This advice relates to requests from homeowner(s) for a valuation report that can be used as supporting evidence for an application for the HomeBuilder Scheme Grant.
Valuer Members are reminded that valuation reports must be prepared in accordance with the requirements under the International Valuation Standards, namely IVS 103 Reporting. Paragraph 30 details the minimum requirements for a report to be deemed to be compliant with the IVS.
The API advises that a request for the Valuer to permit a PropertyPRO Report, prepared under instruction for mortgage security purposes, to be submitted as supporting evidence for a HomeBuilder Scheme Application should be denied with the Valuer offering to provide an alternative appropriate valuation report at a fee agreed between the Valuer and the homeowner.
The API recommends that the purpose of a valuation report for a HomeBuilder Scheme Application notes that it is for “HomeBuilder Grant Application only”. The report should also include an appropriately worded third-party disclaimer which limits the use and reliance on the report to homeowner for the purposes of completing and submitting a HomeBuilder Grant Application only. It is also recommended that neither the Valuer nor the Valuation Firm accept any responsibility for the outcome of any HomeBuilder Grant Application submitted using information contained within the valuation.
The Valuer should also take into consideration any requirements under their Professional Indemnity Insurance Policy.
If they are any questions regarding this advice, please do not hesitate to contact us at [email protected].
Posted on October 9, 2020
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