VPS 3 Compliance Guide
RICS Valuation — Global Standards (the "Red Book") sets mandatory requirements for RICS members undertaking valuations. VPS 3 covers the content of valuation reports. Here is how Redbook Assist helps you comply.
What VPS 3 requires
VPS 3 mandates that every valuation report must include specific items. The exact requirements depend on the type of report, but for a standard written report, the following must be included:
- Identification and status of the valuer — Name, RICS designation, and confirmation of independence
- Identification of the client — Name and, where relevant, other intended users
- Purpose of the valuation — What the valuation will be used for
- Identification of the asset — Clear description including address and title details
- Basis of value — The definition of value adopted (Market Value, Market Rent, etc.)
- Valuation date — The effective date of the valuation
- Extent of investigation — What inspection was carried out and any limitations
- Nature and source of information — Data relied upon and its provenance
- Assumptions and special assumptions — Clearly stated
- Restrictions on use, distribution, and publication
- The valuation approach and reasoning — Methodology and evidence used
- The valuation figure(s) — Expressed in words and figures
- Date of the valuation report — When the report was issued
- Commentary on any material uncertainty
How Redbook Assist supports compliance
| VPS 3 Item | Redbook Assist feature |
|---|---|
| Valuer identification | Set in Practice Settings — auto-included on every report |
| Client identification | Linked from your Clients database |
| Purpose | Selected during valuation creation |
| Asset identification | Property record with address, type, tenure |
| Basis of value | Selected during valuation creation |
| Valuation date | Set during valuation creation |
| Extent of investigation | Template section in report — customisable |
| Information sources | External data sources are listed with dates fetched |
| Assumptions | Entered during valuation creation |
| Restrictions | Standard clause in report template |
| Approach and reasoning | Calculation approach with workings |
| Valuation figure | Calculated and displayed in words and figures |
| Report date | Set to generation date |
| Material uncertainty | Template section — flagged if applicable |
What you still need to do
Redbook Assist provides the framework and automates many items, but the valuer remains responsible for:
- Professional judgement — The choice of approach, yield selection, and comparable weighting
- Inspection — The system does not replace a physical inspection
- Verification — Confirming that external data is consistent with your own findings
- Commentary — Writing appropriate commentary on market conditions and uncertainty
- Independence — Declaring any conflicts of interest