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Sunday, 9 June 2024

HISTORY OF REAL ESTATE MANAGEMENT PRACTICE IN NIGERIA



The term real estate doesn’t mean land and landed properties alone, it also connotes everything that is above in the sky, below the ground and on the earth’s surface. 

The history of real estate management practice in Nigeria can be traced back to medieval period, long before advent of the British colonialization era. This is so because our forefathers were estate managers who took care of their hamlets, land and farm holdings for the overall benefit of their wellbeing, wives and children who later inherit these estates. 

Prior to real estate management becoming a profession in Nigeria, the real estate management has been generally practiced in one way or another until it became a recognized discipline that is studied in various tertiary institutions in Nigeria.

The write-up below is an excerpt from a book written by Bello, I.K, and Olajide, S.E (2003), titled “A Handbook of Estate Management (Principles and Practice)”.

The excerpt titled “Evolution of The Profession In Nigeria”, talked about the historical origin of estate management discipline from the ancient times to the industrialization period in Europe. The motive for the establishment of the first professional association in UK (Land Surveyor Club) (1843), which was later renamed the Surveyor Institution (1868) and Royal Institution of Chartered Surveyors (RICS) (1946) . 

The excerpt also gave account on how the real estate management profession was brought into Nigeria by a Briton named F.G Gleave, a chartered surveyor who established the first real estate surveying and valuation firm in the country.

EVOLUTION OF THE PROFESSION IN NIGERIA: Excerpt from “A Handbook of Estate Management (Principles and Practice)” By Bello, I.K, and Olajide, S.E (2003)

The origin of Estate Management profession dates back to the beginning of time. At creation, God established the Garden of Eden and put Adam and Eve in charge of it (Gen: 2;15). Thus, Adam and Eve were the first Estate Managers since Eden was the first estate known to man.

However, the evolution of estate management as a distinct and recognized profession is a Middle Ages development rooted to the feudal societies of Europe. The lords of the Manor of Medieval Europe owned exclusive and sometimes far-flung land holdings. Usually, only a small portion of each of these estates was held and exploited by the direct land owners. The rest, which constituted the bulk of these holdings, was given out to tenants and serfs to use, either for a fee or under some Feudal arrangements. On the account of the size and disparate locations of these holdings, each land owners appointed stewards or agents to oversee the estates for them.

At the beginning, what was required of these stewards was that they were men of honour who could be trusted in fiduciary relationship. This explains the sobriquet, “Noble” which is attached to the profession of Estate Surveying and Valuation.

As time went on and the business of managing these estates rose in sophistication, the requirements for the job increased. 

First, it became necessary that the practitioners should also be lettered in order to keep pace with the demands of ever increasing record keeping. Next, a knowledge of book keeping was required to accommodate the accounting requirement involved.

Later on, the ability to tackle various proprietary and commercial relations involved in these estates introduced surveying, law, commerce, economics and statistics into the profession.

The modern foundations of what is now known variously as estate management, estate surveying and valuation, or land economics was laid in the mid-18th century. 

In the wake of the Industrial Revolution, a major re-organisation took place in most of Europe. In the UK especially, this resulted in a massive population shift from rural to urban areas and a subsequent redistribution of land rights and property interest.

At the dawn of the 19th century, the practitioners of the various skills comprising estate management banded themselves into trade groups or guilds. Later on, there were definite moves to form a distinct professional group to embrace the various classifications. The most serious moves began in London on June 27, 1843 with the formation of the Land Surveyor Club.

These were in fits and starts until the establishment of the Surveyor Institution on March 23 1868, which metamorphosed into the Royal Institution of Chartered Surveyors, RICS, in 1946.

The profession of estate surveying and valuation followed in the wake of colonialism in Nigeria, with F.G Gleave, an expatriate, being the first known chartered surveyors to set up a general practice or estate surveying and valuation firm in the country about 1955. Hitherto, there were few chartered surveyors in private and public employment in Nigeria.

ABOUT ME
I am  a Higher National Diploma (HND) holder of Estate Management from the prestigious Yaba College of Technology, Yaba, Lagos state, Nigeria. I  also possess a Professional Practice Certificate in Estate Surveying and Valuation from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

I am also  the principal consultant of Aakient Consultants Ltd, a highly progressive and consolidated property and construction project management company, which is committed to providing the highest level of professionalism and services in meeting clients’ real estate needs.

Feel free to contact me  through; aakientconsultants@gmail.com

Thursday, 9 October 2014

17 CONTENTS OF A REAL PROPERTY VALUATION REPORT




In summation, the term real estate refers to the totality of all the things that make up the whole world – the air, sea and ocean, land and buildings, sky, forests, rocks and mountains, infrastructural facilities, plants, machineries, equipment, tools, furniture and fixtures, mineral resources beneath and above the earth surface, etc.–including mankind (Gen 1 vs. 26-28).

Property Valuation in real estate practice terminology refers to the process or exercise of estimating or assessing the monetary worth or value of a particular interest in land and/or landed property for a specific purpose, in a particular location and within a stipulated time frame.

There are so many reasons and purposes why a real property valuation exercise is embarked upon amongst which are;

·         Sale or Purchase
·         Probate
·         Auction
·         Compensation
·         Rating and/or Taxation
·         Balance sheet
·         Insurance
·         Mortgage
·         Going concern
·         Loan advancement

Before a real estate valuation exercise can be undertaken, the professional Estate Surveyor and Valuer appointed for the exercise owes it a duty to establish the reason or purpose for which the property valuation exercise is needed as it is by this he/she will be able to apply the required basis of value and necessary valuation methods in arriving at his/her opinion of value.

The conventional five (5) different valuation methods that can be adopted by a professional Estate Surveyor and Valuer when carrying out a real property valuation report exercise are;

·         Comparative/Comparison Method
·         Residual Method
·         Cost/Contractor’s Method
·         Investment Method
·         Profits/Accounts Method

One or more of these five (5) conventional valuationmethods can be adopted by the Estate Surveyor and Valuerwho is undertaking a property valuation report exercise in arriving at the best opinion of or assessed value of the property based on his/her discretion, experience and skills.

CONTENTS OF A VALUATION REPORT

A real estate valuation report or certificate is a professional and legal document which explains the rigorous and analytical processes undertaken in carrying out a property valuation exercise and which presents well detailed and meaning information used in the analysis that led to the opinion of value been arrived at by the professional Estate Surveyor and Valuer.

The following items/elements must be found in a real estate valuation exercise report before it can tenable as well as regarded as a comprehensive professional document written by a competent and professional Estate Surveyor and Valuer who is a member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and alsoduly registered by the Estate Surveyors and Valuers Registration Board of Nigerian (ESVARBON) to carry out professional real estate surveying and valuation practice in Nigeria.

1.      Cover letter/Information
2.      Location of real estate to be valued
3.      Neighbourhood Characteristics
4.      Site Description
5.      Construction Details of Buildings
6.      Accommodation Details
7.      Utilities and services provided on the real property been valued
8.      General condition of the valued real property
9.      Tenure
10.  Date of Inspection/Valuation
11.  Purpose of Valuation
12.  Assumptions
13.  Basis of Valuation
14.  Method of Valuation
15.  Opinion of Value
16.  Caveat/Limiting Conditions
17.  Official stampand signature of the professional Estate Surveyor and Valuer

The elements/items identified above are what make up a detailed and comprehensive real propertyvaluation report.

A professional real estate/property valuation report constitutes the end product of a rigorous process of collecting, collating, calculation and analysis of data by the professional Estate Surveyor and Valuer in arriving at his/his opinion of value/worth of the property been inspected or valued and whose outcome is very important to the client.

To know the monetary worth or value of any class of properties for whatever purpose(s), it is mandatory and compulsory to always embark on the services of the Estate Surveyor and Valuer as he/she is the professional that have been trained in the art and science of real estate management and valuation as well as duly registered by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) via the Nigerian Institution of Estate Surveyors and Valuers (NIESV) to carry out estate surveying and valuation practice in Nigeria.

This article is very important for all those that require the services of professional Estate Surveyors and Valuers, as well as those preparing or sitting for the Nigerian Institution of Estate Surveyors and Valuers (NIESV) Professional Qualifying Examinations (PQE 1-3) and the Professional Practice Examination (PPE) Certificate.

ABOUT THE AUTHOR

Adeniyi Akinjiyan has a Higher National Diploma (HND) in Estate Management from the prestigious Yaba College of Technology, Yaba, Lagos state, Nigeria. He also possesses a Professional Practice Certificate in Estate Surveying and Valuation from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

He is the principal consultant at Aakient Consultants Ltd, a highly progressive and consolidated property and construction project management company, which is committed to providing the highest level of professional services in meeting clients’ real estate needs.

