Client Care

Question 1

Which section of the RICS Global Standard ‘Red Book’ sets out standards for Terms of Engagement?

Answer 1

• VPS1

Question 2

What are the required headings to be included in Terms of Engagement (ToE)?

Answer 2

a) identification and status of the valuer;
b) identification of the client(s);
c) identification of any other intended users;
d) identification of the asset being valued;
e) currency;
f) purpose of the valuation;
g) basis of value;
h) valuation date;
i) nature and extent of valuer’s work (including investigations and limitations);
j) nature and source of information valuer will rely upon;
k) assumptions and special assumptions;
l) format of the report;
m) restrictions on use and distribution;
n) confirmation valuation will be in accordance with IVS;
o) how the fee will be calculated;
p) reference to complaints handling procedure;
q) statement that compliance may be subject to monitoring under RICS’ conduct and disciplinary regulations;
r) statement setting out limitations on liability.

Question 3

What are the required headings to be included in the Red Book report?

Answer 3

a) identification and status of the valuer;
b) identification of the client(s);
c) identification of any other intended users;
d) identification of the asset valued;
e) basis of value adopted;
f) valuation date;
g) extent of investigation;
h) nature and source of information relied upon;
i) assumptions and special assumptions;
j) restrictions on use and distribution;
k) confirmation valuation has been in accordance with IVS;
l) valuation approach and reasoning;
m) amount of the valuation;
n) date of the report;
o) commentary on any material uncertainty;
p) statement setting out limitations on liability.