A licensed valuer in WA provides a valuation report for mortgage purposes. If the valuation is found to be negligently prepared, who may have a cause of action against the valuer?
Correct Answer
A) The client and any party the valuer knew would rely on it, such as the lender
A valuer owes a duty of care not only to the client who commissioned the report but also to third parties (such as lenders) who the valuer knew or ought to have known would rely on the valuation. A negligently prepared valuation may result in claims for damages from the lender if they suffer a loss.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Valuation Question
Background Knowledge for Valuation
Real World Application in Valuation
Common Mistakes to Avoid on Valuation Questions
Related Topics & Key Terms
Key Terms:
More Valuation Questions
In applying the summation approach to value a heritage-listed property in Sydney, which additional factor must be specifically considered?
When conducting a property valuation in Queensland, what is the most critical consideration regarding comparable sales data?
In Queensland, the statutory land valuation that councils use to levy rates is made by:
The comparable sales method of property valuation involves:
A Queensland property owner disagrees with the Valuer-General's valuation of their land. The owner may:
- → When valuing an income-producing property in Queensland using the capitalisation approach, a valuer primarily considers:
- → In Queensland, the 'highest and best use' principle in property valuation refers to:
- → A registered valuer in Queensland is valuing a specialised property such as a church with no comparable sales data available. The most appropriate primary valuation method would be:
- → A Comparative Market Analysis (CMA) prepared by a Queensland real estate agent differs from a formal valuation in that:
- → A developer in Queensland is considering purchasing a site for a residential subdivision. A valuer using the residual (hypothetical development) method would calculate the site's value by:
- → Which of the following factors would typically DECREASE the market value of a residential property in Queensland?
- → What is the difference between 'site value' and 'capital value' as used by the Valuer-General in SA?
- → When valuing a rural property in SA, which of the following is a key factor that distinguishes it from suburban residential valuation?
- → Which government body is responsible for land valuations used for council rating purposes in SA?
- → What are the three main valuation bases used by the Valuer-General in SA for statutory purposes?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Related Study Resources
Previous Question
A developer in Queensland is considering purchasing a site for a residential subdivision. A valuer using the residual (hypothetical development) method would calculate the site's value by:
Next Question
A Queensland property owner disagrees with the Valuer-General's valuation of their land. The owner may: