Land Valuation and Surveyors' Liabilities

An update providing an answer to a question raised by a subscriber.

Minor amendments have been made to the standard document, Positive overage covenant with restriction and drafting note.

Baxall Securities Ltd and Norbain SDC Ltd v Sheard Walshaw Partnership and others, 22 January, 2002 (Court of Appeal). The Court of Appeal found that a defect in the design and construction of a roof was patent - not because the occupier was aware of flooding to its building at the time it signed the tenancy and the possibility of there being a defect in the building construction, but because the occupier had had the opportunity to inspect the building and the defect was discoverable by competent surveyors. The fact that the surveyors had not been able to identify the defect did not prevent the defect from being patent. The architects were not therefore liable for breach of their duty of care in tort.

In Whitechapel Valuation Tribunal v Jo Coll (Valuation Officer) [2012] UKUT 5 (LC) the Upper Tribunal (Lands Chamber) held that the actual motives of landlords and tenants are not relevant when assessing the rateable value of a property. The value is assessed on the basis of a hypothetical landlord and tenant.

McKinnon and another v E. Surv Ltd (formerly known as GA Valuation and Survey Ltd), 14 January, 2003 (High Court).Where a surveyor negligently overvalues a property, the general rule is that damages are assessed on the difference between the value of the property in the condition described in the valuation report, and the property's value in the condition as it should have been described. The High Court, in this case, decided that the critical value was the open market value of the property in its true condition as at the valuation date, taking advantage of facts known with the benefit of hindsight.

An update on PLC Construction's Ask the Team for June 2009, which answers the question "who is a building owner under the Party Walls etc Act 1996?".

A summary of David Nicholls, barrister at 11 Stone Buildings', blog post on appealing against a party wall award, made under the Party Wall etc. Act 1996 (PWA 1996).

The Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2008 (the 2008 regulations) come into force on 1 October 2008. The 2008 regulations provide that plant and machinery with the capacity to generate electricity and heat below certain thresholds will not have an immediate impact on the rateable value of non-domestic property on or after 1 October 2008.

Many commercial property transactions are, potentially, liable to direct and indirect taxes. This practice note considers the tax treatment of a property purchase.

A section 1 notice was served under the Party Wall etc Act 1994. The Adjoining neighbour appointed a surveyor even before the notice was served (please comment if there would a difference if it was after). The Surveyor visited the Adjoining neighbour's property. In the event, no new wall is to be built (and no other works under the Act will be done). The Surveyor has stated his client is entitled to be covered by his expenses which are the surveyors fees (which amount to up to 2/3 of the amount of a party wall award). The surveyor insists a dispute has arisen and must be dealt with under section 10. Can a dispute under the Act arise even where no works will take place? The Surveyor is threatening to issue a Party wall award in any case to resolve the 'dispute' - have the courts clarified what is meant by dispute under the Act?

I am dealing with a party wall act award. The works being carried out by my client's neighbour to their property will expose a gable end wall of my client's property. The works have been agreed but in order to maintain the newly exposed wall going forward my client will need to enter onto the adjoining property. Is it within the scope of an award or of the Court should an appeal be made against the award for an easement to be granted to facilitate such access?

I act for clients who believe that their neighbour's building works encroached upon their land. The works were carried out prior to our clients' purchase of the property. My clients are now seeking to carry out their own building works, which would involve building on the party wall, hence an agreement/ Award will be required. It was considered that raising the issue of the encroachment may have given our clients some leverage on agreeing terms. No notice has been served due to delays in obtaining planning and the neighbours are now selling the property. Completion is anticipated imminently. Can our clients still use the encroachment as leverage against the new owners if serving a party wall notice on the new owners?

I am the Party Wall surveyor for the building owner. The adjoining owner's surveyor has requested an escrow agreement for the sum of £25,000. The work is to increase the depth of the existing basement and foundations for a rear extension to a two storey residential property. The adjoining owner surveyor suggests this in the event that the builder does not complete the works. Is an escrow agreement necessary for this or indeed anything to do with the Party Wall Act. Should this not be covered by insurances?

