Challenging a valuer's determination

From: Dale Gatherum-Goss


Hi

I thought this might interest some. It is a recent court case summarised . . .


Title: Challenging a valuer's determination
Date: 05 September 2002

A recent New South Wales Court of Appeal judgment illustrates the limits on being able to challenge the determination of rent by a valuer on rent review even if it may be erroneous or misapply valuation principles.

The very limited basis of challenging such valuations were considered in this decision. Although the party disadvantaged may not be able to set the valuation aside, it may be able to sue the valuer for negligence, subject to any disclaimer from liability when the valuer undertook to act. In this decision the claim for negligence also failed.

Two strategies which may ensure a better prospect of a valuation being "correct" are:

to provide that the parties may make written representations to the valuer, which can include rent assessments by other valuers; and
for more substantial premises including entire buildings, have the rent review effected by an expert acting as an arbitrator rather than as a valuer.
 
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