Licensed Valuers Code of Conduct 2016

The Code revolves around a small set of interconnected regulatory concepts: professional competence and integrity, conflict management, transparent pricing and referral disclosure, risk management, record retention, and prescribed report content.

• Professional competence and integrity. The Code requires knowledge of the Act and regulations (r 4), performance with due care, diligence and skill in accordance with Australian valuation industry accepted principles and practices (r 7), honesty (r 8), and limits on work outside the valuer’s competency (r 13). These obligations anchor the valuer’s duty to provide work that meets industry standards and to refuse or cease work beyond their competence unless they engage others with the needed competency with prior written client consent (r 13(3)). The Code references the Australian valuation industry’s accepted principles and practices several times (r 7, r 25(1)), making those external standards a normative benchmark.
• Conflict of interest and impartiality. The Code defines “another client” and “conflict” (r 15) and bars a valuer from accepting or continuing work where conflicts exist unless all affected clients are fully informed in writing and consent (r 16-17). It expressly requires impartiality and independence when determining content or methodology and when acting as an expert witness (r 18). The Code also targets intra‑firm conflicts: a business must not undertake valuation work for a client in relation to a litigious matter if another partner, member, officer or employee is acting as an expert witness in the same matter (r 16(5)).
• Price transparency and limits on fees. The Code requires a written costs disclosure before work is performed that identifies the maximum the client will be charged and that the maximum includes all fees, charges and disbursements (r 19). A valuer cannot charge more than the disclosed maximum unless an unforeseen significant change in scope occurs and the client agrees in writing and the extra reward is reasonable (r 20). This creates a ceiling disclosure model rather than an open estimate approach.
• Referral fee and benefit disclosure. If a valuer or a nominated person will receive a fee or benefit from making or receiving a referral, the valuer must disclose the fee or benefit in writing at the time of referral (r 21(1)-(2)). This applies both where the valuer receives a benefit for making a referral, and where the valuer pays a fee or gives a benefit to obtain referrals.
• Record-keeping and report contents. Valuers must retain valuation reports, client instructions and supporting records for at least six years (r 24). The Code prescribes minimum contents for valuation reports including valuation date, inspection dates, interest valued, assumptions, conflicts of interest, the valuer’s signature and licence number and, for mortgage valuations (other than single dwelling residential properties), an executive summary in Schedule 1 format (r 25(3)-(4), Schedule 1). For proposed developments, the Code requires both an as if complete valuation and an as is valuation to appear in the report and any certificate of valuation (r 25(5)).
• Methodology and forecasting limits. Valuers must gather sufficient relevant data and verify facts a prudent valuer would verify (r 26(1)-(3)). The Code prohibits producing valuations that purport to predict a future value (r 26(4)), while allowing the use of economic forecasting models including discounted cash flows to determine present value and allowing properly qualified forecasts (r 26(5)).

The Code frequently references external standards or legal instruments: the Act and the Land Valuers Licensing Regulations 1979 (r 3(1), r 4), the Australian Consumer Law (WA) Part 2‑1 for misleading or deceptive conduct (r 12), Australian valuation industry accepted principles and practices (r 7, r 25), and the Australian Property Institute designations for a limited supervisory exception (r 14(6)). These cross‑references import interpretive dependence on professional bodies and Commonwealth/State law.

Conceptually the Code is compliance‑process focused: it prescribes what must be documented, disclosed and retained, and it sets out how conflicts and fee changes must be managed in writing. This structure shifts a material part of compliance onto paperwork, client written consents and business systems rather than subjective professional judgement alone.

Primary and immediate actors

• Licensed valuers. The Code is written to bind licensed valuers. It repeatedly frames obligations as duties “A licensed valuer must …” (for example rr 4, 6, 7, 8, 9). It requires licenced valuers to be familiar with the Act and the regulations (r 4), to follow the Code’s requirements when they accept instructions to perform valuation work (r 5), and to maintain insurance and compliance procedures (r 23).
• Assistants and employees engaged by valuers. The Code applies to people employed or engaged in a valuer’s business insofar as the valuer must take reasonable steps to ensure they comply with provisions of the Act, the regulations and the Code as applicable (r 14(2)). The licensed valuer retains responsibility for supervision and control of work performed by employees and assistants (r 14(3)-(4)). Where an assistant prepares a valuation report, the licensed valuer must be the primary signatory and must form an independent opinion and co‑inspect the land, with a specified exception for certain residential property valuations prepared by assistants holding API provisional membership and a residential valuer designation (r 14(5)-(6)).
• Partners, members, officers and other persons within a valuer business. The Code defines “another client” to include clients of any other partner, member, officer or employee of the business (r 15). It also bars a business from acting on a client for a litigious matter if another partner/member/officer/employee is acting as an expert witness for the opposing side in that matter (r 16(5)).
• Clients and prospective clients. The Code defines client broadly to include prospective clients (r 3(1)). Clients are the parties who must be given costs disclosures (r 19), whose written instructions must be obtained or confirmed before work begins (r 22), and who must be fully informed and give written consent where conflicts arise (rr 16-17). Clients also benefit from report contents requirements and the obligation that valuers act in their best interests (r 6) and not mislead or deceive them (r 12).
• Third parties that receive referrals or pay referral fees. The Code imposes disclosure duties where a valuer or nominated person will receive a benefit from a referral or pays a fee to secure referrals (r 21). Entities that commonly receive referrals, such as mortgage brokers, conveyancers, or other service providers, will be indirectly affected because their relationship with a valuer may need to be disclosed in writing to clients at the time of the referral.
• Lenders and mortgagees receiving mortgage valuations. The Code prescribes the layout and minimum content for mortgage valuations, including an executive summary for mortgage valuations other than single dwelling residential property (r 25(3)(a), Schedule 1). These recipients must interpret valuation outputs that contain both as is and as if complete valuations in proposed development cases (r 25(5)).
• Courts and tribunals when valuers act as expert witnesses. The Code imposes obligations regarding impartiality and independence when acting as an expert witness in litigious matters (r 18(2)(b)) and limits participation where another member of the same business acts as an expert witness (r 16(5)). Parties to litigation and tribunals will use the Code to assess a valuer’s independence.

