About the Professional Interview process

The Professional Interview is a major component of the application process for Provisional Membership with Residential Property Valuer and for Associate Membership.  The interview allows the applicant to demonstrate their knowledge to and to discuss their work samples with the API via its interviewers.

Below is information about the Professional Interview process and what you can expect:

Areas Examined in the Professional Interview

Broad Outline of Depth of Knowledge Required

In the context of the required years of Approved Professional Experience, a broad outline of the depth to which applicants are expected to show a practical application is as follows:

  • The applicant must demonstrate a high level of knowledge of and skill in the type of property practice which the applicant has been recently undertaking or has specialised in as listed on the membership application.
  • The applicant needs to demonstrate general knowledge beyond any specialist activity currently being undertaken including relevant legislation.
  • The professional interview is not a test of rote learning. The applicant is not expected to recite specific details, for example, parts of Acts. However, the applicant must demonstrate knowledge of basic concepts and where and how to locate specific information.
  • The applicant must be capable of illustrating the application of property knowledge with sound reasoning.
  • Professionalism in the approach of the applicant to his/her work and the professional interview will be considered as part of the application.
     

Knowledge of the API

  • All applicants must have an understanding of their responsibilities to the profession (including practice requirements under state valuers’ registration if relevant), the Institute, clients and the public having regard to the Institute's Constitution and Rules.
  • All applicants should be familiar with the Australia and New Zealand Valuation and Property Standards manual which includes the Code of Professional Conduct, Practice Standards and the Continuing Professional Development requirements of the Institute.
     

Knowledge of Specific Area(s) of Property Practice

  • The applicant is examined on the areas of practice as nominated on his / her application form and the matters that may be examined in the primary areas of practice as outlined in Table 1 (below).
  • Applicants for Associate Membership with Certified Practising Valuer may be examined on matters which relate to the experience listed on their application forms as outlined in Table 2 (below).
     

Professional Interview Procedures

  • The professional interview is conducted by at least two members from the Institute. The examiners are appointed by the Division. If the applicant is applying for a certification, then the examiners will be experienced in that aspect of property practice.
  • One hour is the usual length of the professional interview.
  • At the conclusion of the applicant's participation in the professional interview, the examiners confer privately on the results of the professional interview. They will determine whether the candidate has or has not passed the interview and in some circumstances may offer a continuing interview.  If so, they will arrange the conduct of such in consultation with the API staff. 
  • If no further test is suggested, the examiners make their recommendation for subsequent consideration by the Board.

 

Table 1
Knowledge of Specific Area(s) of Property Practice
For Applicants seeking Associate Membership including Certification

Property Transactions (including sales, leasing and negotiations)

  • Purchase or Sale of Property – market analysis skills and knowledge including terms, strength of lease covenant, adjoining owner and special circumstances, forced sales and actual as opposed to analysed market yields, auction, private treaty, tender, marketing plan and strategies, negotiation techniques, agency contracts and legislation, etc. particularly in candidate's area of operation, e.g. commercial, retail, industrial residential and rural.
  • Negotiation and Administration of Lease Documents – landlord / tenant relations, understanding terms, covenants and importance of reading, incentives, limitations, review mechanisms, determinations, court cases/precedents, arbitration, relevant acts, delinquent tenants, tenant selection, office rentals,

Property Management 

  • Property Management, Budgeting and Financial Controls – maximising income; expenses and outgoings i.e. gross / net, increases in outgoings, land tax, types of outgoings, levels of outgoings, who generally pays and measuring investment performance.
  • Law / Practice / Procedures Relating to Development Controls and Other Environmental Planning Aspects – knowledge of statutes, case law, practical knowledge.
  • Property Risk Management.
  • Space planning, operations planning, technology planning, lease versus ownership, building services needs, building evaluation, location analysis and costs.

Facilities Management 

  • Administration of Building Services - air conditioning, lifts, fire safety, security, energy.
  • Specification, Placement and Supervision of Repair and Maintenance Work in Buildings – methods of procurement, preventative versus cyclical maintenance, warranties and guarantees.
  • Specification, Placement and Supervision Work on Mechanical and Electrical Services in Buildings.

Corporate Real Estate

  • The management of the property infrastructure that supports a business

Funds Management 

  • Implementation of a fund’s investment strategy and management of its portfolio trading activities.

Asset Management 

  • Responsible for the management, administration and operation of one or more real estate assets owned by a corporation or institution in order to maximize the return on the investment made.

