006) – (the particular candidate guide
you need will depend on your route to membership).
• Guide for supervisors, counsellors and employers – graduate
route to membership, July 2006.
2
About the competencies Choosing your competencies
The APC/ATC aims to assess that you are competent to It is important that you give careful thought to your choice
carry out the work of a qualified chartered/technical surveyor. and combination of competencies. Your choice will inevitably
To be competent is to have the skill or ability to perform a reflect the work you do in your day-to-day environment
task or function. The RICS competencies are not just a list (driven by the needs of your clients/employer). Your choice
of tasks or functions, they are also based upon attitudes and combination of competencies will be a reflection of your
and behaviours. The competencies have been drawn up in judgement. At the final assessment interview, the assessors
a generic way so that they can be applied to different areas will take these choices into account. They will expect you to
of practice and geographical locations. This guide is designed present a sensible and realistic choice that reflects the skills
to help you interpret these competencies within the context needed to fulfil the role of a surveyor in your field of practice.
of valuation practice.
This guide should help candidates and employers with a
The competencies are defined at three levels of attainment degree of assistance in choosing the competencies that are
and each APC or ATC pathway has its own specific most appropriate to their area of practice.
combination of competencies that you must achieve at the
appropriate level. You must reach the required level in a
logical progression and in successive stages:
Level 1 – knowledge and understanding
How to find help
RICS has a fully trained Contact Centre team who will be
Level 2 – application of knowledge and understanding able to help you with any general APC or ATC queries:
Level 3 – reasoned advice and depth of technical
T +44 (0)870 333 1600
knowledge.
F +44 (0)20 7334 3811
The competencies are in three distinct categories: [email protected]
www.rics.org
Mandatory competencies – the personal, interpersonal,
professional practice and business competencies common to
all pathways and compulsory for all candidates. These are
explained in more detail in the APC/ATC Requirements and
competencies guide – July 2006.
Core competencies – the primary competencies of your
chosen APC/ATC pathway.
Optional competencies – a set of competencies selected
by the candidate from a list defined for the particular
pathway. In most cases there is an element of choice.
These are mostly technical competencies, but certain
mandatory competencies also appear on the optional
competency list and candidates are permitted to select one
of these at a higher level.
This guide only deals with the principal core and
optional competencies associated with this area. It does
not cover the mandatory competencies.
3
About Valuation
Property valuation is a core skill of many RICS members and forms part of the
professional services provided by many RICS members. Professional valuations are
vital to a healthy property market and a stable economy, forming the basis of
performance analysis, financing decisions, transactional or development advice,
dispute resolution, taxation and various statutory applications.
Robust practice standards form the basis of high quality valuations. RICS is the
world’s leading qualification for valuation professionals and is well respected by
employers and clients the world over.
Specialist valuers operate across a wide range of asset types, working in both the
public and private sector, though the most common asset classes include
commercial, residential or rural property. Some valuers practise exclusively in one
of these areas, while others deal with a wider variety of property types.
RICS qualification pathways in this sector:
Valuation APC Valuation ATC

The Valuation pathway ideal for anyone pursuing a career RICS also offers an ATC pathway in valuation to individuals
in property who has a particular interest in specialising in wishing to achieve the Tech RICS designation.
valuation.
Candidates pursuing the ATC will be involved in similar types
Although valuation is a skill applied by chartered surveyors of activities to those on the APC, but the ATC places more
across a wide variety of assets, this pathway is aimed at emphasis on achieving level two, rather than level three, in
individuals who work in commercial, residential or rural real the competencies.
estate. Other areas, such as machinery and business assets,
The Valuation ATC also demands a smaller range of
arts and antiques or minerals have their own dedicated
competencies than the APC, making it ideal for individuals
RICS pathways to entry.
pursuing a focussed career path within a narrow market sector.
The Valuation APC pathway places emphasis on competency
in valuation practice (which is required to level 3 in this
pathway). However, as with the other property pathways,
a broad base of experience in general property practice is
also required.
For this reason the competency requirements of the Valuation
APC pathway are very similar to the Commercial Property and
Residential APC pathways, and it draws candidates from a
similar professional environment. Candidates undertaking the
valuation pathway may gain their experience in either a
residential commercial or rural property context – or a mixture
of these.
Chartered alternative designations

related to this pathway
All candidates qualifying under the Valuation APC

pathway will be entitled to use the designation
‘Chartered Valuation Surveyor’.
4
Pathway requirements
Valuation APC
Mandatory competencies
You must achieve the minimum levels as set out
in the mandatory competencies.
Core competencies
Level 3
• Inspection (T044)
• Valuation (T083).
Level 2
• Measurement of land and property (T057).
Optional competencies
Two competencies to Level 3 and one competency
to Level 2 from the list below.
• Access and rights over land (T001) • Leasing/letting (T050)
• Auctioneering (T004) • Local taxation/assessment (T052)
• Building pathology (T006) • Planning (T061)
• Capital taxation (T009) • Property finance and funding (T069)
• Compulsory purchase and compensation (T011) • Property management (T070)
• Contaminated land (T015) • Property management accounting (T071)
• Corporate real estate management (T019) • Property records/Information systems (T072)
• Development appraisals (T023) • Purchase and sale (T073)
• Indirect investment vehicles (T043) • Strategic real estate consultancy (T079)
• Insurance (T045) • Accounting principles and procedures (M001) or
• Investment management (including fund Conflict avoidance, management and dispute resolution
and portfolio management) (T046) procedures M006) or Sustainability (M009).
• Landlord and tenant (including rent reviews

and lease renewals) (T048)
Plus one competency to Level 3 or two competencies

to Level 2 from the full list of technical competencies,
including any not already chosen from the list above.
Notes
Candidates are advised against choosing Strategic real estate
consultancy and Corporate real estate management together as
optional competencies.
5
Valuation ATC
Mandatory competencies
You must achieve the minimum levels as set out
in the mandatory competencies.
Core competencies
Level 3
• Inspection (T044).
Level 2
• Measurement of land and property (T057)
• Valuation (T083).
Optional competencies
Two competencies to Level 2 from the list below.
• Access and rights over land (T001) • Property management (T070)
• Auctioneering (T004) • Property management accounting (T071)
• Building pathology (T006) • Property records/Information systems (T072)
• Capital taxation (T009) • Purchase and sale (T073)
• Compulsory purchase and compensation (T011) • Accounting principles and procedures (M001) or
• Contaminated land (T015) Conflict avoidance, management and dispute resolution
procedures (M006) or Sustainability (M009)
• Development appraisals (T023)
• Insurance (T045)
• Landlord and tenant (including rent reviews
and lease renewals) (T048)
• Leasing/letting (T050)
• Local taxation/assessment (T052)
• Planning (T061)
Plus one competency to Level 2 from the full list

of technical competencies, including any not already
chosen from the list above.
6
Competency guidance
The pages that follow are intended to provide guidance
for users on the main competencies associated with
valuation practice.
The guidance has been drawn up by experienced practitioners and

