As part of the efforts of the Saudi Authority for Accredited Valuers to develop the profession of valuation and keep pace with international developments, and in light of what is stipulated in Article (Twenty-Three) of the Law of Accredited Valuers issued by Royal Decree No. (M43/) dated 9/7/1433 H and its amendments, the Authority seeks to improve and develop the practice of the profession and elevate it, monitor the quality of its performance, and enhance awareness of its rules, behaviors, and customs, and respect for them, as well as everything that contributes to its development and organization. This is to achieve the objectives stipulated in the law, including: "Establishing appropriate procedures for field supervision to ensure that the accredited valuer applies the standards and adheres to the provisions of the law and its executive regulations," and what is included in Article (Twenty-Eight) of the law regarding the competence of the Board of Directors of the Authority to review the program for monitoring the quality of professional performance, develop it, and approve it. Given the developments and growth witnessed by the profession in all its fields, considering the connection of the profession's work with various economic activities, and the expansion of valuation establishments in practicing the profession, it is necessary to adopt a methodology and mechanism for monitoring the profession; which contributes to raising the quality of performance and reducing violations affecting the profession and its practitioners, all within the framework of achieving the objectives of the Law of Accredited Valuers, its executive regulations, and the rules of professional conduct and ethics.

The program for monitoring the quality of professional performance aims to enhance the efficiency of the profession in the Kingdom and the efficiency of its practitioners by ensuring that accredited valuers and employees in the profession at valuation establishments comply with the provisions of the Law of Accredited Valuers, its executive regulations, the approved standards, and the rules of professional conduct and ethics, as well as related decisions.

The approval of the Board of Directors of the Saudi Authority for Accredited Valuers for the program for monitoring the quality of professional performance comes in line with the desire to establish the foundations and general frameworks that represent the baseline for monitoring the profession and its practitioners, in accordance with the requirements of the law and in alignment with the relevant professional requirements.

• 1- The words and phrases contained in this program shall have the meanings specified next to each of them in Article (1) of the Certified Appraisers System, issued by Royal Decree No. (M/43) dated 9/7/1433 H and its amendments, as well as the meanings specified next to each of them in Article (1) of the Implementing Regulation of the system.

• 2- The following words and phrases - wherever they appear in this program - shall have the meanings clarified next to each of them; unless the context requires otherwise:

  • A- Program: Professional Performance Quality Monitoring Program.

  • B- Competent Authority: The Monitoring Department at the Authority.

Article (2) of the Law states that: "The aim of this Law is to establish the necessary controls and standards for the evaluation of real estate, economic establishments, equipment, movable property, and similar assets, to develop the profession of evaluation, and to raise the level of employees in this field." Article (23) of the Law also states that: "The Authority seeks to improve and develop the practice of the profession and to elevate it, monitor the quality of its performance, enhance awareness of its rules, behaviors, and customs, and ensure respect for them, as well as anything that may contribute to its development and organization. It aims to achieve the objectives stipulated in this Law, and it has, in particular, the following: 5. Establish appropriate procedures for field supervision to ensure that the certified appraiser applies the evaluation standards and adheres to the provisions of the Law and its executive regulations." Furthermore, Article (28) of the Law states that: "The Board of Directors exercises the necessary powers to manage the affairs of the Authority and achieve the objectives stipulated in this Law, and it has, in particular, the following: 2. Review the evaluation standards, codes of conduct, professional performance quality monitoring program, and develop and approve them." Accordingly, the scope of this program includes all certified appraisers and employees in the profession at evaluation establishments, whether they are natural or legal persons, and the scope of the program also includes anyone who commits - other than certified appraisers - any of the violations stipulated in Article (33/First) of the Law.

1- Regulatory Oversight: This type of oversight involves verifying the compliance of accredited appraisers and active members in appraisal establishments with the provisions of the law, regulations, and the code of conduct and ethics of the appraisal profession.

2- Professional Oversight: This type of oversight involves verifying the adherence of accredited appraisers and active members in appraisal establishments to the standards, evidence, decisions, and instructions issued by the authority related to the profession.

• 1- Violations related to evaluation establishments are classified for the purposes of monitoring and controlling violations based on the risks associated with the type of violations observed, which require both regulatory and professional oversight. The following is a statement of the types of these risks and the most prominent violations associated with them, as follows:

  • 1.1 High Risks:

    • 1.1.1 Practicing the profession of evaluation outside the branch licensed for the establishment to practice the profession.

    • 1.1.2 Issuing evaluation reports without being signed by the certified evaluator. 1.1.3 Allowing non-members of the authority to practice the profession in the evaluation establishment. 1.1.4 Practicing the profession while under suspension.

    • 1.1.5 Existence of a conflict of interest among those involved in preparing the evaluation report. 1.1.6 Disclosing client secrets.

