Valuation

Question 1

What is VPS 1?

Answer 1

VPS 1 covers terms of engagement

Question 2

What is VPS 2?

Answer 2

VPS 2 covers inspections of properties

Question 3

What is VPS 3?

Answer 3

VPS 3 covers reporting for valuations

Question 4

What is VPS 4?

Answer 4

VPS 4 covers basis of value, assumptions and special assumptions.

Question 5

What is VPS 5?

Answer 5

VPS 5 covers method of valuation

Question 6

What are the contents of a valuation report?

Answer 6

Identification and status of the valuer
Identification of the client and intended users
Purpose of the valuation
Identification of the asset or liabilities valued
Basis of value adopted
Extent of investigation
Nature and sources of information relied on
Assumptions and special assumptions
Restrictions on use, distribution and publication
Confirmation that valuation is undertaken in accordance with the IVS
Valuation approach and reasoning
Amount of the valuation or valuations
Date of tue valuation report
Commentary on material uncertainty in the valuation and on market
Statement setting out limitations on liability agreed

Question 7

What is the definition of valuation?

Answer 7

The estimated amount for which an asset or liability should exchange on the valuation date, between a willing buyer and willing seller in an arms length transaction after proper marketing where the parties have both acted knowledgeably, prudently and without compulsion.

Question 8

What are VPS?

Answer 8

Valuation technical performance standards

Question 9

What are vpgas?

Answer 9

Valuation practice guidance and application

Question 10

What are the five exempted circumstances?

Answer 10

Agency and brokerage
Expert witness
Internal valuation 
Advocate or course of litigation
Statutory functions

Question 11

What should be addressed in the terms of engagement?

Answer 11

Identification of the valuer
Identification of the client
Identification of any other intended users
Identification of assets or liabilities to be valued
Valuation currency
Purpose of valuation
Basis of valuation
Valuation date
Nature and extent of the valuers work including investigations
Nature and sources of information relied upon
Assumptions and special assumptions
Format or the report
Restrictions on use, distributions and publication of report
Confirmation of accordance with IVS
Basis on which fee is calculated
Where firm is registered for regulation with RICS
Complaints handling procedure
Compliance with RICS regulations and subject to monitoring.
Statement setting out limitations on liability agreed.