Commercial

Property Problems: What to do when a valuation goes wrong

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

Sunday, October 24th 2004

by $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".

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Unity First Home Buyer special	3.99
ICBC	4.25
SBS FirstHome Combo	4.29
Co-operative Bank - First Home Special	4.35
Co-operative Bank - Owner Occ	4.45
TSB Special	4.49
ANZ Special	4.49
ASB Bank	4.49
SBS Bank Special	4.49
Unity Special	4.49
Westpac Special	4.49

TSB Special	4.00
SBS Bank Special	4.49
Kainga Ora	4.49
Kiwibank Special	4.49
Nelson Building Society	4.59
ICBC	4.59
Unity Special	4.65
BNZ - Std	4.69
ANZ Special	4.69
Westpac Special	4.75
ASB Bank	4.75

SBS Bank Special	4.99
ICBC	4.99
Kainga Ora	5.15
Westpac Special	5.29
BNZ - Std	5.29
Kiwibank Special	5.39
TSB Special	5.39
ASB Bank	5.45
AIA - Go Home Loans	5.45
Co-operative Bank - Owner Occ	5.49
SBS Bank	5.59

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Heartland Bank - Online	5.30
ICBC	5.39
Kiwibank - Offset	5.65
Kiwibank	5.65
ANZ	5.69

Commercial

Property Problems: What to do when a valuation goes wrong

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