    • 1.1.7 Failing to deposit evaluation reports in the authority's electronic systems and placing the deposit code on them before delivering them to clients.

    • 1.1.8 Conducting evaluation work that requires specific conditions, qualifications, and additional experiences according to the regulations and rules governing the profession of evaluation, without having them.

    • 1.1.9 Expiration of the certified evaluator's membership without renewal for more than thirty days from the date of expiration.

    • 1.1.10 Providing incorrect data to the authority.

    • 1.1.11 Issuing evaluation reports from an evaluation establishment not registered with the authority.

    • 1.1.12 Failing to provide the authority with the required data and information within the specified time.

    • 1.1.13 Failing to retain all data and documents related to the evaluation.

    • 1.1.14 Accepting one of the prohibited evaluation works specified according to the code of conduct and ethics of the evaluation profession.

    • 1.1.15 Obstructing the monitoring and control activities carried out by the competent administration, or failing to cooperate with it.

    • 1.1.16 Failing to adhere to applying the standards and guidelines at a rate of (70%) or higher, in the sample of reports that were examined, for each report.

  • 1.2 Medium Risks:

    • 1.2.1 Not placing a sign at the headquarters of the evaluation establishment and its branches - if any -.

    • 1.2.2 Expiration of the certified evaluator's membership without renewal for less than thirty days from the date of expiration.

    • 1.2.3 Not placing the license number and date on all printed materials of the evaluation establishment and correspondence and reports issued by the evaluation establishment.

    • 1.2.4 Failing to update the information and data of the evaluation establishment with the authority.

    • 1.2.5 Having employees in the evaluation establishment with expired memberships.

    • 1.2.6 Failing to present membership and license when undertaking any evaluation work, including fieldwork such as inspections and others.

    • 1.2.7 Opening a branch of the establishment before notifying the authority.

    • 1.2.8 Failing to meet the minimum required hours in continuing professional education.

    • 1.2.9 Failing to adhere to the specified percentage of Saudi professional employees in the evaluation establishment who hold membership in the authority.

    • 1.2.10 Failing to apply the standards and guidelines at a rate lower than (70%) and higher than (30%), in the sample of reports that were examined for each report.

  • 1.3 Low Risks:

    • 1.3.1 Failing to register those conducting evaluation work from the authority's members in the evaluation establishment's account.

    • 1.3.2 Not indicating the type of branch for which the certified evaluator was licensed to practice the profession and the category of their basic membership when signing the reports.

    • 1.3.3 Not writing the name of the evaluator and their license number - if the certified evaluator is a natural person - on the sign at the headquarters of the evaluation establishment and its branches - if any -.

    • 1.3.4 Failing to apply the standards and guidelines at a rate of (30%) or lower, in the sample of reports that were examined, for each report.

• 2 Violations related to the provisions of the law, committed by non-certified evaluators, as stipulated in Article (Thirty-Three/First) of the law, which are all considered high-risk and require regulatory oversight, control, and referral to the Public Prosecution, are:

  • 2.1 Practicing the profession of evaluation without obtaining a license.

  • 2.2 Practicing the profession of evaluation after the license has been revoked, canceled, or expired without following the necessary renewal procedures.

  • 2.3 Opening, establishing, or managing an office for practicing evaluation without a license.

  • 2.4 Providing data that does not match the truth or using illegal methods that resulted in granting a license to practice the profession of evaluation or led to the renewal of the license.

  • 2.5 Using a means of advertising that would lead the public to believe in their right to practice the profession of evaluation contrary to the truth.

  • 2.6 Impersonating a title commonly used for practitioners of the profession of evaluation.

1. Document Review of Valuation Entities (Documentary Inspection):

This type of inspection involves studying and reviewing the data of valuation entities in the electronic systems of the Authority.

2. Field Inspection of Valuation Entities (Field Inspection):

This type of inspection involves a visit to the valuation entity by the inspection team to ensure that the valuation entity is applying the provisions and rules governing the profession of valuation and preparing the necessary reports in this regard, documenting the observed violations, and taking the necessary legal actions concerning them. The Council determines the percentage of targeted valuation entities for this type of inspection annually.

3. Inspection Based on a Report or Information (Special Inspection):

This type of inspection involves verifying the accuracy of reports and information available to the competent administration regarding non-compliance with the provisions and rules governing the profession of valuation. For this purpose, it may visit the valuation entity, summon it, or conduct a documentary inspection - as appropriate - and document the observed violations.

The relevant administration shall establish its annual plan for all types of inspection, including - where possible - all branches of evaluation and all areas where evaluation establishments practice the profession, in accordance with the percentages mentioned above. In preparing the annual supervision plan, it shall take into account the classification of evaluation establishments for the purposes of supervision and controlling violations related to the risk percentage specified in item (Second) of Chapter Two of the program.