In respect of a Party Wall Award for an extension wall that straddled an adjoining owner's boundary, how can an adjoining owner and an owner carrying out the work best document the following terms in the agreement either as part of the Party Wall Award or as a separate right:  In consideration of the adjoining owner's consent to the Party Wall Award the building owner and its successors in title agree and consent to and grant the adjoining owner and his successors in title of the adjoining premises for the benefit of the adjoining premises the right without any payment to the building owner and/or its successors in title, for to build on, to use, extend along the line of junction including erecting a boundary fence and attaching a boundary fence and fence post to the party wall and enclose the party wall including for the avoidance of doubt using the party wall as a supporting party wall.

I understand that it is up to the proposers of BID to determine the amount of the BID levy and how it will be calculated. Once a majority votes in favour of the BID then all non-domestic rate payers are liable to pay a BID levy. Can you challenge the level of the BID levy? And what if for example the improvements have not benefited the district and/or the individual property owner?

A legal update on Crowley t/a Crowley Civil Engineers v Rushmoor Borough Council [2009] EWHC 2237, where the Technology and Construction Court (TCC) provided guidance on claiming compensation for breach of the Party Wall etc. Act 1996.

The Council of Mortgage Lenders (CML) has published a revised version of the Disclosure of Incentives Form. Note added: CML published a revised version of the Form (version 2.1) for use from 12 March 2012.

Trailer and Marina (Leven) Ltd v Secretary of State for the Environment, 6 February 2004 (Administrative Court)The High Court has decided that the statutory compensation scheme for sites of special scientific interest was compatible with human rights. A fair balance had been struck between the public interest and an individual's rights.

An update on Transport for London (London Underground Limited) v Spirerose Limited (in Administration) [2009] UKHL 44 in which the House of Lords overruled the Court of Appeal on the award of compensation for compulsory purchase.

The House of Lords has held that a lender who sued surveyors for overvaluing mortgaged property, but who was contributorily negligent, should have its total loss reduced rather than the amount of the overvaluation.

Where a bank lends an amount in excess of a surveyor's valuation of the security for the loan, the bank may be contributorily negligent in a subsequent claim against the surveyor.

Harris v Williams-Wynne, 11 February 2005 (High Court). The High Court has considered whether a person who had acquiesced in the breach of a covenant against building could still claim damages for the breach. The claimant's inactivity was not fatal to the damages claim, but the amount awarded was only a small proportion of the claimed development value. Note added 3 March 2006: the High Court decision was upheld by the Court of Appeal (see Legal update, Damages for breach of restrictive covenant following acquiescence (Court of Appeal) ).

Department of Trade and Industry background note for the Queen's speech 2006: Consumers, Estate Agents and Redress Bill.This document is in pdf format and may take some time to download.

Do you have any clauses relating to an option agreement or pre-emption agreement where the purchase price is calculated with reference to independent estate agents valuations, i.e. the market value?

Donald Malcom Baker v Citibank NA EWLands RA_66_2004.

The High Court has considered whether a valuer owes a duty of care in preparing a valuation to an undisclosed principal.

In a recent case a vendor's agent was found to be liable for negligent misstatement in making oral representations as to the area of the plot to a purchaser in circumstances where he knew that there would be no independent survey prior to exchange. However, a purchaser will have no cause of action unless he can demonstrate that he has suffered loss as a result.

Estate Agents (Redress Scheme) Order 2008, as originally made.

The Property Misdescriptions Act 1991 comes into force on 4th April, 1993. It will be a criminal offence to make a false or misleading statement in the course of an estate agency business or property development business.

