Valuations are one of the most highly regulated areas of work a Chartered Surveyor can undertake. Valuers are regulated, via a Valuer Registration Scheme (VRS), via the Royal Institution of Chartered Surveyors (RICS) with valuations, for most purposes, needing to comply with Global Valuation Standards (The Red Book).
The Red Book sets out mandatory practices and guidance for RICS members conducting valuations and is a crucial reference tool for stakeholders worldwide. It is essential for maintaining and improving high service standards and meeting the demands of an ever-evolving global regulatory landscape. It supports the creation of accurate, compliant, objective and transparent valuation reports benefitting the public and market stability. The Red Book was last published in January 2024 but, from 31 January 2025, a new edition of the Global Red Book will become effective for RICS professionals.
The Red Book sets out mandatory practices and guidance for RICS members conducting valuations and is a crucial reference tool for stakeholders worldwide. It is essential for maintaining and improving high service standards and meeting the demands of an ever-evolving global regulatory landscape. It supports the creation of accurate, compliant, objective and transparent valuation reports benefitting the public and market stability.
Taking into account the above, if you enquire about a valuation, it is likely we will ask for what may seem a lot of information. In addition, if instructed, you will be required to a terms of engagement letter confirming this key information to ensure consistency within the report that is produced. So, what sort of things would we ask you to confirm?
- What we are valuing i.e. an address of a property and a description of what this comprises. This can be a headline description such as, for example, “three-bedroom detached dwelling” or “five acres of land and associated buildings”;
- If possible, a copy of the Land Registry title/title plans applicable to the property or, failing that, any plans available;
- Who our client is (to whom the report should be addressed). If this is for a deceased’s estate – their name is required;
- Why the valuation is required;
- The basis of valuation required (e.g. Market Value, Market Rent);
- The valuation date (e.g. for estate administration, this would be the date of death);
- Whether the property is freehold or leasehold or subject to any tenancy agreements. We will need details of the occupation/agreements to assess impact upon value;
- Any assumptions or special assumptions to be made within the valuation, if any.
Without the above information we cannot complete terms of engagement which are a requirement of our regulatory body and the RICS Registered Valuer scheme. Without formal terms of engagement, we cannot proceed with the required valuation work. This is not negotiable. So, whilst the on-boarding process may seem onerous at the start, it is there to assist us to fulfil regulatory requirements which, in turn, ensure that report users can expect and receive high service standards.
If you have any valuation requirements within Worcestershire, or the immediately surrounding areas – we offer simple, fixed fee, quotations and rapid upgrade options to obtain reports with a faster turnaround time where appropriate and possible. Please get in touch and we can see how we can help!