Property Problems: What to do when a valuation goes wrong
Sunday 24 October 2004
Q. Three years ago I leased out a commercial property. The values were based on a rental valuation supplied by a registered valuer. The lease allowed for a rent review every two years. One year ago I requested a review from the same valuation company. The company was so busy it took eight months and many phone requests before I received the new rental valuation. The valuation had increased
By The Landlordby $10,000 per annum. The valuer had previously under-measured the premises. The increase was specifically as a result of his initial incorrect measurement. I had missed out on the rental income of nearly $30,000.
1. Is the valuer liable for my 32-month loss of rent?
2. Can I charge the tenant for the eight months of rent while waiting for the review?
A. First, it is necessary to consider the basis on which the initial valuation was undertaken. From your question it appears the valuer determined the area of the premises rather than you advising the area, which the valuer merely "accepted".
Read More - Opens in a new window
Commenting is closed
It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.