Standard Instructions for Office, Industrial and Retail Valuations
In January 2016, the API released Standard Instructions for Office, Industrial and Retail Valuations which provide the basis upon which suitably qualified members of the API will provide valuations of office, industrial and retail investment property for first mortgage security purposes but do not include valuations of development sites or any valuation prepared for construction finance purposes.
These instructions form part of the retainer agreement between the Lender Client and the Valuer, unless expressly stated at the time of appointment to the contrary. The intention of these Standard Instructions is to provide clarity for Valuers and Lenders alike, in a very high risk area of valuation practice.
Each report prepared by a Valuer, should expressly state that it has been carried out pursuant to these Standard Instructions. If a Valuer cannot include the content requested in these Standard Instructions, or does not consider any part of these instructions to be relevant to the valuation they are performing, this should be clarified with the instructing party in writing. Otherwise, the report structure and form is entirely a matter for the professional judgment of the valuer carrying out the valuation.
There is nothing in this document which prevents a valuer providing additional information in their report if they consider it relevant to do so.