THE ASSOCIATION OF APPRAISERS OF TÜRKİYE
PART ONE
Purpose, Scope, Basis and Definitions
Purpose
ARTICLE 1 - (1) The purpose of this regulation is to determine the professional rules and ethical principles to be followed by the members of the Association of Appraisers of Türkiye in their business and other relations with each other and their clients.
Scope
ARTICLE 2 - (1) Members of the Association of Appraisers of Türkiye shall perform their appraisal activities in accordance with the real estate appraisal legislation in Türkiye, International Appraisal Standards and the professional and ethical rules set forth in this regulation.
Basis
ARTICLE 3 - (1) This regulation has been made based on the fourth paragraph of Article 76 of the Capital Markets Law dated 06.12.2012 and numbered 6362 and Article 7, paragraph one, subparagraph (b) of the Statute of the Association of Appraisers of Türkiye, which was adopted by the Decree of the Council of Ministers dated 05.02.2014 and numbered 2014/5933 and entered into force after being published in the Official Gazette dated 02.04.2014 and numbered 28960.
Definitions
ARTICLE 4 - (1) The terms used in this regulation have the following meanings:
a) Association: Association of Appraisers of Türkiye,
b) Law: Capital Markets Law No. 6362 dated 06.12.2012,
c) Board: Capital Markets Board,
ç) Status: The Status of the Association of Appraisers of Türkiye, prepared based on the fourth paragraph of Article 76 of the Capital Markets Law No. 6362 dated 06.12.2012, accepted by the Council of Ministers Decision No. 2014/5933 dated 05.02.2014 and entered into force by being published in the Official Gazette No. 28960 dated 02.04.2014,
d) Member: Appraisers and Housing Appraisers who are real person members of the Association of Appraisers of Türkiye and Valuation Institutions with legal entity members,
e) Valuation Institution: Valuation institutions authorized by the Board to perform valuation activities in the capital market,
f) Appraiser: Persons who hold a Real Estate Appraisal license in accordance with the Board's licensing regulations,
g) Housing Appraiser: Persons who hold a Housing Appraisal license within the framework of the Board's licensing regulations and who are members of the Association in accordance with the third paragraph of Article 8 of the Statute,
ğ) Customer: Real and legal persons who sign a contract with the Association members to receive valuation services,
PART TWO
Principles Regarding General Principles
ARTICLE 5 - (1) In order to act respectfully, diligently, fairly and honestly in their relations with members, customers, other members and their own employees, and to prevent unfair competition, members carry out their activities in line with administrative regulations and the general principles set out below. Members are aware of the laws, statutes, regulations and other regulations issued by the state, state-affiliated institutions and organizations, regulatory authorities and professional organizations that govern the activities of members, and they abide by these legal regulations.
(2) The valuation activity is carried out by objective, honest and competent Appraisers who do not contain prejudgments, are clear and do not lead to misleading statements, and explain all the issues that constitute the basis of the valuation understanding.
The principle of honesty and fairness
ARTICLE 6 - (1) Members must act honestly and accurately in all situations and conduct their work in a manner that will not harm their clients, society, their professions and the Valuation Institutions. In the relationships they establish and the work they carry out, they must act based on truthful statements, in accordance with professional rules, on time and completely, and carefully avoid actions that may damage trust.
(2) Valuation Institutions and the appraisers who sign the valuation report, housing appraisers and responsible appraisers are jointly and severally liable for any damages they may inflict on their clients or third parties who benefit from the report in question due to the results reached in the prepared report, the report not being in compliance with the specified standards, the lack of sufficient examination, the use of incorrect data and similar reasons. The criminal liability of the partners, managers and employees of the Valuation Company is reserved.
ARTICLE 7 - (1) Members must be independent and impartial when conducting their valuation work and take due care to maintain this. Independence is a set of understandings and behaviors that will ensure that professional activity is conducted honestly and impartially. Members must not make any proposals or requests that may compromise their own or other Members' independence and impartiality, and must not accept any such proposals or requests.
Situations that eliminate independence
ARTICLE 8 – (1) If there is any doubt that the independence of the Valuation Institution or the Appraisers and the Housing Appraisers has been impaired, the independence shall be deemed to have disappeared.
(2) Independence shall be deemed to have ceased to exist in the following cases. In the event that such circumstances are learned after the acceptance of the work, the member is obliged to immediately terminate the work and notify the Association and, if required by the relevant legislation, the Board within 1 week at the latest.
a) By the partners, managers, Appraisers, Housing Appraisers of Valuation Institutions and their blood and marriage relatives up to the third degree (including the third degree) and their spouses or Valuation Institutions:
1) In the event that it is revealed that a direct or indirect benefit is obtained or promised to be obtained from the customer or those related to the customer, other than those stipulated in the valuation contract,
2) In the event that it is determined that a partnership relationship has been entered into with the client or the partners of the client or real or legal persons to whom the client is directly or indirectly affiliated or under the influence of the client in terms of management, audit or capital within the last two years, including the period when the valuation service is provided,
3) In the event that the client and the client's subsidiaries, joint ventures and affiliates have been involved or have been in a commercial relationship as a founder, chairman or member of the board of directors, company manager or assistant or in other capacities with significant decision, authority and responsibility within the last two years, including the period when the valuation service was provided,
4) In the event that a debt-credit relationship is entered into with the customer or the customer's subsidiaries, joint ventures and affiliates other than ordinary economic relations,
b) Non-payment of the valuation fee for previous years by the client without a valid reason,
c) That the valuation fee is subject to conditions related to the valuation results or if it differs significantly from the market value, determination of the valuation fee taking into account other services provided by the Association Member to the client.
