A2.

UNIFORM STANDARDS OF PROFESSIONAL REALTY CONSULTING

PRACTICE (USPRCP)
PREAMBLE
professional real estate consultant
competent disinterested and unbiased àdvice,
professional guidance, and
sound judgment
meaningful to the client
not be misleading to the public.
Uniform Standards of Professional Real Estate Consulting
desirable standards of the real estate consulting profession.
competence and ethical standard
ETHICS PROVISION for integrity, objectivity, independent judgment, and ethical conduct.
COMPETENCY PROVISION - responsibility prior to acceptance of an engagement.
DEFINITIONS - clarity in interpretation.
DEPARTURE PROVISION - apply under certain limited conditions.
limited conditions - not include departure from the ETHICS PROVISION, COMPETENCY
PROVISION and DEFINITIONS section.
observe these Standards
high level of professional practice.
conformance with these Standards.

ETHICS PROVISION
observe the highest standards of professional ethics
ETHICS PROVISION
Conduct,
Management,
Confidentiality
Record Keeping.
Conduct.
legal,
ethical
moral.
disinterested third party
unbiased consulting service
impartiality,
objectivity, and
independence and
without accommodation of personal interests.
avoid any action that are misleading or fraudulent
misleading or fraudulent report.
1) clearly disclosed in the report –
rationale,
circumstances
limitation
influence on any observation and/or conclusions
2) not be misleading, or lead to a misleading conclusion;
3) required for Purposes of reasonable analysis, comparison, and development of logical
hypothesis;
4) required, compliance
internationally accepted operating procedures, or
statutory requirements.

Management.
compensation - contingent or favors the cause of the client, = unethical.
restriction of contingent compensation
professional basis, for a fee,
disinterested manner
impartiality.
Bribery
gratuity,
undisclosed commissions,
exchange for the procurement of consulting engagement is unethical.

Marketing,
promotion. and
advertising of consultancy services
false misleading,
tarnish the prestige of the consulting practice
unethical.

Confidentiality.
not disclose confidential factual data
from a client or
results of an engagement prepared for a client to anyone other than:
1) client or authorized by the client;
2) third parties authorized by due process of law; and
3) duly authorized professional peer reviewer.
Likewise, it is unethical = disclose confidential information of factual data.

Record Keeping.
prepare records
retain such record
at least five (5) years after preparation.

written records of an engagement - work file.

written records = retrievable prescribed records within the retention period .
work file - in existence prior to and contemporaneous with the issuance of a written report.
written summary of an oral report - added to the work file within a reasonable time after the
issuance of the oral report.
work file - made available when required by due process of law.

COMPETENCY PROVISION
properly identify the subject of consultation to be addressed
have the knowledge and experience
competently, or alternatively.

1. Disclose the lack of knowledge and/or experience before accepting the engagement; and
2. Take all the steps necessary or appropriate to complete the engagement competently; and
3. Describe the lack of knowledge and/or experience and the steps taken to complete the
engagement competently in the report.

if lacks the required knowledge or experience to complete the engagement competently,

obliged to notify the client and comply with the above items 2 and 3 of the provision.

DEPARTURE PROVISION
permits limited departures
the result will not confuse or mislead.
report any departures from specific guidelines.
required by the specific guidelines,

1. not so limited that the resulting report would tend to mislead or confuse the client

2. advised the client that the engagement calls for something less than, or different from, the
work required
clearly identify and explain the departure(s); and

3. The client has agreed - limited consulting service would be appropriate.

Departure from this binding requirement is not permitted.

The DEPARTURE PROVISION - apply to

PREAMBLE,
ETHICS PROVISION,
COMPETENCY PROVISION and
DEFINITIONS section of USPRCP

Standard No. 8 requires - report clearly identify and explain departure(s) from the specific
guidelines.

JURISDICTION EXCEPTION

If any part of these standards is contrary to the law or public policy of any jurisdiction, only that
part shall be avoided and of no force or effect in that jurisdiction.

The purpose of the JURISDICTIONAL EXCEPTION - providing a saving or severability clause

intended to preserve the balance of USPRCP if one or more of its parts are contrary to law or
public policy of a jurisdiction.
no violation of USPRCP as void and of no force and effect in a particular engagement – if
without identifying the part or parts disregarded and the legal authority justifying this action in
the consultant's report.

law =
Philippine Constitution,
legislative and court made laws,
national administrative rules, regulations, and local ordinances.
Public policy - well-defined mores and ethical standards of conduct,
Jurisdiction relates to the legal authority to legislate, apply, or interpret law of any form at the
national and local levels of government.

