Valuation Reports & Documentation

36230 — Valuation Reports & Documentation

Valuation Standards & Professional Frameworks (36200)

Overview

Node 36230 addresses the structural and content requirements applicable to a valuation report — the formal written document by which a valuer communicates a valuation opinion, the basis and assumptions on which it is formed, and the methodology applied. A valuation report is the primary means by which the substantive standards addressed in node 36210 are made accountable and verifiable to the client, financier, or other party relying upon the opinion.

The content and structure of a valuation report is governed by the ANZVGPS/ANZVGN framework, supplemented by purpose-specific requirements imposed by lenders, regulators, and statute. A report prepared for mortgage security purposes, for example, differs in required content from an independent expert report prepared for a related party transaction under the Corporations Act, although both draw on the same underlying valuation standards.

This node is intended for valuers, financiers, auditors, and legal practitioners seeking to understand the documentation obligations attaching to an Australian valuation opinion, distinct from the substantive standards addressed in node 36210 and the registration regime addressed in node 36220.

Scope & Boundaries

This node addresses the structure, minimum content, and disclosure obligations applicable to a valuation report, including the treatment of instructions, assumptions, and special assumptions. It does not address the substantive valuation standards a report must apply, addressed in node 36210, or the registration and licensing of the valuer preparing the report, addressed in node 36220.

It does not address the detailed content requirements of reports prepared for a specific property sector, addressed where relevant in the 36300 sub-series.

Scope Note

This node describes the general structure of valuation reporting obligations as at the time of writing. Specific content requirements vary by instructing party, purpose, and applicable legislation, and should be confirmed against the terms of engagement and the relevant regulatory framework before a report is relied upon.

Key Concepts

Instruction and Terms of Engagement

The formal basis on which a valuer accepts an assignment, recording the property, purpose, basis of value, and any special instructions, and against which the scope of the resulting report is assessed.

Assumptions and Special Assumptions

Assumptions are matters accepted as fact for the purposes of a valuation without further verification; special assumptions are assumptions that either differ from facts existing at the valuation date or that a reasonably informed party would not typically make, and must be clearly identified and justified in the report.

Minimum Report Content

The set of disclosures an ANZVGPS/ANZVGN-compliant valuation report must contain, including the property description, basis and date of value, valuation approach applied, assumptions and special assumptions, and the valuer’s certification.

Certification and Sign-Off

The valuer’s formal statement, required in every compliant report, confirming compliance with applicable professional standards, disclosing any conflict of interest, and identifying the valuer personally responsible for the opinion expressed.

Regulatory & Legal Framework

ANZVGPS/ANZVGN reporting standards

Australian Property Institute & Property Institute of New Zealand

Prescribe the minimum structure and content of a compliant valuation report.
Corporations Act 2001 (Cth)

Australian Securities and Investments Commission

Prescribes specific content requirements for independent expert reports prepared in connection with related party transactions and takeovers.
Australian Securities and Investments Commission Act 2001 (Cth)

Australian Securities and Investments Commission

Governs disclosure obligations attaching to valuation reports relied upon in a financial services context.
Privacy Act 1988 (Cth)

Office of the Australian Information Commissioner

Governs the handling of personal information that may be contained within a valuation report, such as occupant or ownership details.

Practical Application

The content and structure of a valuation report is calibrated to its purpose and the instructing party’s requirements.

Scenario	Application	Outcome
A valuer is instructed to value a property on the special assumption that a development approval has been granted	The report discloses the special assumption clearly and separately from any assessment of value under existing conditions	The reader can distinguish value under the special assumption from unencumbered market value
A bank requires a valuation report to support a home loan	The valuer prepares a report meeting the minimum content items required under ANZVGPS/ANZVGN and the bank’s instructions	The report is accepted as meeting the bank’s lending policy requirements
An independent expert prepares a report for a related party transaction	The report is structured to meet the specific content requirements of the Corporations Act 2001 (Cth)	The report supports informed shareholder decision-making on the transaction