RICS issues Chinese edition of its property guide
Updated: 2011-09-16 12:33
By Chen Qide (chinadaily.com.cn)
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SHANGHAI – The Royal Institution of Chartered Surveyors (RICS) released the Chinese edition of its Technical Due Diligence (TDD) Guide for Commercial & Industrial Property in Shanghai on Friday.
The guide addresses a range of matters relating to TDD exercises involving transactions of real estate and improvements, said Stephen Ballesty, co-author of RICS' TDD best practice guidelines.
”The purpose of this document is to provide practical guidance on a professional approach that property owners and occupiers, investors and their respective advisors will benefit from during the disposal, acquisition and management of property assets,'' said Ballesty.
The Chinese edition will help financial institutions, investors and occupiers look even more closely at the risks of buying or selling property assets, said Liang Shiyi, vice secretary general of Shanghai Engineering Consulting Trade Association, who has just returned from the UK after a training at RICS's headquarters in London.
”It is obvious that the society in China is calling for service that can provide skills on technical survey, technical due diligence and technical planning for commercial property valuation, legal advice and occupational insurance,'' Liang said.
RICS has abundant experiences in this field and the guide provides great detailed principles and policies, which will be a great reference for China, he said.
”It could be argued that issuing this guidance is a key milestone in the history of the Chinese building reconstruction,'' Liang said.
He said it is very important for property purchasers, occupiers or financiers to know how to follow the TDD process.
TDD, he added, will help them gain an understanding of the design capacity and current conditions of a property so as to establish the suitability of the property for its intended use and understand the need for future costs and other liabilities.
Many physical improvements have defects or deficiencies which could impact their short, medium or long-term performance. The defects may include the need for repairs arising from a lack of planned preventative maintenance, neglect or misuse, insufficient capacity and non-compliance of a building's structure, fabric and services, Liang said.
”TDD is not only essential for informed decision making during property transactions, but it provides a basis for long-term risk management and improved facilities performance,'' said Ballesty. ”This guide provides a professional framework, helping achieve a more productive and sustainable built environment.''