SUPPLEMENTAL STANDĄRDS
Uniform Standards - basis for all consulting practice.
Supplemental consulting standards - if being considered.

purpose of the SUPPLEMENTAL STANDARDS section - provide a reasonable means to

augment USPRCP.
Supplemental standards cannot diminish the purpose, intent, or content of the requirements of
USPRCP.

supplemental standard adds to but does not diminish the purposes, intent, or content of USPRCP.

THE UNIFORM STANDARDS OF PROFESSIONAL REALTY CONSULTING PRACTICE

(USPRCP)

GENERAL STANDARDS
personal qualifications
quality of his work.
satisfactory attainment of the standards

STANDARD NO.1. performed by a person/s having adequate technical training and proficiency
as consultant.

proficient,
necessary technical training and skills
formal education at the outset,
continual development and training thereafter, and
professional experience,
satisfactorily carry out his professional functions.

Proficiency - duly licensed to practice.

Licensed Real Estate Consultant.
STANDARD NO.2 - independence in mental attitude
Independence - intellectual honesty of the consultant.
maintain an unassailable impartiality.

STANDARD NO.3 - Due professional care

observing the standards of engagement and of reporting.
critical review, at every level of supervision, of the work done and judgment exercised by those
assisting in the consulting services.

TECHNICAL STANDARDS

adequate planning of the work,

proper supervision of staff,
study and evaluation of relevant documents,
obtainment of sufficient competent materials
basis for the consultant's report.

STANDARD NO.4 -
a. recognized method and techniques - to produce creditable results,
b. not commit a substantial error of omission or commission
c. Not render consulting service in a careless or negligent manner, such as a series of errors

responsive to the client’s objective,

perform primary research,
gather and present secondary and tertiary data
prepare a document written report.

address the concept of identifying the client’s objective.

impartial consulting service as a disinterested third party that responds to the client's stated
objective
or Performing a consulting service - intended to facilitate the achievement of the client's
objective.

disinterested third party in performing an unbiased consulting service

proper disclosure of the role being performed by the consultant.

Departure from binding requirement (a), (b) and (c) is not permitted.

ŚTANDARD NO.5- observe the following specific guidelines:

1.Clearty identify the client's objective;

2. Define the problem to be considered,
define the purpose and intended use of the consulting service,
consider the extent of the data collection process,
adequately identify the real estate and/or property under consideration (if any),
describe any special limiting conditions, and
identify the effective date of the consulting service.

3. Collect, verify and reconcile such data - to complete the consulting service;
a. appraisal -n included in the data collection.
4. Apply the appropriate consulting tools and techniques to the data collected:
5. Base all projections on reasonably clear and appropriate evidence.

appraisal is pertinent, -
review the ETHICS PROVISION
begin with a clear identification of the client's objective
precisely define the nature of the problem,
obtain a legal description, street address or other means of specifically or adequately identifying
the real estate or property.
assess the overall range of work for solving the problem,
methodologies to be used,
specific research data directly relevant for the consulting practice.

STANDARD NO.6- specific guidelines when conclusion or recommendation is required:

1.Identify alternative courses of action to achieve the client's objective and analyze their
implications:
2. identify both known and anticipated constraints to each alternative and measure their probable
impact;
3. Identify the resources actually or expected to be available to each alternative and measure their
probable impact;
4. identify the optimum course of action to achieve the client’s objective.
identify the optimum course of action in terms of the client's objective and
forecast the likelihood it can be achieved.
All conclusions - logically related to the resources available and the constraints that may
limit any of the alternatives.

REPORTING STANDARDS
The reporting standards - expression of an advice.
adherence to the generally accepted professional consulting practice standards.
STANDARD NO.7 - report - in accordance with the uniform standards of professional realty
consulting practice.
"uniform standards of professional realty consulting practice", refers to:
a. consulting standards and practices
b. methods of applying them.

- obligation to keep himself informed on uniform standards and practices;

- alert to changes in consulting practices

STANDARD NO.8 - communicate each analysis, opinion, and conclusion in a manner that is not
misleading.
Each written or oral consulting report must:
1. Clearly and accurately set forth the consulting service - not be misleading;
2. Contain sufficient information - report can be understood it properly,

3. Clearly and accurately disclose any extraordinary, assumption or limiting condition

-directly affects the consulting service and
- indicate its impact on the final conclusion or recommendation (if any).

written consulting report - comply with the following specific reporting guidelines:
1. Define the objective to be considered;
2. State the purpose of the consulting services;
3. Identify and describe the real estate and/or property under consideration (if any):
4. Set forth the effective date of the consulting service and the date of the report.
5.Describe the overall range of work and the extent of the data collection process;
6. Set forth all assumption and limiting conditions that affect the analyses opinions, and
conclusions;
7. Set forth the information considered, the consulting procedures followed, and the
reasoning that supports the analyses, opinions, and conclusions;
8. Set forth the consultant's final conclusions or recommendations (if any)
9. Set forth any additional information that may be appropriate, to show compliance with, or
clearly identify and explain permitted departures from, the requirements to Standards of
Engagement
10. Include a signed certification in accordance with below.

