RICS Valuation Standards - universally known to RICS members simply as "The Red Book", is the single most important publication valuers need in their professional lives. First produced in the mid - 1970's, the Red Book has grown year on year to define the rules of valuation practice internationally under the steer of the Appraisal and Valuation Standards Board of RICS.
With its growth, new editions, supplements and constant updates, it can be a daunting and confusing prospect to understand the key points of this important work - yet it is vital that valuers and firms do understand their duties under the Red Book to help avoid negligence claims, and provide clients with the best advice.
Notwithstanding this, the latest and 7th Edition of the RICS Valuation Standards came into force with effect from 1st May 2011. This new edition of the Red Book marks its issue for the first time in Global, UK and India volumes, and incorporates a number of changes and updates to enhance its clarity and ease of use. These include adopting the term "valuation standards" rather than "practice statements" in relation to the key requirements, which continue to be mandatory for members, since the emphasis throughout is on the delivery of valuations to clear and consistent standards.
The purpose of the global valuation standards is to provide an effective framework, within the Rules of Conduct, so that users of valuation services can have confidence that a valuation provided by an RICS member is objective and delivered in a manner that is consistent with internationally recognised standards including those set by the International Valuation Standards Council. There is a mandatory obligation placed on the individual valuer, or firm registered for regulation by RICS, to follow these standards and an effective sanction in the case of a material breach.