(3) The above conditions also apply to individuals and organizations that provide external services to the Association Member.
The principle of professional care and diligence
ARTICLE 9 - (1) Members are obliged to exercise due professional care and diligence during the planning, execution and finalization of the valuation assignment and preparation of the valuation report. Due care and diligence refers to the attention to detail, care and diligence that a careful and prudent expert would give to details under the same conditions. The minimum criterion for due care and diligence is to fully comply with the Board and Association regulations regarding the valuation activity, to establish an internal control system and to take other necessary measures. Members are required to plan the valuation activity as required, make a program, collect and examine sufficient, appropriate and reliable information and documents, prepare regular working papers and explain their opinions in the valuation report, which they will prepare with care and diligence.
The principle of using resources effectively
ARTICLE 10 - (1) Members use the material, technological and human resources foreseen by legislation effectively and efficiently for their activities.
The principle of competition and social benefit
ARTICLE 11 - (1) Members conduct their professional activities in a manner that does not lead to unfair competition, taking into account professional etiquette. They also consider social benefit and respect for the environment along with commercial purposes. They take care to support social and cultural activities in light of the principles of respect.
Fight against laundering of proceeds of crime
ARTICLE 12 - (1) In order to ensure that capital market activities are carried out in confidence and openness, within the framework of the provisions of international and national legislation, Valuation Institutions from Legal Entity members shall take the necessary measures to identify suspicious transactions and take action within the framework of the legislation in order to combat laundering of proceeds of crime, corruption and similar crimes, cooperate with relevant institutions and organizations and competent authorities, take measures for this purpose within their own organization and organize training programs for their employees.
PART THREE
Relations with Customers
ARTICLE 13 - (1) Members conduct their business relationships with customers within the framework of written contracts that include the parties' obligations and professional activities.
(2) In order for real estate, real estate projects or real estate-based rights and benefits to be valued by the Association Member, a valuation contract must be signed between the Association Member and the customer, which specifies the rights and obligations of the parties and includes the minimum elements in the legislation.
Fair treatment
ARTICLE 14 - (1) In their dealings with their Clients, Members shall observe their duty of loyalty and duty of care and treat all Clients fairly.
ARTICLE 15 - (1) Appraisers and Housing Appraisers must stay away from conflicts of interest that may arise during their work, not allow any intervention that may affect their honesty and impartiality, and explain the opinions they reach as a result of their examination in their reports without considering the direct or indirect interests of others.
ARTICLE 16 - (1) Members must not disclose information about their clients and the businesses they evaluate, and must not use it to directly or indirectly benefit themselves or third parties or to harm others. This obligation continues even after leaving office.
(2) However, such information may be disclosed to the relevant persons and organizations if the customer has given their express consent or request, or if requested by the competent public authorities in accordance with the legislation.
Employees' relations with customers
ARTICLE 17 - (1) Valuation Institution employees
a) do not enter into relationships with Clients that are incompatible with ethical principles,
b) Any item or benefit, whether of economic value or not, accepted directly or indirectly, that affects or is likely to affect the impartiality, performance, decision or duty of the Appraiser is considered a gift. Appraisers do not accept gifts from clients.
The following are exempt from the prohibition on receiving gifts:
• Books, magazines, articles, cassettes, calendars, CDs or similar items.
• Prizes or gifts won in public contests, promotions or events.
• Souvenir gifts given at public conferences, symposiums, forums, panels, dinners, receptions or similar events.
• Advertising and handicraft products that are distributed to everyone for promotional purposes and have symbolic value.
• Loans received from financial institutions according to market conditions.
c) They may not derive any direct or indirect benefit from their positions, either from their own business environment or from their customers' business opportunities.
ARTICLE 18 - (1) Members answer all questions their customers may have about the services provided, investigate the reasons for customer complaints, and take the necessary precautions to prevent justified complaints from occurring again. Members inform their employees in order to correct the faulty practices that caused the complaint and to prevent their recurrence.
PART FOUR
Relationships with Other Members
Professional responsibility, solidarity and exchange of information
ARTICLE 19 - (1) Members act in solidarity for the healthy development of the valuation sector.
