FAQs

• Setting limits for the sale and purchase of properties
• Setting rental levels (lease)
• Determining compensation following the compulsory acquisition of property
• Asset accounting and management (financial reporting)
• Lending and associated financial dealings (mortgages)
• Property settlements (divorce proceedings, deceased estates)
• Property rating and taxation systems
• Property portfolio analysis
• Determining rental issues when there is a dispute
• Providing expert witness evidence in Court.

RICS – The Royal Institution of Chartered Surveyors – is the pre-eminent organization of its kind in the world. As such, it represents everything that is good in the property profession. Its members offer the very best advice on a surprisingly diverse range of land, property, construction and related environmental issues. As part of its role, it helps to set, maintain and regulate standards. It also provide impartial advice to governments and policy-makers.

With more than 10,000 firms worldwide already successfully registered, RICS Regulation is available on a voluntary basis to qualifying firms, to bring increased confidence and transparency to the real estate market. Benefits of regulation for firms. RICS Regulation is based on a proportionate and flexible approach that allows each surveying firm to comply with the rules in a way that fits your company size and field of operation. It also suits the needs and demands of your clients. A firm ‘Regulated by RICS’ requires to submit yearly audits to RICS on the professional work carried out and the firm sponsors 3 valuers under the Valuation Registration Scheme which also audits the work of each valuer independently. Being a Company Regulated under RICS ensures that the firm delivers property related services as required by the regulations and recommended practice guidelines of the Royal Institution of Chartered Surveyors.

Valuation is one of the key RICS member practices. Valuer Registration is our quality assurance mechanism that monitors all registered RICS members who carry out 'Red Book' valuations and ensures consistent standards. By appointing an RICS Registered Valuer, you can be confident that you are working with regulated and qualified professionals who:

• adhere to the 'Red Book' valuation standards
• are committed to openness and transparency
• are experts in their field, delivering credible and high-quality reports.

Valuer Registration aims to ensure the quality of valuations, raise the credibility of valuers and provide clients with a clearly identifiable designation of international standards, quality and the consistent application of 'Red Book' standards. Each of our registered valuers is required to submit a work audit every year and ensure that they comply with all the pre-requisites required under RICS Regulation.

We believe that a thriving and strong profession, operating under a single global standard and modern regulation system, is good for professionals, clients and society.

A Mortgage Valuation is a report on property to provide technical advice regarding the factors affecting the value and sale ability of property and is the valuation appraisal on a property to provide banks and other financial lending institutions the secured lending parameters and advice before securitizing finance on the property. These valuations enable the lender to assess the amount of the mortgage loan they are prepared to advance and secure against the property value.

The process of checking a new home for faults and other design shortcomings. Basically, on inspection and survey of a property once developed before completion to check that the property being delivered is as per the purchase contract details.

A Homebuyer Survey and Valuation (HSV), also known as a Homebuyer’s Report, is a survey completed to a standard format set out by RICS – it’s most suitable for conventional properties built within the last 150 years, which are in reasonable condition. It doesn’t detail every aspect of the property, and only focuses on urgent matters needing attention. It’s not usually suitable for properties in need of renovation, or if you’re planning major alterations.

An HSV includes details of:

• The general condition of the property
• Any major faults in accessible parts of the building that may affect the value
• Any urgent problems that need inspecting by a specialist before you sign a contract
• Results of tests for damp in the walls
• Damage to timbers - including woodworm or rot
• The condition of any damp-proofing, insulation and drainage (though drains aren’t tested)
• The estimated cost of rebuilding the property for insurance purposes
• The value of the property on the open market.

The Comparison Method

Self-explanatory, always used where evidence is available. Compare similar properties, similar locations and attributes etc… to apply a comparative rate to the subject being valued.

The Latent Value/Residual Method

This method is used for property where there is development potential and given assumption circumstances, the value of the land or land and buildings can be ascertained or the profit where the value of the land or land and buildings is known.

The Profits Method

This produces a Market Rent to which the comparison and or investment method may be applied. It is used for business premises which have a turnover and is essentially an analysis of the accounts to ascertain a notional fair Market Rent. (Pubs, Grocery Stores etc)

The Contractor's Method / Depreciated Replacement Cost

This method is used for types of property which seldom change hands and for which there are few comparisons. Churches, Power Stations, Schools Hospitals etc.

The Investment Method

This method is used when there is an actual, notional or potential Market Rent. A market investment return yield is ascertained via the Comparison Method. This yield when divided into 100 provides a rent multiplier (Years Purchase) to produce the capital Market Value. Within this method there are;

Within this method there are;

1. Conventional investment Method (explained above)
2. Layer / Hardcore Method
3. Discounted Cash Flow Method
4. Net Present Value Method
5. Internal Rate of Return Method