Negligent valuation: The margin for error

Professional negligence solicitor Lee Dawkins reviews the legal position relating to a negligent valuation.

Can a property valuer get a valuation wrong, but still escape legal liability? Well, the answer is a qualified “Yes”. They can get it wrong, as long as it is not too wrong!
Courts have long recognised that valuing a property is more an art than a science. Property prices fluctuate. There are few absolutes and the best that many valuers can do is hunt around for comparables, which are not always easy to find.
Inevitably this results in a huge subjective element being introduced to any property valuation. Judges are therefore slow to make a finding of negligence against a valuer or surveyor unless the valuation is significantly wrong.
The law allows valuers a margin of error. So, the first question to be asked in any negligent valuation claim is “Does the valuation fall outside the reasonable margin of error?”
In the case of K/S Lincoln and Others v CB Richard Ellis Hotels Limited the judge calculated that a reasonable margin of error was plus or minus 10% of the “true” valuation. So, even though the valuation was “wrong” by up to £200,000, the valuer was not negligent and the negligent valuation claim failed.
The case also confirmed that it does not matter if the valuer’s methodology is flawed. As long as the valuer gets within 10% of the “correct” valuation it is irrelevant how that figure was arrived at.
We deal with negligent valuation claims on a nationwide basis. If you have lost out due to an incorrect valuation that is beyond the 10% margin then we would be happy to consider taking on your compensation claim on a No Win, No Fee basis.
For further information about surveyors’ negligence, valuers’ negligence and negligent valuation claims contact  solicitor Lee Dawkins at [email protected] or call our free helpline on 0333 888 0404

Lee Dawkins

Lee Dawkins

Over the past 30 years Lee has overseen the expansion of the firm’s litigation department. He developed our personal injury and clinical negligence teams, creating various niche areas that now enjoy a national profile. He pioneered contentious probate, setting up one of the UK's leading inheritance dispute teams and established Slee Blackwell as a force within claimant professional negligence. He now works as the firm's marketing partner.
Lee Dawkins

Lee Dawkins

Over the past 30 years Lee has overseen the expansion of the firm’s litigation department. He developed our personal injury and clinical negligence teams, creating various niche areas that now enjoy a national profile. He pioneered contentious probate, setting up one of the UK's leading inheritance dispute teams and established Slee Blackwell as a force within claimant professional negligence. He now works as the firm's marketing partner.

Share this post:

Share on facebook
Share on twitter
Share on linkedin
Share on email

Share this post:

Share on facebook
Share on twitter
Share on linkedin
Share on email

Call the Slee Blackwell helpline on 0333 888 0404