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.
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.