Vals 4

Question 1

What is the full title of the red book?

Answer 1

Rics valuation global standards

Question 2

What editions of the red book have been in effect during your apc training?

Answer 2

RICS valuation global standards, 2019 effective 31st January 2020 and RICS valuation Global standards 31st 2022

Question 3

What is the purpose of the red book book?

Answer 3

Ensure consistency transparency and objectivity

Question 4

What valuations are exceptions to the red book?

Answer 4

Internal purposes, estate agency , statutory function, negotiation and litigation, expert witness

Question 5

What do your valuation files contain?

Answer 5

Conflicts of Interest Check
Terms of Engagement
Planning and rating searches
Inspection and investigation Notes
Comparable evidence
Valuation Calculations and rationale
Valuation Report
Copy of Invoice for fees

Question 6

What are the main contents of the Terms of Engagement for a Valuation?

Answer 6

21 headings -
Identity of Client and Valuer and asset
Valuation date
Purpose of the Valuation
Basis of value
Extent and limitation of investigation
Departures (if any)
Assumptions
Special Assumptions
Fee
Complaints Handling

Question 7

Name the red book global basis of value?

Answer 7

Market value
Market rent
Investment value
Fair value

Question 8

Name the uk specific bases of value?

Answer 8

Existing use value
Existing use value for social housing
Projected market value

Question 9

Define market value?

Answer 9

On the valuation date between a willing buyer and willing seller in an arms length transaction after proper marketing acting knowledgeable

Question 10

Name three things that can adversely affect the certainty of valuations?

Answer 10

Lack of market transactions
An unstable market
Unusual property characteristics

Question 11

Name the 5 conventional methods

Answer 11

Comparable
Investment
Profits
Residual
DRC (contractors method)