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Valuation Variance and Negligence: The Importance of Reasonable Care

Author/s: Terry Boyd, Janine Irons

Date Published: 1/01/2002

Published in: Volume 8 - 2002 Issue 2 (pages 107 - 126)

Abstract

This paper considers the concepts of valuation accuracy and negligence. It reviews previous domestic and international studies on the subject of valuation accuracy and variation and examines contemporary valuation negligence case law in Australia. There is an examination of the current interpretation by the courts in Australia of what constitutes valuation negligence. The duty of reasonable care, which is the established standard required to be met by all valuers, is explained and measures of reasonable care are discussed. The paper stresses the need for valuers to demonstrate competency in every aspect of their professional work.

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Keywords

Negligence - Reasonable Care - Valuation Accuracy - Valuation Methodology

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