RICS Valuation - Professional Standards 2012 (the Red Book)

The new International Valuation Standards came into force 1 January 2012, and the RICS has responded to the latest IVS changes with a new edition of the Red Book. Substantially revised from the previous edition, the new Red Book has been completely updated to be fully compliant with the new global IVS requirements. It means you can be sure you’re operating to the highest standards of best practice, thereby reducing your risk in professional negligence cases.

As the official source of valuation practice, the Red Book is mandatory for RICS members valuing assets - commercial, residential and other property, plus land, plant and machinery and other business assets. It covers all of the mechanics of valuation, including assembly, interpretation and reporting of information, and is applicable for both RICS regulated and non-regulated firms.

To maintain regulatory compliance it is imperative that you stop using your existing 7th edition and follow the new version for any valuations with a valuation date of 30th March 2012 or thereafter..

Effective from 30th March 2012, the RICS Valuation - Professional Standards (Red Book) complies with IVS (International Valuation Standards, published by the International Valuation Standards Council). RICS standards also reinforce the RICS Valuer Registration Scheme (VRS).

The latest RICS Valuation - Professional Standards (Red Book) has been updated to include:

- A revised glossary to incorporate the IVS 2011 definitions
- Definitions and commentaries on the four bases of value
- A new appendix providing detailed cross referenceing between
the new IVS and the relevant Red Book standard
- A new UK standard, and appendix, relating to the provision of market
rent in connection with the calculation of affordable rent
- Minimum terms of engagement and reporting have been revised to
adopt the terminology used in IVS
- A new appendix, listing all of the IVS Application Standards deemed to be incorporated into the Red Book
- New text confirming that the revised standards apply only to valuations where the valuation date is on or after the effective date
- Reinstated standards on valuations for specific applications, such
as financial statements, secured lending and public sector. Each of
these now incorporate a summary of the relevant IVS.

From 30 April 2011, as a RICS Member carrying out Red Book valuations in the UK you must be a member of the Valuer Registration Scheme. The essence of the scheme is to monitor Red Book compliance which promotes transparency of valuation processes. VRS compliance promotes professional expertise and shows the market that you follow best practice ethics and valuation reporting.

RICS Valuation - Professional Standards (The Red Book) is issued by the RICS Valuation Professional Group and contains mandatory rules and best practice guidance for all RICS Registered Valuers undertaking valuation services worldwide.