Limitation of Liability Scheme
(Australian Property Institute Valuers Limited)
The Australian Property Institute Valuers Limited (APIV) is a company established by the Australian Property Institute (API) as a special purpose company, the membership of which is restricted to members of API who undertake valuations of real property and the purpose for which it is established is to procure registration of the company for the benefit of its members under the Limited Liability Scheme (the Scheme) operated by the Professional Standards Council (PSC) and pursuant to professional standards legislation in various jurisdictions across Australia.
Approval was granted by the PSC in respect of the establishment of the APIV Scheme pursuant to the Professional Standards Act 1994 (NSW). Mutual recognition provisions in the legislation mean that the Scheme operates in all jurisdictions in the country with the exception of Tasmania.
The PSC gave approval for the Scheme to commence from 1 September 2010 and the establishment of administrative structures meant that the Scheme was available to members from 1 December 2010.
The Scheme is administered through APIV, a company limited by guarantee, established by the API as an occupational association for members of the valuation profession.
About the Scheme
In essence, the Scheme will cap the occupational liability of participating APIV Members to an amount between $1 Million and $10 Million, depending on the Upper End Value of the property being valued, and to the extent that liability can be limited under the respective State or Territory legislation.
Participating in the Scheme
The Scheme applies to all members of the APIV Limited. A condition of membership of the APIV is that a person must also be a member of API and therefore the following members of API will be eligible for the scheme:
- Life Fellow Member (who holds the certification of Certified Practising Valuer)
- Fellow Member (who holds the certification of Certified Practising Valuer)
- Associate Member (who holds the certification of Certified Practising Valuer)
- Provisional Member (who holds the designation of Residential Property Valuer)
In addition, only members of API who reside in Australia and undertake the valuation of real property will be members of the APIV Limited. The API holds the view that only Provisional Members who hold the designation of Residential Property Valuer have the requisite knowledge and experience to undertake valuations of residential property in their own right. Further, the API holds the view that only Associate, Fellow and Life Fellow Members who hold the certification of Certified Practising Valuer (CPV) have the requisite knowledge and experience to undertake valuations of all classes of property/assets in their own right.
An Application Form regarding participation in the Scheme is available from the Resources section below. The Application Form must be completed in full and returned, together with payment, in order for processing to be completed.
In brief and by way of example, for members of a firm which undertakes valuations of real property to gain the full benefit of the Scheme and the limitation of liability, all valuers (that is, any API Member who undertakes valuations and who is a Life Fellow, Fellow or Associate Member of the API who is also a CPV or who is a Provisional Member of the API who holds the Residential Property Valuer designation) within the firm would need to be members of the APIV Limited and have completed the notification form. Please note that this is crucial.
You may apply for an exemption to the Scheme under certain circumstances.
The Professional Standards Council (PSC) requires that each occupational association with a Limitation of Liability Scheme, such as the APIV Ltd, audits its members on each Scheme’s compliance requirements.