Real Estate education in Romania ANEVAR experience

1. Real Estate education in RomaniaANEVAR experience Dana ABABEI ANEVAR Cristian BANACU Bucharest Academy of Economics Study

2. ANEVAR history • ANEVAR – National Association of Romanian Valuers • 30 founders set up ANEVAR in January 1992 • Privatization of the state owned companies has required business valuation; • important opportunity for the profession development • in April 1992 starts first training course in business valuation • ANEVAR prepares and prints first Romanian course support in business valuation Dana ABABEI - ANEVAR, Cristian BANACU - ASE

3. ANEVAR history • in September 1996 starts first training course in real property valuation • April 2000 starts first course in machinery and equipment (personal property) valuation • December 2001 granted first professional designations MAA • February 2004 adopted IVS as ANEVAR standards • Autumn 2007 starts first course in financial assets valuation Dana ABABEI - ANEVAR, Cristian BANACU - ASE

4. ANEVAR present • Now, the association counts more than 5,750 full members and 270 associated legal entities. Its activity is carried out in 40 branches in the countryside, and 11 centers in the capital city, Bucharest. • The matrix structure of ANEVAR is divided into four sections: • business valuation • real estate valuation • personal property valuation • financial assets valuation Dana ABABEI - ANEVAR, Cristian BANACU - ASE

5. ANEVAR present • The education program include: • training courses: • basic training courses (120 hours) • in-house training courses (banks, governmental entities) • continuing education seminars (only for members): • distance / on line seminars • classroom Dana ABABEI - ANEVAR, Cristian BANACU - ASE

6. ANEVAR courses • From 1992 ANEVAR has organised 530 courses with 18250 participants. Dana ABABEI - ANEVAR, Cristian BANACU - ASE

7. EDUCATIONAL SUPPORT • ANEVAR is providing materials to support the training process: • Instructor manual and student book • Bank of tests with more than 500 test questions • Collection of case studies • Collection of International Valuation Standards –IVS 2007 (Romanian translation) • Other reference books edited by IROVAL – the research arm of the association Dana ABABEI - ANEVAR, Cristian BANACU - ASE

8. ANEVAR COURSE STRUCTURE • REV = real estate valuation • MEV = machinery and equipment valuation • BV = business valuation • FAV = financial assets valuation Dana ABABEI - ANEVAR, Cristian BANACU - ASE

9. ANEVAR courses • Basic module (30 hours) includes: • General principles regarding property valuation • Time value of money • Valuation approaches • Legal aspects regarding property rights • Accounting for valuation • Valuation reporting and valuation reviewing Dana ABABEI - ANEVAR, Cristian BANACU - ASE

10. ANEVAR courses • Intermediarymodules REAL ESTATE VALUATION (60 hours) include: • Buildings description and inspection • Guidance Note IVGN1 – Real Property Valuation issued by International Valuation Standard Committee (IVSC) • Market analysis • Sale comparison approach • Income capitalization approach • Cost approach Dana ABABEI - ANEVAR, Cristian BANACU - ASE

11. ANEVAR courses • Finalmodule REAL ESTATE VALUATION (30 hours) includes: • Commercial, industrial and residential property valuation • Valuation for tax purpose, for insurance, for bank guarantee, etc • Value reconciliation • Valuation report and reviewing report structure • Graduation project assistance Dana ABABEI - ANEVAR, Cristian BANACU - ASE

12. EXAMINATION system • Project (fully self-sufficient valuation report) preparation under instructor supervision • Written exam – 80 test questions and 2 case studies • Oral exam – valuation report presentation Dana ABABEI - ANEVAR, Cristian BANACU - ASE

13. TUTORING system • Designated to supervise the skills acquiring process • 800 hours of proved practice under the designated tutor supervision • Written exam – mainly from ANEVAR code of ethics and by-law • Oral exam on the skills acquired during the practice period Dana ABABEI - ANEVAR, Cristian BANACU - ASE

14. ANEVAR seminars • For its members, association provides continuous education seminars : • Real estate valuation methods (advance study) - 24 hours • Machinery and Equipment valuation methods (advance study) - 16 hours • Discounting rate and capitalization rate (8 hours) • International Valuation Standards (8 hours) • Valuation for lending purpose (16 hours) • Valuation report and reviewing report (8 hours) • Intangible assets valuation (8 hours) Dana ABABEI - ANEVAR, Cristian BANACU - ASE

15. ANEVAR seminars • For applicants to MAA designation association provides the following seminars: • Advance studyin business valuation (26 hours) • Advance study in real property valuation (26 hours) Dana ABABEI - ANEVAR, Cristian BANACU - ASE

16. ANEVAR partnership • ANEVAR has initiated and developed valuation courses in universities, showing openness towards the training carried out in the higher education institutions and accrediting these courses for its membership • These course cover business valuation and real property valuation Dana ABABEI - ANEVAR, Cristian BANACU - ASE

17. ANEVAR partners • Thus, the association has twelve cooperation agreements with faculties within: • ASE (Academy of Economic Studies) Bucharest, • Universitatea de Vest Timisoara (Timisoara West University), • Universitatea Babes Bolyai (Babes-Bolyai University) in Cluj, • Universitatea Tehnica de Constructii (University of Civil Engineering) Bucharest, • Universitatea Ovidius (Ovidius University) Constanta etc. Dana ABABEI - ANEVAR, Cristian BANACU - ASE