aims to give you a clear and practical understanding of how to apply
the listed core and optional competencies in the context of property
vauation practice. The guidance does not cover the mandatory
competency requirements.
The official competency definitions (at levels one, two and three)
are provided, followed by a description of the key knowledge
and activities that are likely to fall within the scope of each
competency.
The information provided is designed to be helpful but informal

guidance. The knowledge and activities described under each
competency are not exhaustive, and should not be relied upon as
any form of revision list. Candidates must satisfy themselves and
their employers that they have reached the required level of
attainment before applying for final assessment.
The competencies are arranged in alphabetical order.
The full list of RICS competencies and pathway requirements can

be found in the APC/ATC Requirements and competencies guide
– July 2006.
Access and rights over land (T001) 8 Development appraisals (T023) 19 Planning (T061) 28
Accounting principles and procedures Indirect investment vehicles (T043) 20 Property finance and funding (T069) 29
(M001) 9
Inspection (T044) 21 Property management (T070) 30
Auctioneering (T004) 10
Insurance (T045) 22 Property management
Building pathology (T006) 11 accounting (T071) 31
Capital taxation (T009) 12 (including fund and portfolio Property records/
management) (T046) 23 information systems (T072) 32
Compulsory purchase
and compensation (T011) 13 Landlord and tenant Purchase and sale (T073) 33
(including rent reviews
Conflict avoidance, management Strategic real estate
and lease renewals) (T048) 24
and dispute resolution procedures consultancy (T079) 34
(M006) 14 Leasing/letting (T050)) 25
Sustainability (M009) 35
Contaminated land (T015) 16 Local taxation/assessment (T052) 26
Valuation (T083) 36
Corporate real estate management Measurement of land
(T019) 17 and property (T057) 27
7
Access and rights over land
Reference no. T001
Description of competency in context of this sector

This competency is about access and easements for power, water and
communications infrastructure including wayleaves and the differing methods
of acquisition and compensation negotiations, including fees.
Examples of likely knowledge, skills and experience at each level
Level 1 Level 2 Level 3

Demonstrate knowledge and Provide evidence of identifying and Provide evidence of reasoned advice,
understanding of the legislation understanding the appropriate routing undertake valuations on and write
and/or framework for acquiring sites for lines, cables and other third party reports in relation to all matters
or access for the provision of power, infrastructure. This should include relating to provision of power, water,
water, pipelines, other third party or associated environmental pipelines, other third party or
communications infrastructure. assessment; undertaking inspections, communications infrastructure.
This should include the methodology and evaluating and negotiating
and techniques used in valuation for payments for their use or acquisition.
these purposes.
Examples of knowledge comprised Examples of activities and knowledge Examples of activities and knowledge
within this level are: comprised within this level are: comprised within this level are:
• The processes involved in the • Negotiating with occupiers and • Providing strategic advice on complex
acquisition of land for the purposes companies regarding the routes, elements of the subject including
of establishing access agreements, accommodation works, temporary dispute resolution
wayleaves and easements for the works, and reinstatement and • Preparing and providing strategic advice
provision of power, water, pipelines compensation on unusual or challenging cases.
or communications infrastructure • Agreeing heads of terms and final
• Compensation procedures associated documentation.
with such acquisitions, including any
temporary accommodation and other
works required for the construction
and maintenance of infrastructure on
the land acquired.
8
Accounting principles and procedures
Reference no. M001

This competency covers the basic principles of accounting and the interpretation
of company accounts in order that reasoned advice can be given to Clients.

Demonstrate knowledge and Provide evidence of interpretation Provide evidence of reasoned advice
understanding of accounting concepts of company accounts and balance given to clients with regard to
and the format and preparation sheets in your area of practice and profit and loss statements and
of management and company application of appropriate accounting balance sheets.
accounts, including profit and loss and regulatory standards.
statements, cash flow statements
and balance sheets.
• An awareness of the Generally • The application of knowledge obtained • Providing clients, in an appropriately
Accepted Accounting Principles to achieve Level 1 and specific supervised manner, with reasoned
(GAAP) relevant to the candidate’s knowledge of the accounting standards advice relating to the financial standing
geographical area of experience and that relate to property of a company e.g. for agency activities
how property is treated in an entity’s • Considering financial statements to such as leasing, buying and selling or
accounts establish, for example, the financial to assess suitability for a commercial
• An awareness of International strength of an entity relationship
Accounting Standards (IAS), broadly • Reviewing and understanding analyst’s • Preparing, or assisting in the
how IAS vary from National GAAP and reports on financial statements, preparation of service charge accounts
how property is treated in an entity’s eg Dun & Bradstreet • Preparing, or assisting in the
accounts prepared under IAS preparation of management accounts
• Considering and understanding
• An understanding of an entity’s financial common financial measures such as for a property
results and basic accounting principles return on capital employed, NAV, net • Preparing, or assisting in the
including balance sheets, profit and loss assets per share, gearing ratio, EBIT, preparation of an entity’s accounts
and cash flow statements EBITDA and PE ratio. ie balance sheet, profit and loss and
• An understanding of the role of the cash flow statements
Auditor. • Providing other professional advice
related to the interpretation and/or
preparation of accounts.
9
Auctioneering
Reference no. T004

This competency reflects the complex factors governing auctioneering. It includes
aspects of law of sale and contract, misdescription etc, as well as requiring the
candidate to have knowledge of the auction process and the reasons for
recommending sale by auction (or otherwise) over and above other methods
of disposal.

Demonstrate knowledge and Provide evidence of the practical Provide evidence of reasoned advice
understanding of the basic principles application of your knowledge to the based on a thorough working
and legal obligations of auction. preparation for the sale of property knowledge and experience of the
This should include preparation for, at auction and procedures prior to auction process, including experience
and procedures prior to or during, or during an auction. of selling at auction.
an auction.
• The principles of the law governing • Compiling information relating to • Advising clients on the suitability of
auction and it’s implications property to be sold at auction sale by auction
• An understanding of the process of • Assisting in the process of drawing up • Attending an auction and selling lots
how an auction works, including an auction catalogues • Dealing with a sale by auction from
understanding of the information • Dealing with queries and issues raised start to completion.
required prior to auction and the prior to the auction in consultation
process on the day. with others
• Dealing with issues arising post auction
in consultation with others.
10
Building pathology
Reference no. T006

Building Pathology is core to many areas of surveying. It is essential that all
candidates have an understanding of defects analysis, and the likely resultant
defects from failures in building fabric. This will range from the effects of a
defective waterproof covering at simple building pathology, to much more complex
defects such as interstitial condensation, and the possible effects on building
fabric. Candidates will be expected to have an in-depth knowledge of the range
of defects found in typical buildings in their locality, as well as an understanding
of defects that they may come across more infrequently. In order to be competent
in building pathology and defects analysis candidates will need to have detailed
construction technology knowledge.

