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News & opinion

23 JUL 2018

Can RICS-qualified quantity surveyors perform valuation work?

In recent months, we have learnt of situations where RICS quantity surveyors have conducted valuations. This is only permissible if the surveyor is a Registered Valuer, who is competent to perform the work and complies with all RICS' rules and standards.

Most quantity surveyors will not meet the necessary requirements to undertake professional valuations without taking additional steps. These steps include compliance with RICS rules and standards, which are:

  • The RICS Red Book, which contains mandatory rules, best practice guidance and related commentary for all professionals that undertake valuations.
  • RICS Valuer Registration (VR) — Rules for regulation of schemes. All RICS professionals performing valuations in Australia must be registered for VR.
  • All registrants for VR must be assessed competent at RICS Valuation Level 3.
  • All local licensing or registration requirements – RICS qualifications and RICS Valuer Registration do not replace local requirements.

Ensure you're competent

RICS professionals performing valuations must be assessed "competent" at RICS Valuation Level 3, or equivalent.

If you have not already been assessed to Level 3, they can complete a valuer registration assessment to demonstrate a minimum level of competence and understanding of the Red Book. If you do not recall whether you have been previously assessed to Valuation Level 3, please contact regulationapac@rics.org to check.

Are there any exemptions to Valuer Registration?

Some valuations that might be performed in a quantity surveying practice may be exempt from the Red Book (see Red Book, PS1 paragraph 1.5, and PS1 paragraph 5.4) and can be performed by any competent and qualified surveyor, without participation in Valuer Registration. Exemptions are limited to:

  • Replacement cost estimates, for the purposes of insurance.
  • Agency or brokerage, in respect of the acquisition or disposal of an asset.
  • Acting as an expert witness.
  • Performing statutory functions.
  • Providing valuations for internal purposes.
  • Providing valuation advice for litigation.

Next steps...

If your current or planned work includes valuations, and they do not match any of the exeptions from the Red Book, you must:

  • assess to the minimum qualification standards — Valuation Level 3.
  • register for RICS Valuer Registration.
  • comply with all aspects of the Red Book when completing the valuation.

RICS takes this compliance seriously and will continue to monitor work for instances of non-compliance. We hope to support RICS professionals in complying with these requirements to avoid disciplinary action.

RICS Regulation Alerts

As part of our continuous effort to ensure that RICS professionals adhere to globally recognised standards, the RICS Regulation team carries out periodic audits of regulated firms and professionals, and monitors trends in the market. When a matter that affects our professionals is flagged, we may issue a Regulation Alert to ensure that everyone is updated and aware of any necessary actions.