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An Applecross land valuer has been fined and punished by the State Administrative Tribunal for failing to meet accepted industry standards.
Graeme John MacEwan has been the recipient of disciplinary action and $4,000 in fines, having been found guilty of breaching the Licensed Valuers Code of Conduct by failing to “consider sufficient relevant sales evidence or other information during his valuation”.
In addition, he was implicated for his failure to “provide sufficient explanation in respect of assumptions made or methodologies used to form the estimate of value”.
He was tried for valuations conducted between February 2018 and May 2019, with each conviction related to four separate land titles in Cannington, Bentley, Breton Bay, and Spalding, with all properties owned by the same group of companies.
Despite his 40-year experience, Mr MacEwan was found to have carried out his work without complying with the industry’s “accepted principles and practices”, which may have resulted in the production of inaccurate estimates.
Gary Newcombe, commissioner for consumer protection, said accurate valuations are crucial for the industry’s reputation.
“The credibility of the industry is at stake, so established practices and acceptable standards need to be maintained at all times by licensed valuers to uphold the community’s confidence in the property industry,” he said.
He described how undervalued or overvalued estimations can have wide-reaching and serious financial implications for buyers and sellers, as well as create tax complications.
Mr Newcombe acknowledges that “poor valuations are difficult to detect as unsuspecting clients usually accept them at face value”; however, he advises that “anyone who has doubts about the accuracy of a valuation should contact Consumer Protection”.
“Considering the length of time that Mr MacEwan has spent in the industry, there is no excuse for his sub-standard work and for not carrying out his duties in accordance with the Australian valuation industry’s accepted principles and practices,” he concluded.
A valuer, which is also referred to as an appraiser, is a professional that conducts inspections that help determine the current market value of a property or land.