Demonstrate your knowledge and Apply your knowledge to undertake Provide evidence of reasoned advice
understanding of building defects surveys, use survey and other and appropriate recommendations,
including collection of information, information to diagnose cause including the preparation and
measurements and tests. and mechanisms of failure. presentation of reports.
• Knowledge and understanding of • Using examples, from your own • Preparing reports for clients, explaining
typical defects relating to typical experience, to demonstrate your in non technical language the causes of
buildings found in your locality you may application of knowledge gained failure, and the likely results of failure,
have come across and explain cause at Level 1 together with the appropriate remedial
and effect of these • Explaining the cause and mechanics of measures
• Knowledge and understanding of varying types of failure • Using information gathered from
building defects likely to be • Explaining procedures for carrying out inspections to formulate the necessary
encountered in typical building inspections of properties remedial/preventative works including
surveying activities specific detail, in the form of a schedule
• Explaining, with use of detailed
• Knowledge and understanding of the of works, if required
examples, the relationship between
various methods to collect, store and observations taken on site and the • An understanding of the appropriate
retrieve information for various differing diagnosis of failure in building fabric level of detail required in typical reports,
purposes when carrying out property including examples of layout, and the
• Using knowledge and information
inspections use of sketches/drawings
gathered from several sources,
• Knowledge and understanding of the and photographs
including if necessary specialist
various types of inspection that may be inspections, to diagnose and explain • Discussing in detail examples of
carried out, and the importance of the building fabric failure. unusual defects you have been involved
accurate recording of information in and remedial works employed
during inspection • Demonstrating the different
• Knowledge and understanding of requirements of reports to clients, (for
differing types of testing, and the example the differences between,
limitations of the tests, for example the schedules of condition, schedules of
use of damp meters, and other relevant dilapidations, and pre acquisition
equipment. reports).
11
Capital taxation
Reference no. T009

This competency includes valuations and negotiations for inheritance tax, capital
gains tax, which may also include advising on stamp duty, capital allowances and
advising on litigation. It involves measurement of and analysis of comparables and
application of evidence to resolve negotiations. It also includes application of
statute and case law.

Demonstrate knowledge and Undertake valuations and negotiations Provide evidence of reasoned advice
understanding of the relevant for a variety of different property types to stakeholders (to include senior
provisions for capital taxation of using different valuation methods for management within your organisation,
real estate, equipment and/or the purposes of capital taxation. clients and courts/tribunal members)
other property. in respect of specific cases and/or
other capital taxation issues.
• Code of measuring practice to include • Undertaking measurement and • Advising on settlement or litigation
zoning of shops inspection of cases
• Application of statute and case law • Undertaking valuation of a range • Advising on the costs of options
• Analysis of evidence and relevance of of property types and actions
the law of Landlord and Tenant • Using different methods of valuation: • Advising on the impact of such actions
• Valuation methods applicable to using comparables, the investment across the wider arena.
different types of property. method, profits and discounted cash
flow techniques where appropriate
• Negotiating valuations and settlement
of cases.
12
Compulsory purchase
and compensation
Reference no. T011

The understanding and practical application, within the appropriate legal
framework, of compulsory purchase powers. Including the assessment of and
claim for compensation. The candidate is expected to have an understanding
from both the acquiring authority and claimant’s position.

Demonstrate knowledge and Assist in the preparation of the Provide evidence of reasoned advice
understanding of the powers and various stages involved in the process in relation to the validity and level of a
procedures of government and other of compulsory purchase including claim for compensation, using a
bodies in relation to the compulsory the estimation of a claim for variety of valuation methodologies
purchase and compensation. compensation. appropriate for the circumstances of
This should cover interests in real the claim. Take an active role in the
estate and of the rights of owners negotiation of claims, using a variety
and occupiers of the various interests of bases of statutory and other
in property. valuation methodologies. Provide
reasoned advice on the role of
compulsory purchase in facilitating
planning and regeneration initiatives.
• The historical background, requirement • Outlining the stages and timing involved • Supplying and justifying evidence for a
for and justification of the use of in making, confirming and implementing statement of claim using both valuation
compulsory purchase powers a compulsory purchase order and logical techniques to back up the
• An overview of the various Acts of • An understanding of statutory abilities quantum of the claim
Parliament covering acquisition of land to acquire rights other than outright • Dealing with best practice in the
and rights, planning and compensation purchase, such as those exercised by implementation of a compulsory
• The basic principles of compensation utilities companies purchase order on say a road scheme
(the before and after principle), • Setting out heads of claim under a • Developing a rationale for the use of
accommodation works, betterment, compensation claim compulsory purchase powers in order
equivalence and the legal right to claim. • Being aware of and using appropriately to enable development, taking into
the relevant statutory and case law account human rights legislation.
in the assessment of a claim for • Being aware of the fee basis for
compensation. chartered surveyors and the role
of the Lands Tribunal as well as
mediation/arbitration.
Assisting in the preparation for and
attendance at a Public Inquiry into a
Compulsory Purchase Order including
understanding of procedure and process.
13
Conflict avoidance, management
and dispute resolution procedures
Reference no. M006

This competency covers knowledge, understanding and application of a
range of processes related to dispute/conflict avoidance, management
and dispute resolution.
Level 1
Demonstrate knowledge and
understanding of the techniques for
conflict avoidance, conflict
management and dispute resolution
procedures including for example
adjudication and arbitration,
appropriate to your APC/ATC pathway.
Examples of knowledge comprised

within this level are:
A basic knowledge and understanding of • Mediation (could include contracted
some of the following, as most and project mediation) and
appropriate to your market sector/areas conciliation
of specialism: • Early Neutral Evaluation (ENE)
• Common causes of disputes
• Dispute Resolution Boards (DRBs)
• The contribution of some of the
• Dispute Resolution Advisers (DRAs)
following to dispute avoidance:
• Risk management – its basic • Adjudication (under the HGCRA ’96
principles and techniques or geographically applicable law)
• Early warning systems • Independent expert determination
• Partnering techniques • Arbitration; med-arb
• Clear and robust client briefings • Litigation
• Theories of negotiation and the • The possible roles of a surveyor as an

role of effective communication expert witness and/or an advocate, to
and negotiation include an awareness of the existence
and scope of applicability of the RICS
• The primary features, advantages
Practice Statements and Guidance
and disadvantages of a range of
Notes for expert witnesses and
dispute resolution procedures and
advocates
their surrounding statutory and/or
non-statutory legal/judicial context (eg • The range of nominating bodies and
how forms of contract deal with dispute services available to resolve disputes,
resolution, and the scope of such and particularly the role of the RICS
clauses): Dispute Resolution Service and any
specialized dispute resolution schemes
it offers relevant to your market sector
eg PACT
14 Continued over page
Conflict avoidance, management
and dispute resolution procedures continued
Reference no. M006
Level 2 Level 3
Provide evidence of practical Provide evidence of the application of
application in your area of practice the above in the context of advising
having regard to the relevant law. clients in the various circumstances
referred to above.
Examples of activities and knowledge Examples of activities and knowledge