Property or Land Development (including Construction)

  • Development strategies and market analysis, feasibility studies, financial analysis skills and reports
  • Management of Building Design Process – including consultants' requirements, town planning, local planning schemes and ordinances, zones / reservations, non-conforming use, plot ratio and heritage buildings.
  • Building Regulation – Interpretation and Procedures – building conformity – fire regulations, characteristics of good building design in various types of property.
  • Documentation of Building Contracts – forms of contract, dispute resolution and handling claims.
  • Building Contract Administration.
  • Dispute resolution and claims, supervision.
  • Methods of disposal or investment packages.

Property Research 

  • Analytical and computer skills, property market knowledge, socioeconomic
  • analysis and forecasting, location studies and sensitivity analysis.

Property Education 

  • Academics involved in lecturing, full time property teaching and tutoring.
  • Academics involved in property based research

Property Finance

  • Accounting for Income and Exp. in relation to a Property Investment - cash flow and rate of return.
  • Insurance – Assessment of Covers, Placement and Administration – types of cover, levels of cover and key clauses.
  • Development or Investment Feasibility Studies - research data collection methods, sensitivity analysis and risk analysis.
  • Financing of Property.

Property Law

  • Related to any of the above primary areas of property.
  • Hold a legal practising certificate.

Property Government

  • Acquisition and resumption
  • Research and planning
  • Policy and procedures

Property Consultancy

  • Property Consultancy can be any combination of the other areas of primary property practice and also includes the management of a property business or company.

Property Valuation

For those applying for Associate Membership with Certified Practising Valuer see Table 2.

  

 

Table 2
Knowledge of Specific Area(s) of Property Practice
For Applicants seeking Associate Membership with Certified Practising Valuer

Urban
  • Building Costs
  • Sales
  • Investment Yields
  • Rents
  • Market Trends, particularly in the applicant’s area of operation
  • Sales Analyses
    Discussion on sales and factors affecting their comparability
  • Types of Valuation
    Discussion of what valuations are required for and how this will influence the report and value adopted – e.g. market value, security / finance, insurance, acquisition, mortgagee sales, asset valuation, compensation, rental valuations, investment valuations, rating valuations – municipal and water rates, land tax
  • Leases
    An overview of lease documents affecting the various property types including a discussion on court cases and legislation.
  • Outgoings
  • Responsibility for payment, methods of calculation and levels applicable in various property categories
  • Rating Valuation
    Definitions, procedures and provisions of the various acts in relation to statutory valuations
  • Fractional Interests
    An understanding of the approaches to the value of the various types of interests, e.g. lessor, lessee
  • Compensation
    Knowledge of statues and court precedents for the assessment of compensation for the acquisition of real estate
  • Subdivisions
    Discussion of appropriate methods of valuing in globo land, together with an understanding of the legislation and court cases
  • Town Planning
    Discussion on planning legislation which would include an understanding of the various planning schemes including such factors as allowable uses, non-conforming use, conservation and historic buildings, etc
  • Feasibility Studies
    The methodology employed and its application
  • Specialised Premises
    General questions only on hotels, motels, private hospitals, nursing homes, special accommodation premises, boarding houses, etc 
  • Environment
    General knowledge of the impact of the environment on property, e.g. soil contamination, historic buildings registration, asbestos, etc
  • Miscellaneous
  • Building conformity
    Fire regulations, PCA area definitions and characteristics of good building design in various types of property
Rural
  • Types of Land Tenure
  • Valuation of various types of rural (farm) properties - vineyard, dairy, grazing, cereal farms, etc
  • The differentiation between properties at different levels of development, bush and improved pasture or significantly different soil types and topography
  • Valuation of rural land in the absence of direct market evidence – court decisions
  • Significant factors to be examined on the Crown Grant or Certificate of Title which may affect the current market valuation of a rural property
  • Current Costs of Improvements
  • Planning and its effect on rural valuations
  • Data and Information to be assembled during a valuation of a rural property
  • Rating Valuations - basis of rating
  • Acquisition of Rural Land - basis of determining compensation payable, acts applicable
  • Procedures for Obtaining Property Sales Information
  • Analyses of Sales – methods, the basis units of comparison ex. Building / ha, cow area, dry sheep area
  • The basis by which the added value of structural improvements on the property can be assessed
  • The effect of commodity prices of a particular rural industry on the value of rural property
Business
  • Intangible Assets
  • An Underperforming Business
  • An Asset-Based Business
  • Service Industries
  • Discounted Cash Flow Techniques
  • Capitalisation of Future Maintainable Earnings
  • Definitions
  • Going Concern
  • Use of financial statements
  • Business valuation approaches
  • Securities