Diffuse or indirectly affected stakeholders

• Professional bodies and industry standards setters. The Code refers to the Australian valuation industry’s accepted principles and practices and to the Australian Property Institute’s provisional membership and designations (r 7, r 14(6), r 25(1)). These bodies’ standards therefore serve as benchmarks and will be invoked to interpret Code obligations in disputes or regulatory review.
• Insurers. The Code requires valuers to maintain appropriate professional indemnity insurance as part of a risk management programme (r 23(a)). Insurers will need to align policy coverage and limits with the Code’s expectations and the exposures valuers face under the Act and the Code.
• Other regulated professions and businesses that interact with valuers. Because the Code requires disclosure of referral benefits (r 21), other service providers in the property transaction chain may see increased disclosure and administrative obligations when jointly providing services.

Who pays, who decides, and who changes behaviour

• Licensed valuers pay compliance costs: implementing documented compliance procedures, internal dispute resolution processes, staff training, professional indemnity insurance, record retention systems, costs disclosure procedures and the paperwork to manage conflicts and consents (rr 19-23, 24). These are explicit obligations in the Code.
• Clients decide on consent to conflicts, scope changes and additional fees. Several Code provisions make client written consent the mechanism that allows valuers to proceed in circumstances that would otherwise be prohibited: conflict waivers (r 16(2), r 17), agreement to exceed disclosed fees when scope changes (r 20(2)), and acceptance of limited inspections (r 25(2)(a)). Thus client behaviour (agreeing in writing) is the key decision point for many exceptions.
• Businesses must change internal processes for supervision, referral disclosure, and retaining client instructions with reports as annexures (r 14(2)-(5), r 21, r 25(4)). Where assistants prepare reports, the principal valuer must actively form an independent opinion and typically co‑inspect (r 14(5)), changing operational workflows.

The Code imposes duties primarily on licence holders and their businesses, uses client written consent as the gating mechanism for exceptions, and shifts a material part of compliance onto documented processes and record-keeping. The Act and regulations supply the wider legal framework and, by implication, the enforcement mechanisms.

This section summarises the principal duties imposed on licensed valuers by the Code and the rights the Code creates or recognises for valuers and clients. Citations to specific Code rules are included.

Duties (what licensed valuers must do)