comprised within this level are: comprised within this level are:
• Advising clients of the most suitable • Assisting in the identification, gathering • Involvement in, or assistance with, a
means of dispute avoidance on their and collation of facts and expert referral to a 3rd party resolution
projects, and of dispute resolution evidence for use in expert reports process and associated management of
procedures appropriate to their • Sufficient understanding of the main that process on behalf of client.
individual circumstances, demonstrating points of the statutory or non-statutory
appreciation of when to seek further law relevant to/underpinning any • NB: Please note that the roles of acting
specialist advice and when to advise particular dispute resolution process as a 3rd party dispute resolver, expert
clients within the scope of the P.I. cover (eg in England & Wales, Arbitration Act witness, or advocate, are – for the vast
of the candidate’s organization 1996, or HGCRA ’96 Part II, CPR, majority of APC candidates – not likely
• Adopting - or encouragement of the Party Wall Act 1996 etc) and its to be an activity that is undertaken. It is
adoption of (as appropriate) – suitable application. only a small minority of candidates with
dispute avoidance techniques substantive work experience for whom
this is likely to be relevant.
• Negotiating actively on behalf of clients
(e.g. negotiations of a dilapidations
claim, a party wall award or final
account on a construction project) prior
to third party referral
• Assisting in the collation or preparation
of claims/counter-claims and
submissions
15
Contaminated land
Reference no. T015

This competency is about an understanding of contaminated land in the context
of urban and rural land and property asset management, transaction and
development, law and planning.

Demonstrate knowledge and Prepare a brief and/or specification for Supervise a site investigation, interpret
understanding of how land becomes the appointment of a specialist(s) to the results of laboratory analyses and
contaminated through human undertake a site investigation. make recommendations as to
activities and natural occurrences. remedial treatments.
Clearly illustrate the implications of
contamination for real estate valuation,
development and management.
• The definition of contaminated land • Advising clients on the application of • Providing reasoned advice on
under the Contaminated Land contaminated land to their asset contaminated land issues to clients
Regulations 2000, and associated management, planning and • Assisting in project management of and
legislation development projects undertaking phased contaminated land
• Areas of professional practice where • Advising clients on the law and assessments and remediation options
contaminated land is relevant, eg regulation and procedures and RICS appraisals
valuations, development, asset guidance and practice appertaining to • Negotiating and liaising with clients and
management, transactions, contaminated land regulators on contaminated land issues
environmental assessment • Assembling specialist team members • Working with specialist project teams
• The relevance under Part 11A of the to advise on contaminated land dealing with contaminated land
Environmental Protection Act, Planning assessment and remediation assessment and remediation.
Policy Guidance and RICS Published • Undertaking Review Stage 1 and desk
Guidance and Practice Notes top environmental reports and advise
• Demonstrate an understanding of the clients accordingly.
limitations upon Chartered Surveyors in
this area, eg Professional Indemnity
Insurance, Public Liability Insurance.
16
Corporate real estate management
Reference no. T019

This competency covers the strategic management of occupational property – the
space a business or public body needs in order to operate – taking an overall
strategic view about its suitability for that business operation and the financial
implications of continued occupation whilst ensuring that the facility is managed
on a day to day basis in a cost effective and high quality manner to maximise
occupational productivity.

Demonstrate knowledge and Apply your knowledge to the Provide evidence of reasoned advice
understanding of the role of real management of corporate real estate on corporate real estate strategy to
estate in the context of the under appropriate supervision. the corporate occupier in order to
corporate occupier. meet business needs.
• Understand the role of property, space • Understanding of the criteria which • Advising on property and facilities
use and the financial implications of drive business/public authority strategy management strategies demonstrating
acquisition/leasing accommodation as formulation and how aligned the following:
well as the ongoing occupational costs accommodation and facility service • a full understanding of the business,
of running the facility in the context of provision strategies are then developed its strategies and financial
business/public authority operations • Demonstrating the importance of constraints;
• Understand the ‘4Ps’: the key aligning operational resource planning • corporate support at a senior
interaction of property to meet strategic business and preferably, Boardroom level;
(accommodation), people requirements • a strategic, not a tactical day to day
(staff/customers), place (location) and • Awareness of the financial implications approach to delivery;
pounds (financial effects) in the context of property and facility management • an ability to procure and manage the
of business or public sector operations. to business operations – the effect effective and high quality provision of
on the balance sheet and on the a wide range of facilities services;
P & L account
• full knowledge and reliable data of
• Using analysis techniques associated the operational portfolio;
with comparative returns on investment,
• IT availability and user skills.
for example in various fit-outs and the
return to the business in the short, • Developing property and facilities
medium and longer term. Familiarity management plans which support the
with life cycle costing and whole life relevant business and include some or
returns on facility investment should all of the following strategic
be demonstrated requirements:
• occupation cost minimisation;
• Communicating the strategic
importance of property and facility • flexibility of occupation and use;
management within a boardroom
context.
17 Continued over page
Corporate real estate management continued
Reference no. T019
Level 3 continued
Provide evidence of reasoned advice
on corporate real estate strategy to
the corporate occupier in order to
meet business needs.
• promotion of corporate image; • Using and understanding the various

• promotion of a marketing, sales methodologies and metrics used by
and/or selling messages; businesses and public bodies to
measure business performance and
• improving staff facilities, workplace
develop an understanding of how these
conditions and workstyle flexibility;
may be used to measure the
• improved operational efficiency and
contribution of property and facilities
productivity;
management to business efficiency,
• facilitating corporate culture changes; effectiveness and productivity.
• protection, realisation and/or
enhancement of asset value.
• Using of performance measurement
techniques and benchmarking as
valuable indicators by which to
formulate and ‘test’ property and
facilities management strategies and
evidence the added value of
strategically focused property and
facilities management to the business.
18
Development appraisals
Reference no. T023

This competency is about the role of development appraisals in residential and
commercial development. Development appraisals also have a role in residual
valuations of development sites but it should be remembered that the two are
different activities.

Demonstrate knowledge and Identify, select, assemble and analyse Interpret and provide evidence of
understanding of the principles and data relevant to carrying out reasoned advice on development
practices underlying a valid development appraisals. Undertake appraisals and further opportunities.
development appraisal. appraisals using relevant techniques
and methodology and identify possible
sources of development funding.
• The role of development appraisals in • Analysing appropriate sources of • Using development appraisals to advise
the marketplace and the situations information and data on the acquisition, disposal or valuation
where their use is appropriate • Preparing appraisals for possible of development sites
• The content of appraisals and how acquisition, disposal or valuation of • Producing reasoned analysis of risk
different issues such as planning development sites including residential, using appropriate sensitivity analysis
requirements can be reflected commercial and/or mixed use • Advising on the appropriate sources
• The sensitivities of appraisals, what • Using different techniques and software of development finance.
factors affect the appraisal available for appraisals (whilst having an
• Awareness of external factors which understanding of the basic principles of
have an influence upon the appraisal development appraisal)
process. • Undertaking a sensitivity analysis
• Assisting in the selection of appropriate
sources of development finance.
19
Indirect investment vehicles
Reference no. T043

This competency is about developing an understanding of indirect investment
vehicles and debt structures. It requires an awareness of existing vehicles and
trends in the market and an ability to advise clients on optimal indirect investment
solutions.

