12/29/2009

New RICS Guidelines


The Antique Trade Gazette is reporting new guidelines for personal property appraisers for 2010. The Royal Institute of Chartered Surveyors new edition of the Red Book updates rules and clarifies terms and definitions for personal property appraisers. One of the bigger changes is for RICS appraisers to start using the term "personal property" instead of chattels.  Other changes include more required details in engagement letters and fee calculations. I cut and pasted all of ATG article on RICS, which of course lacks many specifics.  The RICS website is at www.rics.org, or click HERE for Redbook information (mostly for RICS members only).

The Antique Trade Gazette reports
JANUARY sees the tightening of rules for RICS valuers in their assessment of personal property. Set out as part of the terms of the Red Book – the guide to Royal Institute of Chartered Surveyors standards in valuing – the new compliance regulations apply to written valuations and will be mandatory for RICS members.

Non-members are expected to take note of them too, as they aim to raise standards across the whole industry.

Valuers are now adopting the term ‘Personal Property’ in place of chattels to describe assets, such as art and antiques that are not permanently attached to land or buildings. The new term ties in better with international practice and accounting standards.

The upgraded regulations aim chiefly to clarify the terms and conditions under which valuations are undertaken and to set out specific exclusions.

For instance, they are designed mainly to apply to valuations for the purpose of insurance and taxation and do not apply where advice is tendered in respect of buying and selling at auction.

Valuers are being advised that letters of engagement should include details of both the purpose and subject of the valuation, as well as the interest to be valued (where others hold an interest in the property being valued).

Around a dozen other requirements cover everything from setting out the type of property to be valued and how it is used by the client as the basis on which the valuer’s fee is calculated.

The RICS have set out a full list of requirements under the new regulations at www.rics.org/redbook.

As well as ensuring best practice, the new regulations aim to offer upgraded protection against claims for negligence on the part of valuers.

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