12 - Negligence

Question 1

What is a Duty of Care

Answer 1

This exists to clients and third parties, using a “reasonable care and skill”.

Question 2

When a duty of care is breached, what happens?

Answer 2

If there is a loss, a claim for damages arises (aka negligence)

Question 3

How might you avoid claims of negligence made against you?

Answer 3

• Follow RICS guidance
• understand client requirements
• clearly outline these in your scope of works terms of engagement
• ensure competence before proceeding

Question 4

What is the legally acceptable Margin of Error in Property Valuation?

Answer 4

An acceptable margin of error is +/- 5% for single residential properties, +/- 10% for single commercial properties, and +/- 15% for more complex holdings.

Question 5

What happened in Yianni v Edwin Evans (1981)

Answer 5

Residential valuer instructed by a mortgage lending insitution could owe a duty of care in tort to a mortagee purchaser relying on a valuation.

Question 6

What is set out in the limitation act 1980?

Answer 6

In England and Wales, the limitation period may be:
* 6 years from when the service was provided
* 6 years from when a loss was suffered
* a long-stop position of 15 years if the claimant did not know a loss was suffered earlier or 12 years, depending on the yupes of instruction adn the type of claim