Kaaboo
Parade of Lights 2018 – Register Here
IDG
NFL Pick’ems
Business Culture News Politics

‘Special assumption’ one possible explanation for valuation discrepancies

One registered valuer and member of the Royal Institute of Chartered Surveyors told Cayman 27 the industry is already highly regulated.

Raul Martinez and his family are counting down to eviction on April 19th after foreclosure. Their story spotlighted an issue George Town Central MLA Kenneth Bryan said warrants investigation. Mr. Bryan questioned whether the industry should be self-regulated.

Former firefighter Raul Martinez spends a quiet moment with his three youngest children Trinity, Hailey, and Logan.

Speaking on background, one industry source with more than 15 years experience told Cayman 27 one explanation for a discrepancy in valuations in a case like Mr. Martinez’ could come from what’s known as a special assumption.

The RICS Red Book, the body’s global standards book, defines it as ‘an assumption that either assumes facts that differ from the actual facts existing at the valuation date or that would not be made by a typical market participant in a transaction on the valuation date.’

For example, a bank could request a special assumption for an expedited time frame for the sale, 90 or 180 days, then the valuer would have to base their valuation on the current market circumstances within that period.

However, the RICS Red Book states that if a client requests a valuation on the basis of a special assumption that the valuer considers to be unrealistic, the instruction should be declined.

We reached out to both RICS America and the Chair of the local RICS chapter for official comment but have not received responses as of press time.

About the author

Joe Avary

Joe Avary

Joe Avary has been with Cayman 27 since 2014. He brings 20 years in television experience to the job, working hard every day to bring the people of Cayman stories that inform the public and make a difference in the community. Joe hopes his love for the Cayman Islands shines through in his informative and entertaining weather reports. If you have a story idea for Joe or just want to say hello, call him at 324-2141 or send an email to josephavary@hurleysmedia.ky

Add Comment

Click here to post a comment
Tanya’s Kitchen
Eclipze – Hello Autumn
Clean Gas – Break Free
Kirk Freeport – October 2018
%d bloggers like this: