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 Landlord

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".


Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer