When the new Sectional Title Management Act came into effect in October 2016, the number of valuers that claim to specialise in sectional title valuations increased considerably as this new market presented a lucrative new opportunity for many valuers.
For many bodies corporate, this time of year signals AGM season. As managing agents set up annual general meetings (AGM) with trustees and other body corporate members, it is important that all the required documents and figures are ready for this important gathering.
Naturally, price plays a significant part when trustees appoint a valuer but experience and assurance are not always considered in equal measure. The unfortunate reality is that insurance valuations are susceptible to human error as they rely on the valuer’s personal experience and judgement.
When determining the insurance value of a building, it is important to consider all the relevant factors. The Africa Property & Construction Cost Guide 2018 – published by AECOM, the globally renowned infrastructure firm – is a very helpful guide when estimating a building’s replacement cost.
Every three years, when the mandatory insurance valuation is due for bodies corporate, trustees and managing agents set out to collect and compare quotations from different service providers. Some trustees seek to make it a painless exercise by appointing the valuer recommended by the managing agent, others appoint the valuer offering the cheapest quote without considering any other factors.