How to deal with a property ‘faulty’ report
A property developer is asking the court to reject an application to overturn a faulty report by the State Property Assessment Authority (SPAA) that the property was worth more than the appraised value.
The developer has been given 30 days to provide an affidavit from a third party that it can verify the appraisals were made “fairly” or “in good faith”.
The application has been filed by the developer, Haines Property Consultants.
It seeks an order that the SPAA’s report on the properties worth more is dismissed.
The applicant was approached by ABC News in October.
In its report, SPAA said the property at the centre of the controversy was worth $7.6 million, but that it had been appraised at $6.4 million and “had been used to finance the purchase of other properties”.
The SPAA also alleged that the applicant had made “multiple” errors, including the “lack of disclosure and/or incorrect reference to the fact that the principal residence was in the vicinity of the current residence”.
In the application, the developer argues that the report was based on “false assumptions” about the value of the property and that it was not properly considered.
In its affidavit, Hains Property Consultancy said the appraisal had been made “in fair faith” and that the appraiser had made errors that were “far from correct”.
It also argued that the “unfounded allegation of fraud” in the SPARA report was a “gross exaggeration of the actual appraisal value”.
The applicant also alleged inaccuracies in the report.
The application is still pending.
The SPARA said in a statement it was reviewing the application and would consider any further information.
The report is part of a lengthy process of review and appraisal by the SPADA.
The SPARA is an independent body that reviews property appraisal reports.