THE Australian Property Institute has issued a guidance for valuers preparing valuation reports on residential apartments, developments and high rise non-residential buildings where cladding is utilised, following consultation with the major lenders and LMIs as well as valuation firms.
The API Standards titled, Valuation Protocol – Cladding on Buildings, said member valuers undertaking valuations of real property need to ensure that they are not holding themselves out as building/construction experts, unless they hold appropriate qualifications/certification.
“A valuer’s role is to report on risk items that are identifiable from the inspection of the subject property in accordance with accepted valuation practice. Valuers should remember that they are not qualified building/construction experts and should not be assuming or stating that ‘cladding’, or the method of attachment, on a particular building is compliant or non-compliant,”
The advice said the valuer should however identify whether the building, in which the subject property is located, “appears to be clad”.
“Appears to be clad” means that the building/development is either wholly or partially ‘clad’ with aluminium composite panel (ACP), expanded polystyrene (EPS) or similar products, excluding glazed areas.
The full report, can be downloaded by visiting https://www.api.org.au/news/valuation-protocol-cladding-buildings
Australian Property Journal