Edition 2020 Ninth edition

1. Introduction
2. Scope
3. Terms of engagement
4. Liaison with client's advisers, auditors and others
5. Commentary
6. Supporting the valuation
7. Valuation reviews

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I.A. - EVS 4: The Valuation Process
European Valuation Standards 2020
1. Introduction
A valuation must be professionally prepared with the property appraised and all 
available evidence considered so that the result can be sustained under challenge.
2. Scope
This Standard considers the procedural steps followed in preparing the Valua-
tion Report.
Starting with terms of engagement, it continues with the appraisal and inspec-
tion of the property and then reviews the Valuation Report and retention of data. 
Finally, it discusses what may be considered when a valuer is instructed to review 
an existing valuation.
3. Terms of engagement
3.1. 
Terms of engagement are the specific terms of the contract between the valuer 
or valuation company and the client. These terms are submitted to the client or 
prospective client once verbal or written instructions are received to provide a 
valuation service. Specific terms are prepared for each instruction, clearly and 
accurately reflecting the nature and purpose of the valuation and the extent of 
investigation to be undertaken to justify the subsequent opinion of value reported.
3.2. 
Detailed terms of engagement must be agreed in writing before the valuation 
is undertaken.
3.3. 
Terms of engagement as agreed may require subsequent amendment, and any 
variations must be recorded in writing to avoid misunderstanding and consequen-
tial dispute.
3.4. 
Terms of engagement must be regularly evaluated to recognise client feedback or 
amended client requirements; recent legislation, regulation, requirements of the 
valuer's professional association and any update or new edition of EVS.

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European Valuation Standards 2020
I.A. - EVS 4: The Valuation Process
63
3.5. 
Failure to issue written terms will result in non-compliance with EVS and the 
requirements of TEGOVA's European Valuers' Code of Conduct. This may also 
result in an inadequate defence to any legal action relating to fees, negligence 
or performance.
3.6. 
Where valuations of a similar nature, such as lending valuations, are regularly pro-
vided to the same client and the valuer has previously provided terms of engage-
ment, the valuer must confirm in writing that these terms continue to apply unless 
otherwise agreed with the client. The client must be notified in writing of any sub-
sequent variations as soon as they come into force.
3.7. 
The minimum terms to be submitted and agreed are as follows:
•
The client's identity;
•
The purpose of the valuation;
•
The physical property being valued;
•
The ownership;
•
The basis or bases of value;
•
A specific date of valuation;
•
Confirmation that no conflict of interest exists. Declaration of any previous in-
volvement with the property or the parties involved;
•
The identity and status of the valuer;
•
Assumptions, special assumptions and departures from EVS;
•
The scope and extent of investigations;
•
Reliance placed on information provided by the client;
•
Any restriction placed on publication;
•
The extent to which a duty of care will be provided;
•
Consistency with European Valuation Standards;
•
The basis of fee to be charged;
•
Basic disclaimer;
•
Timetable for work.