Realestatevaluation3

Change Request to Include Real Estate Valuation Element within the Credit Application Standard

Change Request to Include Real Estate Valuation Element within the Credit Application Standard

Posted on: March 22, 2021


Background

The LIXI2 Credit Application Standard (CAL in Australia and CNZ in New Zealand) currently contains an element for the estimated value of a real estate asset (Package.Content.Application.RealEstateAsset.EstimatedValue.Value).

This was originally for the applicant's estimated value of the property (EstimateBasis="Applicant Estimate") but this has evolved to include other types of 'estimates' (also specified by the EstimateBasis attribute) including:

  • Bank Assessment
  • Certified Valuation
  • Contract of Sale
  • Electronic Valuation
  • Rates Notice
  • RP Data
  • Valocity

The existing EstimatedValue element only contains a small fraction of the attributes that are available within a valuation - essentially only the Value, ValuedDate and a link to the valuer (x_Valuer) .

The LIXI2 Valuation standard (VAL) includes all the data required for a valuation to conform to the PropertyPRO 2020 Valuation Report Formats published by the Australian Property Institute (in the Package.Content.RealEstateValuation element).

What Change Has Been Requested?

An increasing number of scenarios are arising where more detailed valuation data is required as a part of the electronic lodgement of the credit application.

A change request has been raised to add Valuation ID to CAL, but we are now considering the larger requirement to incorporate more valuation data in the CAL and CNZ standards. The standards need to be extended to either include many additional items in the EstimatedValue element or incorporate the RealEstateValuation element into the CAL and CNZ standards. To maintain consistency between the VAL and CAL/CNZ standards, it is likely that the RealEstateValuation element and items within will be added to CAL and CNZ.

Note that this does allow some real estate valuation data to be represented under either the RealEstateAsset.EstimatedValue or under the RealEstateValuation. The intent is that if only simple valuation data is included (Value, Date, and Estimated Basis for example) it would be included within Package.Content.Application.RealEstateAsset.EstimatedValue. If more comprehensive data, or multiple valuations are required it would be included in Package.Content.RealEstateValuation.

How do I Contribute or Comment?

This Change Request is now under discussion in LIXILab and is tentatively planned for the next release of the Credit Application Standard on the 19th of April. The ticket is now available for comment for those with access to LIXILab - any employees of member organisations can register for access to LIXLab.

Please provide any initial feedback in LIXILab by April 5th, with discussion planned for completion by April 14th for publication of draft schemas prior to an April 19th release. Remember that any discussion is covered under the terms of LIXI's IP Policy.

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Written by:
Shane Rigby, LIXI Limited CEO
First Published: March 22, 2021