certification form:

I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF:

-The statements of fact contained in this report are true and correct.
-The reported analyses, opinions, and conclusions are limitedly only by the reported assumption
and limiting conditions, and is personal unbiased, professional analyses, opinions and
conclusions.
I have no (or the specified) present or prospective interest in the property (if any) that is the
subject of this report, and I have no (or the specified) personal interest or bias with respect to the
parties involved.
-My compensation is not contingent on any action or event resulting from the analyses, opinions,
or conclusions in or the use of this report.
-My analyses, opinions, and conclusions were developed and this report has been prepared in
conformity with the generally accepted Uniform Standards of professional Realty Consulting
Practice.
I have made no personal inspection of the property (if any) that is that is the subject of this
report. (If more than one person signs the report, this certification must clearly specify which
individuals did and which individuals did not make a personal inspection of the property.)

FEE STRUCTURE STANDARDS

just and equitable compensation

reasonable fees - commensurate with:

a. nature of services performed
b. responsibility assumed.

STANDARD NO.9 - observe the following fee structure:

1. Charge reasonable fees - commensurate with the nature of services performed and
responsibility assumed, and benefit.
2. Do not offer or render professional series under an arrangement whereby no fee will be
charged unless a specified finding or results of the service.
3. agree with the client in advance on the fee or fee basis
4. Do not pay a fee or commission to obtain a client or franchise a business practice; do not
accept a commission, fee or other valuable-consideration for recommending products or services.
5. Do not structure pricing or charging practices - that impairs independence or objectivity or
contributes to a conflict of interest with the client.

VOCABULARY
integral part of USPRCP - special meaning within the USPRCP.
purpose: show, similarities and differences of meaning and use –
a. to make USPRCP easier to understand
 b. to enhance common understanding in the consulting practice in general and
c. enrich the local literature and the learning process in the field of real estate service
practice.

ABSORPTION PERIOD

ABSORPTION RATE -

ACCESSIBILITY -

ACCRUAL SYSTEM

ACQUISITION APPRAISAL -
ACQUISITON COST -

ANCHOR TENANT -

ANNUITY -

APPRAISAL -

APPRAISAL PRACTICE -

AREA -

ASSEMBLAGE -

ASSESSED VALUATION -
ASSESŠMENT ROLL -

AVULSION -
BEARING -

BEFORE-AND-AFTER METHOD -

BEFORE-TAX CASH FLOW (BTCA)

BENEFITS

BLANKET MORTGAGE -

BLIGHTED AREA -.

BUNDLE OF RIGHTS -

BUSINESS RISK -

BUSINESS VALUE -

CAPITAL MARKET -

CAPITALIZATION -

CAPITALIZATION RATE -

CARRYBACK FINANCING -
CASH EQUIVALENT -

CASH FLOW -

CASH FLOW STATEMENT –

OHANGE IN PROPERTY VALUE -

CITY GROWTH -

COLLATERAL -

COLLATERALIZED MORTGAGE OBLIGATION (CMO) -

COMMON INTEREST -

COMPENSABLE DAMAGES

CONDEMNATION -
COMPETITVE ANALYSIS OR SURVEY OF COMPETITION -

COMPETITIVE MARKET SEGMENT -

CONDOMINIUM -

CONSTANT PESO PRO.JECTIONS -

CONSTANT PESO -

CONSTRUCTION COST -
CONSUMER RESEARCH -

CONTINGENCY ALLOWANCE -

CONVENTIONAL MORTGAGE -

CONVERSION -

COOPERATIVE OWNERSHIP -
COST-BENEFIT RATIO -

COST-BENEFIT ANALYSIS -

CREATIVE FINANCING -

CURRENT VALUE
DEBT-EQUITY RATIO -

DEBT FINANCING -

DEBT SERVICE -

DECENTRALIZATION

DEED OF TRUST -

DEED RESTRICTION -

DEFERRED MAINTENANCE -
DEMAND -

DEMOCRAPHY DATA -

DEMOGRAPHY -

DEVELOPER -

DEVELOPER'S PROFIT -

DEVELOPMENT COST -

DEVELOPMENT FEASIBILITY -
DEVELOPMENT LOAN -

DIRECT COSTS -

DISAGGREGATION - A differentiation of the subject property from other properties by

subclassification into smaller groups with differing physical and locational characteristics.

