Code of Ethics

21 July 2004

New Zealand Property Institute Code of Ethics and Rules of Conduct

New Zealand Institute of Valuers Code of Ethics (as provided in Rule 133)


For New Zealand Property Institute Members they must observe at all time this Code of Ethics and Rules of Conduct as set out under Rule 11.9 of the Constitution. Approved by members at the Annual General Meeting of the Institute held on 21 July 2004.

For New Zealand Institute of Valuers Members every person referred to in Rule 8 of the Rules of the New Zealand Institute of Valuers is bound by this Code. A breach of any of the provisions of this Code may render the person concerned liable to disciplinary action. Approved by members at the Annual General Meeting of the Institute held on 21 July 2004.  The 1996 Code of Ethics for NZIV is still in force, and approved by Minister in Charge of Land Information New Zealand in accordance with Section 16(3) of the Valuer’s Act 1948, on 9 May 1996.

The Code of Ethics comprises two parts:-

A:    Public Statement of the principles, values and behaviour expected of Members of the Institute:


Members shall, at all times, observe the requirements of the Code of Ethics and Rules of Conduct, and (where applicable) the Constitution, Bylaws or Rules of the Institute, the Practice Standards of the Institute and compliance with Continuing Professional Development (CPD) requirements.


It is the duty of Members to render service to their clients and employers with fidelity, to practise their vocation with integrity, honour and professionalism, to act impartially and objectively when providing independent advice, and to respect the public interest.


A Member shall not accept instructions in a matter where, based on a reasonable objective standard, the Member does not have the competence, skill and/or experience to complete the assignment to the acceptable professional standard in accordance with this Code of Ethics, and the Practice Standards of the Institute, unless the assignment is completed in conjunction with a qualified and suitably experienced practitioner.


Members shall consider and identify any actual or potential conflict of interest when carrying out their professional duties, and shall not act in a matter where such conflict or potential conflict has been identified by the Member or any other interested party unless all interested parties have been made aware of the situation and have consented to the Member continuing in the task.


Members must observe the requirements of confidentiality in their dealings with clients and the public.


Members shall at all times conduct business in a manner befitting their profession in accordance with reasonable public expectations of professional persons.

B:    Rules of Conduct

The following clauses are an expansion of the preceding public statement.

1.0   Professional and Personal Conduct


Members shall conduct their professional duties and activities in a manner that reflects credit upon themselves and their profession. High standards of competence, honesty, loyalty, integrity and fairness shall be observed at all times.


Members are bound by and agree to abide by the Code of Ethics and Rules of Conduct, and (where applicable) the Constitution, Bylaws or Rules of the Institute, Practice Standards and compliance with Continuing Professional Development (CPD) as adopted by the Institute.


Members shall not accept an assignment that is contingent upon or influenced by any condition or requirement for predetermined results where the exercise of objective judgement is required. Members shall maintain the strictest independence and impartiality in undertaking their professional duties. To this end, no Member shall:

(a)  adopt the role of advocate in a case where their duty is to exercise independence and impartiality;

(b)  allow the performance of their professional duties to be improperly influenced by the needs or preferences of a client or other party;

(c)   rely upon critical information supplied by a client without appropriate qualification or confirmation from other sources;

(d)   act in any other way inconsistent with the duties of independence and impartiality.

1.4 Members in providing a valuation of real property or an opinion on a real estate matter must give a considered and reasoned answer. A member's counsel constitutes professional advice which must be prepared to the highest standards of competency and rendered only after having properly ascertained and weighed the facts.
1.5 Members shall not claim or present professional qualifications which may be subject to erroneous interpretations or which they do not possess.
1.6 Members shall be fair and honest in any public criticism of the Institute or fellow Members.

Members shall not maliciously or carelessly do anything to injure, directly or indirectly, the reputation, prospects or business of other Members.


Instructions, Inspections, and Reports


Instructions accepted by Members should preferably be in writing and/or be confirmed in writing by the Member in sufficient detail to avoid any misinterpretation. Any variations or extensions of the original instructions should similarly be confirmed in writing.


Members shall not accept instructions beyond their competence; however, assignments may be undertaken in conjunction with a person having the required competence after disclosure to the client.


A valuation shall not be performed by a Member without an inspection of the property concerned. The inspection shall in all cases be sufficiently comprehensive to enable the Member to complete the valuation in accordance with the Practice Standards of the Institute. Where, however, a client’s instructions expressly exclude the requirements for a comprehensive inspection and these instructions are accepted by the member then the limitations to the valuation must be clearly acknowledged by the member and client.


Members shall not reproduce any work or reference prepared and presented by any other Member, person, body or authority which creates the impression that it is their own.


Members shall include in reports reference to any relevant assumptions, conditions, requirements and limitations arising from their instructions or enquires, or imposed from any other source.