• Know and comply with the Act, regulations and this Code. A “complete knowledge” duty is placed on licensed valuers to be aware of and comply with the Act, the regulations and the Code and the duties those instruments impose (r 4).
• Apply the Code whenever valuation work is accepted. The Code applies whenever instructions are accepted to perform valuation work, irrespective of fee size (r 5).
• Act in the best interests of the client and in good faith (r 6).
• Exercise due care, diligence and skill and comply with the Australian valuation industry’s accepted principles and practices (r 7(1)-(2)).
• Be honest in dealings with clients, other licensed valuers and other persons (r 8).
• Treat confidential information obtained while performing valuation work as confidential and not disclose it except where required by law or the client has given informed, written consent (r 9).
• Not use information obtained in valuation work to benefit the valuer or any party other than the client (r 10).
• Perform valuations within a reasonable time and in accordance with the client’s reasonable instructions (r 11).
• Not engage in misleading or deceptive conduct within the meaning of the Australian Consumer Law (WA) Part 2‑1 when performing valuation work (r 12).
• Not undertake or continue work beyond the valuer’s competency, and if circumstances place performance beyond competency, cease the work unless prior written consent of the client is obtained to engage another valuer with necessary competency (r 13).
• Supervise and control assistants and other employees, ensuring those persons comply with the Act, regulations and Code as applicable (r 14(2)-(4)). If an assistant prepares a valuation report, the licensed valuer must be the primary signatory, form an independent opinion and co‑inspect the land (r 14(5)), subject to a specified residential property exception (r 14(6)).
• Manage conflicts of interest. Valuers must not accept work if they are aware, or should be aware, of conflicts between client interests unless full written disclosure and written consent from the affected clients is obtained prior to accepting the work (r 16(1)-(4)). Valuers must also not accept or continue work if a conflict exists between the valuer’s own interest and a client’s interest unless full disclosure and the client’s written consent are obtained (r 17). For litigious matters, intra‑firm conflicts are specifically precluded when another member of the business acts as an expert witness (r 16(5)).
• Act with impartiality and independence, not be influenced by clients or other interested parties when determining content or methodology, and not produce valuations contingent on obtaining a predetermined result (r 18).
• Provide a written costs disclosure before performing valuation work disclosing the maximum amount the client will be charged inclusive of all fees, charges and disbursements (r 19). Do not charge more than the disclosed maximum except where there is an unforeseen significant change with written client consent and reasonable extra reward (r 20).
• Disclose referral fees or benefits in writing at the time of referral where the valuer or a nominated person will receive a fee or benefit, and disclose fees or benefits given to obtain referrals (r 21).
• Obtain or confirm in writing all instructions before beginning valuation work and as soon as practicable after agreeing to perform the work (r 22).
• Maintain a risk management programme that includes appropriate professional indemnity insurance, documented compliance procedures including internal dispute resolution, training systems for employees and continuing professional development (r 23).
• Retain valuation reports, client instructions and underlying records for at least six years from the date a valuation report is issued (r 24).
• Inspect land in accordance with industry accepted principles and practices, or obtain written client consent if not inspecting, with disclosure in the valuation report of the lack of inspection and its effect on the valuation (r 25(1)-(2)).
• Include specified minimum content in valuation reports such as dates, kind of interest, valuation date, assumptions, conflicts, valuer signature and licence number and attach as annexures all client instructions and written consents (r 25(3)-(4)). For mortgage valuations (except single dwelling residential property) include the Schedule 1 executive summary as a covering page (r 25(3)(a), Schedule 1).
• For proposed developments, include definitions of as if complete and as is valuations (r 25(5)(a)) and include an as is valuation immediately following the as if complete valuation in the report and any certificate or summary (r 25(5)(b)).
• Gather sufficient data and verify facts a prudent licensed valuer would verify; where data are lacking explain the basis for the opinion in the valuation report (r 26(1)-(3)). Do not produce valuations that purport to predict future values, but may use forecasting models and properly qualified forecasts for present value determinations (r 26(4)-(5).

Rights and permitted exceptions (what clients and valuers can do under the Code)

• Client written consent as gateway to exceptions. Several provisions allow valuers to proceed in otherwise restricted circumstances with full written disclosure to affected clients and the clients’ written consent. These include conflicts between clients (r 16(2), r 16(4)), conflicts between a valuer and a client (r 17), exceeding costs disclosure where unforeseen significant changes occur (r 20(2)), and limited or no inspection of land if the client agrees in writing and the report discloses the lack of inspection and its effect (r 25(2)(a)-(c)).
• Engaging another valuer. A valuer may continue work which would otherwise exceed the valuer’s competency by obtaining prior written client consent to engage another licensed valuer who has the necessary competency (r 13(3)).
• Limited assistant exception. A licensed valuer is not obliged to co‑inspect or otherwise follow r 14(5)(b) where the valuation report is for a residential property prepared by an assistant who is a provisional member of the Australian Property Institute and holds an API residential property valuer designation, provided it is done in accordance with that designation (r 14(6)).

Operational rights and obligations affecting clients

• Clients receive a maximum-fee ceiling and inclusive disclosure (r 19), creating a contractual right to be charged no more than the disclosed maximum unless agreed otherwise under the prescribed process (r 20).
• Clients are entitled to written disclosure of referral fees or benefits at the time of referral (r 21). This converts what might be hidden commissions into a formal disclosure right.

The Code’s duties are expressed as mandatory obligations on licensed valuers, the primary enforcement of which is left to the Act and regulations. The Code creates procedural rights for clients to be made aware of conflicts, costs and referral arrangements and allows valuers to proceed in specified instances only after obtaining express written client consent.

The Code itself does not prescribe specific penalties or enforcement procedures. The document repeatedly situates compliance within the statutory framework of the Act and regulations and the legal consequences of non‑compliance are intended to flow from the Act and the regulations rather than from the Code. Relevant textual pointers in the Code are:

• The definition and incorporation clause: the Code defines “Act” and “regulations” (r 3(1)) and mandates that licensed valuers must have a complete knowledge of and comply with the Act, the regulations and the Code (r 4(a)-(b)). This makes the Code part of the regulatory obligations that the Act enforces.
• Transitional rule invoking the Act. The transitional provision states that “for the purpose of section 28(2)(c) of the Act, a licensed valuer to whom this rule applies is taken not to have acted in breach of this code” during the two month transitional period where the previous Code was complied with (r 28(2)-(3)). This explicit cross‑reference to section 28(2)(c) of the Act demonstrates that enforcement and the legal consequences of breach are dealt with by the Act.
• External statutory reference for consumer‑protection enforcement. Rule 12 makes contraventions of the Australian Consumer Law (WA) Part 2‑1, concerning misleading or deceptive conduct, relevant to valuation work. Enforcement machinery and sanctions for contraventions of the Australian Consumer Law are contained in the relevant consumer‑law legislation and are independent of the Code.

Consequently, for a practitioner or compliance officer the enforcement picture is as follows.

• The Code creates enforceable duties only as a complement to the Act and the regulations. The Code’s breach will be actionable or sanctionable only insofar as the Act or regulations give powers to a regulator, licensing authority or civil claimant to act on the basis of the Code. The Code’s repeated cross‑references to the Act and regulations (r 3(2), r 4) mean that a reader must consult the Act and the regulations for the statutory powers to discipline, suspend, fine or cancel licences, and for the tribunal or court routes that can be used to secure remedies.
• Consumer law overlaps. The Code’s prohibition on misleading or deceptive conduct (r 12) gives rise to civil causes of action and consumer‑law enforcement options separate from the licensing regime. The Australian Consumer Law (WA) is a statutory enforcement route with its own remedies and penalties.
• Professional negligence and contractual remedies. Duties of care, honesty, competence and accuracy (for example rr 7, 8, 11, 26) can form the basis of civil claims in contract or tort (negligence) where a client suffers loss. The Code specifies standards against which professional conduct may be measured, but remedies for negligent valuation work will be pursued under general law rather than under the Code itself.
• Evidence of compliance or non‑compliance. The Code’s documentation and record‑keeping requirements (for example rr 19, 21, 22, 24, 25(4)) mean that the presence or absence of written costs disclosures, client signatures, conflict disclosures and annexed client instructions will be primary evidentiary materials in any regulatory, civil or consumer‑law proceeding.

Implementation and enforcement risk factors

• The Code’s lack of an internal sanctions clause means there is interpretive dependence on the Act and regulations for the mechanisms and quantum of penalties. Practitioners must therefore read the Act and regulations to understand specific enforcement outcomes, including whether breaches are disciplinary, civil penalties, or criminal offences.
• Some obligations in the Code rest on standards external to the Code: the Australian valuation industry’s accepted principles and practices and the Australian Property Institute designation (r 7, r 14(6), r 25(1)). Enforcement may therefore require regulators, courts or tribunals to interpret or adjudicate whether a valuer met these external standards, introducing potential uncertainty.
• The Code’s reliance on client written consent as the gateway for exceptions creates evidentiary stakes: poor record-keeping will expose valuers to enforcement risk even where parties may have orally agreed.

Practical consequence: to understand penalties and enforcement options a practitioner must consult the Land Valuers Licensing Act 1978 and the Land Valuers Licensing Regulations 1979. The Code provides the normative duties and documentation obligations; the Act and regulations provide the enforcement tools.

The Code expressly imports and interacts with several legal and professional regimes. The text contains explicit cross‑references and normative dependencies that shape enforcement, interpretation and professional practice.

Key statutory interactions

• Land Valuers Licensing Act 1978 and Land Valuers Licensing Regulations 1979. The Code defines the Act and the regulations and requires that licensed valuers have a complete knowledge of and comply with them (r 3(1), r 4). The Code therefore functions as a subordinate instrument under the licensing regime established by the Act and links regulatory compliance to the licensing framework. The transitional rule also invokes a specific section of the Act (section 28(2)(c)) when defining relief during the transition (r 28(2)).
• Australian Consumer Law (WA). Rule 12 incorporates the Australian Consumer Law (WA) Part 2‑1 by forbidding misleading or deceptive conduct “within the meaning” of that law when performing valuation work. This creates an overlap between consumer‑protection enforcement paths and the Code’s professional obligations. A breach of r 12 may be actionable under consumer‑law remedies and subject to consumer‑law enforcement mechanisms.
• General law causes of action. The Code’s duties of care, diligence and skill (r 7) and the methodology obligations (r 26) are standards that can be relied upon in civil proceedings for negligence or breach of contract, even though the Code itself does not create the causes of action. Courts will treat the Code as evidence of professional standards when assessing a valuer’s conduct.

Interaction with professional standards and industry practice

• Australian valuation industry’s accepted principles and practices. The Code repeatedly requires compliance with “the Australian valuation industry’s accepted principles and practices of valuation” (r 7, r 25(1)). The Code therefore delegates substantive technical standard setting to the valuation industry. In disputes, regulators and courts will likely look to documents and standards produced by industry bodies to determine compliance with the Code’s requirements.
• Australian Property Institute (API). The Code contains a limited exception for residential property valuations prepared by an assistant who is a provisional member of the API and holds a residential property valuer designation, allowing the principal not to co‑inspect the land in those cases provided the work is done in accordance with the designation (r 14(6)). This makes API designations relevant to the practical application of supervisory obligations in the Code.

