By Deborah Miriam Leshinsky ( PHD Candidate – currently doing research at Monash University)- Melbourne Australia

Certified practicing ValuerAustralian Lawyer

Masters in Banking and Finance

Property valuations involves unavoidably the making of guesses as to the property worth

No two valuers come up with the same value – this may mean:◦ Highly educated – we know instructing party, we

know the purpose of the valuation◦ Uncertainty– can only make certain enquires ◦ Not being familiar with certain issues

All we want to do is earn a living as a property professional so what do we do……

We hire ourselves out, to lending institutions the Courts and to any one who wants a property valued and put ourselves under pressure for an

ACCIDENT WAITING TO HAPPEN -

All these issues lead to Negligence

What is Negligence:

Why do we need as a professional person to be familiar with this word:

How can knowing about negligence protect the valuer

What is a professional person legally obliged to do:

A person who is required to give a professional opinion – given there knowledge of the local market are paid a fee in which they provide a value.

HOWEVER

If a valuer is negligent by not taking into account certain aspects of a property –

avoidable and non – avoidableHe may find himself/herself involved in a

court case………………ALSO Property professionals such as

Architects not providing the correct designs to the clients may be latter involved in a court case – sued for millions – all for a small fee paid for a service

The intent of this paper is to show that regardless of what they do professionals such as property valuers, architects are always going to act in a way that will cause negligence.

THE QUESTION IS THE DEGREE OF HARM…… And Who will be harmed and who has to

pay ?

NEGLIGENCE

3 things need to be proved:Defendant owes a duty of care to the plaintiff

Defendant has breached the duty of care

Plaintiff suffered foreseeable damage as result of Breach of duty of care

So what can we do to prevent Court Cases:

AND REDUCE THE RISK EXPOSURE

Not entering a field you are not familiar with Provide Contractual agreements as to the

maximum exposure Obtain sufficient insurance Protect yourself against 3rd parties by

mentioning in reports – no legal obligations

RESEARCH AREA

Case Study – asking valuers, lenders and property professionals about risks that are unavoidable

However there are Limitations: Generalizability, risk of bias,time consumingCase study may lack rigour – careful attention

Type 1 – analytical approachThis study is examined in order to try and

understand what has happened and why – it is not necessary to identify problems or suggest solutions

Type 2 – The problem oriented methodThe case study is analysed to identify the

major problems that exist and to suggest solutions

We will look at Type 2

Interviews

Structured – Survey research ,quantitative, Hypothesis testing

Semi – structuredUnstructured – Exploratory, Qualitative,

Hypothesis generation

Survey design

Pre determined list of questions All asked the same questions and exactly as

written in a questionnaire Questions asked in the same sequence Emphasis on close ended – questions that

can be statistically analysed

Limitations – of Interviews

Leading or loaded questions – suggesting the answer

Unfamiliar and technical terms Respondents – not just executives answers

but also valuers and admin support Response options should match the

questions AND Lack of time frame

Any suggestions would be most appreciated

Also presenting a paper to the Asian Real Estate society – on the legal

implications of and impact on

NON AUSTRALIANS PURCHASING PROPERTY IN AUSTRALIA and THE LEGAL IMPLICATIONS

THANK YOU

QUESTIONS

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