On 29 May 2008, the Financial Action Task Force (FATF) published a report examining money laundering and terrorist financing committed through the real estate sector (Report). The Report is dated 29 July 2007, but the FATF has confirmed that, although the Report was approved as at that date, it has not previously been made publicly available. It is not clear why the FATF has waited until now to publish the Report.The main objective of the Report is to develop a greater understanding of the way in which real estate activity can be used for money laundering or terrorist financing. The Report includes case studies based on information provided by participating FATF and non-FATF members, including the UK, the United States and the European Central Bank.The FATF considers that the real estate sector displays a number of characteristics (such as the use of complex loans or corporate vehicles) making it attractive to potential misuse by money launderers or terrorist financiers.The Report identifies a series of more common or basic methods ("typologies") for real estate sector misuse, including:- Use of mortgage schemes.- Use of investment schemes and financial institutions.A list of risk indicators related to the typologies have been developed by FATF and are set out in the Report. These indicators may help financial institutions and others involved in certain real estate activities in carrying out customer due diligence and risk analysis on new and existing clients.Tackl

An update on the Government review of regulation and redress in the UK housing market, published on 20 January 2009.

Guidance for Registering Authorities on Setting Fees for Local Land Charge Services in England (DCA).This document is in pdf format and may take some time to download.

The House of Lords has held that landlords are not entitled to have hope value taken into account in valuations of their freehold interests on enfranchisement and lease extension claims except in some collective enfranchisement claim situations.

Our client is having issues with a Party Wall agreement. Works have been carried out by the neighbouring property and these works are now finished. There has been some minor damage to our client's property and our client submitted a quote for 2,400 to deal with the damage to the owner of the neigbouring property. This was the cheapest of the quotes they obtained. The neighbouring owner will only approve work up to a value of 1,400. There is a disagreement over what work needs to be done. Our client has a party wall surveyor but this surveyor now seems to have gone awol and all attempts to contact him have been met with no response for the last month. Our client would like to know where they stand legally in being able to force the neighbouring owner to carry out works to rectify the minor damage. If our client carries out the work and then invoices the neighbouring owner, are they likely to be able to recoup the full cost?

If a party seeks an injunction for failure to comply with the Party Wall etc. Act 1996, will the applicant still need to demonstrate grounds for an injunction, namely the Shelfer v City Wall grounds? Also, if there has been no damage/trespass that has occurred, will the applicant still need to demonstrate grounds for a quia timet injunction, that there is an imminent risk of substantial irreparable damage occurring?

Level Properties Ltd v Balls Brothers Ltd and M Dalgleish [2007] EWCH 744 (Ch). The case concerns the terms of a lease relevant to the determination of the open market yearly rent at rent review. The landlord challenged the determination of the new rent by the independent expert and the case considers three preliminary questions: Whether the landlord could insist upon the provision of a surety on assignment even if it was in fact unreasonable to ask for one? Should the rent review clause be construed to determine the new rent by reference to a single letting or two separate lettings? Were the landlord and current tenant bound by the rent determination of the independent expert?

A practice note on the role of the survey as part of the property investigation and  the issues that a survey may address.

The Investment Property Forum has issued a new edition of “Readiness for Sale” - A Guide for Streamlining Commercial Property Transactions and a checklist.  The aim of these materials is to facilitate the sale of commercial property. (Free access.)

If a Party Wall surveyor's appointment is silent as regards payment terms, does the construction act imply payment terms into it?

Is the LVT bound by decisions of the Upper Tribunal (Lands Chamber)?

The Lands Tribunal (Amendment) Rules 2003, Statutory Instrument 2003 No. 2945.

