SACPVP Associated Valuer flashcards
SACPVP Associated Valuer · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Market value
- The estimated amount for which an asset should exchange on the valuation date between a willing buyer and seller, after proper marketing, acting knowledgeably and without compulsion.
- Investment value
- The value of a property to a particular investor, reflecting that investor's required return, financing, and tax position rather than general market evidence.
- Highest and best use
- The reasonably probable use that is legally permissible, physically possible, financially feasible, and produces the highest value.
- Capitalisation rate
- The rate used to convert a property's net operating income into a capital value, derived from market evidence of yields for comparable assets.
- Discounted cash flow
- A method that discounts forecast future cash flows and a terminal value to present value using a risk-adjusted discount rate.
- Net present value
- The sum of discounted future cash flows minus the initial outlay; a positive NPV indicates the investment exceeds the required return.
- Internal rate of return
- The discount rate at which a project's net present value equals zero, representing the investment's implied annual compound return.
- Gross rent multiplier
- Sale price divided by gross annual rent; a quick comparison tool valid only where income and expense ratios are broadly similar.
- Residual land value
- Gross development value minus construction costs, fees, finance, and developer's profit; the amount available to pay for land.
- Developer's profit
- The return required by a developer, usually expressed as a percentage of gross development value or total development cost, deducted in the residual method.
- Special assumption
- An assumption that a fact is true on the valuation date even though it is not, such as planning consent having been granted.
- Basis of value
- The fundamental premise of a valuation, such as market value or investment value, which must be stated in the report.
- Conflict of interest
- A situation where the valuer's financial or personal interest could improperly influence the opinion, requiring disclosure and often withdrawal.
- Advocacy threat
- A threat to independence arising when a valuer promotes or defends a client's position, common in litigation or transaction support.
- Duty to tribunal
- The overriding obligation of an expert witness to assist the court or tribunal impartially, which prevails over duties owed to the paying client.
- Fixture test
- A test determining whether an item annexed to land forms part of the realty, based on the degree and purpose of annexation.
- Servitude
- A limited real right allowing one party to use or restrict another's land, such as a right of way or a drainage right.
- Sectional title
- A form of ownership comprising a private unit plus an undivided share in common property, governed by a registered sectional plan.
- Encumbrance
- A right or interest over property, such as a mortgage, servitude, or caveat, that restricts the owner's free disposal of it.
- Caveat
- A notice lodged against a title preventing registration of dealings without the caveator's consent, affecting marketability and value.
- Unregistered right
- An interest in land not recorded in the title register, such as an informal occupation, which creates legal risk and must be disclosed.
- Zoning
- Statutory land-use control specifying permitted uses, density, height, and coverage for a site under the applicable planning scheme.
- Non-conforming use
- An existing use that does not comply with current zoning but may continue, usually without the right to extend or intensify.
- Market rent
- The rent at which a property would be let on the valuation date between willing parties on appropriate lease terms after proper marketing.
- Property cycle
- The recurring sequence of recovery, expansion, oversupply, and recession phases that shifts vacancy and rental growth assumptions.
- Rateable value
- The value of a property as defined by rating legislation, used as the base for calculating municipal property rates.
- Expropriation compensation
- Payment for land taken by the state, typically comprising market value plus consequential loss and disturbance as the statute provides.
- Gross internal area
- The floor area measured to the internal face of external walls, used for occupational and cost comparisons rather than lettable area.
- Net lettable area
- The area actually available for occupation and letting, measured to defined internal faces and excluding common areas.
- Floor area ratio
- Total gross floor area divided by site area; a planning measure controlling the intensity of development on a site.
- Sinking fund factor
- The periodic amount that must be set aside to accumulate a required sum by a future date, calculated as i divided by (1+i)^n minus one.
- Debt coverage ratio
- Net operating income divided by annual debt service; lenders use it to test whether income can service the loan.