Australia: Valuer and retail leases update: Qualifications of a valuer

In Brief

In Australian Fast Foods Pty Ltd v Kameel Pty Ltd [2021] VCAT 921, VCAT determined that a Valuer nominated by the VSBC as a specialist retail valuer, is a specialist retail valuer and it is up to the party challenging the appointment to prove that the valuer does not have the requisite experience.

What you need to know

If you are a valuer and selected by the VSBC to determine a rent, it will be difficult for a party to challenge your credentials. To do so, it will need to prove that the valuer is not sufficiently experienced to undertake the task of valuing the premises. This will be difficult to achieve.

Background

In the current matter, it is apparent that the landlord did not want the rent to be valued, due to 3 previous valuers been rejected by the landlord.

The landlord tried to object to the 4th valuer being appointed, on the basis that the valuer did not have the requisite experience to undertake the valuation. The landlord argued that it was a matter for the tenant to prove that the 4th valuer had the requisite experience to undertake the valuation. VCAT rejected this argument. VCAT also approved the appointment of the valuer by VSBC.

The landlord also had the 4th valuer appear at the hearing to express the valuer's credentials. VCAT ordered that the landlord pay the valuer's costs for attending VCAT.

Conclusion

The VCAT decision should give valuers some comfort that the valuer's appointment is difficult to successfully challenge.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Madgwicks is a member of Meritas, one of the world's largest law firm alliances.