On 18 March 2008, the Law Society published a practice note on mortgage fraud.The practice note covers:How mortgage fraud occurs.The warning signs.The due diligence and other measures lawyers must follow to prevent fraud.When to disclose information to a lender, the client, the police and insurers.It is essential that solicitors and their staff are familiar with the Law Society practice note and relevant legislation. This is because, if a client commits mortgage fraud, a solicitor can be criminally liable under the Fraud Act 2006, the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2007, even if the lawyer was unaware of the fraud or was not actively involved in it.The courts will assume a high level of knowledge and education on the part of lawyers. If a lawyer has not carried out the required due diligence, a court is unlikely to accept that a lawyer was unwittingly involved. The required due diligence is described in the practice note and in the information referred to below.Lawyers should consult the online version of the Law Society practice note, as it may be updated over time.For more information on mortgage fraud and lawyers' anti-money laundering obligations, see:Law Society practice note on anti-money laundering.Practice note, Anti-money laundering measures for lawyers: the 2007 rules.Legal update, The CML publishes updated overview of mortgage fraud.Legal update, The Law Society newsletter: Mortgage fraud - are you being targeted?

The High Court has held that a lender did not breach its duty to obtain the best price reasonably attainable for a mortgaged property.

The High Court has held that a lender had failed to mitigate its loss in that had it monitored the borrower's account properly it would have taken action much earlier.

The Court of Appeal has discussed the application of the Law Reform (Contributory Negligence) Act 1945 to the assessment of the liability of a valuer.

A practice note on the tenant's right to compensation when the landlord successfully opposes the tenant's right to renew a business lease (section 37, Landlord and Tenant Act 1954).

Merrett v Babb, 15 February, 2001 (Court of Appeal).

A minor amendment has been made to the following PLC Property Standard documents to refer to the sixth edition of the RICS Valuation Standards (Red Book), which came into effect on 1 January 2008: Positive overage covenant with restriction. Contract for the sale of freehold land with vacant possession conditional on planning permission. In both Standard documents, the definition of Market Value has been updated to refer to the definition of market value in Practice Statement 3.2 of the sixth edition of the Red Book. This definition remains the same as in the fifth edition.

In Meah v GE Money Home Finance Ltd [2013] EWHC 20 (Ch), the High Court considered whether a mortgagee had breached its duty to obtain the best price reasonably attainable for the mortgaged property.

Seventh Earl of Malmesbury v Strutt and Parker [2007] EWHC 999 (QB). This case has received much publicity but essentially does not make any new law. The case concerned the grant of leases of land as a car park for use in connection with an airport. The surveyor agreed fixed rents but failed to negotiate any element of turnover rent. The surveyor was found to have been negligent in failing to address the need for a turnover rent. This was a costly mistake. In 2006, the car park revenue was in the region of £1.8 million but the rent was only £9,000 (although following review, this was increased to in the region of £30,000). The initial claim was for a sum in the region of £100 million but it is likely that the actual award for damages will be substantially less. At one stage in the proceedings, the lawyers involved with the drafting of the leases were also subject to a claim in negligence, but this claim was largely dropped and the court ruled that the one solicitor who had been primarily involved was not liable in negligence. Note: a note has been added to the end of this legal update under the Comment to explain that the court declined an application to reconsider its judgment.

"New build properties - valuation": CML policy overview (last reviewed 1 February 2008).

An update on the publication of a Practice note on the Party Wall etc. Act 1996.

New Listing Rules have been published by the London Stock Exchange and come into force on 1st December, 1993. Chapter 18 contains provisions relating to property companies and to listed companies which carry out certain property related transactions. The provisions are largely based on the provision of Chapter 1, section 10 of the current Yellow Book.

The Non-Domestic Rating Contributions (England) (Amendment) Regulations 2003, Statutory Instrument 2003 No. 3130.

The Non-Domestic Rating Contributions (Wales) (Amendment) Regulations 2003, Welsh Statutory Instrument 2003 No. 3211 (W.304).

On 18 September 2009, Ofwat published its comments on the draft Flood and Water Management Bill consultation.

An update on Redlawn Land Ltd v Cowley [2010] EWHC 766 (Ch) and the date for determining the option price where the option agreement did not specify a valuation date.

