Best practice
All that glitters is not gold Property valuation in family disputes Most agents will become involved in a family dispute at some point and it could be at any stage of the dispute settlement process. We have to be neutral, not pass judgment and remain professional. Jan Hancock FAPI, CPV, CEA (REIV) is a 40-year REIV Member, a Certified Practising Valuer, an Expert Witness and a member of the Valuers Chapter Committee. Jan shares some insights, cautionary tales and suggestions. Every day agents provide potential clients with property appraisals and do so in good faith, using available property data and their knowledge of local market conditions. Vendors may volunteer that the reason for the potential sale is a family dispute – divorce, separation of long-time partners, or deceased estates. Sometimes agents are completely unaware of the existence of such circumstances. The disposal of property arising from a family dispute always requires sensitive handling, even when relations appear amicable. When relations are not amicable, extra care and caution is required. Information provided to the agent may not be complete, an appraisal
inspection may not reveal serious defects, information provided to a vendor may be used for other purposes and the dispute settlement process may take months, if not years. Where a dispute has progressed to the point where there are Orders, a Deed of Settlement or other formal agreement, we must be advised of the property related clauses so that we can and do act in accordance with them. However, the existence of such agreements doesn’t necessarily mean that it will be plain sailing. The parties’ legal representatives should be called upon by their clients to help resolve issues in accordance with the agreement. Where they aren’t represented, it is really important to take
care not to get drawn into trying to assist with matters outside our scope. It is not unusual for the parties to seek agent appraisals to influence the settlement outcome and this may be before a valuer is engaged, or to obtain appraisals to “check” a valuation and potentially to use them as evidence to challenge it. Agents need to be aware that their appraisals may be passed on to a valuer for follow-up. It is essential that appraisals include the market evidence and other details on which the agent relied. Valuers are regularly appointed as expert witnesses to give professional advice in the settlement process. They might be instructed directly by the parties or by one or both legal representatives. Valuation reports must contain clearly explained rationale with sufficiently detailed supporting evidence and those for Family Law matters must be prepared in accordance with the Family Court or Federal Court rules. Valuers must be impartial and adhere to practice standards and Codes of Ethics. Valuers undertake detailed inspections, secure relevant documentary evidence and speak to other relevant people including agents. All documents, including agent appraisals are reviewed and considered carefully. As in much of life, the devil is in the detail.
Agents need to be aware that their appraisals may be passed on to a valuer for follow-up. It is essential that appraisals include the market evidence and other details on which the agent relied.
16 | The Estate Agent – APRIL 2022
