A look at what is deemed to be an acceptable margin of error in valuation disputes.
It is has been left to the courts to decide what is a permitted margin of error when carrying out a valuation of property. Generally, case law precedent refers to a margin of between 10% and 15% depending upon the facts.
Singer and Friedlander v John D Wood & Co  243 EG 212 states that the margin of error can be 10% either side of a figure that can be said to be the right figure that a competent careful and experienced valuer arrives at after making all the necessary enquiries and paying property regard to the state of the market.
In exceptional circumstances, the permissible margin could be extended to about 15% or a little more either way.
The permitted margin of error principle is considered in the following:
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