Home Property Australia RICS to be recognised in commercial leases

RICS to be recognised in commercial leases

  • August 25, 2015

RICS to be recognised in commercial leasesChanging commercial property leases to incorporate the Royal Institution of Chartered Surveyors will reflect market changes, meet international demand and future proof leasing documents.The Property Council’s board of directors recently agreed to recommend that all commercial property lessors reference both the Australian Property Institute and RICS.This would include any rental review clause, dispute clause or option rent review.Historically, lease templates exclusively reference API.RICS, which accredits 118,000 professionals each year, promotes and enforces qualifications and standards in the development and management of land, real estate, construction and infrastructure. In Australia, RICS has more than 600 chartered valuation surveyor members.RICS was a founding member of the International Valuation Standards Council and its international valuation standards are used by governments, financial institutions, investors and corporates globally.The Property Council of Australia board recommends that ‘or RICS ‘ be added wherever API is mentioned throughout the lease.Similarly, ‘or RICS Chartered Valuation Surveyor ‘ should be added wherever API CPV is mentioned throughout the lease.