The High Court has held that security can be requested for work carried out on the building owner’s land if the work falls within the ambit of the Party Wall etc. Act 1996.

An update on Barratt Homes Ltd v Dwr Cymru Cyfyngedig (Welsh Water) [2008] EWCA Civ 1552, and statutory grounds for refusing permission to connect to a public sewer. Note: On 9 December 2009, the Supreme Court upheld the Court of Appeal decision.  For details, see Legal update, Permission to connect to sewers (Supreme Court) (full update).

A detailed update on Barratt Homes Ltd v Dwr Cymru Cyfyngedig (Welsh Water) [2009] UKSC 13 and the statutory grounds for refusing permission to connect to a public sewer.

Platform Funding Limited v Bank of Scotland plc [2008] EWCA Civ 930.A transcript from Bailii of the decision in this case.

Property under IFRS - a guide to the effects of the new International Financial Reporting Standards (RICS).

The Royal Institute of Chartered Surveyors has published a revised Practice Statement 8 on property valuations for secured bank lending.

An adjoining owner's response to a building owner's line of junction notice (for a new wall astride the boundary) in letter form, given under section 1 of the Party Wall etc. Act 1996 (PWA 1996). The letter caters for the adjoining owner to consent or dissent. This letter is reproduced under the terms of the Click-Use Licence from the example letters in the Department for Communities and Local Government's (DCLG) explanatory booklet on the PWA 1996 (DCLG's explanatory booklet) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/35796/party_wall_guide-new-p35.pdf). It has integrated drafting notes prepared by PLC Construction.

A line of junction notice (for a new wall wholly on the building owner's own land) in letter form from a building owner to an adjoining owner, given under section 1 of the Party Wall etc. Act 1996 (PWA 1996). This letter is reproduced under the terms of the Click-Use Licence from the example letters in the Department for Communities and Local Government's (DCLG) explanatory booklet on the PWA 1996 (DCLG's explanatory booklet) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/35796/party_wall_guide-new-p35.pdf). It has integrated drafting notes prepared by PLC Construction.

A party structure notice in letter form from a building owner to an adjoining owner, given under section 3 of the Party Wall etc. Act 1996 (PWA 1996) and relating to section 2 works. This letter is reproduced under the terms of the Click-Use Licence from the example letters in the Department for Communities and Local Government's (DCLG) explanatory booklet on the PWA 1996 (DCLG's explanatory booklet) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/35796/party_wall_guide-new-p35.pdf). It has integrated drafting notes prepared by PLC Construction.

An adjoining owner's positive response in letter form to a party structure notice from a building owner, given under section 3 of the Party Wall etc. Act 1996 (PWA 1996), and relating to section 2 works. This letter is reproduced under the terms of the Click-Use Licence from the example letters in the Department for Communities and Local Government's (DCLG) explanatory booklet on the PWA 1996 (DCLG's explanatory booklet) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/35796/party_wall_guide-new-p35.pdf). It has integrated drafting notes prepared by PLC Construction.

A table summarising the main stages of the party wall procedure under the Party Wall etc. Act 1996 (PWA 1996), considering the procedure for existing walls, new boundary walls and excavation works.

An adjoining owner's negative response in letter form to a notice of adjacent excavations (three or six metres from the boundary), given under section 6 of the Party Wall etc. Act 1996 (PWA 1996). This letter is reproduced under the terms of the Click-Use Licence from the example letters in the Department for Communities and Local Government's (DCLG) explanatory booklet on the PWA 1996 (DCLG's explanatory booklet) (https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/35796/party_wall_guide-new-p35.pdf). It has integrated drafting notes prepared by PLC Construction.

The Queen's Speech contains a number of measures of particular interest to property lawyers:Tribunals, Courts and Enforcement Bill, which will contain measures reforming distress for rent.Climate Change Bill.Planning reform.Consumers, Estate Agents and Redress Bill, which will introduce regulation of estate agents.