Overlap with obligations in other regulatory regimes

• Privacy, confidentiality and use of information. The Code imposes confidentiality obligations (rr 9-10) and limits on the use of information obtained during valuation work. These obligations overlap with privacy laws and other statutory secrecy provisions. While the Code does not cite a specific privacy statute, confidentiality duties will interact with statutory privacy obligations and lawful disclosure requirements.
• Record‑keeping and taxation or corporate regulation. The six year retention obligation for valuation reports and supporting records (r 24) intersects with corporate and taxation record‑keeping obligations, which often also impose specific retention periods. Practitioners should align retention policies to meet both the Code and other statutory requirements.
• Evidence and expert witness rules in litigation. The Code regulates a valuer’s impartiality and independence when acting as an expert witness (r 18) and bars a business from performing valuation work in relation to a litigious matter where another member of the business is acting as an expert witness (r 16(5)). These provisions will be relevant in civil litigation practice and in the application of court rules concerning expert evidence, even though the Code does not specify courtroom sanctions; courts may take the Code into account when assessing an expert’s admissibility or impartiality.

Practical implications of cross‑references and external standards

• Interpretation depends on external sources. Several Code obligations require interpreting or applying standards that are external to the Code, for example the Australian valuation industry’s accepted principles and practices and the meaning of misleading or deceptive conduct under the Australian Consumer Law (WA) (r 7, r 12, r 25). This introduces interpretive dependencies and implementation risk, because compliance assessment will routinely require looking beyond the Code.
• Enforcement routes are supplied by other laws. The Code situates itself within the licensing scheme (Act and regulations) for disciplinary action and within consumer law for consumer‑protection enforcement. Practitioners need to track multiple regimes when assessing legal risk arising from valuations.
• Industry certification affects supervisory obligations. The API designation exception (r 14(6)) means decisions about delegation and supervision are partly governed by industry credentialling, not only by statutory licence status.

In short, the Code functions as a sectoral conduct instrument that relies on and interacts with the licensing Act and regulations, consumer protection law, industry technical standards and broader statutory regimes for privacy, taxation and evidence. Those interactions determine available enforcement mechanisms, evidentiary standards and the practical allocation of supervisory responsibilities.

The Code itself contains a limited internal historical record and a repeal provision. The compilation table records the instrument’s gazettal and commencement details. From the text provided the amendment history is as follows.

• Current instrument: Licensed Valuers Code of Conduct 2016, gazetted 4 October 2016 and commenced in two stages: rules 1 and 2 (the citation and commencement provisions) on 4 October 2016, and the remainder of the Code on 5 October 2016 (r 2(a)-(b); compilation table).
• Repeal of an earlier Code. Rule 27 expressly repeals the Licensed Valuers Code of Conduct published in the Gazette on 2 February 2016 at p. 321‑4. The effect is that this October 2016 Code supersedes the February 2016 Code (r 27).
• Transitional provision. Rule 28 creates a two month transitional period from the day the Code (other than rules 1 and 2) comes into operation. During that transitional period a licensed valuer who fails to comply with this Code but complies with the earlier Code is taken not to have acted in breach of this Code for the purposes of section 28(2)(c) of the Act (r 28(1)-(3)). That wording indicates a specific, limited grace period tying compliance consequences to the earlier Code for a defined time.

What is not in the amendment record supplied

• No later amendments or subsequent amendment dates are recorded in the compilation table provided. The compilation table lists only the gazettal date 4 October 2016 and the commencement dates for different provisions (compilation table). There is no textual indication in the excerpt provided of any amendments after October 2016.
• No statutory modification or later rule‑making history is included in the supplied text beyond the repeal of the February 2016 Code and the October 2016 Code’s commencement.

Practical note for practitioners

• Because the Code heavily references the Act, the regulations and industry standards, any amendments to those instruments or to the Australian Consumer Law (WA) may alter the practical operation of the Code even if the Code’s text itself is unchanged. For example, changes to the Act’s enforcement provisions or to the Australian valuation industry’s accepted principles and practices would affect interpretation and enforcement of the Code.
• To establish a full amendment chronology, a reader must inspect the WA Government Gazette and the legislative database for subsequent amendment instruments or repeal notices that post‑date the compilation provided. The Code’s internal compilation table is limited to the initial gazettal and commencement; no further amendments are shown in the supplied material.

The Code as supplied does not contain a litigation history or references to judicial decisions. It names no cases and includes no annexed decisions. The document functions as a statutory code of conduct, not as an annotated instrument with case law commentary.

What the Code supplies for dispute contexts

• Evidentiary standards for courts and tribunals. The Code specifies duties and report content (for example rr 7, 12, 19-26). In litigation or tribunal proceedings where a valuer’s conduct or a valuation is in issue, the Code’s provisions will be available to parties and decision‑makers as evidence of what the licensing regime requires. For example, a plaintiff alleging misleading conduct can point to r 12 and the Australian Consumer Law (WA) reference; a plaintiff alleging negligent valuation work can point to the duty of care and methodology obligations in r 7 and r 26.
• Independent expert witness obligations. The Code’s explicit direction that a licensed valuer must act with impartiality and independence and must not be influenced by a client when determining content or methodology (r 18(1)-(3)) is directly relevant to challenges to expert witness independence. Similarly, r 16(5) precludes a firm from performing valuation work in relation to a litigious matter where a member of the firm is acting as an expert witness, and such a provision can be invoked in disputes about conflicts of interest.