Demonstrate knowledge and Apply your knowledge to identify Assist in the analysis and preparation
understanding of the principles of which structures might suit an investor of reasoned advice covering the
indirect investment including the or lender in any given scenario. benefits or otherwise of indirect
different structures and instruments Understand the management and risk investment. Participate in the
relating to the ownership and funding issues that may differ from a more establishment and management of
of real estate. direct form of investment. Gain an such vehicles and demonstrate an
appreciation of how investing understanding of how these vehicles
indirectly can assist portfolio risk impact the larger direct market.
and return management.
• Understand the different forms of • Understanding the investment • Advising on indirect vehicles to
indirect investments; JPUTS, implications of indirect forms of invest in
Investment Trusts, REITS, LPs, etc investment for clients • Advising clients seeking to divest on
• Understand how property • Reviewing structures for indirect possible solutions such as indirect
derivatives work investment vehicles. vehicles, derivatives, etc.
• Understand debt structures such
as CMBSs
• Be aware of trends in the indirect
investment markets and the reasons
clients invest indirectly
• Understand the attractions of varying
forms of indirect holding.
20
Inspection
Reference no. T044

Property inspection is fundamental to providing accurate property advice. It is
important that candidates are able to demonstrate knowledge and understanding
of the core requirements of property inspection. Assessors will be seeking
confirmation that all candidates have a good knowledge of building construction,
location analysis and defects.

Demonstrate knowledge and Undertake inspections and apply the Provide evidence of reasoned advice
understanding of the different information gained to prepare reports, and recommendations arising from
requirements for inspection, together schedules and/or registers of inspections.
with the required information and equipment, presenting appropriate
factors affecting the approach to an information gained from the
inspection. inspection.
• Understand the requirements and • Accurate recording of building • Preparing reports for clients, containing
reasons for a property inspection and site characteristics detailed information particularly with
• Understand safety issues when • Preparing (or assisting in the regard to valuation reports and the
undertaking an inspection preparation of) reports for clients marketing of buildings
• Implications of location and situation • Understanding potential defects of • Providing detailed reasoned advice
buildings and implications to clients
• Identify access arrangements
• Assessing quality of location, design • Making clients aware (where
• Basic Knowledge of building
and specification. appropriate) of their statutory
construction and specification
responsibilities.
• Awareness of the legal requirements
that impact upon the occupation/
ownership of buildings.
21
Insurance
Reference no. T045

In this context many candidates will be involved with insurance in relation to
re-instatement and owner/tenant liability. The candidate should demonstrate a
thorough working knowledge of how insurance is dealt with, and likely costs in
the market place.

Demonstrate knowledge and Apply your knowledge and/or be Demonstrate a thorough
understanding of the principles and involved with the insurance of understanding of the regulations
practices of insurance in relation to construction and/or property-related and practice governing the insurance
your area of practice. matters. of construction and/or property-
related matters.
• Demonstrate an understanding of • Placing insurance relating to property • Undertaking assessments and
elements comprising property and and liability valuations for insurance purposes
liability insurance • Inspection of property to ensure • Negotiation with insurance companies
• Demonstrate an understanding of the compliance with terms of in relation to policy details and wording
regulations governing the placing of insurance policy • Ensuring compliance with regulations
insurance policies • Liaising and negotiating with tenants and governance of insurance.
• Be aware of the major terms and or owners of the insured property
factors influencing insurance. • Dealing with claims arising from start
to completion
22
Reference no. T046

To be conversant with the key principles of investment management theory
and practice. Acquire and develop detailed asset management expertise
and knowledge across a broad range of sectors and be able to apply these
in a strategic context.

Demonstrate knowledge and Apply the principles of managing Provide evidence of reasoned and
understanding of the principles of property as a financial investment. strategic advice on property as a
financial investment in property. financial investment, including the
preparation and presentation of
reports.
• Grasp the fundamental elements of • Assisting on selected asset • Generating and implementing strategic
property returns including capital and management activity and demonstrate advice independently both at portfolio
retail returns, plus how these are how this fits into the portfolio strategic and asset specific level
generated in practice performance plan • Reporting in a manner that
• Understand the mainstream types of • Working with fellow project appropriately communicates this to
property valuation and be conversant professionals from a diverse range clients and/or advisers in a focused,
with the theory behind these of backgrounds, drawing various skill relevant manner
• Gain a good working knowledge of the bases together to achieve an asset • Working knowledge of key legislation
principles of portfolio management and or portfolio objective and regulation.
asset management. • Awareness of appropriate legislation
and regulations relating to the
management of property as a financial
investment.
23
Landlord and tenant
Reference no. T048

This competency is about the management of the landlord and tenant
relationship. It has a broad scope covering all aspects of lease negotiations arising
between landlord and tenant. The candidate will be expected to understand the
issues and how they affect both parties.

Demonstrate knowledge and Apply the principles of the law Provide evidence of reasoned advice,
understanding of the law and practice and practice relating to landlord prepare and present reports on the
relating to landlord and tenant. and tenant. Carry out relevant law and practice relating to landlord
negotiations to provide solutions and tenant. Apply your knowledge to
to issues affecting both owners assist in undertaking relevant dispute
and occupiers of real estate. resolution procedures.
• The principles of property law • Reading and interpreting leases • Providing strategic advice upon landlord
• The statutory and common law • Preparing reports containing and tenant matters, relating to individual
framework applying to the landlord recommendations prior to the properties or blocks of properties
and tenant relationship commencement of negotiations • Dealing with more unusual/
• The content, form, and structure • Giving appropriate valuation advice challenging cases
of leases • Carrying out market research, collate • Providing advice as to alternative
• Relevant market conditions and and analyse comparable evidence dispute resolution options in the event
property values. of breakdown of negotiations and
• Preparing, serving and responding to
taking any necessary action to protect
legal notices
the clients position
• Entering into negotiations
• Demonstrating involvement with third
• Reaching an agreed solution and party determination and associated
reporting recommendations to client submissions.
• Instructing legal advisers and seeing .
matters to conclusion.
24
Leasing/letting
Reference no. T050

This competency is specifically in relation to the market for leasehold property
and includes assignments. Candidates should be able to demonstrate an
understanding and experience (if appropriate) of working for both landlord and
tenant. The candidate should have a knowledge of the whole transactional market
for property.

