Definition of ‘Residential Property’
as it relates to Provisional Members with Residential Property Valuer
A Provisional Member who holds the designation of Residential Property Valuer may undertake the valuation of residential property for the purposes of:
- Mortgage security valuations.
- Rating and Taxing Valuations.
- Valuing entitlements under a Strata Scheme or similar group title scheme.
- Other private residential property uses, excluding –
- Land or a lot that is used wholly for non residential purposes
- Real Property valuations for compensation and resumption purposes
- Valuations related to the provision of expert evidence or Family Law Court related proceedings
The Institute has clearly defined the term ‘residential property’ in regards to professional conduct of Provisional Members, as follows:
- Land on which is situated (or in the course of construction) not more than 2 dwellings and any other improvements incidental thereto.
- Vacant land on which the construction of a single dwelling is not prohibited by law.
- A lot or lots (including a proposed lot or lots) under a Strata Scheme or other group title scheme comprising not more than one dwelling and other improvements incidental thereto whether constructed or in the course of construction.
- Includes Rating & Taxing valuation, mortgage security valuations and valuations of other private residential properties.
- Includes the ability to value individual entitlements under strata title or similar.
- Residential use must be the highest and best permitted use.
It does not include:
- Land or a lot that is used wholly or predominantly for non residential purposes.
- Land that is capable of being sub-divided into more than two parcels.
- Real Property Valuations for compensation or resumption.
- Provision of any expert evidence and Family Law Court related valuations.
The following applies to the application of the definition of Residential Property for Provisional Members (PMAPI) with the designation of Residential Property Valuer. A Provisional Member with Residential Property Valuer:
- will be able to assess all residential properties for potential marketing purposes (noting the definition of residential property).
- will be able to value an interest in residential property that is not freehold (noting restrictions dealing with co-ownership structures).
- will be able to value some partial interests in residential property, although this will depend on the coownership structure.
- will be able to value rural residential land only if it is non-subdividable.
- will not be able to value a residential flat building held under a single ownership.
- will be able to undertake a rental valuation for a single residence.
- will not be able to undertake the valuation of a block of residential flats/apartments held under a single ownership structure.
- will be able to value a single residential “Company Title” apartment, as long as it is covered under the exemption provided to the API by ASIC.
- will not be able to value a single residential dwelling within a non-residential precinct as residential is not the highest and best use.
- can value single units under a Strata Title scheme. The PMAPI cannot undertake valuations as part of setting-up the Strata Title scheme.
- cannot undertake the valuation of a whole Strata Title scheme.
- will be able to undertake an insurance valuation for a single residential dwelling.
- will not be able to undertake insurance valuations on behalf of an owners corporation for a strata scheme.
- will not be able to value common property within a residential strata scheme.
- will be able to value a residence on a separate title above a retail shop (assuming residential is the highest and best use).
- will be able to undertake progress payment work for a single residence in the course of construction.
- will not be able to value residential timeshare interests.
- will be able to value serviced apartments provided they are a single lot in a scheme and not a hotel/motel type apartment.
- will not be able to value residential dwellings within a retirement village.
- can be called as a witness but cannot hold themselves out as an expert to provide expert evidence.
- can value a single residential dwelling (including a waterfront property).
- cannot value a factory/strata warehouse unless they are assisting a Life Fellow, Fellow or Associate Member of the API who is a CPV.
- will not be able to value a business.
- will not be able to value plant and machinery.
- will not be able to value personal effects.
- will not be able to value livestock.