Applying a valuation margin of error of 8 per cent, rather than the generally accepted margin of 5 per cent for standard residential properties, the defendant surveyors’ valuation was not negligent. This margin was appropriate because of the lack of consistency and clarity in relation to comparables and the difficulties presented in valuing in July 2004, when the market was volatile. Had the valuation been negligent, the judge would have made a finding of 60 per cent contributory negligence against the lender (Paratus AMC Ltd v Countrywide Surveyors Ltd).
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Valuation claim
- Mills & Reeve LLP
- United Kingdom
- March 8 2012
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Sonja Sarantis
Legal Counsel
State Street Bank and Trust Company