(2) Members shall provide, in accordance with the provisions of the Association Management Board Decision, which sets out the procedures and principles for the submission of data not subject to legal confidentiality to the Association and the keeping of records thereof, for the purpose of establishing a database within the Association to be used in work aimed at the fundamental objective of improving valuation services and activities, in a manner that is transparent, clear, and within the specified timeframe.
Prevention of unfair competition
ARTICLE 20 - (1) Members fulfill their duties with a sense of professional responsibility and within the framework of the professional rules published by the Association, in order to ensure that the valuation sector develops in an honest, competitive and effective manner. In this context, Members
a) must not engage in misleading and deceptive behavior.
b) must not prepare or submit reports that contain deliberately misleading, inaccurate, biased, untrue, or unfounded opinions and analyses.
c) must act in accordance with the law and regulations.
ç) must not claim to have professional qualifications that they do not have and cannot knowingly spread false information.
d) must not deliberately make false, misleading, or exaggerated statements in order to obtain work, nor may they advertise in this manner. They must not act in a way that would damage the commercial reputation of other members or violate the principles of fair trading.
e) must ensure that personnel assisting with the task or those working under their command adhere to the Professional Rules of the Association of Appraisers of Türkiye.
f) must not engage in any other actions similar to those listed above that would result in unfair competition.
PART FIVE
Relations with Employees
General qualifications of employees
ARTICLE 21 - (1) Members shall ensure that their employees work to enhance the reputation of the profession in society and the trust placed in the valuation sector, and that they possess the knowledge, integrity, and sense of responsibility required by their duties, and that they protect the rights and interests of their employees.
ARTICLE 22 - (1) Professional competence means that the education and professional experience required for the task to be undertaken are at a level sufficient to carry out valuation studies.
(2) Having the necessary license in the fields stipulated by the legislation and complying with the regulations made by the Association and the Professional Rules of the Association of Appraisers of Türkiye published means achieving professional competence.
Possible activities and prohibitions
ARTICLE 23 - (1) Valuation Institutions with legal entity members can provide consultancy services in areas such as market research on real estate, feasibility studies, analysis of the legal status of real estate and related rights, vacant land and developed project value analysis, and most efficient and best use value analysis.
(2) Valuation Institutions must not engage in any other activity, including real estate brokerage, other than the activities specified in the first paragraph, other than real estate valuation activities.
(3) Appraisers and housing appraisers are
a) cannot be employed in more than one appraisal firm at the same time, they cannot be partners, and they cannot be partners or managers in other capital market institutions,
b) cannot engage in any activities other than the activities specified in the first paragraph of this article, in addition to real estate appraisal activities,
c) cannot engage in behavior that is incompatible with their profession and professional honor,
d) cannot accept jobs for which their knowledge and skills are not sufficient,
e) cannot work under any title in the partnerships and affiliates to which they provide appraisal services, until 2 years have passed. The provisions of paragraph (b) shall not apply to Appraisers and Housing Appraisers who work under a contract without being employed on a full-time basis. However, these individuals cannot engage in real estate brokerage activities under any circumstances.
ARTICLE 24 - (1) Members shall endeavor to provide all employees with the tools necessary to perform their duties, the information necessary to succeed, the training programs necessary to develop their skills, and the opportunities necessary for career development within the limits of their financial capabilities.
(2) Members shall consider not only knowledge, skills, and personal achievements in the professional advancement of Appraisers and Housing Appraisers, but also their commitment to the Professional Rules of Association and their diligence in applying them as criteria in their evaluations.
PART SIX
Miscellaneous Provisions
Determination and auditing of ethical rules on an institutional basis
ARTICLE 25 - (1) The Association of Appraisers of Türkiye determines the ethical rules regarding the activities of the Valuation Institutions and their relations with their clients and employees, in a manner that does not constitute a contradiction with the provisions in the legislation and herein, with the Ethics Agreement of the Association of Appraisers of Türkiye and updates it when necessary.
(3) Valuation Institutions shall obtain signed commitments from the persons they employ stating that they have read and understood this regulation within six months of the entry into force of the Ethics Agreement of the Association of Appraisers of Türkiye and that they will provide services in accordance with these principles during their term of office.
(4) Valuation Institutions monitor the compliance of the people they employ with these rules.
Relations with the Association and other public institutions and organizations
ARTICLE 26 - (1) Members shall exercise due diligence in submitting information, documents and records that may be requested by the Union and institutions and organizations authorized to request information for audit and control purposes in their relations with the Association and other Public Institutions and Organizations, in an accurate, complete and timely manner, and shall act in a manner that facilitates their work.
Development of professional rules
ARTICLE 27 - (1) Members may submit new proposals to the Board of Directors of the Association at any time to ensure that ethical principles and professional rules are developed and changes are made when necessary.
Sanction
ARTICLE 28 - (1) Any violations of this regulation will be resolved in accordance with the provisions of the Association Statute and Association Disciplinary Regulations.
ARTICLE 29 - (1) This regulation shall enter into force on the date it is approved by the Board of Directors of Association.