FAIR MARKET VALUE -

FAIR VALUE -

FEASIBILITY -

FEASIBILITY ANALYSIS -
FEASIBILIY STUDY
FEE CONSULTANT-

FINANCIAL RISK -

FINANCING PREMIUM -

FLOOR AREA -

FORCED SALE -

FORECASTNG -

FRONT METER -

FRONTAGE -

FUTURE VALUE OF PESO -

GAP ANALYSIS -

GENTRIFICATION -

GOING-CONCERN VALUE -

GRADUATED PAYMENT MORTGAGE (GPM) -

GROSS BULDING AREA (GBA) -

GROSS LEÁSABLE AREA (GLA) -

GROSS LIVING AREA

GROUND LEASE - land lease.

HIGH-RISE APARTMENT BUILDING -

HOUSING STARTS

HOUSING UNIT -

HOUSING SUB-MARKET -

HOMOGENOUS -

HOUSE ZONE -

HOUSEHOLD -

HOUSEHOLD SIZE -

HOUSING INVENTORY METHOD -

IMPACT FEES -

IMPROVEMENT

IMPROVED LAND -

INCOME STREAM -

INCOME PROPERTY (OR INCOME PRODUCING PROPERTY) -

INDIRECT COST -

INSIDË LOT -

INTEREST IN PROPERTY -

INTERNAL RATE RETURN (IRR) - yield rate.

INVESTMENT - equity.

INVESTMENT VALUE -

JUDGMENT -

LAND -

JUST COMPENSATION -

LAND DEVELOPMENT -

LAND LEASE - ground lease.

LAND USE -

LAND-USE INTENSTY -

LĘGAL DESCRIPTION

LEVERAGE
LIMITING CONDITION -

LIS PENDENS -

LOCAL ECONOMIC ANALYSIS -

LOCATION -

LOCATON ANALYSIS
LOT - plot or tract.

MACHINERY AND EQUIPMENT -

MARKET ANALYSIS -

MARKET AREA -

MARKET DISAGGREGATION -
MARKET PARTICIPANTS -

MARKET VALUE -
Domingo D. De Vera
most probable price
1. typically motivated;
2. well-informed or well - advised, - best interest;
3. reasonable time
4. Payment - cash
5. price - normal consideration for the property sold

METES AND BOUND METHOD -

MONEY MARKET -

MORTGAGE EQUITY ANALYSIS -.

MOST PROBABLE USE -

NEGATIVE CASH FLOW -

NEGATIVE LEVERAGE -

NEIGHBOURHOOD ANALYSIS -

NEIGHBOURHOOD LIFE CYCLE -

NOMINAL INTEREST RATE -

NON-REALTY INTEREST -

NUISANCE -

OCCUPANCY RATE -

OFF-SITE IMPROVEMENTS -

100% LOCATION -

ON-SITE ÎMPROVEMENTS -

OPEN SPACE -
OPERATING EXPENSES -

OPPORTUNITY -

PARTIAL TAKING -

PAYBACK PERIOD -

PENTHOUSE -

PERCENTAGE-OF-COMPLETION METHDD-

PHYSICALLY POSSIBLE -

PLANNED UNIT DEVELOPMENT (PUD), -

PLAT -

POLICE POWER -

POSITIVE CASH FLOW –

PRESENT VALUE -

PRIMARY MORTGAGE MARKET -

PRIMARY RATE -

PROBABILITY -
PROBABILITY ANALYSIS -
PROFITABILITY INDEX -

PRO-FORMA STATEMENT -

PROJECT COST -

PROPERTY RIGHTS -

PSYCHOGRAPHIC CHARACIERISTICS -

Purchasing POWER –

QUICK SALE -

QUITCLAIM -

RATIO ANALYSIS (TECHNIQUE) -

REAL ESTATE -

REAL ESTATE MARKET -

REALTY -

REFINANCE -

REPAIRS -
REPLACEMENT COST -
REPRODUCTION COST -

RESIDENTAL PROPERTY -

RETURN CAPITAL -

RISK -

RISK ANALYSIS -

SALES - LEASEBACK -

SALES POTENTIAL -

SCARCITY -

SECONDARY MORTGAGE MARKET -

SENSITIVITY ANALYSIS -

SPATIAL GAP ANALYSIS -

SPECULATIVE USE -

STANDARD OF LIVING -

SUBDIVSION ANALYSIS -

SUBDIVSION -
SUBJECT PROPERTY -

SUPPLY AND DEMAND STUDY -

SYNDICATION

TARGETING ANALYSIS -

TAXMAP -

TAX ROLL -

TAX SHELTER -

TIME VALUE OF MONEY -

TREND -

TURNOVER -

USER VALUE

VACANCY ANALYSIS -

VACANCY RATE.

VALUE -