Version 4.1 (effective from 4 December 2023) 

The Residential Valuation Industry Committee (RVI Committee) conducted a review of V4 of the ABFI Residential Valuation Standing Instructions (ABFI RVSI) and have released a revised version (V4.1) which is effective from 4 December 2023 with earlier adoption not permitted. 

A copy of V4.1 is available in the resources below, as is a compare version showing changes made between V4 and V4.1. 

The new version (ABFI RVSI V4.1) includes a number of changes throughout the document to provide clarity and guidance to instructing parties and API Valuer Members in regard to certain scenarios. 

 

Section Change
2.4 Unsuitable/Out of Scope New items added to align to existing sections of RVSI

x. Vacant land valuation requests where the vacant land is not re-saleable at the date of valuation or at settlement in the open market

y. Vacant land for which a single dwelling is a ‘discretionary use’

z. Properties where a residential use is performance based
6.3 Essential Repairs Clarification on minimum risk rating and required commentary
7 k Identifying Adverse Risk
Clarification of when non-residential income requires a VRA 1 with change to rural lifestyle or hobby farm example

Where ancillary improvements are currently generating or have an immediate capability to generate non-residential income
8.1 xii VRA 1

 

And

11.4 Building Contract, Check Costs and Drawdown Schedule Requirements

 Previous point on builder increases deleted and now redrafted as point f.

f. The building contract includes onerous clause/s allowing the builder to increase the contract price.

 

Previous point on builder increases deleted and now redrafted as point j. New note box to inform on when not to trigger VRA 1

Note In reference to 11.4 j – DO NOT trigger VRA 1 if the clause/s allowing the builder to increase the contract price are for:

·        Prime Cost Items, or;

  • Provisional Sums, or;
  • Standard clauses contained within an industry recognised standard form building contract, or;
  • Cost escalation clauses resulting from delayed commencement which:
    • are considered incidental, or;
    • gives the client the right to rescind the contract.
9.2 Providing Additional Comments Updated section title to include ‘Additional’ and further instruction on commentary for VRA or risk rating.

Additional comments relating to any VRA triggered or a 3 and greater risk rating must clearly describe the risk, be current and detail any source of information relied upon.
9.4 Issuing Amended Reports Additional instruction on detailed commentary required

• what has been changed and why,

• documents and/or evidence provided or sought that supports the amendment (where applicable)
11.7 Additional Requirements for Owner Builder Construction Valuations New instruction as point k on when the owner and sub-contractor/builder are not at arm’s length
13.1 Progress Inspections – General Requirements Additional instruction in Note box

• not confirm part payment of a stage (where the stage is not fully complete).
13.3 Issuing Final Progress Inspection Reports Additional instructions when there is incomplete works

b. Indicate if any prime cost items or minor works are still to be installed at handover

c. If the final stage has not been fully completed at the time of inspection (except for installation of prime cost items or minor incomplete works), complete the Progress Inspection report (i.e. not a Final Inspection report) considering the last completed stage and provide detailed commentary on the incomplete works.
13.4 Issuing Amended Progress Inspection Reports New section on issuing amended progress inspection reports

When issuing an amended Progress Payment Inspection Report, the valuer must follow the same instruction provided for a PropertyPRO report

Members are encouraged to review the entire document to ensure they are aware of all the changes that have been made to the ABFI RVSI. 

Resources:

Residential Valuation Standing Instructions

Residential Valuation Standing Instructions 4.1 compare with Version 4

Key changes including examples for Valuers.

Version 4 (effective from 26 March 2023) 

The Residential Valuation Industry Committee (RVI Committee) conducted a review of V3 of the ABFI Residential Valuation Standing Instructions (ABFI RVSI) and have released a revised version (V4) which is effective from 26 March 2023 with earlier adoption not permitted. 

The new version (ABFI RVSI V4) includes a number of changes throughout the document to provide clarity and guidance to instructing parties and API Valuer Members in regard to certain scenarios. 

Items of note include: 

  • Minor grammar and formatting updated throughout. 
  • Section 2.4 (w) – new ‘Unsuitable/Out of Scope’ request 
  • Section 3.3 – update to the definition of ‘Highest & Best Use’ to align with the PPSM 
  • Section 3.10.3 –guidance relating to what to do “where vacant land is not resaleable…” 
  • Section 8.1 – updates to examples relating to VRA 1 
  • Section 8.4 – updates to VRA 4 
  • Section 9.4 – additional guidance on ‘Issuing Amended Reports’ 
  • Section 9.5 – update to the requirements relating to the use of photos taken or sourced from others 
  • Section 10 – updates to the section relating to the valuation of vacant land 
  • Section 11.4 – updates to requirements for ‘construction valuations’ 
  • Section 11.8 – updates to the ‘split contracts for multiple dwelling residential developments’ 
  • Section 12.8 – further guidance relating to ‘relocatable and (off site) manufactured homes’ 

Members are encouraged to review the entire document to ensure they are aware of all changes that have been made to the Standing Instructions. 

Resources :

ABFI Residential Valuation Standing Instructions V4 

Previous Versions of the ABFI Residential Valuation Standing Instructions:

The Residential Valuation Standing Instructions were originally developed in 2012 to provide operational clarity for the valuation community and were a significant step forward in providing further guidance, clarity and consistency in the requirements of the lending institutions.  

The list below gives access to previous editions of the Residential Valuation Standing Instructions: 

Title  Date Released 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 4  26 March 2023 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 3  6 December 2021 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 2.2.2  4 October 2020 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 2.2.1  1 October 2019 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 2.2  Withdrawn prior to release 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 2.1  1 September 2018 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions Version 2.0  2 October 2017 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions 1.1.4  October 2016 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions 1.1.3  September 2015 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions 1.1.2  June 2015 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions 1.1.1  August 2014 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions 1.1  July 2014 
Australian Banking and Finance Industry (ABFI) Residential Valuation Standing Instructions 1.0  October 2012 

Please note that these versions of Residential Valuation Standing Instructions have been superseded and are no longer current.