The API is pleased to publish another of our standards series articles which are designed to provide plain English explanations of individual API Rules, specifics topics or reminders about principles and concepts.

The API provides the following to reinforce the concepts and principles contained in Rule 14 which covers statutory valuations (rating and taxation valuations) provided by API Valuers for and on behalf of a statutory body.

This article is intended to serve as a reminder for Valuers as to what is a statutory valuation and what is not a statutory valuation.

Statutory Valuations are …

A statutory valuation is an assessment completed under enabling legislation for rating and taxation purposes and is subject to an objection and/or review process.

A statutory valuation, by its very nature, and it’s intended use, may not always meet the rigorous processes required under Rule 11 (Valuation Process) and Rule 12 (Desktop Process) of the API Rules of Professional Conduct. (“Rules”) and as such should not be relied upon for other purposes.

Statutory Valuations are not …

An instruction from a statutory body for a valuation or desktop assessment that is not for rating and taxation purposes is not a statutory valuation.

For example, a statutory body may require valuation advice for purposes including, but not limited to, acquisition and disposal purposes, financial and asset reporting, means testing and or rent negotiations. These are not statutory valuations as they are not for rating and taxation purposes.

A valuation or desktop assessment for any purpose other than rating and taxation purposes must comply with the instructions from the client and the requirements of Rule 11 or 12 of the Rules as applicable.

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