RICS Valuation Terms and Conditions of Engagement
It is important that you read these Terms and Conditions carefully as they form the basis of the contract between us. The Terms and Conditions should help you decide whether or not a written valuation as described below is suitable for your requirements.
Description of Service
1.1 The instruction is in respect of a market valuation report and will be based upon an inspection of the subject property by a suitably qualified valuer who will then produce a standard format valuation report which is subject to a number of assumptions as detailed in the RICS Valuation – Professional Standards. Each part of the service is described below in more detail
1.2 The Valuation Report is prepared for the sole use of the client(s) and their professional advisors. The report is only valid for the purposes stated in section 1.1 of the report.
1.3 This service is intended for use only in situations where the client requires a basic valuation report and do not require specific advice on the condition of the property.
1.4 The property will be valued by means of the comparable method of valuation unless otherwise stated in the report.
1.5 Neither the whole nor any part of the Valuation Report or any reference hereto may be included in any published documents, circular or statement or published in any way without the valuer’s written approval of the form and context in which it may appear.
1.6 The valuation will be undertaken in accordance with the Internal Valuation Standards (IVS) of the International Valuation Standards Council.
1.7 The valuation will be undertaken in accordance with the RICS Practice Statements applicable at the date of inspection and the RICS Valuation – Global Standards 2017 also known as “The Red Book”.
2.0 The Inspection
2.1 The extent of the property to be inspected will be as defined by the client or, in the absence of such definition, the extent that appears to be reasonable to the valuer having regard to the available evidence on site.
2.2 The valuer will undertake a brief, limited inspection of the subject property, sufficient only to form an opinion of value. The valuer will not carry out a survey and will not inspect any part of the structure which is covered unexposed or inaccessible. Carpets will not be lifted and furniture will not be moved.
2.3 The valuer will inspect the outside of the main building from ground level and from within the property boundaries and where necessary adjoining public highways with the aid of binoculars where appropriate.
2.4 The valuer will inspect the grounds and boundaries sufficient only to the extent that is necessary to form an opinion of value
2.5 If the property is a flat, the valuer will only inspect the exterior of the building and any common or shared parts only to the extent necessary to form an opinion of value
2.6 The valuer will visually inspect sufficiently to determine the type and nature of the service connections but will not operate or undertake any test any systems and will not lift drainage inspection chamber covers.
2.7 The valuer may further limit the inspection should it be considered necessary due to either personal security or Health and Safety issues.
3.0 The Valuer
3.1 The valuer will be a Fellow, or Member of the Royal Institution of Chartered Surveyors (RICS) and a member of the RICS Valuer Registration Scheme and who is registered with the RICS to undertake such instructions and has the appropriate knowledge, skills and understanding to inspect, value and report upon the subject property.
3.2 The valuer will be an employee of Finance Planning Surveying Services Ltd.
3.3 The valuer will act in accordance with the RICS Valuation – Professional Standards as amended from time to time. Compliance with these standards may be subject to monitoring under RICS conduct and disciplinary regulations.
3.4 The valuer will have suitable equipment for inspecting and measuring the property which will be used where deemed to be necessary safe and practical at the valuer’s discretion
3.5 The valuer will immediately inform you of any known or suspected conflicts of interest, if applicable and will then confirm your instructions before proceeding further.
3.6 The valuer will not be acting as an expert within the meaning of Part 35 of the Civil Procedure Rules
4.0 The Valuation Report
4.1 The valuer will produce a report in standard format which will include an opinion of the market value of the relevant interest in the property.
4.2 The date of valuation will be assumed to be the date of inspection unless instructed otherwise or if the instruction is in relation to a valuation for probate cases in which case the date of valuation will be as stated in the instruction.
4.3 The valuation will be of the freehold/leasehold interest in the property as specified by you. If you are unable to specify the tenure the valuer will make one of more assumptions as considered appropriate and as set out in section 5.0 below.
4.4 The valuation will be on the basis of Market Value and/or Market Rent as appropriate and as described below
4.5 Market Value is defined as ‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’.
4.6 Market Rent is defined as ‘The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had acted knowledgeably, prudently and without compulsion.’
4.7 Valuation Date is defined as “The date on which the opinion of value applies. The valuation date shall also include the time at which it applies if the true value of the type of asset can change materially in the course of a single day”.
