The Red Book is issued by RICS as part of their commitment to promote and support high standards in valuation delivery across the world.
The publication details mandatory practices for RICS members undertaking valuation services. As the first, globally recognised, trademark for valuers and the most widely used valuation standard globally, the Red Book is the go-to guide for anyone involved in valuation.
What is Red Book?
The term “Red Book” was first coined regarding the RICS in 1980 and refers to the valuation standards and guidance published by the RICS. So when surveyors refer to a Red Book valuation, they are referring to a valuation according to the best practice guidelines and standards for both professional valuations and professional conduct as contained within the publication. Such valuations are usually referred to as “Red Book” valuations after the Royal Institution of Chartered Surveyors (RICS) Residual Book.
It sets out the mandatory requirements to which registered valuers are obliged to adhere when undertaking such valuations.
Types of Red Book Valuation
There are a few occasions when you may need a Red Book Valuation. Although an estate agent’s feeling of market price will work for many purposes, there are occasions when only a Red Book valuation will do.
In any case, where a formal asset valuation is required for tax, finance, insurance or legal purposes – including all institutional lenders, solicitors, accountants, HMRC and the courts – the authorities will insist that the valuation is carried out by an RICS Registered Valuer by Red Book standards.
These include valuations for:
- probate and the inheritance tax
- personal assets
- private property
- shared ownership
- Capital Gains Tax (CGT)
- assets sold by charities
- domestic matters and divorce settlements
- finance or remortgaging
- lease extensions
- dispute resolution through mediation, arbitration, or court proceedings
- collective enfranchisement
What makes Red Book Valuations more accurate?
A Red Book valuation is an independent valuation carried out by a RICS Registered Valuer who will inspect the property before compiling a report on the current market value of the property.
The Red Book has five specific valuation methods but the valuer will confirm which apply to the property in question.
It also sets out the minimum level of professional indemnity insurance required the valuer minimum qualification of any staff involved, and also the ethics/duty of care to the client.
How is a Red Book Valuation done?
The valuer will inspect the property but also requires three comparable properties which recently sold in the area to ensure the valuation is as accurate as possible.
A Red Book Valuation ensures that the correct and proper procedures have been followed during the valuation process. The valuation will be conducted to the highest standard possible, whether it is an inspection or a presentation. This ensures that the report you receive from the valuation is one you can rely on and trust.
Your valuation will be valid for 3 months but this can be extended upon request.
With over 25 years of experience, the team are the leading expert in Building Valuation, Property Surveys and so much more.
They believe that whether you are acquiring, managing or disposing of a property, it is vital that you get the most from it. No matter what the purpose of the assignment is, their RICS-registered valuers carry out Red Book Valuations to the highest of standards, ensuring our clients are fully satisfied with our services.
If you would like any more information on any of their services or would like to discuss your requirements for a Red Book valuation carried out by professionally qualified RICS surveyors, please get in touch with the team.
