25/02/2011
“RICS has a crucial role to play in ensuring credibility for the professional….integrity comes from within and cannot be imposed from the outside…..stakeholders the world over will respect us more” RICS President
Until now most forms of valuation undertaken for loan security, accounting purposes or others (such as valuations required for probate or matrimonial purposes), where a third party needs to rely on such a valuation and its contents, are required to have been carried out under regulations required by RICS (Royal Institution of Chartered Surveyors) known as “Red Book” valuations. These regulations are mandatory and outline how instructions are accepted between the parties, the methodology that the valuer follows and the format and content of the report itself. It has, since its introduction in 1980, become an industry recognised standard of Valuation Reporting.
However, the RICS has initiated and implemented improvements this year, in the form of a regulation and monitoring scheme known as the Valuation Regulatory Framework and this will apply to all RICS members wishing to carry out valuations under “The Red Book”. The purpose of this Framework is to further raise valuation standards and to ensure that output can and is monitored and quality continues to improve. It will encompass all types of property and will eventually cover many world regions but the launch this year will cover just UK and Europe.
So what are the changes being made and how will this affect you? Any individual or firm carrying out “Red Book” valuations will need to become an RICS Registered Valuer and they will be clearly identifiable, thus showing competence and integrity. It will be a “kite mark of quality” for the individual and firm. Not only will this registration look to improve the perception of valuers and valuations undertaken by the Public but also Registered Valuers will be recognised by Banks and Building Societies for loan security or mortgage lending. Valuations of this nature will only be able to be carried out by RICS-registered valuers.
These changes are due to become mandatory with effect from April 2011.
Once fully implemented, those seeking a valuation for whatever reason and especially the public, will be provided or have access to a Register of Valuers or regulated firms participating in the scheme, thus ensuring complete transparency and greater protection.
Vail Williams will be a participating and regulated firm and will have at least twelve registered valuers carrying out commercial property valuations, residential valuations and development appraisals across the regions.
To disucss anything you have read in the above article, please contact our Valuation team.
