After issuing a valuation report, a valuer learns that a major infrastructure project affecting the property was announced the day before the valuation date. What should the valuer do?
Correct Answer
A) Issue an amended or supplementary report that reflects the announcement
A valuation states value as at a specific date and must reflect information the market had at that date. The project was announced the day before, so it was part of the market at the valuation date. When a valuer later finds that a material fact was missed, the professional course is to tell the client and issue an amended or supplementary report.
Why This Is the Correct Answer
The announcement was public before the valuation date, so the market at that date already knew of it and the report missed a material fact. Issuing an amended or supplementary report corrects the value the client is relying on.
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After completing an initial analysis, a valuer discovers that one comparable sale was between related parties at a below-market price. What is the most appropriate course of action?