Feel free to contact him at: aakientconsultants@gmail.com

Friday, 28 March 2014

NIESV'S QUALIFICATION PROCESS & REQUIREMENTS


Last week I got a message from a reader of articles from this blog site about the next step to take in qualifying as a registered Estate Surveyor and Valuer after taken the Professional Practice Examination (PPE) organized by the Examination Committee Board of the Nigerian Institution of Estate Surveyors and Valuers (NIESV). The reader has before now read one of my articles on this blog site titled “6 Steps On How To Become An Estate Surveyor and Valuer”

So today, I will write on the NIESV’s Qualification Process and Requirements which was the title of the message I sent as a response to the question the reader I mentioned above asked me. But before I go ahead, let me briefly explain the meaning of NIESV to you as well as what it stands for.

NIESV is an acronym for Nigerian Institution of Estate Surveyors and Valuers. It is a professional association statutorily enacted– Estate Surveyors and Valuers (Registration, etc) Act of 1975 – by the Federal Government of Nigeria to monitor and regulate Estate Surveying and Valuation professional practice and activities in Nigeria.

NIESV is the sole professional association recognized by the Federal Government of Nigeria to carry out professional expertise and services in diversified areas of Estate Management such as Property and Facility Management, Estate Agency, Valuation, Feasibility and Viability Appraisal, Property Rating and Taxation, Project Management, Property Development, etc.

NIESV is also a sister professional association to the Royal Institution of Chartered Surveyors (RICS), UK

Below is the question of the reader and my response as well.

Thank you very much for taking time out to reply my message. I am very grateful.

The question I want to ask you is simple. After writing the PPE exam, what will I require to commence my thesis and how long can that take averagely? Am asking because I heard I will be needing points gathered from attending seminars. I don’t know how true this is. Thanks for your anticipated assistance

Hello,

About you getting registered as a professional Estate Surveyor and Valuer, you will need to follow the steps which I will explain below:

1. If you are a Graduate of Estate Management from a recognized University which is accredited by the Examination Committee of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), then you will only need to write Professional Practice Examination (PPE)

2. After writing and passing the PPE examination, the next stage is for you to submit a Thesis/Project Proposal of three (3) topics of your choice which must be signed by your chosen Supervisor and sent to the Examination Committee of NIESV in Abuja for approval. Your chosen supervisor might be your former lecturer, professional member of NIESV or your current or past boss all of whom must be at least an Associate Member of NIESV.

3. The Examination Committee of NIESV will then approve a particular Thesis Topic which will be selected from the 3 thesis/project proposal topics you submitted initially or as otherwise deem appropriate by the examination committee.
You can write and complete your Professional Thesis anytime you want (ranging between 3months – 1 or 2 years) but depending on your Supervisor and/or how fast you are in writing the thesis.

4. While you are writing your Professional Thesis or even before you start writing, it is very mandatory and compulsory that you must at least attend 2 National Conferences, workshops, or Seminar organized by NIESV at the National level and 2 State Branches’ Seminars, workshops or conferences organized at the Regional level to accumulate the required Membership Grade Points needed to be elected and registered as a qualified Estate Surveyor and Valuer after completion of your professional thesis. 

The Membership Grade Points for National Conferences, workshops or Seminars varies between 3-7points, depending on the particular event you attended amongst them, while that of the State Branches' Seminar, Mandatory Continuing Professional Development (MCPD) programmes also carry some grade points as well.

Membership Grade Points accumulated during the period of your Graduate/Probationer Membership will go a long way in determining how fast you will be fully Registered and Elected into the Institution as a qualified Estate Surveyor and Valuer. This is so, as you will need to present all the Membership Grade Points Certificates received from the various Seminars, Conferences, MCPD programmes, Workshops that was organized by NIESV either at the National or Regional Level and which you attended.

So, what your friends told you about getting Membership Grade Points as a requirement for registering and becoming a qualified Estate Surveyor and Valuer is really true.

I hope you find this information helpful and useful.

Do feel free to contact me anytime you require further guidelines or assistance on the above subject matter
The explanation above is one of the major stipulated requirements for becoming a qualified Estate Surveyor and Valuer in Nigeria as been laid down by NIESV. 

So, whoever is considering becoming a qualified Estate Surveyor and Valuer in Nigeria must take cognizance of the points mentioned above as well as read my previous article titled “6 Steps On How To Become An Estate Surveyor and Valuer” for further guidance.

ABOUT THE AUTHOR

Adeniyi Akinjiyan is a Higher National Diploma (HND) holder of Estate Management from the prestigious Yaba College of Technology, Yaba, Lagos state, Nigeria. He possesses a Professional Practice Certificate in Estate Surveying and Valuation from the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

He is the principal consultant at Aakient Consultants Ltd, a highly progressive and consolidated property and construction project management company, which is committed to providing the highest level of professional services in meeting clients’ real estate needs.

Feel free to contact him at: aakientconsultants@gmail.com