Demonstrate knowledge and Apply your knowledge and skills to the Provide evidence of reasoned advice
understanding of how various types of leasing/letting of all types of property and report to clients on all types of
property are let (or a similar interest is and demonstrate practical experience leasing or letting transactions.
acquired for a client) and the different of the associated decision-making Demonstrate the ability to see
types of interests that may be placed process, marketing, reporting and complex cases through from start to
on the market. Demonstrate an completion of the transaction. finish with appropriate assistance.
understanding of the economics of the Demonstrate knowledge and Be able to provide clients with a
market for such interests and the understanding of other forms of holistic view of the entire transactional
appropriate legal frameworks. property transaction, and of the market, and advise them clearly and
reasons supporting the decision to appropriately, not only on the letting
proceed along the chosen leasing or or leasing market, but also on
letting route. other areas.
• Understand the market for leasing and • Experience of leasing/letting for both • Experience of complex letting/leasing
letting, and how values and lease terms landlord and tenant cases and explaining the factors
may be affected by market trends and • Experience of transaction from initial which made the case deviate from the
pressures inspections through to completion of market norm
• Understand the legislative framework documentation • Commenting clearly on why decisions
associated with lease terms and show • Negotiation with both prospective were made in relation to the chosen
how this is reflected in the market place parties and the property owner route of leasing/letting
• Show what factors affect value for • Decision making and recommendation • Reporting to clients with
property in the letting market. of courses of action including valuation recommendations including
advice. valuation advice
• Reporting to clients with
recommendations on strategy in
relation to all options for the property
• Dealing with externalities to the market
which may affect leasing/letting
• Utilising negotiation and business skills
in relation to challenging leasing
situations.
25
Local taxation/assessment
Reference no. T052

Valuation and negotiation of rating appeals which may include attendance at
Valuation Tribunal. Inspection, measurement and analysis of comparables.
Application of evidence when dealing with appeals to include an understanding of
the use of comparable rental evidence. Application of statute and casework.

Demonstrate knowledge and Undertake valuations and negotiations Provide evidence of reasoned advice
understanding of the provisions for for a variety of different property types to stakeholders (including senior
taxation of real estate, plant and using different valuation methods for management within your organisation,
machinery and/or other property types the purposes of local/municipal clients and courts/tribunal members)
at a local/municipal level. taxation. in respect of specific cases and/or
other local taxation issues.
• Code of measuring practice to include • Measuring and inspecting properties • Advising on settlement or litigation
zoning of shops • Valuing different property types of cases
• Application of statute and case law • Using different methods of valuation: • Advising on the costs of options
• Analysis of evidence and relevance of rental and comparative approaches, and actions
the law of Landlord and Tenant profits, receipts and expenditure • Advising on the impact of various
• Various methods of valuation applicable and costs actions with an appreciation the
to different types of property • Participating in negotiation, valuations wider context.
• Plant and machinery in respect of and settlement of appeals.

the above.
26
Measurement of land and property
Reference no. T057

This competency is relevant to all data capture and measurement of land or
property. In the context of the property pathways it refers particularly to
measurement of saleable/lettable areas for agency or valuation purposes

Demonstrate knowledge and Apply your knowledge to undertake Evaluate, present, manage, analyse
understanding of the principles measurement. Use basic and/or data and/or apply spatial data and
and limitations of measurement advanced instrumentation to collect information. Show an advanced
relevant to your area of practice. data. Present appropriate information understanding of accuracy, precision
gained from measurement. and error sources.
• Relevant data capture techniques • Using the appropriate instrumentation Please note, Level 3 is only recommended
including the use of lasers and tapes (including lasers and tapes) to capture for candidates with specialist knowledge
• The limitations of different methods sufficiently accurate data, based on an and experience of sophisticated
of measurement understanding of limitations of different measurement and data capture practice.
instruments Most property candidates will only attain
• Checking procedures for the
• Dealing with and advising on sources Level 2. For guidance on Level 3 please
instruments used and the calculations
of error from use of instruments refer to RICS Geomatics Faculty.
undertaken
• Potential sources of error from use of • Applying the appropriate guidance
the instruments correctly in practice to undertake
measurement of a variety of properties,
• Understanding the basis on which
understanding the basis on which
measurements should be undertaken ie
measurements should be undertaken
the core definitions of measurement
and their application (Gross External • Undertaking necessary calculations
Area, Gross Internal Area And Net • Preparing and presenting
Internal Area) measurements in a manner appropriate
• Awareness of the appropriate standards for the purpose they are to be used
and guidance relating to measurement understanding the level of accuracy
with particular reference to the RICS that is required for different types
Code Of Measuring Practice of property.
• The degree of accuracy that is required

for different types of property and the use
to which the measurements will be put
• The use and limitations of plans
and drawings.
27
Planning
Reference no. T061

The planning system plays a vital role in the opportunities available for any
potential development scheme. This means it is important for developers to have
good working knowledge and experience of the processes involved to ensure
successful development outcomes

Demonstrate knowledge and Apply your knowledge to matters Give reasoned advice, including the
understanding of the principles relevant to the planning process. preparation and presentation of
of planning. reports on planning matters, brief
other professional consultants and
understand the application of
specialist knowledge to the resolution
of planning problems.
• The purpose of the planning system • Completing the submission of planning • Producing viability/feasibility reports
• The importance of the strategic applications • Providing reasoned client advice on
planning framework • Applying pre-consultation and planning applications including advice
• The decision making process on negotiation processes to the planning on appeals
planning applications application process • Advising clients on reasonableness of
• Awareness of special planning powers • Participating in the formulation of planning conditions and involvement in
for conservation areas, listed buildings spatial planning strategies related negotiations
and trees • Interpreting strategic planning policies. • Justifying environmental and other
• The requirements for community impact assessments
involvement in the planning system. • Overseeing the work of external
consultants such as architects or
engineers etc.
28
Property finance and funding
Reference no. T069

This competency focuses on the candidates understanding of the range of
finance available, their understanding of how this is sourced and how this may
used to assist with property investment and development scenarios.
Candidates will be expected to apply this knowledge in order to provide advice to
clients on their financing options and the impact of this on their returns.

Demonstrate knowledge and Identify the factors that affect the Provide evidence of reasoned advice
understanding of the role and ability to obtain finance to fund any on maximising the viability of any
importance of finance in property, investment project. Identify funding situation. Demonstrate your
including the principal forms of appropriate sources of finance and appreciation of the impact of property
investment finance and their sources. understand the principles that apply to matters on valuation and funding.
securing finance for different Demonstrate your understanding of
purposes. the impact of funding matters on the
property market.
• A broad knowledge of the various • Analysing investment and development • Analysing and understanding a stand
senior debt providers, and their projects to ascertain the level of senior alone financing from the outset to
expectations in terms of pricing debt that could be raised within the completion and draw down of funds
and security mathematical limits • Reviewing and comprehending
• An understanding of the impact of • Applying likely finance pricing required financing documents and in particular
gearing on equity returns by senior debt providers loan agreements and facility letters
• The ability to demonstrate this gearing • Using market knowledge to assess • Confirming that financing documents
affect numerically whether the level of senior debt reflect the commercial terms agreed
• A knowledge of how mezzanine mathematically capable of being and how the controls of the provider
and equity finance might be priced sustained is acceptable to the debt may impact on the borrower’s
providers management flexibility
• A broad understanding of the
financing process • Sourcing and collating information • Illustrating multi-tiered financing
which is necessary to support a arrangements numerically and using
• Use of financial information such
presentation to secure a financing this to assess the true cost of finance
as audited report and accounts.
• Sourcing and understanding the role at each level
of valuation advice • Advising accordingly on the above.
• Analysing and illustrating the impact
of financial covenants
29
Property management
Reference no. T070

This competency covers all aspects of day to day functions associated with
property management. It includes issues relating to works, health and safety,
landlord and tenant relationships, and service charges. In general, any matter
associated with the smooth running of a property.

