VPS 3

Question 1

What must be included within the valuation report?

Answer 1

-Accurately sets out the conclusions of the Vals report so its not misleading or gives false impression
-Deals with the matters agreed between the client & valuer in the TofE

Question 2

What must you do if not reporting in the standard format?

Answer 2

Agree an initial service agreement and/or state in the Terms of Engagement.

This then makes the report compliant with IVS

Question 3

If advise is given to a client in any format, what does that create for the surveyor?

Answer 3

A liability to the client

Question 4

Should the terms ‘certificate of value’, ‘valuation certificate’ and ‘statement of value’ be used in relation to a valuation report?

Answer 4

No

Question 5

What must a valuation report address? & why.

Answer 5

So that it meets the terms set out in the TofE.

Must included;
-identification & status of valuer
-identification of client & other intended users
-purpose of valuation
-Identification of asset or liability
-basis of value adopted
-valuation date
-event of investigation
-nature & source of info relied upon
-assumptions & special assumptions
-restrictions on use
-distribution & publication of the report
-confirmation that the val has been undertaken in accordance with the IVS
-val approach & reasoning, amount of the val/s
-date of the vals report
-commentary on any material uncertainty where it is essential to ensure clarity and statement setting out any limitations on liability agreed

Question 6

What must be included within the report from the valuer

Answer 6

A signature of the individual responsible, statement confirming the valuers pos to provide an objective & unbiased valuation.

Declare any material assistance the valuer received.

*report can’t be prepared by a firm, has to be an individual
*statement should be made that the valuer has sufficient knowledge of the local/national market

Question 7

What do you need to do if the asset being valued is used in conjunction with other assets?

Answer 7

Necessary to clarify if the asset is to be used in conjunction with other assets, need to determine if;
-Included in the val assignment
-Excluded but assumed to be available
Or
-Excluded & assumed not to be available

*have to be careful with portfolios

Question 8

What must you do in regards to the basis of value within the report.

Answer 8

-BofV must be appropriate for purpose
-Source of the definition of any BofV must be cited & explained in report in full

Question 9

What should you do when the basis of value if not market value

Answer 9

-Include a explanation as to why,

Question 10

When valuing an asset in the future what must you not do?

Answer 10

Refer to it as a market value

Question 11

Is the valuation date and report date the same?

Answer 11

No, they are different and have to be clearly stated on the report

Question 12

Where do you define extent of investigations? & what might these be

Answer 12

Within the report & as set out in the report.

-Date & extent of inspection including any area not accessible
-If not inspecting as a re-valuation then this has to be stated & agreed

Question 13

What should you do in regards to info relied upon in the report?

Answer 13

State it in the report and any steps taken to verify the info
Must be stated within the TofE

Question 14

What must you do as the valuer in regards to assumption and special assumptions?

Answer 14

-Must be set out in the report in full with any reservations
-A statement that they have been agree with the client
-Both the conclusion & exec summary should explicitly set out all special assumptions that have been made to arrive at the reported figure

Question 15

Is the valuation date and the issue date the same?

Answer 15

No

Question 16

What should the valuer do if a material change in market conditions occur between val date & report date?

Answer 16

Draw attention to this, to the client

Question 17

What should a valuer not do?

Answer 17

Mislead, clients or other interested parties

Question 18

What should a valuer do if their report is being published, but not in full?

Answer 18

Prepare a draft statement containing;
-Name & qualification of the valuer
-Indication of whether the valuer is internal or external
-Valuation date & basis of value & special assumptions
-Comment on extent to which values were determined directly by market evidence or estimated by technic
-Confirm if val is in accordance with the Red Book
-Statement for any parts prepared by another valuer

Question 19

What should the valuer do if report not published in full/published to the public

Answer 19

-Refer to omissions, in the express instructions
-If not in full then the publication statement must refer to special assumptions

Question 20

What should the valuer confirm in regards to the report?

Answer 20

That the valuation has been undertaken in accordance with the International Valuation Standards.

-Notes accompanying to explain any departures & justifications

Question 21

If a valuation had to be reported in a different currency what would you do?

Answer 21

State conversion rate used on the valuation date

Question 22

Define material

Answer 22

Where the degree of uncertainty in a valuation falls outside any parameters that might normally be expected and accepted.

Question 23

What are the key ingredients to a valuation?

Answer 23

Professional opinion, state basis of value, appropriate assumptions