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PI crisis could erode valuation standards

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Australian Broker | 21 Sep 2011, 03:55 AM Agree 0
Valuers face an insurance cover shortfall that could cause mounting pressure toward conservative valuations
  • countrybroker | 21 Sep 2011, 11:02 AM Agree 0
    This problem has been around for years and getting worse, the API need to take a strong stance against the banks and say enough , we will not value for the banks at all unless they can advise us the valuation they have from a valuer is acceptable and it has been signed off by the bank and not just ticked off !!! It seems there is a lot of litigation by lenders against valuers when there is a mortgagee sale and then a loss, questions must be asked , why did they lend with that valuation in the first place. All the banks have in house valuers , are they checking valuations in the first place especially on major commercial transactions? There is also a worrying trend for the banks to use a "valuation service" like Valex or Sandmount , are these services charging the fees they do and not checking the valuations that are produced.
    The API needs to take a very strong stand and stop trying to "shut the gate afetr the horse has bolted" .
    All valuations now have an effective life of 90 days!! Why are banks settleing deals that have valuations that are out of date!
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