In Woolway (Valuation Officer) v Mazars LLP [2013] EWCA Civ 368, the Court of Appeal has upheld the finding of the Upper Tribunal (Lands Chamber) that non-contiguous floors occupied in the same building by the same business can be treated as a single hereditament for non-domestic rating purposes.

The Carsberg Report has been published (15 January, 2002) and makes recommendations to the RICS on how the valuation process should be improved to minimise the risk that a valuer's objectivity may be compromised, and to maintain public confidence in the system. The recommendations will now be considered by the RICS valuation faculty and a steering group will draw up and promote guidelines for best practice.

A reminder that the Royal Institution of Chartered Surveyors (RICS) is setting up a mandatory registration scheme for its members who carry out formal property valuations.

The Royal Institution of Chartered Surveyors (RICS) has published a draft guidance note, Surveyors acting as arbitrators in commercial property rent reviews, and is seeking comments on it.

The Royal Institution of Chartered Surveyors (RICS) has published a draft guidance note, Real Estate Management Standards, and is seeking comments on it. 

The Royal Institution of Chartered Surveyors (RICS) has published a consultation on its draft guidance note on sustainability and commercial property valuation. (Free access.)

A draft guidance note was produced following discussions between the Royal Institute of Chartered Surveyors (RICS) and the British Banker's Association (BBA). This guidance note was proposed specifically for use where valuation is required by lenders taking commercial land and property as security.

RICS press release, Sustainability measures could impact on property value, 20 September 2011.

The RICS has published the RICS UK Commercial Real Estate Agency Standards 1st Edition (November 2011). 

The Royal Institution of Chartered Surveyors (RICS) has announced that it is setting up a mandatory registration scheme for its members who carry out formal property valuations. (Free access.)

RICS: Consultation on draft guidance, Daylighting and sunlighting (23 July 2012).

RICS: Real Estate Management Standards (August 2012).

Scullion v Bank of Scotland plc (t/a Colleys) [2011] EWCA Civ 693 (17 June 2011). This is a transcript from Bailii of the judgment.

What is the limitation period for breach of statutory duty? My client is considering a claim under the Party Wall Act 1996.

Francis v Barclays Bank plc; Barclays Bank plc v Diamond, 7 December 2004, (High Court). The High Court has held that a surveyor was negligent for failing properly to advise Barclays Bank over its rights under a clawback provision in a property sale agreement.

The Court of Appeal has held that a valuer, by accepting instructions to inspect and value a property, had undertaken an unqualified obligation to inspect the correct property and was in breach of contract by valuing the wrong property.

Surveyors and Valuers Accreditation Limited. SAVA operates one of the approved Home Inspector certification schemes

Right Honourable C G J E Cadogan and Cadogan Estates Limited v M R Sportelli and K L V L Sportelli and four other appeals (Sportelli appeals).In July 2007, the Court of Appeal was asked to rule on three issues relating to the valuation of the price payable for a residential lease extension and upon enfranchisement, under the Leasehold Reform and Urban Development Act 1993 and the Leasehold Reform Act 1967.The Court ruled that:The valuation should not take into account any "hope value" (the value to the landlord of one day being able to sell an extended lease or the freehold). The Lands Tribunal had been right to disregard market evidence when setting the deferment rate for houses at 4.75% and flats at 5%. The Lands Tribunal's decision on deferment rates should apply to the prime central London market, but that different forms of evidence may need to be considered for valuations elsewhere in the country.These decisions help to end some of the uncertainty encountered when valuing residential reversions. However, the impact the rulings will have on the residential market remains to be seen and several questions remain as to the relevance of the deferment rates established by the Lands Tribunal to properties outside the prime central London area.The Sportelli appeals relate to a highly technical interpretation of statutory valuation principles and it is unclear how they will affect reversionary values outside the prime central London market.The transcript for the Sport

