Edition 2020 Ninth edition

3. European Valuation Standard 1 — Definition of Market Value
3.1. The EU Capital Requirements Regulation Definition
"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 interpretations 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 

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I.A. - EVS 1: Market Value
European Valuation Standards 2020
after proper marketing wherein the parties had each acted knowledgeably, pru-
dently and without being under compulsion."
3.2. 
TEGOVA's definition of Market Value is to be used as the basic definition and inter-
preted in accordance with the commentary in Section 4 below.
3.3. 
Market Rent — The market for property is one in which property is not only bought 
and sold but also leased. Market Value is appropriate for valuing the ownership of 
property while Market Rent is appropriate for the value that may be expected to 
be paid as rent for a property.
3.4. "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."
3.5. 
Market Rent is usually to be expressed as an annual figure.
3.6. 
TEGOVA's definition of Market Rent, derived from and consistent with its definition 
of Market Value, is to be used as the basic definition and interpreted in accordance 
with the commentary in Section 4 below.
3.7. 
Unless specifically required by legislation, obliged by the terms of a contract or 
instructed by a client, valuers are to use Market Value (or, as appropriate, Market 
Rent) as the basis of value rather than the alternative bases reviewed in EVS 2.