Potential avenues of litigation implied by the Code

• Consumer‑law claims. Because r 12 incorporates the Australian Consumer Law (WA) definition of misleading or deceptive conduct, consumers or regulated entities could bring claims for conduct that contravenes the ACL. The Code supplies context and evidence but the cause of action and remedies are statutory under the consumer law.
• Professional negligence and contractual disputes. Dutiess of care, diligence and verification of facts (r 7, r 26) create a standard against which to test alleged negligent valuations or breaches of contractual specifications. A client could sue in contract or tort for losses from incorrect or misleading valuations, using Code non‑compliance as evidence of breach.
• Disciplinary proceedings. The Code’s obligations are intended to feed into the licensing regime under the Act. Regulatory or disciplinary proceedings under the Act will likely reference the Code when assessing professional misconduct or breaches of licence conditions. The Code itself does not specify disciplinary steps, but it supplies standards used in disciplinary adjudication under the Act and regulations (r 4; r 28(2) invoking the Act).

Absence of reported cases in the supplied text

• No cases are named in the Code. The absence of cases means the supplied material does not record how courts or tribunals have interpreted the Code’s terms, such as the meaning of “complete knowledge” (r 4), “Australian valuation industry’s accepted principles and practices” (r 7), or how strictly the fee ceiling in r 19-20 is applied.
• Parties and counsel must therefore rely on general law, the Act, the Australian Consumer Law (WA) and professional‑body standards in guidance until case law develops or is located elsewhere.

Practical steps for litigators and advisers

• Use the Code as evidentiary support. The Code provides written, statutory‑level expectations about professional conduct. In dispute contexts, a party should collect documentary evidence required by the Code (costs disclosures, conflict disclosures, annexed instructions, report content, inspection records, retention logs).
• Map conduct to multiple regimes. Because the Code interacts with consumer law, licensing discipline and civil claims, advisers should present a cross‑regime strategy: consumer‑law claims for misleading conduct, negligence claims for deficient methodology, and regulatory complaints under the Act for professional misconduct.

In short, although the provided Code does not include a litigation history, its text supplies multiple avenues for litigation and regulatory challenge. The Code will operate as a source of standards and documentary obligations in disputes involving valuation work.

This section flags provisions, interpretive ambiguities and operational points that commonly create compliance failures or disputes. Each item is grounded in the Code’s text.

Costs disclosure ceiling and what “maximum amount” includes (rr 19-20)

• The Code requires a written costs disclosure that discloses “the maximum amount that the client will be charged” and that the maximum must include all fees, charges and disbursements (r 19(2)-(3)). Practically, this makes the initial disclosure a contractual ceiling. Valuers who provide estimates rather than a firm, inclusive maximum risk breaching r 20, which bars rewards exceeding the disclosed amount unless the unforeseen scope change process is followed.
• Gotcha: valuers may neglect to include disbursements or third‑party fees in the disclosed maximum and later attempt to pass them on. The Code treats those omissions as charging beyond the disclosed maximum absent the r 20(2) process.

Unforeseen significant change process is strict (r 20(2))

• To charge more than the disclosed maximum the valuer must show an unforeseen significant change in scope, give written notice, obtain the client’s written agreement to continue, and ensure the excess reward is reasonable (r 20(2)(a)-(d)). Routine scope creep without a contemporaneous written variation and consent will not meet these requirements.

Referral fee disclosure timing and extent (r 21)

• The Code requires disclosure at the time the referral is made of any fee or benefit the valuer or nominated person will receive, or any fee or benefit paid to obtain referrals (r 21(1)-(2)). Gotcha: failure to disclose contemporaneously will contravene r 21 even if the benefit is small. The requirement is not merely disclosure in the valuation report; it must occur when the referral is made.

Conflicts across the firm and litigious matters (rr 15-16)

• The Code defines “another client” to include clients of any partner, member, officer or employee of the business (r 15). A valuer who treats conflicts only at the individual level, and not at the firm level, risks non‑compliance.
• For litigious matters, a business must not undertake valuation work for a client if another member of the business is acting as an expert witness in the same matter (r 16(5)). Gotcha: firms that provide both valuation services and expert witness services via different individuals must implement firm‑level conflict screening.

Supervisory and assistant rules, including co‑inspection (r 14(5)-(6))

• If an assistant prepares a valuation report the licensed valuer must sign or co‑sign as primary signatory, form an independent opinion and co‑inspect the land (r 14(5)(a)-(b)). Gotcha: delegating report production without co‑inspection or without forming an independent opinion exposes the licence holder to breach. The Code contains a narrow exception for residential properties prepared by an assistant who is an API provisional member with a residential valuer designation (r 14(6)), but this exception is tightly limited.

Inspection requirements and partial‑inspection reporting (r 25(1)-(3))

• The valuer must ensure inspections are conducted in accordance with accepted industry practice, but if the client agrees in writing not to inspect or to partially inspect the land the valuer must disclose that in the report and state the effect of the lack of inspection on the valuation (r 25(1)-(2)(a)-(c)). Gotcha: verbal agreements to skip inspections do not suffice. The Code requires written client agreement and disclosure in the report.

