Announcement from RICS to its professionals -
The effects of the COVID 19 Virus will affect the work carried out by RICS members* in a variety of ways with varying impacts.
The exact consequences of the COVID -19 outbreak are unknown; inspecting property may be difficult either through firms’ own internal procedures, Government imposed restrictions or unwillingness of occupants to grant access. Access to data such as comparables maybe less freely available.
RICS would like to remind members that, in addition to following the directions of Government authorities, they should to act in a transparent and professional manner in the challenges that they face.
RICS members must agree at the outset with their clients any changes to the way they would normally proceed with instructions and record in writing the agreed changes. RICS would strongly encourage members to make detailed file notes to support the rational that underpinned the changes.
RICS members operating in valuation should be aware and act within the requirements of RICS Valuation – Global Standards (Red Book Global) effective from 31 January 2020.
1. VPS 1.3.1 (i) Nature and extent of the valuer’s work including investigations and limitations thereon
2. VPS 2.1 Inspections and Investigations
3. VPS 3.2 (g) Extent of Investigations
4. VPS 4.8 Assumptions
Any restrictions of information and the ability to inspect need to be made clear in the terms of engagement, agreed with the client and clearly stated in the report. Valuers need also to clearly state and, again, agree with the client, any valuation assumptions that are being made as a consequence of restricted access and/or valuation information. If the valuer considers that it is not possible to provide a valuation on a restricted basis, the instruction should be declined.
RICS members must amend any existing terms of engagement that have already been agreed with clients which may be affected.
RICS members need also to be aware and understand any guidance that may be issued by national and local jurisdictions (say as an emergency measure) which may take precedence over the Red Book Global (PS1.4).
Where Material Uncertainty is declared, this should be explicitly stated and members should do so in accordance with Red Book Global, VPS 3.2.1 (o) and VPGA 10.
*RICS Regulated Members refers collectively to both individual registered members of the profession and firms that are registered with RICS for regulation.
** we = the RICS Regulated Member and not RICS
R3 members can provide advice on a range of business and personal finance issues. To find an R3 member who can help you, click below.