On 26 February 2008, the Council of Mortgage Lenders (CML) updated its "Fraud Prevention" policy overview. This summarises the four main types of fraud as follows:Application Fraud: Where an individual knowingly submits incorrect information when applying for a mortgage, such as by exaggerating income or applying for an owner-occupier mortgage for a let property.Identity fraud: Where someone uses another person's identity to apply for a mortgage in their name.Registration fraud: Where a fraudster changes the registration of a property and takes out a mortgage against it. This can affect landlords, absent owners or mortgage-free property.Valuation fraud: Where deliberately inaccurate valuations are submitted to lenders. This can affect new build properties where there are no comparables for off-plan valuations. The purchase price may not reflect discounts and incentives offered by developers, such as free holidays and part payment of mortgages.In addition to CML requirements, conveyancers should be aware of the four types of mortgage fraud, and should report to a mortgagee client any sign that fraud is being committed. Conveyancers must be especially alert to valuation fraud, as they are under a duty, set out in paragraph 6.3 of the CML Lender's Handbook, to inform the lender of the true price being paid for a property including any price reduction, cashback offer or other incentive. For more information, see:Legal update, Avoiding mortgage fraud: Law Society newsl

The Land Registry is conducting a survey about a proposed new service, the Flood Risk Indicator that will be accessible on the Land Registry website. This will give instant confirmation as to whether a property is within, or partially affected by, a flood plain. It is intended for use in the "early stages of a property enquiry".The survey takes less than five minutes to complete and can be found on the Land Registry website. It invites views on how appealing the Flood Risk Indicator will be and whether users would be prepared to pay a fee. It also asks whether flood risk should be shown on a property's registered title.Property professionals may find it useful to be able to obtain flood risk information at the same time as their Land Registry search. However, it may be useful to know whether the result would be presented in the form of a map, how it compares with the Flood Risk Map tool that is available on the Environment Agency website free of charge, and whether it will offer value for money. As the flood risk for a property may change over time, it is unclear whether an entry on the registered title would be up to date and reliable. PLC Property has raised these queries with the Land Registry and will report to subscribers if this information is made available.For information on flood risk maps and flood risk management, see Practice note, Managing flood risk.

A note on the Party Wall etc. Act 1996 (PWA 1996). The note explains what works the Act covers, it's notice requirements, the dispute process and what happens when the Act is not complied with. It also sets out a number of practical issues that arise and briefly explains the Act's relationship with the Access to Neighbouring Land Act 1992.

The Bill is at Report Stage. When enacted, it will be a criminal offence to make a false or misleading statement in the course of an estate agency or property development business.

The Court of Appeal has reaffirmed that adherence to time limits is crucial. A writ issued three years and one day after a plaintiff became aware of a construction defence was not allowed. It had to be issued within three years under section 14A of the Limitation Act 1980.

The agent entitled to commission will be the one who can say that his introduction was the effective cause of the purchase.

An estate agent can now be prevented from working if he has engaged in "undesirable practices".

The Court of Appeal has assessed whether a contribution for damages can be recovered following a negligent valuation.

Valuation Officer v Citibank NA [2007] EWLands RA_66_2004 (07 February 2007).A transcript provided by Bailii of the decision in this case.

Royal Institute of Chartered Surveyors (RICS) guidelines requiring surveyors to take into account "hope value" on a valuation may be overridden by the terms of a contract.

In Scullion v Bank of Scotland plc (t/a Colleys) [2011] EWCA Civ 693 (17 June 2011), the Court of Appeal overturned the High Court decision that a valuer owed a duty of care to a buy-to-let purchaser. Note added (7.12.11): The Supreme Court granted permission to appeal against the decision of the Court of Appeal on 23 November 2011 (see UKSC 2011/0152). Note added (16.5.11): The Supreme Court have confirmed the the appeal is due to be listed in April 2013. 