Dual valuations for proposed developments (r 25(5))

• For proposed developments, the valuer must include the Code’s definitions of as if complete and as is valuations in the report and must place an as is valuation immediately following the as if complete valuation in the report and any certificate or summary (r 25(5)(a)-(b)). Gotcha: failing to include both valuations or mislabelling them risks non‑compliance and confusion for mortgagees and clients.

Prohibition on forecasting future values with carve‑outs for DCF and qualified forecasts (r 26(4)-(5))

• The Code prohibits producing a valuation that purports to predict a future value (r 26(4)). However the Code allows use of forecasting models, including discounted cash flows, to determine a present value and allows properly qualified forecasts (r 26(5)). Gotcha: the line between a present‑value derived from projected cash flows and an unqualified forecast of future market value can be subtle; clear qualification in the report is essential.

Retention period binds supporting records as well as reports (r 24)

• The Code requires retention for at least six years of valuation reports, all instructions from the client, and all other records and information on which the valuation report was based (r 24). Gotcha: some firms delete underlying working papers, correspondence or data sooner. The Code treats those documents as part of the retention obligation.

Ambiguities in “Australian valuation industry’s accepted principles and practices” (r 7, r 25)

• The Code refers repeatedly to the industry’s accepted principles and practices without defining them. Gotcha: enforcement or adjudication will require mapping the phrase to standards promulgated by industry bodies. That can introduce uncertainty about whether a valuer’s methodology satisfied the Code absent clear guidance from professional standards.

“Complete knowledge” duty (r 4)

• Rule 4 obliges a valuer to have “a complete knowledge of and comply with” the Act, regulations and the Code. Gotcha: “complete knowledge” is a high‑language standard; its interpretation in regulatory or civil contexts may be contested. Practitioners should ensure accessible internal compliance guides to operationalise this duty.

Transitional protection is short and conditional (r 28)

• The Code’s transitional relief lasts only two months and applies only where the valuer complies with the previous Code (r 28(1)-(3)). Gotcha: assuming a longer grace period or relying on the old Code beyond two months exposes valuers to compliance risk.

Documentation evidentiary stakes (rr 19, 21, 22, 25(4))

• The Code requires certain documents to be in writing and retained, and that client consents be in writing (r 19, r 21, r 22, r 25(4)). Gotcha: oral consents or informal email exchanges may not meet the Code’s standard where the rule requires a signed or written instrument and will be weak evidence if a dispute arises.

Overall, the Code converts many professional issues into procedural, written steps. The common compliance pitfalls arise where firms continue informal practices or fail to create, maintain and attach the documents the Code requires.

This checklist translates the Code’s requirements into concrete, operational steps and document templates a licensed valuer or a valuer’s firm should adopt to reduce compliance risk. Each action point references the relevant rule.

Governance, policy and training (rr 4, 5, 23)

• Maintain an updated compliance manual that cites the Act, the regulations and the Code, and explains how to satisfy the Code’s duties in daily workflows (r 4, r 5). The manual should be signed off by the principal valuer and reviewed at least annually.
• Implement a risk management programme that includes: appropriate professional indemnity insurance, documented compliance procedures, an internal disputes resolution process, staff training systems, and a continuing professional development (CPD) plan for licensed valuers and assistants (r 23(a)-(d)). Document insurance coverage and renewal dates.

Client engagement and written authority (rr 19, 22, 25(4))

• Before beginning any valuation work obtain written instructions or confirm them in writing as soon as practicable after agreeing to perform the work (r 22). Keep a client instruction form or engagement letter that clearly states scope, valuation date, fees and expected deliverables.
• Provide a written costs disclosure prior to performing any valuation work that discloses the maximum amount the client will be charged, inclusive of all fees, charges and disbursements (r 19(1)-(3)). Practical template items: fixed fee figure or capped maximum, inclusions/exclusions, estimated disbursements, billing terms and waiver terms.
• If scope may vary, include a clause on unforeseeable work and the process that will be followed for any additional remuneration that must comply with r 20(2) (written notice to client, client’s written agreement, and the increased reward must be reasonable). Ensure signed variations are retained.

Conflict of interest procedures (rr 15-18)

• Implement firm‑level conflict‑checking procedures that treat “another client” to include clients of partners, members, officers and employees (r 15). Screen conflicts at intake, engagement and if litigation is reasonably likely.
• Where a conflict is identified between clients, fully inform all affected clients in writing and obtain their written consent before accepting or continuing work (r 16(1)-(4)). Keep signed conflict waiver forms. Store disclosures and consents as annexures to the valuation report (r 25(4)).
• If a conflict exists between the valuer’s own interest and a client’s interest, provide full written disclosure to the client and obtain their written consent (r 17).
• For litigious matters, ensure no partner or member of the business is acting as an expert witness on the matter for another party before accepting valuation work (r 16(5)).

Assistant supervision and co‑inspection (r 14)

• If assistants prepare valuation reports, require the licensed valuer to be the primary signatory and to document an independent opinion and the steps taken to form it (r 14(5)(a)). Maintain signed attestations that the principal valuer formed an independent opinion.
• Require co‑inspection by the licensed valuer for reports prepared by assistants unless the narrow residential property exception applies and the assistant satisfies the API requirements (r 14(5)(b)-(6)). Keep inspection logs with date, time and observations.

