With COVID-19 continuing to be an ongoing issue in 2022, we would like to remind Valuer Members that the advice in these protocols regarding inspections, data collection and disclosure requirements remain in place.
The API advises that in all cases where the client has requested a valuation, the Valuer must attempt to carry out a full personal inspection of the asset in accordance with accepted valuation practice.
In those circumstances where a Valuer is unable to undertake a full inspection valuation, for whatever reason, the hierarchy of inspection consists of;
- a limited (or restricted) on-site inspection without the benefit of an internal inspection of any improvements,
- a kerbside inspection, and finally
- a desktop assessment where no physical inspection is undertaken by the Valuer.
To ensure there is no confusion between the client and the Valuer, it is important that the instructions from the client outline the inspection type they require the Valuer to undertake. This would normally necessitate the Valuer requesting varied/amended/new instructions from the client.
As per the API Rules of Professional Conduct, valuations and reports must;
- detail the extent/form of the Valuers physical inspection (or otherwise) of the asset;
- include clear commentary on the source of the information included in and relied upon in the report/advice; and,
- include clear commentary on any assumptions made, limitations and conditions/qualifications of the report/advice.
If there are any comments or feedback regarding this advice, please do not hesitate to contact us at [email protected].
Posted on January 12, 2022