Expert Witness Journal Dec 24 - Journal - Page 98
Expert Witness
Some Unusual Valuation Matters
Property valuation is not always easy or straightforward. There are many aspects of the property that need to be taken into account. Sometimes, properties end up being valued incorrectly,
significant defects are missed or essential information is not disclosed. This can lead to disputes
between the parties involved in the purchase, sale or leasing of property. As we discussed in a
previous blog, when a dispute arises that cannot be settled, an Expert Witness is sometimes
needed.
As part of our Expert Witnesses work, we provide
expert valuation and building defects reports for all
natures of holdings; from various types & ages of residential properties, including for development &
brownfield sites, to a variety of commercial assets –
shops & shopping centres, pubs & off licences, hotels
& restaurants, night clubs & working men’s clubs,
nursing/care & retirement homes, sporting & leisure
facilities, religious & educational uses, as well as industrial units and office buildings – not to mention
land with potential or detriment.
Sample Unusual Expert Valuation Cases
While each case an Expert Witness is called to assist
with is unique and interesting in itself, some stand out
more than others but in most instances, they can be referred to as “Before and After” cases. Hari explains,
“The question being asked is what the value would have
been before any event had occurred and what the value is
once the event has already taken place.”
Hari recalls some of his more memorable “gems”:
Missing drainage search spells trouble for solicitor
A solicitor was being accused of negligence, but for a
different reason than any described above. The case
revolved around a gate house of an old manor house
which had been sold as a separate property to the rest
of the estate. Some 3 years later, the gate house was
put on the market again and the solicitor acting for
the new buyer picked up that the drainage details for
the gate house were missing. Upon further investigation, it was discovered that the drainage was actually
still linked to the manor house, but the Manor owner
threatened to cut off outlets and refused to have any
involvement, on the grounds that they had sold the
property and therefore believe it to be the responsibility of the owner of the gate house to resolve the
issue. The owner of the gate house therefore raised a
claim against their original solicitor for not picking this
up during the initial purchase.
With over 30 Professional Staff (Chartered Surveyors),
there isn’t much in the property industry that we do
not have experience with. (There are six Experts at
AWH who specialise in different aspects of the Property Industry). As an Expert Witness, Hari Hirani
FRICS, IRRV, MPVAI – who is an AWH Director of
Valuations, Surveys & Professional Services - has over
45 years’ experience carrying out Expert Valuations
and giving evidence in various High Courts,
Tribunals, Public Enquiries and Select Committees.
When is a Valuation Expert needed?
There are many instances when an Expert Witness
might be called to help on valuation matters. Despite
the huge range of cases, the most common can
often be summarised into two categories - Solicitors
negligence and Surveyors negligence.
When valuing the property, Hari had to determine
the before and after value for the gate house; meaning what the value of the property was without
drainage as well as what the value would be if drainage
had been available. This additionally meant determining what alternative manners of drainage could
be installed, for example a cesspit and drainage
pump.
Solicitors Negligence
Most cases of solicitor negligence where an Expert
Valuation Witness is involved, relate to failure in:
l Not making proper or full enquiries (e.g. Rights of
Way, Wayleaves & Easements)
l Not obtaining further or more detailed information
on past or continuing detrimental factors (e.g. underpinning or prescriptive rights)
l Not disclosing information fully (e.g. reported
encroachment or dispute)
l Verifying information incorrectly (e.g. compulsory
purchase effects)
l Not Serving appropriate Notices in specified time
periods (e.g. under the Landlord and Tenant Act
1954).
l Registering wrong or unidentifiable parcels of
fringe land (e.g. at Riverbank).
EXPERT WITNESS JOURNAL
In an added twist, the Environmental Agency determined – and the local Council enforced – that a cesspit
could not be added due to a potential environmental
impact.
Hari reflects:
“Unfortunately, it is not as simple as just determining
what the cost would be to repair the issue or put it right. In
the valuation assessment you can reflect on what the cost
would have been, but various Court Cases have established
the principle that the correct level of measuring damages is
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