Ethics and professional judgment form the foundation of the property valuation profession in Malaysia. For candidates preparing for the Test of Professional Competence (TPC), technical valuation knowledge alone is not sufficient. The ability to apply sound professional judgment and uphold ethical standards is a critical expectation for those seeking registration as Registered Valuers under the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).

This article outlines the key ethical principles and professional judgment considerations that TPC candidates must understand, within the context of real valuation practice in Malaysia.

Why Ethics and Professional Judgment Matter in Valuation

Property valuers play a significant role in Malaysia’s property and financial ecosystem. Valuation opinions influence:

• Property transactions and negotiations
• Bank lending and financing decisions
• Investment analysis
• Statutory and regulatory matters

Because valuation outcomes can have substantial financial and legal implications, valuers are expected to act with integrity, independence, and accountability. The TPC assesses whether candidates are ready to carry this responsibility as independent professionals.

Ethics in valuation is not limited to compliance with written rules; it involves making balanced and defensible decisions, especially in situations where pressures, conflicts, or uncertainties arise.

Independence and Objectivity

One of the most fundamental ethical principles in property valuation is independence.

TPC candidates must understand that a valuer’s duty is to provide an objective and unbiased opinion of value, regardless of:

• Client expectations
• Transaction outcomes
• Commercial pressures

In practice, this means resisting influence that may compromise professional judgment. Candidates should be prepared to explain how they maintain independence in situations where clients may have strong preferences for a particular valuation outcome.

Managing Conflicts of Interest

Conflicts of interest are a common ethical challenge in valuation practice.

TPC candidates should understand:

• What constitutes a conflict of interest
• The importance of identifying potential conflicts early
• The need for proper disclosure where applicable
• Situations where declining or withdrawing from an assignment may be necessary

Professional judgment is required to assess whether a conflict can be managed appropriately or whether it compromises independence entirely. Ethical conduct in this area is closely observed during professional assessments.

Confidentiality and Professional Responsibility

Valuers routinely handle sensitive client information, including financial data, transaction details, and strategic plans.

TPC candidates must demonstrate awareness of:

• The obligation to maintain confidentiality
• Proper handling and storage of valuation information
• Situations where disclosure may be required by law or regulation

Professional responsibility extends beyond confidentiality to include accuracy, diligence, and accountability for valuation opinions issued.

Applying Professional Judgment in Valuation Decisions

Professional judgment is central to valuation practice. It involves making informed decisions where:

• Market evidence may be limited or imperfect
• Properties have unique characteristics
• Valuation assumptions must be made

TPC candidates should understand that valuation is not a mechanical process. Two valuers may reasonably arrive at different conclusions based on professional judgment, provided the reasoning is logical, transparent, and supported by evidence.

During assessment, candidates may be asked to explain how they:

• Select appropriate valuation approaches
• Assess the reliability of market data
• Justify assumptions and adjustments

Clear explanation of reasoning is often more important than the final numerical value.

Ethical Judgment in Real-World Scenarios

Ethical issues in valuation often arise in practical situations, such as:

• Pressure to meet a target value for financing purposes
• Requests to omit unfavourable information
• Assignments involving related parties
• Limited market data requiring greater judgment

TPC candidates are expected to demonstrate how they would respond to such scenarios professionally. Panels typically look for sound reasoning, transparency, and integrity, rather than rigid rule-based answers.

Professional Conduct During the TPC Process

Ethical expectations apply not only to valuation work, but also to conduct during the TPC process itself.

Candidates are expected to:

• Provide accurate and truthful information
• Submit genuine work reflecting personal experience
• Communicate honestly during interviews
• Acknowledge limitations where appropriate

Professional maturity and honesty are regarded as key indicators of readiness for registration.

Conclusion

Ethics and professional judgment are at the heart of property valuation practice in Malaysia. For TPC candidates, understanding these principles is essential—not only to succeed in the assessment, but to practise responsibly as a Registered Valuer.

By demonstrating independence, integrity, and sound judgment in real-world valuation scenarios, candidates show that they are ready to uphold the standards of the profession and contribute positively to Malaysia’s property industry.