Surge in negligence claims against estate agents and surveyors
An investigation carried out by a London law firm has revealed a huge rise in the number of professional negligence claims brought over valuations of residential and commercial properties in 2009.
The investigation found that there were 25 High Court cases in 2009, compared to only one case in the previous five years. Claims were brought against valuers for many reasons, including:
- negligently overvaluing commercial premises that dropped in value because tenants became insolvent during the recession;
- negligently overvaluing residential property development sites which dropped in value because of falling house prices and a big increase in similar new build properties built during the housing boom;
- negligently underestimating the cost of putting a development project on hold; and
- negligently valuing a property that was subject to a fraud.
Banks and building societies have launched legal action against surveyors, claiming that they had overvalued properties that they had repossessed and been forced to sell for much lower sums. However, surveyors have hit back at these claims, stating that many of these properties had securitised loans against them and that lenders, rather than valuers, were to blame for the upward pressure on prices.
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My estate agent valued a property I bought through them in 2005 for 109k, for 140k in Feb 2010. When I eventually accepted an offer for 135k in July 2010 the surveyor valued it at 95k. I had to take it off the market and the estate agent is charging me £330 fees for marketing plus vat. How fair is this?I think this comment should be removed
Good article as it does happen (well in any industry things go wrong)
To the comment above, let me start by explaining the fee, agents take on a massive risk when taking on a house (think of it like buying shares) and there are huge costs (newspapers, online portals and paper work, we are talking £££££’s. But your flat fee there charging seems a bit unfair, especially as they valued it wrong and that is the reason it didnt sell.I think this comment should be removed
I would have thought it obvious when conducting a valuation on a new building that had a recently constructed loft conversion to ascertain whether building regulations were in being. But no both surveyors/valuers made the assumption that the loft conversion had obtained building regs. Hence the property was valued as a 4 bedroom, when it was that of a 3 bedroom with an attic room. Negligence in its highest form.I think this comment should be removed