Demonstrate knowledge and Apply the principles of property Provide evidence of reasoned advice
understanding of property management to provide solutions including the preparation and
management and the relationship to issues affecting both owners presentation of reports in relation to
between owner and occupier. and occupiers of real estate. property management.
• Understand the key factors determining • Managing property from both a landlord • Participating in all aspects of property
the landlord and tenant relationship in and tenant perspective, and understand management including works,
relation to the running of a property the key factors from each viewpoint emergency reactive maintenance,
• Understand key lease terms and their • Understanding legal requirements planned programmes, budgets etc
implications to property management associated with multi let property • Applying your negotiation,
• Understand how disputes and and/or managed property communication, and business skills in
problematical issues can be resolved, • Understanding property management relation to contentious issues with both
and be able to prioritise key tasks. accounting principles from the landlord landlord and tenant
and tenant perspective, and also the • Participating in issues such as
requirements of law and RICS applications for licence to assign or for
• Understanding courses of action in works, together with the associated
relation to breaches of lease by landlord legal frameworks.
and tenant.
30
Property management accounting
Reference no. T071

This competency is about all accounting aspects of Property Management
whether this be in the Commercial/Residential or Agricultural fields. The
candidate would be expected to have knowledge of all the statutory requirements
and be able to report to Clients as well as Residents associations regarding the
accounting results.

Demonstrate knowledge and Undertake day-to-day management Prepare final accounts and tax returns,
understanding of any legal or and recording of property and report (applying statutory and
regulatory principles (including management accounts and service regulatory standards) on property
taxation implications where charge accounts. management accounts and service
appropriate) that apply to property charge accounts.
management accounts and service
charge accounts.
• Understand Lease Terms • Creating Service Charge accounts • Producing Trial Balance for Balance
and Accounting implications • Service Charge Budget implementation Sheet Service Charge reporting
• Landlord and Tenant Act requirements • Reporting both Rent and Service • Producing Draft Tax computations in
• RICS Codes of practice and accounting Charge figures to Clients and respect of UK and Overseas Clients for
regulations. Residents Associations Auditors/Accountants
• Create Clients accounting systems/ • Preparing Clients VAT returns.

templates for Rent and Service
Charge collection.
31
Property records/information systems
Reference no. T072

This competency deals with the use management and development of property
information systems (including automated valuation models) and systems for
registering land and property rights. Property records and information systems are
increasingly sophisticated and are used widely in the public sector (eg for tax
assessment or property/land title registration) and the private sector (eg for
residential valuation, property management).

Demonstrate knowledge and Demonstrate your ability to apply Demonstrate your ability to extract
understanding of the factors required knowledge to analyse data and data from property records/
for property records/information assemble it for use in a database. information systems in order to
systems, including the sourcing use and present data for specific
and collation of data. purposes.
• Use and limitations of property • Using a property information system • Retrieving data from existing records,
information tools within your area to extract information for a range of manual or electronic
of practice (such as AVMs) different scenarios • Advising on security of data
• Electronic records • Writing clear and factual reports on • Writing reports on unusual or
• Legal documentation (including leases) information extracted from a property challenging cases
record or information system
• Difference between deeds/ • Preparing clear and factual reports
registered titles • Interpreting plan/map data and letters to clients
• Supporting maps/plans • Interpreting legal language in relation • Assisting in the development of a
to property records property information system
• Index maps.
• Ensuring security of data. (such as an AVM).
32
Purchase and sale
Reference no. T073

This competency relates to the purchase and sale of property on a freehold and
leasehold basis. Sales and purchases of investment property are therefore
included. Candidates should have regard to all property markets and alternative
uses and values. Similarly, the candidate should have awareness of other forms
of disposal.

Demonstrate knowledge and Apply your knowledge and skills to the Provide evidence of reasoned advice
understanding of how various types of purchase or sale of all types of and report to clients on all types of
property are sold (or a similar interest property and demonstrate practical purchase or sale transactions.
is acquired for a client) and the experience of the associated decision- Demonstrate the ability to see
different types of interests that may be making process, marketing, reporting complex cases through from start to
placed on the market. Demonstrate an and completion of the transaction. finish with appropriate assistance.
understanding of the economics of the Demonstrate knowledge and Be able to provide the client with an
market for such interests, and the understanding of other forms of holistic view of the entire transactional
appropriate legal frameworks. property transaction, and be aware of market, and advise him/her clearly
the reasons supporting the decision to and appropriately, not only on the
proceed along the chosen purchase or sale or disposal market but also on
sale route. other areas.
• Awareness of the different types of • Selling or purchasing property • Participating in complex or difficult
interests that can be sold or purchased, • Decision making and recommending cases, and explaining the factors
and the factors affecting value courses of action including valuation which made the case deviate from
• Knowledge of factors governing the advice market norm
methods of disposal/acquisition and • Undertaking transactions from initial • Advising on why decisions were made
the advantages/disadvantages of each inspections through to completion of in relation to chosen route of sale or
• Understanding of the legal processes documentation purchase; especially in relation to
needed to complete a sale/purchase strategic advice given to your client
• Negotiating with both prospective
on property
• Demonstrate what factors affect parties and where appropriate
value for property in the purchase/ interested third parties • Experience of externalities to the
sales market. market which may affect sale/
• Understanding of the legal frameworks
purchase
governing sale/purchase and the
implications and penalties. • Reporting to clients with
recommendations
• Applying negotiation and business skills
to handle difficult situations effectively.
33
Strategic real estate consultancy
Reference no. T079

This competency is about the provision of strategic consultancy advice to clients
on real estate issues influencing the business.