Inspection and report content checklist (r 25, Schedule 1)

• Ensure inspections are performed in accordance with Australian valuation industry accepted principles and practices and retain inspection records (r 25(1)). For partial or no inspection obtain documented client consent and disclose in the report the effect on valuation (r 25(2)(a)-(c)).
• Use a report template that includes the required items: date(s) of inspection, kind of interest valued, valuation date, report issue date, valuer’s signature and licence number, assumptions/conditions/limitations under a clear heading, statement of any valuer interest in the property or proposed development, and particulars of any conflicts or potential conflicts disclosed to the client (r 25(3)(b)-(i)).
• Attach all client instructions and all written agreements under r 16(2)(b), r 16(4)(b) or r 17(b) as annexures to the report (r 25(4)). Maintain an annexure checklist to ensure enclosed documentation is complete.
• For mortgage valuations other than single dwelling residential properties, include the Schedule 1 executive summary as a covering page (r 25(3)(a), Schedule 1). Implement a Schedule 1 template to ensure consistency with the Code’s fields (land address, certificate of title, registered owners, encumbrances, last sale, zoning, description of land as is, description of proposed developments, comments, interest valued, valuation date, as is valuation, as if complete valuation, valuer identification).

Valuation methodology and forecasting (r 26)

• Maintain a documented approach to data gathering and verification. Require sign‑offs for data sources and verification steps. If data are deficient, document the basis for the opinion and disclose the deficiency and its impact in the valuation report (r 26(1)-(3)).
• Do not produce a valuation that purports to predict future market values in an unqualified way (r 26(4)). If using forecasting or discounted cash flow models, provide clear qualification and explain assumptions, time horizons, and discount rates used (r 26(5)(a)-(b)). Keep model inputs and sensitivity analyses as retained records.

Costs, fees and referral disclosures (rr 19-21)

• Create a costs disclosure form that includes the maximum charge and all included fees and disbursements (r 19).
• Maintain a process for documenting and obtaining written client agreement to fee increases where a significant unforeseen scope change occurs, including an internal review to confirm the increase is reasonable (r 20(2)).
• When making or receiving referrals, disclose in writing to the client any fee or benefit to be received or provided, at the time the referral is made (r 21(1)-(2)). Keep referral disclosure logs and standardised client acknowledgement forms.

Record retention and data management (r 24)

• Retain copies of the valuation report, all client instructions and all other records and information on which the valuation report was based for at least six years from the issue date (r 24). Integrate retention rules with other statutory retention requirements and set document management retention schedules in the firm’s records management system.
• Ensure secure storage that protects confidentiality (r 9) and maintains chain of custody for documents likely to be relevant in later disputes or regulatory checks.

Internal compliance monitoring and dispute resolution (r 23(b))

• Implement documented compliance procedures and an internal disputes resolution process as elements of the risk management programme (r 23(b)). Track internal audits, training attendance for employees, and CPD participation.
• Create checklists and attestation forms for critical compliance steps: costs disclosure, conflict checks, client signatures, inspection logs, and attachment of annexures.

Consumer law and misleading conduct (r 12)

• Provide staff training on the Australian Consumer Law (WA) and the Code’s prohibition on misleading or deceptive conduct (r 12). Ensure marketing materials and valuation summaries do not contain unqualified forecasts or representations that could be misleading.

Administrative processes and templates to use

• Engagement letter/Instruction form aligned to r 22.
• Costs disclosure form aligned to r 19 with an explicit “maximum charge” field.
• Client consent and conflict waiver templates aligned to r 16 and r 17.
• Fee variation template and internal approval workflow aligned to r 20(2).
• Referral disclosure template for use at referral time aligned to r 21.
• Report template with mandatory fields (r 25) and Schedule 1 executive summary for mortgage valuations.
• Inspection log and co‑inspection attestation forms aligned to r 14 and r 25.
• Retention register to record when records may be deleted after six years (r 24).
• Internal compliance audit checklist mapping each Code rule to evidence stored.

Practical compliance priorities

• Treat written client consents as essential: many Code exceptions require writing and the client’s written agreement (rr 13(3), 16(2)(b), 16(4)(b), 17(b), 20(2)(b)-(c), 25(2)(a)). Absent these records a valuer will lack the primary factual defence.
• Convert verbal practices to written processes. Where firms currently rely on oral instructions, informal referrals, or unwritten price adjustments, move to documented templates and sign‑offs.
• Align firm policies to industry standards. Because the Code references the valuation industry’s accepted principles and practices (r 7, r 25(1)), ensure firm procedures reflect relevant professional body standards and that CPD is recorded.
• Prepare for consumer‑law exposure. The Code’s express link to the Australian Consumer Law (WA) means staff should be trained to avoid statements that could be taken as misleading or deceptive.

By operationalising these steps and maintaining auditable records, a licensed valuer and their firm will materially reduce the principal compliance risks that arise under the Code.