Examples of situations that could potentially impose a threat, and which should prompt a professional valuer to consider either declining an assignment, or adopting safeguards to eliminate or avoid any threat or perception of bias include:
• requests to produce valuations for the buyer and the seller of an asset in a transaction
• requests to produce valuations for two or more parties competing for an opportunity
• requests to value for a lender where advice is also being provided to the borrower
• undertaking a valuation for third-party consumption where the professional valuer’s firm has other substantial fee-earning relationships with the commissioning client
• providing recurring valuations of the same asset unless controls are in place to minimise the risk of self-review
• requests for a professional valuer to act as an advocate and as an expert in relation to the same matter.