4.8 If instructed by you, the valuer will also provide an opinion of the property’s estimated Reinstatement Cost for insurance purposes. This will be calculated by reference to and in accordance with RICS Building Cost Information Service (BCIS) guidance. The figure will be exclusive of VAT, other than on professional fees, and will not reflect any loss of rent, the cost of alternative accommodation or any other consequential losses. If the property is a Listed Building, or is otherwise of an age and type for which BCIS data is not applicable, then the valuer will report accordingly. If the subject property is a flat, any Reinstatement Cost figure which is provided will be for the subject property only.
4.9 The report is provided strictly for your own use and it is valid only for the stated purpose. It is confidential to you and your professional advisers. As a RICS member, the valuer may be required to disclose the report to RICS Regulation as part of its work to ensure that RICS professional standards are being maintained.
4.10 The valuer accepts responsibility to you that the report will be prepared with the skill, care and diligence reasonably expected of a Competent Chartered Surveyor, but accepts no responsibility whatsoever to any other person. Any such person who relies upon the report does so as his or her own risk.
5.1 Unless specifically instructed otherwise, the valuer will make a number of assumptions about legal matters and the construction and use of the property, as set out below. Any other assumptions will be clearly stated in the report. The valuer will not be under any duty to verify these assumptions.
5.2 The valuer will assume that any relevant information provided by you or your professional advisors is accurate. It is your responsibility to advise the valuer if you become aware of any errors or omissions.
5.3 If the subject property is a house or bungalow, the valuer will assume that the tenure of the property is freehold unless instructed otherwise.
5.4 If the subject property is a flat, unless instructed otherwise the valuer will assume that the tenure is leasehold for an unexpired term of at least 70 year at a fixed peppercorn ground rent, that the lease contains adequate provisions of access, insurance, management and maintenance of the buildings and grounds, and that any service charge which is payable is reasonable.
5.5 The valuer will assume that the property is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings and that good legal title can be shown
5.6 A valuation provided on the Market Value basis will be on the assumption of a sale with vacant possession, unless otherwise stated in the report.
5.7 A valuation provided on the Market Rent basis will be on the assumption that the property is vacant, unfurnished and is available to let for a period of 6 months on a single assured shorthold tenancy, unless otherwise stated in the report.
5.8 The valuer will assume that an inspection of those parts which have not been inspected would not reveal any material defects or cause the valuer to alter the valuation.
5.9 The valuer will assume that no high alumina cement, calcium chloride, asbestos or other potentially deleterious or hazardous materials were used in the construction of the property or have since been incorporated,
5.10 The valuer will not undertake or commission a site investigation and will assume that the site is not land filled and is not adversely affected by any underground mining or other works, invasive vegetation, radon, methane or other gases or any actual or potential contamination or flooding. The valuer will assume that the land is of adequate bearing capacity for its present and potential uses.
5.11 The valuer will assume that the property and its value are unaffected by any planning, building, highway or other matters which would be revealed by a local search and replies to the usual enquiries, or, by any statutory notice and that neither the property, not its condition, nor its actual or intended use, is or will be unlawful.
5.12 The valuer will assume that all usual mains services are connected or are available under normal terms and that the roads, sewers and services outside the cartilage of the property are the responsibility of the Local Authority or other statutory body.
6.0 Acceptance of These Terms
6.1 If you wish to instruct us to carry out a Written Valuation Report in accordance with these Terms and Conditions, please complete and return the enclosed Instruction Form
6.2 If you require any further information or wish to negotiate any variations on these standard terms please contact us before you sign and return the Instruction Form
6.3 Please note that the Report will not be released until we have received a signed Instruction Form and it will only be issues in the name of the client(s) who have signed the Instruction Form
6.4 By returning a completed Instruction Form you agree to pay the valuation fee as set out in the Instruction Form. In addition you agree to reimburse the surveyor the cost of any reasonable out of pocket expensed which are incurred and pay VAT on the fee and expenses
6.5 You are entitled to cancel the contract by notifying us before the release of the report. In the event of cancellation on or before the day prior to the date of the inspection you will receive a full refund of the fee. In the event of cancellation on or after the date of inspection but prior to the release of the report you will receive a refund of 50% of the fee.
7.0 Complaints Procedure
7.1 In accordance with the requirements of RICS, Finance Planning Surveying Services Ltd operates a complaints handling procedure. Should you wish to make a complaint or require a copy of our procedure please write in the first instance to:-
R S Wells BSc (Hons) MA MRICS
Finance Planning Survey Services