Valuation – Terms and Conditions
VALUATION OF PROPERTY TERMS OF ENGAGEMENT
Address of property:
Customer named on instruction:
1: The purpose for which the valuation is required shall be to provide an opinion of the value of the Freehold/Leasehold/state other, interest in the property, as specified by the Client and set out in the enclosed letter accompanying these terms.
2: The valuation will be undertaken in accordance with the Royal Institution of Chartered Surveyors Valuation – Professional Standards 2014, (the Red Book)and International Valuation Standards, where applicable, in all respects
3: Unless otherwise specifically agreed in writing the value advised by the Valuer shall be in accordance with one or more of the following definitions:
Market Value (MV)
‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’
Market Rent (MR)
‘The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’
‘The value of an asset to the owner or a prospective owner for individual investment or operational objectives.’
‘The price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.’
4: The extent of the Valuers investigations – 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.
5: In the course of his report the Surveyor will draw attention to any communal aspects and will comment upon shared driveways etc., but only to the extent where these may have an effect upon value.
6: The nature and source of the information to be relied upon by the Valuer – 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. It is the responsibility of the Client or the Client’s legal or other professional advisers to ensure this information is accurate and advise the Valuer if it is not.
7: In making the report, the following assumptions will be made:
- The valuation is based on the assumption that the property is being sold with vacant possession and unless otherwise stated for owner occupation;
- That the property is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings and that good title can be shown unless revealed from routine enquiries;
- That the property and its value are unaffected by any statutory notice, and that neither the property, nor its condition, nor its use, nor its intended use, is or will be unlawful unless revealed from routine enquiries;
- That the property is not subject to any adverse planning regulations or conditions, building warrants, onerous restrictions etc. unless revealed from routine enquiries;
- It is assumed that unless otherwise stated, roads, sewers and services outside the curtilage of the property are the responsibility of the local relevant statutory body. The Valuer will also assume, unless otherwise stated, that all services, roads etc. are available under normal terms unless revealed from routine enquiries;
- That subsequent inspection of those parts which have not been inspected would neither reveal material defects nor cause the Valuer to alter the valuation materially;
- That the property is free from other environmental considerations such as abnormal ground conditions, historic mining quarrying or landfill, coastal erosion, flood risk, high voltage equipment and/or cables, invasive vegetation etc. unless evident from our inspection and/or revealed from routine enquiries.
- That the property is free from contamination, or potential contamination, of poisons, pollutants, Radon gas, Mundic or other materials requiring invasive treatment works unless evident from our inspection and/or revealed from routine enquiries;
- That no high alumina cement concrete, calcium chloride additive, woodwool shuttering or other potentially deleterious material was used in the construction of the property or has since been incorporated unless evident from our inspection and/or revealed from routine enquiries;
- That no asbestos or any other hazardous substances, materials or techniques was used in the construction of the property or has since been incorporated unless evident from our inspection and/or revealed from routine enquiries.
- Where evident from the inspection or revealed from routine enquiries, these matters above will be detailed in the report accordingly.
8: 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 in the 20th century may contain asbestos in one or more of its components or fittings. The use of asbestos has been extremely diverse from acting as an insulant in boilers to being added to decorative finishes to improve the binding. 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. It is beyond the scope of this inspection to test for asbestos if you have any concerns then you should arrange for a specialist to undertake appropriate tests. Asbestos becomes a particular health hazard when its fibres are released into the air. Therefore it should be not disturbed, sanded ready for decorating, drilled, cut etc. and should only be removed by experts. Consequently, we have assumed that the property is free from asbestos and any other hazardous materials unless evident from our inspection and/or revealed from routine enquiries
9: The Valuer shall provide to the Client a report setting out his opinion of the value of the relevant interest in the property together with the valuation approach, the key valuation inputs used and reasons for the conclusions reached. The report will meet the conditions set out in these terms of engagement and will meet the minimum requirements of Valuation Practice Statement 3, Valuation reports of RICS Valuation – Professional Standards 2014. Furthermore, 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 his 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.
10: The Client shall pay the Valuer in respect of the said professional advice a fee to be agreed between the Client and the Valuer. In addition, the Client will reimburse the Valuer the cost of all reasonable out-of-pocket expenses which he may incur and pay the amount of any Value Added Tax on the fee and expenses.
11: Liability Cap: We will make every effort to ensure that our service meets your requirements, but we recognise that occasionally things can go wrong. You should understand that in order to balance risk fairly between us, we have capped some of our legal liabilities in accordance with RICS recommendations. This means that if we were in breach of contract or a duty of care that we owe to you, the maximum compensation that we should be obliged to pay you would be as follows:
For a breach of contract or a duty of care relating to a valuation, 10% of our valuation of the Property. For example, if we value the Property at £200,000, any damages you could recover from us would be limited to £20,000.
12: All monetary values will be quoted in £ sterling.