Description
This valuation update emphasized the key principles of Red Book-compliant valuations, the professional responsibilities of valuers, and the importance of clarity, accuracy, and transparency in reporting.
Key Points
- Red Book Compliance and Its Exceptions
Red Book valuations follow RICS global standards, but exemptions apply in specific cases like agency work or expert witness reports, allowing for more flexibility. - Client and Instruction Clarity
Engagement terms should clearly identify the client (e.g., using company registration numbers) and define intended users and valuation purposes to manage liability and expectations. - Assumptions, Inspections, and Reporting Standards
Valuers must document standard and special assumptions, conduct proportionate inspections, and produce clear, comprehensive reports aligned with professional valuation standards.
Learning Objectives
- Understand when full Red Book compliance is required and when exceptions apply.
- Learn how to correctly structure valuation instructions, including identifying clients and intended users.
- Gain practical insight into making valuation assumptions, determining inspection adequacy, and producing compliant reports.