Demonstrate knowledge and Apply your knowledge and Provide evidence of reasoned oral and
understanding of the business context understanding of the business written advice on the principles and
of real estate, and an appreciation of context of real estate in a corporate application of real estate knowledge.
the role of the real estate professional or other context.
as a strategic adviser.
• Organisational structures, values • Researching organisational background • Strategic advice and recommendations
and objectives • Preparing relevant data to clients
• Business performance • Analysing data • Presentations to clients
• The role and importance of real estate • Using different styles of consultancy • Meetings with clients
in organisational/business performance intervention for different clients needs • Presenting data to support
• The role of real estate in business • Using your knowledge of real estate to recommendations.
strategies find strategic solutions to meet clients
• Strategic uses of real estate requirements.
• The role of the real estate professional
as a strategic business adviser
• Styles of consultancy intervention.
Note: Candidates are advised against choosing Strategic real estate

consultancy and Corporate real estate management together as
optional competencies,
34
Sustainability
Reference no. M009

The Performance of commercial property as an occupational or investment asset
is increasingly affected by sustainability considerations. This competency requires
a broad appreciation of the core elements of sustainability – economic, social and
environmental. It covers knowledge of the emerging issues in a broad context,
and an understanding of the arguments surrounding the effect of sustainability on
property performance, worth and value. It also includes the tools and techniques
being developed to embed the concept into professional property practices such
as property agency, investment, management and valuation practice.

Demonstrate knowledge and Provide evidence of practical Provide evidence of reasoned advice
understanding of why and how application of sustainability given to clients and others on the
sustainability seeks to balance appropriate to your area of practice, policy, law and best practice of
economic, environmental and social and of awareness of the sustainability, in your area of practice.
objectives at global, national and local circumstances in which specialist
levels, in the context of land, property advice is necessary.
and the built environment.
• Historical background/context – • Using and interpreting reports produced • Providing reasoned advice/qualitative
Brundtland, Earth Summits, Climate with the main sustainablity related tools comment to clients or other
Change – such as BREEAM, Green Guide to stakeholders on the potential
• Knowledge of the legal and policy Specification etc financial impact of sustainability on
framework – UK legislation and EU • Understanding the aims of triple bottom a property/project
directives line (TBL) analysis and be able to • Providing reasoned comment to clients
• An understanding as to how explain how the technique may be or other stakeholders on the impact of
sustainability relates to property – adapted to various scenarios within sustainability legislation/policy.
(energy efficiency, accessibility, flexibility your own area of professional property
etc ), including an appreciation of the practice. NB: Sustainability advice may be given
key threats to sustainable property use in the course of providing conventional
and performance property advice to clients or other
stakeholders (such as valuation,
• Understanding how property occupiers
investment or property/asset
and investors are affected by economic,
management advice).
social and environmental sustainability
concerns
• Demonstrate knowledge of current
research being undertaken on
Sustainability.
35
Valuation
Reference no. T083

This competency is about the preparation and provision of properly researched
valuation advice, made in accordance with the appropriate valuation standards, to
enable clients to make informed decisions regarding real estate.

Demonstrate knowledge and Demonstrate practical competence in Demonstrate practical competence in
understanding of the purposes for undertaking both capital and rental undertaking valuations, either of a
which valuations are undertaken; the valuations and detailed involvement range of property types or for a range
relevant valuation methods and with the preparation and presentation of purposes. Demonstrate the
techniques; the appropriate standards of client reports. Demonstrate your application of a wide range of
and guidance; and any relevant ability to use valuation methods and valuation methods and techniques.
statutory or mandatory requirements techniques appropriate to your area of Be responsible for the preparation of
for valuation work. practice. Show how the relevant formal valuation reports under proper
valuation standards and guidance supervision and provide reasoned
have been applied to your valuation advice. Demonstrate a thorough
experience. knowledge of the appropriate
valuation standards and guidance
and how they are applied in practice.
• A general appreciation of the main • Understanding client requirements • The properties considered may relate to
drivers that have an impact on value and the preparation of Terms a particular area of practice but the
• The principles and application of of Engagement candidate’s experience should cover a
the RICS Appraisal and Valuation • Inspection and information gathering range of purposes (in a properly
Standards or other relevant relevant to the valuation work being supervised manner), such as loan
valuation standards undertaken security, financial statements, internal
management, purchase or sale reports,
• The principles of Professional • Analysis and interpretation of
tax, stock exchange and litigation, but
Indemnity Insurance comparable evidence
not necessarily all of these
• The underlying principles of property • Application of a range of valuation
• The types of property should ideally be
law, planning and other relevant methods and techniques
varied both in terms of physical
regulations or controls and their • Preparing valuation reports and advice attributes, usage and also interest (ie
impact on property values to meet client needs and comply with freehold and leasehold)
• The different purposes for which the RICS Appraisal and Valuation
• Knowledge of standards in other areas
valuations may be required Standards and other relevant standards
of business, eg accounting standards
• The principles of the various • Be able to demonstrate competence to
• The candidate’s knowledge of the main
methodologies needed to provide both conduct a valuation task from beginning
drivers which impact on property value
capital and rental valuation advice to end with appropriate supervision.
should include an understanding of the
• An understanding of the importance wider influences such as government
of independence and objectivity. To achieve Level 2 candidates will not
policy, the economic climate,
necessarily be carrying out valuations as
technological change and other
part of their full time day to day activities.
investment medium
• The candidate should demonstrate
knowledge as to how their valuation
advice inter-relates with their client’s
other professional advisers
• Have an understanding of the different
levels of service that may be required,
eg desk top advice versus a full
36 valuation.
www.rics.org
RICS (Royal Institution of Chartered Surveyors) is the largest

organisation for professionals in property, land, construction and
related environmental issues worldwide. We promote best practice,
regulation and consumer protection to business and the public.
With 120 000 members, RICS is the leading source of property
related knowledge, providing independent, impartial advice to
governments and global organisations.
October 2006/RICS Product Development/36498/Sterling
The Royal Institution

of Chartered Surveyors
12 Great George Street
Parliament Square
London SW1P 3AD
United Kingdom
T +44 (0)870 333 1600

F +44 (0)20 7334 3811
[email protected]
www.rics.org

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APC Pathway Guide For Valuation

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Your pathway to qualifying in

This guide is produced by the RICS Valuation Faculty

Published in November 2006 to support the 2006 Assessment of

About the APC and ATC How to use this guide

RICS qualification pathways in this sector:

Valuation APC Valuation ATC

Chartered alternative designations

All candidates qualifying under the Valuation APC

• Landlord and tenant (including rent reviews

Plus one competency to Level 3 or two competencies

Plus one competency to Level 2 from the full list

The guidance has been drawn up by experienced practitioners and

The information provided is designed to be helpful but informal

The competencies are arranged in alphabetical order.

The full list of RICS competencies and pathway requirements can

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Examples of knowledge comprised

• Early warning systems • Independent expert determination

• Partnering techniques • Arbitration; med-arb

• Clear and robust client briefings • Litigation

• Theories of negotiation and the • The possible roles of a surveyor as an

Examples of likely knowledge, skills and experience at each level

Examples of activities and knowledge Examples of activities and knowledge

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Examples of likely knowledge, skills and experience at each level

• promotion of corporate image; • Using and understanding the various

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3

Description of competency in context of this sector

Examples of likely knowledge, skills and experience at each level

Level 1 Level 2 Level 3