API State of Emergency Declaration
We have been monitoring the changing environment and reviewing when the State of Emergency can be declared over. Due to current economic uncertainty and the rising unemployment rate in Australia, the API declared State of Emergency needs to remain in place until further notice.
Updated Valuation Protocol – Significant Valuation Uncertainty
In light of the following:
- some restrictions easing in certain States and Territories;
- being three months on from the start of COVID-19;
- hearing anecdotal evidence that not all markets and asset classes are similarly affected by COVID-19; and
- the International Valuation Standards Council releasing a paper dealing with market uncertainty on 31 March 2020.
We have reviewed and refined the existing version of the Significant Valuation Uncertainty Protocol which applies to Valuer Members when undertaking valuations.
To view or download a copy of the updated valuation protocol, click here.
What are the key clarifications?
- the sample disclosure statement is only to be included where there is significant and not normal market uncertainty,
- it is up to the valuer to make a decision as to whether there is significant market uncertainty leading to significant valuation uncertainty,
- if the valuer deems there is significant valuation uncertainty, they must include a disclosure statement, in the valuation report,
- the same valuation process is to be undertaken for all valuations regardless of whether they are during COVID-19 or not; and
- the standard of investigation, assessments and reporting by members is the same during COVID-19.
If a Valuer Member deems in their professional opinion to not include a disclosure statement, they must confirm with their professional indemnity insurance policy, including any COVID-19 policy endorsements to ensure it permits exclusion.
To view or download a copy of the updated protocol, click here.
Reminder - New Rules of Professional Conduct
In late February, an API Member Alert announced that the new Rules of Professional Conduct (Rules) would come into effect on 4 April 2021. The new Rules provide clarity to Members and those…
Public Review of Strata Schemes
The NSW Government is extending public consultation on the statutory review of the Strata Schemes Management Act 2015 and Strata Schemes Development Act 2015. The closing date for submissions has…
IVSC Exposure Draft released – IVS Additional Technical Revisions (2021) - Invitation to provide feedback
The IVSC has recently published targeted revisions to IVS based on feedback received since the release of the IVS effective 31 January 2020. In keeping with its commitment to a…
New Rules of Professional Conduct Effective Date Postponed from 28 February to 4 April 2021
In October 2020, the API announced that the new Rules of Professional Conduct (Rules) would come into effective on 28 February 2021. As a result of recent, important member feedback…
Exposure Draft open for comment – Valuations of Rural and Agribusiness Properties
The API Standards Steering Committee has approved an updated version of the Technical Information Paper (TIP) – ANZVTIP 9 Valuations of Rural and Agribusiness Properties to be released as an Exposure Draft for consultation and feedback. The Exposure…
IVSC Perspectives Paper: Challenges to Market Value
The IVSC’s Tangible Assets Board has recently published a Perspectives Paper: Challenges to Market Value after receiving feedback that in some markets there is an increasing difference between Price and Value. Whilst quantifying this…