Guidance questions Flashcards
What is the requirements of a RICS red book valuation
- ToE- fee basis, expense basis, how its calculated and CPH
- Purpose of valuation
- Inspection and Investigations
- Valuation report
- Any special assumptions
- method and basis of valuation
What is the latest version of the RICS valuation global standards “red book”
The latest update was provided in 2021 and adopted in Jan 2022.
The is also an updated International valuation standards 2022
and the uk supplement sits along side these
When might you not carry out a red book valuation
- for internal purposed where a valuation is being undertaken but a 3rd party wont see this
- For marketing or agency purposes
- for Independent expert valuations
- Litigation- providing valuation advice during litagation
- for statutory functions- except tax return
When should a valuation be red book?
- lending purposes
- for valuing assets held in a pension fund
- for divorce proceedings
- for compulsory purchases
- Tax and liability planning
What are the updates to the Red book since the new version in 2022
- requirement for clearer ToE- it must clearly state if a valuation is red book or not. No room of ambiguity. If it is not it must state the exception under VPS 1-5 of expectations.
- must provide more commentary around sustainability and ESG and consider how this effect the value. RICS provide other guidance notes to help with this.
- Various changes to the VPGA’s
surveyors should consider updating valuation templates
If a valuation is not red book can you totally disregard the red book?
NO - all valuation should still comply with PS 1 and PS2
PS1- follow the rules set out in the RICS valuation global standards
PS2- ethics, competency and disclosure
What does the Surveying Safely Guidance cover
- my responsibilities and my employers
- advice on assessing hazards and risk
- occupational hygiene
- advice on site safety
- advice on managing contractors
What does RICS technical Due Diligence of commercial properties cover:
- types of inspection
- inspection advice- identifying deleterious and hazardous materials, H&S, fire safety, environmental considerations, services, sustainability and cultural heritage
- Guidance for report writing
What does RICS professional statement on real estate management cover ?
It covers:
- Ethics, ToE and CoI
- new leases and lease renewals
- property management- rent collection, repairs, insurance, service charges, alienation, irritancy, H&S issues
- Asset and portfolio management
What is covered in the SPFM
It sets out the rules for the handling and reporting of public money and covers topics such as:
It covers acquisitions, disposals and property management
In essence it provides us with an obligation to ensure we are achieving best value for money when it comes to any of the above.
