What is the full title of the red book?
RICS Valuation Global Standards
When did the current edition of the red book come into force?
31st Jan 2022
Who are the international valuation standards council?
Not for profit organisation that sets global standards for valuation practice and standards dominated by accountancy firms
What editions of the Red Book have been in effect during your apc training period?
The RICS Valuation Global standards, 2019 effective 31st Jan 2020 and RICS Valuation Global standards 31st Jan 2022
What is the purpose of the Red Book?
Ensure constituency, transparency, objectivity.
Does no instruct on how to value, it gives how best practice
What is the purpose of the uk national supplements?
Supplements the red book (global standards) does not replace it
To what valuations does the red book apply?
All valuations unless valuation is listed as exception
What valuations are exceptions to the red book?
Internal purposes, estate agent marketing, statutory function, acting as expert witness, negotiations
Name some valuations that are carried out for a statutory function?
Where legislation tells us what to do.
rating, compulsory purchase, lease renewals, leasehold enfranchisement
What is the difference between VPS and VPGA
Compliance for VPS is mandatory to comply to,
VPGA is compliance/best practice for advised for
What are the possible consequences if a valuer does not comply with a VPS?
Personal liability
Lost rics membership
Fined
Put in disciplinary pages
Possible consequences if a valuer does not comply with a VPGA?
Sued for negligence
Describe how departure from the red book mandatory requirements may be possible? VPS
If there is good reason, special circumstances where considered inappropriate to comply.
Most common departure is carrying internal inspection.
What info would you require from a telephone enquirer who asked if you can do them a valuation?
Who are you?
What is it?
Where is it?
When do u need it?
Is there a conflict of interest with seller?
Professional fees?
What do your valuation files contain?
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 invoices for fees
What are main contents of the terms of engagement for a valuation?
21 headings -
Identity of client and valuer and asset
Valuation date
Purpose of valuation
Basis of value
Extent and limitation of investigation
Departures (if any)
Assumptions
Special assumptions
Fee
Complaints handling
How would you respond to a request to value a property from a pavement assessment only?
Accepted in reasonable restrictions m
Must be mentioned in report
Floor plan and lease needed
Name the red book global bases of value
Market rent
Market value
Investment value
Fair value
Name the UK specific bases of value
Existing use value
Existing use value for social housing
Projected market value
What is the difference between basis of value and a method of valuation
Basis - red book definition to value
Method - procedure, technique calculation to arrive at figure
Three assumptions that are made in producing a valuation?
Good condition
Free from encumbrance
No hazards
Good title
Planning permission has been granted
What is a special assumption?
Sale in 6 months
Situations when it would be appropriate to make a special assumption?
Property is fully let
Property is vacant
Property is changed in specific way
Property has planning permission
Development has been completed
What is market value?
Value of a property between a willing buyer and willing seller in an arms length transaction with proper marketing
