This is a supposition taken to be true. It involves facts, conditions or situations affecting the subject of, or approach to, a valuation that, by agreement, need not be verified by the member as part of the valuation process. Typically, Assumptions are made where specific investigation by the Valuer is not required in order to prove that something is true. According to Faulkner (2004), some of the typical valuation assumptions in practice as contained in the RICS Red Book are as follows:
a. that vacant possession is provided
b. that all required, valid planning permissions and statutory approvals for the building and for its use, including any extensions or alterations, have been obtained and complied with;
c. that no deleterious or hazardous materials or techniques have been used, that there is no contamination in or from the ground, and it is not land filled ground;
d. that the property is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings and that good title can be shown;
e. that the property and its value are unaffected by any matters which would be revealed by a local search, replies to the usual pre-contract enquiries, or by any statutory notice which may indicate that neither the property, nor its condition, its use, or its intended use, is or will be unlawful;
f. that an inspection of those parts that have not been inspected, or a survey inspection, would not reveal material defects or cause the Valuer to alter the valuation materially;
g. that the property is connected to, and there is a right to use, the reported mains services on normal terms;
h.that sewers, main services and the roads giving access to the property have been adopted, and that any lease provides rights of access and egress over all communal estate roadways, pathways, corridors, stairways and use of communal grounds, parking areas and other facilities.
i. that, in the case of a new property, the construction of which has not been completed, the construction will be satisfactorily completed;
j) Etcetera
Special Assumption: This is an Assumption that either:
- requires the valuation to be based on facts that differ materially from those that exist at the date of valuation; or
- is one that a prospective purchaser (excluding a purchaser with a special interest) could not reasonably be expected to make at the date of valuation, having regard to prevailing market circumstances.
