Check out this article from Anthony Lavers, Professor of Law, and Vivienne Spurge FRICS, Senior Lecturer in Real Estate Management. 25 case law references are included.
Resolution of negligent valuations in Australia – options and case law history.
Valuers are professionals and like anyone make mistakes. Unfortunately they do commit negligence.The major problem for buyers in Australia is when their property is over valued and then they borrow funds against this property, via a mortgage? The real market value would be lower.
Legally the loan to value ratio (LVR) would be incorrect.
The valuer and the lender would be liable.cheers
Thanks for the link. Looks good,
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Of course valuers should be held to account when they negligently prepare a valuation and disregard valid comparable sales evidence either accidentally or at the request of the client. However, when the market is skewed by unreported ‘side deals’ & cash-backs the valuer cannot be held to account for such market aberrations.
Many developers use 2 or 3 valuers for any project, then use the highest valuation to present to their bank.
Likewise when you shop around for an accountant, when you ask the question ‘what is 2 + 2?’ do you go to the accountant who answers ‘what do you want it to equal?’
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