Edition 2020 Ninth edition
I.A. European Valuation Standards EVS Summary EVS 1
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a6048c931cdc93 TEGOVA EVS 2020 digital
I.A. European Valuation Standards
EVS Summary EVS 1 Market Value Valuers must use the following definition of Market Value corresponding to the definition in the Capital Requirements Regulation: "The estimated amount for which the property should exchange on the date of valu- ation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without being under compulsion." Due to diverging interpretation of 'arm's length transaction' in the various language versions of the CRR definition, TEGOVA has a universally usable common guidance-definition: "The estimated amount for which the property should exchange on the date of valu- ation between a willing buyer and a willing seller acting independently of each other after proper marketing wherein the parties had each acted knowledgeably, pru- dently and without being under compulsion." Valuers must use the following definition of Market Rent: "The estimated amount for which the property should be leased on the date of val- uation between a willing lessor and a willing lessee on the terms of the actual or assumed tenancy agreement acting independently of each other after proper mar- keting wherein the parties had each acted knowledgeably, prudently and without being under compulsion." EVS 2 Valuation Bases Other than Market Value The valuer must establish the purpose for which the valuation is required before using any basis of value other than Market Value. Save as required by European and national law and regulation in any particular case, the valuer must only use recognised bases of valuation that are compatible 24 I.A. - EVS Summary European Valuation Standards 2020 with the purpose of the valuation and, in doing so, honour the principles of trans- parency, coherence and consistency. Such other bases of value may need to be used as required by law, circumstances or a client's instructions where the assumptions underpinning Market Value are not appropriate or cannot be met. The result will not be a Market Value. EVS 3 The Qualified Valuer Each valuation carried out in accordance with these Standards must be undertak- en by a Qualified Valuer. Valuers will at all times maintain the highest standards of honesty and integrity and conduct their activities in a manner not detrimental to their clients, the public, their profession, or their respective national professional valuation body. The valuer must be able to show professional skill, knowledge, diligence and ethical behaviour appropriate to the type and scale of valuation and must disclose any factor which could compromise an objective assessment. Each valuation must provide an informed and independent opinion of value supported by a recognised basis or bases of valuation. EVS 4 The Valuation Process The terms of engagement and the basis on which the valuation will be undertaken must be set out in writing and agreed before the valuation is reported. The valuation must be researched, prepared and presented in writing to a profes- sional standard. The work undertaken must be sufficient to support the opinion of value reported. Data retained following the submission of a valuation must be sufficient to enable verification that the analysis and evaluation undertaken in the approach, or ap- proaches, to providing the opinion of value reported were sufficient for the type and scale of valuation. EVS 5 Reporting the Valuation The valuation must be presented in clear written form to a professional standard, transparent as to the instruction, purpose, approaches, bases, methods and con- clusions of the valuation, as well as to the use to which it is to be put, as shown in the agreed terms of engagement. European Valuation Standards 2020 I.A. - EVS Summary 25 EVS 6 Valuation and Energy Efficiency A legal obligation to renovate a building to a higher level of energy efficiency by a fixed date or at a certain inflection point (e.g. rental, sale) creates an unavoidable major cost that impacts Market Value, as the owner at that date or inflection point will have to pay for renovation works. Valuers must be aware of these legal deadlines and inflection points and when they appear, must estimate the cost of a renovation deep enough to meet the re- quired new level of energy efficiency or future requirements that are sufficiently close to coming into force and consider the extent to which these costs affect the Market Value at the date of valuation. European Valuation Standards 2020 I.A. - EVS 1: Market Value 27 EVS 1 Market Value Valuers must use the following definition of Market Value corresponding to the defini- tion in the Capital Requirements Regulation: "The estimated amount for which the property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without being under compulsion." Due to diverging interpretation of 'arm's length transaction' in the various language versions of the CRR definition, TEGOVA has a universally usable common guidance-definition: "The estimated amount for which the property should exchange on the date of valuation between a willing buyer and a willing seller acting independently of each other after proper marketing wherein the parties had each acted knowledgeably, prudently and without being under compulsion." Valuers must use the following definition of Market Rent: "The estimated amount for which the property should be leased on the date of val- uation between a willing lessor and a willing lessee on the terms of the actual or assumed tenancy agreement acting independently of each other after proper market- ing wherein the parties had each acted knowledgeably, prudently and without being under compulsion." Download 1.74 Mb. Do'stlaringiz bilan baham: |
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