Property Valuation - STANDARD TERMS OF ENGAGEMENT

STANDARD TERMS OF ENGAGEMENT FOR PROPERTY VALUATION

1. The purpose for which the valuation is required shall be to provide an opinion of the value of the Freehold or Leasehold interest in the property, as specified by the Client.
2. The valuation will be undertaken in accordance with the latest version of the Royal Institution of Chartered Surveyors Valuation Standards (Red Book) , in all respects
3. It is confirmed that the valuer has no interest in the property or any other conflict of interest that will prevent the valuation being undertaken
4. Unless otherwise specifically agreed in writing the value advised by the valuer will be in accordance with one or both of the following definitions:
 

Market Value
‘The estimated amount for which a property should exchange on the date of
valuation between a willing buyer and a willing seller in an arm's-length
transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion.’

Market Rent
‘The estimated amount for which a property, or space within a property,
should lease (let) on the date of valuation between a willing lessor and a
willing lessee on appropriate lease terms in an arm's-length transaction
after proper marketing wherein the parties had acted knowledgeably,
prudently and without compulsion.’

Insurance Value
The reinstatement cost figure for the permanent buildings, provided for insurance purposes, which is not directly related to market value of the property. The reinstatement cost will be calculated by reference to the indices and guidance published by the Building Costs Information Service. The figure stated will only include Value Added Tax on professional fees (not on building costs) and will not take into account other potential or consequential losses such as costs of alternative accommodation. The reinstatement cost figure should be indexed or revised annually or when any significant alterations or extensions are undertaken. Where a flat is the subject of the inspection the figure, which will be given, will be for the subject property only, as a proportion of the whole building

5. The Valuer shall have regard to the apparent state of repair and condition of the property but shall be under no duty to carry out a structural survey of the property nor to inspect woodwork or other parts of the structure which are covered, unexposed or inaccessible and will not undertake the testing of electrical, heating or other services. Furthermore he will be entitled to assume that an inspection of such areas would not reveal defects of sufficient magnitude to require him to make a material adjustment to his valuation.
(page 1 of 3)
6. In the course of the report the valuer will draw attention to communal aspects of flats or multi occupied premises if relevant, and will comment upon shared driveways etc., but only to the extent where these may have an effect upon value.
7. The date of valuation will be deemed to be the date of the report unless otherwise stated eg date of inspection or a retrospective date for probate, or capital tax purposes.
8. The valuer shall unless otherwise expressly agreed rely upon information provided to him by the Client or the Client’s legal or other professional advisers relating to tenure, tenancies and other relevant matters, and refer to this in the report where relevant. It is the responsibility of the client to check to ensure this information or assumptions are accurate and advise the valuer if it is not.
9. In making the report, the following assumptions will be made as standard unless other information is known or provided:
a) that no high alumina cement concrete or calcium chloride additive or other potentially deleterious material was used in the construction of the property or has since been incorporated;
b) that the property is not subject to any unusual or especially onerous covenants, restrictions, encumbrances or outgoings and that good title can be shown;
c) that the property and its value are unaffected by any matters which would be revealed by a local search and replies to the usual enquiries, or by any statutory notice, and that neither the property, nor its condition, nor its use, nor its intended use, is or will be unlawful
d) that inspection of those parts which have not been inspected would neither reveal material defects nor cause the valuer to alter the valuation materially.
e) it is assumed that unless otherwise stated, roads, sewers and services outside the curtailage of the property are the responsibility of the Local Authority or other statutory body. We will also assume, unless otherwise stated, that all services, roads etc., are available under normal terms.
f) the valuation is based on the assumption that the property is being sold or let with vacant possession and unless otherwise stated for owner occupation.
g) that further investigation into Planning permission, Building Warrant, compliance with building regulations, presence of hazardous materials, onerous restrictions etc., will not reveal anything sufficiently adverse as to materially affect the value.
g) Any other assumptions will be clearly stated in the report however, the valuer shall be under no duty to verify these assumptions.
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10. The construction of property over the years and particularly the finishes used may have contained hazardous materials, these are impossible to detect without specific tests and these are beyond the scope of this report. We would draw your attention particularly to the fact that there is a strong possibility that property built or modernised up to the mid 1980’s may contain asbestos in one or more of its components or fittings. It is frequently unexposed and as it was used as an additive to products such as cement based guttering and insulation and roofing sheeting, its presence can only be confirmed by testing which does not form part of this valuation service
11. The Valuer shall provide to the Client a report setting out his opinion of the value of the relevant interest in the property. The report will be provided for the stated purposes and for the sole use of the named Client. It will be confidential to the Client and his professional advisers. The valuer accepts responsibility to the Client alone that the report will be prepared with the skill, care and diligence reasonably to be expected of a competent Chartered Surveyor, but accepts no responsibility whatsoever to any person other than the Client himself. Any such person relies upon the report at their own risk. Neither the whole nor any part of the report or any reference to it may be included in any published document, circular or statement nor published in any way without the valuer’s written approval of the form and context in which it may appear.
12. The Client shall pay the valuer in respect of the said professional advice a fee to be agreed between the Client and the valuer.
13. All monetary values will be quoted in Pounds Sterling (£).
14. No account will be made of taxation or other costs in connection with disposal or occupation.
15. Bannisters holds professional indemnity insurance to a limit of £1 million in respect of residential and commercial valuations
16. A Complaints Handling Procedure is held which can be provided on request.