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- European Valuation Standards (EVS)
European Valuation Standards (EVS)
TEGoVA has published of European Valuation Standards since the early 1980s. This, the eighth edition, was launched on 13 May 2016 at TEGoVA European valuation conference in Brussels. The digital version of the book is downloadable from this site and will be available in hard copy soon.
EVS 2016 (The Blue Book)
Introduction by John Hockey MSc FRICS IRRV (Hons) REV, Chairman of the European Valuation Board and Editor of EVS 2016
The framework and content of EVS 2016, the eighth edition of European Valuation Standards, has been determined by recognition, extensive consultation and feedback.
Feedback from a wide variety of stakeholders has confirmed that EVS should remain clearly focused on real estate, provide additional guidance and technical information to meet the diverse needs of the 63 TEGoVA Member Associations (TMA's) and continue to concentrate on high level principles.
In meeting these objectives this publication follows the direction of previous editions, being informed by existing and emerging European regulation, acknowledging that EU law is the origin of an increasing amount of the local property law underpinning valuation. However, Union regulation can presume outcomes that are not always evident in the market. Energy efficiency is an example in point. EVS helps raise the valuer's consciousness of energy efficiency issues and EU instruments such as the energy performance certificate and its recommendations for improvements, but at the same time upholds the scientific and professional obligation on the valuer to value energy efficiency on the basis that values set must reflect verifiable market reality.
EVS 2016 provides harmonised European standards, guidance and technical information for use by all sectors of the European valuation profession. Corporate governance and ethical considerations are embedded within the standards, confirming, for instance, that a valuation produced in accordance with these standards is signed by a qualified professional whose experience, qualification, diligence and ethical behaviour are appropriate to the instruction.
The Eighth Edition
Part 1: European Valuation Standards and Guidance Notes
EVS continues to provide five Standards. They have all been refined and reinforced beyond those published in 2012. By way of example:
- EVS 1, Market Value, is expanded to include a definition of Market Rent, derived from and consistent with its definition of Market Value.
- EVS 2, Valuation Bases Other than Market Value, extends the commentary relating to Mortgage Lending Value (MLV), explaining the conceptual value-at-risk approach to manage the risk exposure of credit institutions taking into account special safety requirements.
- EVS 3, The Qualified Valuer, expands the requirements that determine that the valuer be, and be seen to be, not only competent to act, but also independent, and without any undisclosed potential conflicts of interest which are actual or possible and which can be foreseen at the time when the instructions are accepted.
- EVS 4, The Valuation Process, incorporates and amends guidance published in May 2013 relating to terms of engagement.
- EVS 5, Reporting the Valuation, cites the European Union's Capital Requirements Regulation 575/2013 which defines both Market Value and Mortgage Lending Value, in line with the definitions set out in EVS and also provides commentary on situations where opinions of "value in the longer term" are requested.
Guidance Notes (previously referred to as Applications) follow on from the Standards. They have been reinforced to provide detailed analysis and explanation of key issues and approaches to be followed. For example, EVGN 4, Assessment of Insurable Value and Damage has been expanded and incorporates an updated Information Paper relating to insured damage published in May 2013.
There are two new topic areas covered by the Guidance:
- EVGN 9, TEGoVA Commercial Loan Specification. This specification was initially published in October 2014, designed to be used by valuers providing valuations for secured lending to lenders that are members of the European Mortgage Federation (EMF).
- EVGN 10, Valuations: Compliance with EVS. This GN provides clarification on those valuations that will be compliant, and explains the main reasons that a valuation would not need to comply or would depart from TEGoVA requirements.
Part 2: European Codes
Two updated and extended codes are provided, namely the European Valuers' Code of Conduct and Ethics, and the European Code of Measurement.
Part 3: European Union Legislation and Property Valuation
Introduced in the 2102 edition, a complete section is devoted to the body of EU law impacting real estate and valuation with many updates to take account of the EU real estate policy advances over recent years. Based on comments received since 2012, this section is of particular value to academics, researchers, civil servants and advisers involved in the real estate aspects of EU policy.
Part 4: Technical Documents
Eight Information Papers (inter alia) are included within Part 4. New topic areas include Valuations for Recurrent Property Tax Purposes, Automated Valuation Models (AVM) and Valuation Methodology. The remainder papers have been updated and refreshed.
EVS 2016 does not address any country specific issues. Country chapters are published on this website setting out details of national legislation and valuation practice that are relevant to that country.
This, the eighth edition of the European Valuation Standards replaces the previous edition with effect from 1 June 2016.
The book is divided into four parts, read more by clicking on the link.
Country-Specific Legislation and Practice
The Country Chapters illustrate differences that currently exist across Europe. They are not intended to provide definitive advice. The text has been provided by TEGoVA Member Associations to outline country-specific legislation and practice.
European Valuation Standards Board (EVSB)
The EVSB drafts European Valuation Standards with particular attention to EU law.
European Valuation Practice and Methodology Board (EVPMB)
The EVPMB develops a harmonised European approach to valuation methodology.