Possible Brexit clause for ValuationsMake Text Bigger
The Royal Institution of Chartered Surveyors (RICS) has suggested a possible Brexit clause that can be added by member surveyors to be added to Valuation reports. This is intended to offer protection for Surveyors against the uncertainty of future house price movements while the issue of Brexit and its repercussions are still uncertain.
The RICS website says, “As the process for exiting the EU is a long one, markets may remain uncertain for a protracted period of time, in which case valuers must continue to sound a cautionary note about the potential for longer term outcome uncertainty.
“At this point it’s important to give thought to wording that might be appropriate for your reports in this immediate post-referendum period.”
RICS stated to members that until more data about the effects of Brexit are known, Valuers should consider using the clause below:
“Following the EU referendum held on 23 June 2016 concerning the UK’s membership of the EU, a decision was taken to exit. We are now in a period of uncertainty in relation to many factors that impact the property investment and letting markets.
“Since the referendum date it has not been possible to gauge the effect of this decision by reference to transactions in the marketplace.
“The probability of our opinion of value exactly coinciding with the price achieved, were there to be a sale, has reduced.
“We would, therefore, recommend that the valuation is kept under regular review and that specific market advice is obtained should you wish to effect a disposal.”
RICS is leaving it to its members to decide whether or not to use the clause and that it will not be compulsory.
Colleys surveyors have confirmed that they are not yet using the above clause, but will consider the option in the future.
Valuation director Fiona Haggett said “The feedback I had from the lenders was they did not like this. I can see why. I had one lender say ‘I can’t sue a valuer on this’.
“It isn’t valuers trying to watch their backs and not be sued, it’s them taking responsibility and saying ‘I am still going to hang my hat on my valuation’.”
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.