means more than job description as the valuer, being a professional,
has a wider responsibility to the community at large. Such
responsibility is over and above a simple contractual duties between
the valuer and client. Rather, it is the image created by the words
"profession" and "professional". In this context
there is a special bond between members of the profession and trust
from the public. This recognises:
- a social awareness or social
conscience about the valuer's work regarding its effect on the
- a code of ethics with certain
ideals for the profession
- the expertise of the valuer
- the special training and
education members of the profession have.
includes the valuer's assessment of market value as being completely
objective, that is, "without fear or favour". From the
performance of the members of the profession the public either
acquires or loses faith in the profession. When the public loses
faith it is difficult to promote the valuer as a professional. This
is shown (somewhat unfairly) with the image problems suffered by real
estate agents and used car salesmen.
special duty has been recognised in the courts as follows:
must give the impression of impartiality. He should avoid the
suggestion that he is in any sense an advocate for the party by whom
he is called - Sheehan J, "The valuer as a witness", AIV
News, June 1983, 17.
opinions of skilled witnesses are admissible whenever the subject is
one on which competency to form an opinion can only be acquired by a
course of special study or experience. The expert must be skilled by
special study or experience, but the fact that he has not acquired
his knowledge professionally goes, merely to the weight to be given
to the evidence, not to its admissibility - Sheehan J, "The
valuer as a witness", AIV News, June 1983, 17.
WITH A REAL ESTATE AGENT
it is generally recognised that a land agent who has effected a sale
of a property and whose commission may be dependent on the granting
of consent to the sale, is not competent to appear before a Land
Sales Committee or before the court as valuer in respect of that
particular property...the evidence of valuers having an indirect
interest in the transaction must, notwithstanding their wide
experience, be subject to the most critical examination - Archer J,
Mountney and Young,  NZLR 436, 445.
valuer when giving evidence should avoid the following frustrated
comment of Lord Campbell: Really this confirms the opinion I have
entertained, that hardly any weight is to be given to the evidence of
what are called expert witnesses; they come with a bias on their
minds to support the causes on which they are embarked - Tracy
Peerage (UK), (1843).
role of the valuer is becoming more sophisticated as real estate
finance and the controls on development become more sophisticated.
sale (purchase) leaseback finance which recognises that the
accumulation of low return assets by large companies and government
departments is wasteful investment. Further expansion of commerce,
retail, and industrial investments require more efficient use of
assets and resources which can be better achieved with sale
(purchase) and leaseback finance.
and superannuation funds particularly, institutional funds such as
those managed by insurance companies are a vital part of Australia's
real estate investment. Such institutions are becoming more
important as providers of development funds. As workers' wages and
disposable income increase there is a greater demand for pension and
superannuation investment trust funds. Taxation advantages and a
zero debt service provide such funds with a comparative advantage
over the private investor.
ethics – valuation