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SACPVP Valuation Guidelines under level 4 of the Risk Adjusted Strategy during COVID-19

Wednesday, 13 May 2020  
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DOING VALUATIONS UNDER LEVEL 4 OF THE RISK ADJUSTED STRATEGY DURING COVID-19

There are various circumstances during which valuers may have to perform valuations from 1 May 2020 during Level 4 of the RSA government’s Risk Adjusted Strategy. As South Africa progresses towards Level 1 and into the normal situation, the valuer’s engagement will increase and revert to normality.


It is imperative to study provisions of the document titled RSA Level Description- Schedule of Services- Framework for Sectors published 25 April 2020, and the Disaster Management Act, 2002 (Act No. 57 0f 2002), Regulations issued in terms of Section 27(2) of the Disaster Management Act, 2002 published 29 April 2020 by the Department of Co-operative Governance and Traditional Affairs and any latest amendments.

Category H9 of the Regulations refers to Business and Financial Services. It states that “(o)ther professional services may operate only where work-from-home is not possible, and only to support other Alert Level 4 services.”. Also, see Categories A, D and O which refer to Agriculture, Construction and government services (all spheres of government).


From this document, if a valuer is requested to perform valuation for insurance purposes, s/he may do so as the insurance environment is classified as an essential service. Also, a valuer may perform valuations of property including plant and equipment for a road construction firm or for other government works including where expropriation of property is required.


For a valuer to perform his/ her services during this period, s/he will require a permit. A valuer might get one from his/ her employer or from the entity requesting his/ her services. The South African Council for the Property Valuers Profession (SACPVP) is not in a position to grant such permit. Permits are obtainable online from the Companies & Intellectual Property Commission (CIPC) or you may ask your accountant to assist you.


At this period of restricted movement, SACPVP and the International Valuation Standard encourage the undertaking of desk-top valuations. In this case, the instructing party must consent to such valuation. The valuer must put a caveat advising that the property has not been inspected due to restricted movement during the COVID-19 lockdown and that the right to revisit the valuation is reserved, should an inspection after lockdown reveal any factor that would influence value.


However, in the extreme case where a physical inspection is the only option, the instructing entity must provide the valuer with a permit to perform such function. We emphasize that this should be a last resort where non-contact methods are not applicable.
Therefore, physical inspections and face to face contact should be avoided and all valuers should adhere to the current Covid-19 regulations.


This article will be updated as new information is provided by government. Anything contrary to the COVID-19 provisions is regretted and COVID-19 directives shall take precedent.

Related web links:
www.gpwonline.co.za
• IVSC :
o https://www.ivsc.org/news/article/statement-in-relation-to-the-covid-19-pandemic
o www.ivsonline.org

 

MC Seota
SACPVP Registrar

 

To download the PDF document click here.


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