NZIV Member Alert #2 -
Coronavirus (COVID-19)
The New Zealand Institute of Valuers (NZIV) Council is aware of a number of inquiries from Members seeking guidance around inspections and valuation uncertainty.
The NZIV Council is continually monitoring the situation caused by the COVID-19 pandemic and considering any recommendations made to it from the Standards Board.
In the meantime, Members are strongly encouraged to follow:
- Ministry of Health Guidelines
- The Health & Safety Policies you will be operating under
- Valuation Practice Standards. Click HERE for guidance in this regard.
Jeff Alexander
President
New Zealand Institute of Valuers
Property Inspections – Valuation Uncertainty
23 March 2020
- At present, there have been NO new standards or changes to existing practice standards that Registered Valuers/NZIV Members should adhere to. Members will be fully informed by NZIV Council if there are any future changes to practice standards.
- International Valuation Standards, as adopted by NZIV Council, are mandatory and when followed, ensure that a valuation is undertaken to a recognised, world-class standard.
- Current standards allow the opportunity for members to deal with issues that may have arisen from the pandemic.
- Especially in the current environment, Members are encouraged to re-familiarise themselves with IVS 101 - Scope of Work and IVS 103 – Reporting, in particular.
- Click here for a link to IVS.
- The Scope of Work provides Members the opportunity to set out (in agreeance with the client/intended user) any restricted inspections that might be necessary due to health and safety concerns.
- If an inspection is restricted, the impacts this has on compliance with standards must be communicated very clearly with the client and any intended user.
- Any assumptions that are/will be made, must be very clearly communicated with the client and intended user.
- Members should clearly communicate when less reliance should be placed on valuation conclusions when a restricted inspection has taken place.
- If using third party information with respect to the property being valued, the reliance and independence of this information should be clearly communicated.
- Members should be clearly communicating the unprecedented events that have occurred globally including New Zealand and any impact, or unclear impact (as the case may be) that this event has had on the subject’s particular market as at the effective date of valuation.
- Members should clearly communicate any elevated valuation uncertainty, should there not be enough market evidence to draw a conclusion on how recent events have impacted the subject of their advice.
- We also point Members to IVS Framework para 60 (Departures). If inspections are limited due to specific legislative, regulatory or other authoritative requirements the valuer may still state that the valuation was performed in accordance with IVS when there are departures in these circumstances.
NZIV Council
23 March 2020