Members shall retain for as long as legally required, adequate file notes which substantiate their opinions by way of inquiry, objective comparison, deduction and calculation.


Where information critical to the assignment being undertaken is relied upon by a Member, the source of that information should either be disclosed in the relevant report or contained in the working papers supporting the relevant report, and be appropriately attributed in either case, unless the information is protected by confidentiality, or the Member is prevented by privacy or other like laws from disclosing or referring to the source.


Members shall accept full responsibility for the content of their reports. Where the report relies on professional opinion from outside experts, the degree of reliance must be indicated.


Co-signatories to reports shall indicate the extent of their involvement or the capacity in which they are signing.


Fees and Payments


Fees may be negotiated with a client on any agreed basis that does not:

(a)  infringe the Code of Ethics or any Statute or Regulation;

(b)  depend on the outcome of any valuation or other independent objective advice.


No Member shall pay by commission, allowance or other benefit to any person who may introduce clients to them.


Members shall not accept payment or favours from another party, which may affect their relationship with a client.


Use of Member’s Name and Designation


A Member should avoid the use of the Member’s name by, or personal association with, any enterprise or activity which may bring the Member, the Institute, or the profession into disrepute.


Where applicable

(a)  The initials FNZIV and ANZIV denoting Members’ status, and statutory designations “Registered Valuer” and “Public Valuer”, as
       appropriate, are personal to individual Members and shall be used only following or immediately in connection with the Member’s

(b)  A Member’s name and signature must appear on every valuation or report undertaken, together with the approved initials indicating
      their status and where appropriate the designation of “Public Valuer”, “Registered Valuer” or such other designation as the Institute
      may from time to time approve.


For Members of the New Zealand Property Institute, the use of post nominals indicating the status of Members and “Registered” designations may only be used as permitted by the New Zealand Property Institute By-laws.


Conflict of Interest


Members shall not accept or carry out any instruction where there may be, or may reasonably be construed to be a conflict of interest. Members shall withdraw from any instruction if a conflict of interest arises or becomes known after an instruction has been accepted. An exception to this clause is where the conflict of interest is disclosed to and accepted by the party or parties.


Where a conflict of interest arises or could arise a Member shall promptly disclose the relevant facts to the client and where appropriate:

(a)  advise the client to obtain independent professional advice;

(b)  inform the client that neither the Member nor the firm can act or continue to act for the client unless the appointment or instruction is
      confirmed in writing acknowledging the actual or potential conflict of interest; and

(c)  disclose the matter in any relevant document or report.


Where a conflict arises or could arise between the interests of different clients of a Member or a firm or company of which a Member is a partner director or employee, a Member shall promptly disclose the relevant facts to the instructing client and where appropriate:

(a)  advise the client to obtain independent professional advice;

(b)  inform the client that neither the Member nor the firm can act or continue to act for the client unless the appointment or instruction is
      confirmed in writing acknowledging the actual or potential conflict of interest; and

(c)  disclose the matter in any relevant document or report.


Client Relationships


Members shall not disclose to any other person or party any confidential information provided directly or indirectly by a client or to a client without the permission of the client except where there is a legal requirement for disclosure or the information is of public or common knowledge.


Members shall conduct themselves in a manner and demeanour which is neither detrimental to their profession nor likely to lessen the confidence of clients or the public in the Institute or the profession.


Members shall act promptly and efficiently in the servicing of their client’s instructions.


Members shall, in the case of unavoidable delay, communicate to the client the progress being made in respect of the instructions issued to the Member.


Consistent with the duty of a Member to preserve the confidentiality of client’s affairs, a Member shall not accept a retainer to act for another person in any action or proceedings against, or in conflict with, the interests of the client.




Any advertising by a Member must not reflect adversely on the professional integrity of the Institute or its Members.


Members shall not include exaggerated or false claims in any advertisement.


Reference to the Institute


No Member shall:

(a)  purport to represent the views of the Institute unless expressly authorised to do so;

(b)  publicise the Institute or its Members generally in terminology which has not either already appeared in an advertisement published
      by the Institute or received the approval of the Institute.


Inducements for the Introduction of Clients


No Members shall invite instructions for work except in accordance with the Code of Ethics


No Member shall directly or indirectly exert undue pressure or influence on any persons, whether by the offer or provision of any payment, gift or favour of otherwise, for the purpose of securing instructions for work, or accept instructions from any person where there is reason to believe that undue pressure or influence may have been exerted by a third party in expectation of receiving a reward for the introduction.




Members shall fully co-operate with any request for information or directive from the Institute where a complaint has been lodged or where there is deemed to be a prima facie breach of the Code of Ethics.


A Member who is convicted of any offence involving dishonesty is in breach of the Code of Ethics.


A Member (NZIV Members) shall at all times faithfully observe and perform all the Member’s obligations under the Valuers Act 1948, with its Amendments and the Regulations thereunder, and the Rules of the Institute.