Advanced Valuation Essay Example | Topics and Well Written Essays - 1750 words

Advanced Valuation - Essay Example the specific case are: a) the criteria that should be ‘adopted by the parties and nominated valuers in relation to the rent review of a lease’ (par. 1). In the above context, a series of similar issues are also examined like the role of notices and the good faith in the development of the relevant procedure and the completion of the task delegated to valuers. The issue of the use of two valuers is also presented in this case. The facts of the particular case could be described as follows: The lease ‘commenced in 1994 and created a term of twelve years commencing on 1 January 1995 (with three successive options for renewal for further terms of five years) covering twenty five floors and a secure area in the Governor Macquarie Tower, Sydney’ (par. 2). On the other hand, the agreement regarding the payment of the lease has been as follows: ‘he rent reserved, referred to in the lease as the minimum rent, was $13,224,7891 per annum and in the original term there were to be five rent review dates occurring two-yearly, the first being 1 January 1997; At or about the commencement of the lease the lessor made an incentive payment to the lessee of $68 million’. It should be noticed that the procedure referred to certain requirements like the ‘negotiation in good faith’ and the ‘appointment of valuers’ however, the relevant guidelines did not precisely followed. T he main issue under examination in the particular trial has been the article 2.11(b) of the relevant contractual agreement. In order to identify the meaning of the above article the parties called experts. At a first level the creation of a completed assumption by the court has been a challenging task because of the existence of many ‘contradictory’ terms in the relevant contractual agreement. For this reason it was supported by the court that â€Å"the parties to the Lease took the view that the benefit of the incentives would be amortised over the first ten years of the Lease; it is