What constitutes a Valuation of real property by an API Valuer under the API Rules?
This has been debated recently and we can confirm that commentary as to valuations undertaken without a physical inspection do not apply to valuations undertaken for statutory purposes which are completed in accordance with legislation in the jurisdiction that the property is situated and the “Statutory Valuations” rule in the API Rules of Professional Conduct.
Existing API Rules state that valuations include full personal inspections by the Valuer as well as limited on-site inspections and kerbside inspections by the Valuer. The Rules further require the Valuer to include in the valuation report details of the extent/form of physical inspection of the asset personally undertaken by the Valuer. Furthermore, APIV Scheme documentation requires a physical inspection of the real property asset by the primary valuer.
The physical inspection by the Valuer could be in the form of a comprehensive inspection in accordance with accepted valuation practice in Australia, a limited (or partial) on-site inspection or a limited off-site (kerbside) inspection. In all scenarios the Valuer personally physically attends the real property asset that is the subject of the valuation.
A desktop assessment process, which does not include any form of physical inspection of the real property asset by the Valuer, therefore does not meet the requirements of a Valuation under the API Rules or APIV Scheme.
A Valuation, by an API Valuer, requires a physical inspection of the asset by the Valuer as well as all other enquires, investigations and procedures in accordance with accepted valuation practice in Australia and required under the API/APIV rules and standards.
This statement is in effect from the date of release. If there are any queries in relation to this statement, please contact [email protected].
Posted on November 16, 2023