ABSTRACT
Anyone interested in land and buildings may require the services of a valuer. Valuers may, for example, be instructed to advise:
• owners on the price or rent they should ask for their property; • buyers on offer prices; • tenants on the rent they should pay; • mortgagees on the value of property for loan security; and • owners dispossessed under compulsory powers on their right to compensation.
In most cases the valuer’s role is to estimate the market value (MV) or market rent (MR), that is the capital sum which, at a point in time on specified terms and subject to any legal constraints or restrictions, might be paid for a particular interest in property; or the annual rent at which the property might be let. Market value and market rent are defined in the International Valuation Standards (IVS), effective from 1 January 2012, published by the International Valuation Standards Council (IVSC) and adopted by the Royal Institution of Chartered Surveyors (RICS) in RICS Valuation – Professional Standards (the Red Book), the new Global and UK edition, effective from 30 March 2012, and likely to be known as the 2012 Red Book. Extracts in the text are based on the 2012 Red Book. Every effort has been made to ensure that these are correct, but all readers and practitioners must check the current Red Book when using or quoting from the Red Book and need to be aware of proposals for a revised 2013 Red Book.
