Short answer
Assumptions and limitations explain what a valuer has relied upon, what has not been verified and what conditions apply to the valuation report.
They are not optional fine print. They help define the scope of work, the reliability of the report and the way the valuation should be read.
A reader should consider assumptions and limitations before relying on a valuation for legal, taxation, revenue, audit, financial or court-related use.
Why assumptions and limitations matter
A valuation is based on evidence, inspection, professional judgement and the information available to the valuer at the valuation date or report date.
Some matters can be verified directly. Other matters may need to be assumed because they are outside the valuer’s expertise, not available at the time of reporting, hidden from view or properly dealt with by another specialist.
Assumptions and limitations help the reader understand where the valuation conclusion depends on information or conditions that may affect reliance.
What is an assumption?
An assumption is a matter accepted as true for the purpose of the valuation.
Assumptions may relate to title, ownership, planning, building areas, lease details, condition, services, approvals, information supplied by others or matters not directly verified by the valuer.
For example, a valuer may assume that provided floor areas are correct, that there are no hidden structural defects, or that a supplied lease document is complete and current, unless the scope requires further verification.
What is a special assumption?
A special assumption is an assumption that may not reflect the actual position at the valuation date but is adopted for a specific instruction.
Examples may include valuing a property as if works are complete, as if a lease has been varied, as if vacant possession is available, or as if a stated planning outcome has been achieved.
Special assumptions should be clearly identified because they can materially affect value and report use.
What is a limitation?
A limitation explains a boundary of the valuer’s work.
Limitations may relate to inspection access, missing documents, unavailable lease information, incomplete historical evidence, inaccessible areas, hidden defects, specialist matters or reliance on third-party information.
A limitation does not always prevent a valuation from being prepared. It may require the valuer to adopt an assumption, state a qualification, reduce the weight placed on certain information or recommend further specialist advice.
Common examples
Common assumptions and limitations may relate to:
- Title, encumbrances or legal interests
- Planning controls and permitted use
- Building approvals or compliance
- Structural adequacy
- Pest, contamination or environmental matters
- Hidden defects or concealed building elements
- Survey boundaries or site areas
- Building areas or lettable areas
- Lease terms, rent, options and outgoings
- Historical condition for retrospective valuations
- Photographs, plans or documents supplied by others
- Parts of the property not inspected
The relevance of each matter depends on the property, purpose, valuation date and instructions.
Inspection limitations
Inspection limitations can be significant.
If the valuer has not inspected internally, the report may need to assume internal condition, layout, finishes and defects based on available evidence. If part of the property was inaccessible, the report may need to state that limitation.
A desktop or kerbside assessment may be suitable for some purposes, but it may not be suitable for all formal purposes. The report should make the inspection basis clear.
Why readers should not ignore them
Assumptions and limitations can affect whether the report is suitable for a particular decision.
A value figure should not be read separately from the scope, purpose, valuation date, intended user, inspection basis and assumptions. Those matters explain the context in which the value opinion was formed.
If a reader is unsure whether an assumption or limitation affects use of the report, the issue should be clarified before the report is relied upon.
Related glossary
- Assumption
- Special Assumption
- Limitation
- Scope of Work
- Inspection Basis
- Reliance
- Intended User
- Valuation Date
Related articles
- Professional Standards and Valuation Report Use
- What is a valuation scope of work?
- What is the difference between inspection date and valuation date?
- What happens during a property inspection?
- What documents should I provide to a valuer?
- Can a valuation report be reused?
Related services
Prepared by:
Tigran Amiyants, Certified Practising Valuer (CPV), Managing Director, Northbourne Valuers.
Last reviewed:
July 2026.
General information note:
This page provides general information only and does not constitute valuation, legal, taxation, financial or professional standards advice. Every valuation depends on the specific property, purpose, valuation date, evidence, assumptions and instructions. Legal, taxation, financial and other specialist matters should be discussed with the appropriate qualified adviser.