by deborah miriam leshinsky ( phd candidate – currently doing research at monash university)-...
TRANSCRIPT
By Deborah Miriam Leshinsky ( PHD Candidate – currently doing research at Monash University)- Melbourne Australia
Certified practicing ValuerAustralian Lawyer
Masters in Banking and Finance
Property valuations involves unavoidably the making of guesses as to the property worth
No two valuers come up with the same value – this may mean:◦ Highly educated – we know instructing party, we
know the purpose of the valuation◦ Uncertainty– can only make certain enquires ◦ Not being familiar with certain issues
All we want to do is earn a living as a property professional so what do we do……
We hire ourselves out, to lending institutions the Courts and to any one who wants a property valued and put ourselves under pressure for an
ACCIDENT WAITING TO HAPPEN -
All these issues lead to Negligence
What is Negligence:
Why do we need as a professional person to be familiar with this word:
How can knowing about negligence protect the valuer
What is a professional person legally obliged to do:
A person who is required to give a professional opinion – given there knowledge of the local market are paid a fee in which they provide a value.
HOWEVER
If a valuer is negligent by not taking into account certain aspects of a property –
avoidable and non – avoidableHe may find himself/herself involved in a
court case………………ALSO Property professionals such as
Architects not providing the correct designs to the clients may be latter involved in a court case – sued for millions – all for a small fee paid for a service
The intent of this paper is to show that regardless of what they do professionals such as property valuers, architects are always going to act in a way that will cause negligence.
THE QUESTION IS THE DEGREE OF HARM…… And Who will be harmed and who has to
pay ?
NEGLIGENCE
3 things need to be proved:Defendant owes a duty of care to the plaintiff
Defendant has breached the duty of care
Plaintiff suffered foreseeable damage as result of Breach of duty of care
So what can we do to prevent Court Cases:
AND REDUCE THE RISK EXPOSURE
Not entering a field you are not familiar with Provide Contractual agreements as to the
maximum exposure Obtain sufficient insurance Protect yourself against 3rd parties by
mentioning in reports – no legal obligations
RESEARCH AREA
Case Study – asking valuers, lenders and property professionals about risks that are unavoidable
However there are Limitations: Generalizability, risk of bias,time consumingCase study may lack rigour – careful attention
Type 1 – analytical approachThis study is examined in order to try and
understand what has happened and why – it is not necessary to identify problems or suggest solutions
Type 2 – The problem oriented methodThe case study is analysed to identify the
major problems that exist and to suggest solutions
We will look at Type 2
Interviews
Structured – Survey research ,quantitative, Hypothesis testing
Semi – structuredUnstructured – Exploratory, Qualitative,
Hypothesis generation
Survey design
Pre determined list of questions All asked the same questions and exactly as
written in a questionnaire Questions asked in the same sequence Emphasis on close ended – questions that
can be statistically analysed
Limitations – of Interviews
Leading or loaded questions – suggesting the answer
Unfamiliar and technical terms Respondents – not just executives answers
but also valuers and admin support Response options should match the
questions AND Lack of time frame
Any suggestions would be most appreciated
Also presenting a paper to the Asian Real Estate society – on the legal
implications of and impact on
NON AUSTRALIANS PURCHASING PROPERTY IN AUSTRALIA and THE LEGAL IMPLICATIONS
THANK YOU
QUESTIONS
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