Ex-Files with lawyer Jeremy Sutton: ‘How should my ex and I get our property valued?’

Not all valuers will agree to undertake relationship property division valuations. Photo / 123rf

OPINION

Q. My partner and I have separated, and we need to get a valuation of the family home and the beach house.

How much does a valuation cost, how long does it usually take to get the valuation, and can you give me some names of valuers who are reputable?

I am good friends with a local valuer, and I have asked if they will provide a valuation at a discounted price.

Valuers operate either on a local or national basis

Registered valuers generally specialise in specific areas or in specific types of property. For example, a residential valuer may cover specific post codes such as: West Auckland - from Avondale to Hobsonville, or: Rotorua to Tokoroa. A commercial valuer might specialise in hotels or shopping centres around the country.

You would not generally have the same valuer complete a valuation for your villa in Mt Eden and your bach in Omaha. Registered valuers are required to know the area they are valuing unless they are working under someone who is experienced in that area.

Cost

The price of a valuation ranges by complexity and will cost anywhere between $820 and $1650 plus GST for a standard residential property.

A higher cost valuation will normally involve a degree of complexity, which requires more time, such as if the property has resource consent for subdivision or is a remote or lifestyle property or is a ‘high value’ home.

Leaky building issues and earthquake strengthening issues, flood prone, cross leases, unit titles and Māori land also have their own challenges.

Time

The valuation will normally take between four and six working days to complete. More complex property can take longer, but normally you would expect to have received a standard valuation within two weeks from the inspection.

The maximum life for a valuation in terms of the major banks is six months, and they will want another valuation normally, depending on the property market.

Finding a valuer

To find a valuer, there is no central register.

The registered valuers governing body (the Valuers Registration Board) recommends finding a valuer using the Yellow Pages website.

You can also familiarise yourself with the valuation profession using Valuers Registration Board NZ website.

Alternately you could use the trusted professionals around you such as your bank, lawyers, mortgage brokers or accountants. Reputable real estate agencies can also give you names of valuation companies.

Not all valuers will agree to undertake relationship property division valuations. This may be because there is a risk of one party being aggrieved and/or that the case may end up in the court with the valuer required to be a witness, which is a lengthy process they may not want to be involved in. Additionally, there can be extra challenges when the valuation is disputed.

Therefore, it is necessary you disclose that it is a relationship property valuation to the prospective valuer.

There are valuation companies that specialise in dispute resolutions. They are primarily appointed by barristers and solicitors.

It is important you ask you valuer how much experience they have, and what type of property they are skilled at valuing. For example, if it is a leaky building or an apartment, you want to know if they have undertaken similar valuations in the past. It is also important they are familiar with the location of the property.

The valuer will need to do a conflict check to ensure they are able to undertake the job without any conflicting interests.

Independence

It is always best to get an independent valuation.

Leeane Gregory of property valuers, Opteon Solutions, says:

“It would be against the Registered Valuers Code of Ethics to undertake an instruction from a friend in doing relationship property valuation.

“Valuations can be joint or individual. If it is a joint valuation, we would disclose the valuation to both parties, and it would normally paid for by both parties. An Individual valuation undertaken for one party may not be disclosed to the other party (or any other person such as a seller or agent) by the registered valuer.

“In the instance of two individual valuations undertaken by two separate registered valuers, no discussion of value or such will be made between the valuers. You also cannot contact the other party’s valuer to discuss their valuation or attempt to influence them. Valuers must always maintain a strict duty of care to their instructing client.”

Desktop

We would not generally recommend using a government valuation or a desktop valuation. These valuations are algorithm-based and should not normally be relied upon.

The government or rating valuation is done every three years for the council to collect local authority rates. This is a mass appraisal process and generally the ratings valuers have not seen the property. These are also generally quite out-of-date even by the time they are released.

Valuations can vary considerably over time.

Jeremy Sutton is a barrister and family lawyer at Bastion Chambers.