Raja (administratrix of the estate of Raja (deceased)) v Austin Gray (a firm), 31 July, 2002 (High Court). Valuers appointed by administrative receivers to value and assist in the sale of a mortgaged property owe a duty of care to the mortgagor and others interested in the property to obtain a proper price for the property. 08/01/03: The Court of Appeal overturned the High Court's decision on 19 December, 2002.

Where a valuer negligently over-valued property, causing the client to make a loan which would not have been made had the true value been known, the valuer was responsible to the lender for the lender's entire loss, including that resulting from subsequent falls in the property market.

The Court of Appeal has considered the way in which the tenants' interests should be valued for the purposes of collective enfranchisement under the Leasehold Reform, Housing and Urban Development Act 1993 in McHale and another v Cadogan and others [2010] EWCA Civ 1471. Note added: The Supreme Court granted permission to appeal on 5 July 2011 (UKSC 2011/0043 and UKSC 2011/0044).

A commercial landlord's tenant has gone into receivership. The tenant is a company. As far as the landlord is aware, the tenant company has not as yet been dissolved. The lease has another 5 years (say) to run if it is not forfeit or surrendered. At what point do the premises become unoccupied for the purposes of business rates if neither the landlord nor tenant take steps to end the lease? (i.e. would it only end on the removal of the company from the register at Companies House or on appointment of receivers or some intermediate point?)

Our client is involved in a PWA dispute. The Third Party Wall Surveyor has recently made his award and this has been appealed by the adjoining owner on the grounds that the works do not go far enough. Our client was happy with the award and has not seen evidence to date to evidence that there is further damage being caused and that the adjoining owner is correct. Our client has complied with the procedure throughout and as the AO has now appealed it is our clients position that they will also comply with the appeal. The AO has however written asking us to confirm that we will agree to write to the surveyor to ask him to amend/prepare a supplementary report and asking our client to agree to further investigations being carried to establish the nature of the damage to avoid litigation. In light of the above, I am unsure from my reading whether: A third surveyor can amend/prepare a supplementary award if both parties agreed to this ( I thought the award was binding unless determined by the court) Whether parties can put a hold on the appeal and agree to further investigations or whether once the appeal has started whether all investigations should form part of the appeal. The third surveyor has stated that he considers his award to be correct and our client agrees with this, unless proven otherwise which they consider has not been fully proven.

The developments that property practitioners can expect in 2012.

In Kaye v Lawrence [2010] EWHC 2678 (TCC), the High Court considered whether security under section 12(1) of the Party Wall etc. Act 1996 can be required when the works are being carried out on the building owner's land and not the adjoining owner's land.

Egan Lawson Ltd v Standard Life Assurance Co, 21 November 2000. The Court of Appeal had to decide on the facts which of two introductions to a property caused the buyer's eventual acquisition or whether both were causes and double commission was due. One of the questions the court will ask is what would have happened if the second agent had never come onto the scene.

We act for a client seeking a lease extension. This question relates to whether it is appropriate now to issue the county court proceedings under the Act as it may not be possible to complete within 4 months of terms being agreed. The freeholders counternotice was served at the beginning of November 2012. The freeholders solicitors wrote in early December 2012 stating "terms have been agreed under the Leasehold Reform Housing and Development Act 1993" and attached draft Deed for approval. The deed was approved but unfortunately there have been delays on both sides in progressing matters. Since last week we have been trying to get the freeholder to complete but they have not provided details of their costs for agreement nor a completion statement and are avoiding our telephone calls this week. We think they are trying to delay in the hope we will miss a deadline and the application will be regarded as withdrawn. Can you please confirm the following points: The fact that we do not have details of their costs for agreement would not be regarded as an "outstanding term of acquisition" such as to require us to apply to the LVT rather than the county court. We are still in time to do either if so required but if we are to proceed with the county court application we should do this by tomorrow to be on the safe side. If county court application is required do we just use the county court that has jurisdiction for the property address i.e. as we would for example