"Let's understand each other" - a grown up conversation between surveyors and banks
Well, that's good then. The BBA and the RICS have entered into a joint "Memorandum of Understanding" about valuations, showing their commitment to maintaining high standards and ensure a sustainable supply of valuation services,
If you were to be a sceptic (and who would want to be labelled as such?) you might read deeper into the press release and wonder if, in the end, it is really all about money. Banks are buying an opinion (and, the sceptic might say, an indemnity insurance policy), and the surveyors are saying that if they want to be able to continue to do so this must be "reflected in the pricing of valuation services" (which the same sceptic might read as a threat not to do the work unless the bill - which, of course, is always paid by the customer - is increased).
I wonder if the Law Society is in similar "understanding" discussions?
RICS and BBA recently signed a Memorandum of Understanding (MoU) outlining their commitment to work together to maintain high standards in commercial property valuation and ensure a sustainable supply of valuation services........
During the process, all parties acknowledged that sustainable and well-regulated valuations which support commercial secured lending are vital to the health of the UK economy.
For this to happen there is a consensus that several key areas need to be addressed:
◾The balance of risk and reward in valuation services - ensuring that any liability that is assumed is reflected in the pricing of valuation services
◾A programme of education on issues around liability and risk for lenders and valuers
◾Clarification of the standards expected in the sector - particularly on independence and competence
”
