Property Law, Ownership and Title
This domain concerns the legal nature of property interests: what is owned, how ownership is evidenced, and what burdens run with the land. Candidates must understand the difference between real property (land and things fixed to it) and personal property, and between freehold and leasehold estates. Title may be registered or unregistered, and the valuer must know how title is verified and what encumbrances affect value.
Key concepts include fixtures versus chattels (the degree and purpose of annexation), easements and servitudes, restrictive covenants, mortgages, leases and tenancies, and the distinction between legal and beneficial ownership. Also understand co-ownership, boundaries, encroachments, and the effect of adverse possession where applicable. A valuation must reflect the interest actually being valued - a leasehold interest is not the same as the freehold reversion.
Traps: valuing the physical property rather than the legal interest; overlooking a registered easement or covenant that restricts use; treating a fixture as a chattel (or vice versa); and assuming registered title is unencumbered. Another trap is confusing the value of the land with the value of the improvements where the interest separates them.
Rule of thumb: value the interest, not the bricks. Read the title and identify every encumbrance before forming an opinion.
Worked example: A factory with a registered right-of-way across its yard is valued. The easement does not transfer ownership but restricts use and may deter some purchasers, so the valuer must consider its effect on marketability and reflect it in the opinion.