Valuation - Red Book

Question 1

What are the different parts of the RICS Valuation - Global Standards 2021 Red Book Global?

Answer 1

Part 1 - Introduction
Part 2 - Glossary
Part 3 - Professional standards (PS)
Part 4 - Valuation technical and performance standards (VPS)
Part 5 - Valuation applications (VPGA)
Part 6 - The International Valuation Standards (IVS)

Structure of the RICS Valuation - Global Standards 2021 Red Book Global

Question 2

What are some key changes to the updated Red Book Global (RBG)?

Answer 2

The key changes include:
- The need for compliance with the RED and language used in the valuation reports
- Avoiding terms like ‘quasi,’ ‘partial,’ or ‘non-Red Book’
- Reference to IFS 13 and IFS 16 for financial reporting purposes
- Use of the profits method for certain trade-related property valuations
- Inclusion of Sustainability and ESG factors in the valuation approach
- Direct and indirect valuation relevance, and physical and transition risks

Key changes in the updated Red Book Global (RBG)

Question 3

What should valuers consider regarding ESG and Sustainability factors?

Answer 3

Valuers should consider:
- Definitions (Glossary)
- Inspections and reporting (VPS 2 and VPS 3)
- Valuation for secured lending purposes (VPGA 2)
- Direct and indirect valuation relevance, and physical and transition risks
- Definitions and scope of valuations in the International Valuation Standards

Considerations for valuers regarding ESG and Sustainability factors