Definitions

Question 1

Special Assumption

Answer 1

An assumption that either assumes facts that differ from actual facts existing at the valuation date.

Must be

Realistic

Relevant

Valid

Question 2

Special purchaser

Answer 2

A particular buyer for whom a particular asset has a special value because of advantages arising from its ownership that would not be available to other buyers in the market

Question 3

Special value

Answer 3

An amount that reflects a particular attributes of an asset that are only of value to a special purchaser

Question 4

Assumption

Answer 4

A supposition taken to be true l. It involves facts, conditions or situations affecting the subject of, or approach to a valuation that, by agreement, do not need to be verified by the valuer as part of the valuation process.

Any such assumption must be reasonable and relevant having regard to the purpose for which the valuation is required.

E.g
- information provided is accurate
- full planning permission for its use
- building is structurally sound

Question 5

Basis of value

Answer 5

A statement of the fundamental measurement assumptions of a valuation.

Question 6

What is the Red Book?

Answer 6

The RICS Red Book contains mandatory rules and best prectice guidance for members who undertake asset valuations