LAND COURT OF QUEENSLAND
CITATION: Musumeci v Valuer-General [2014] QLC 15 PARTIES: Alfio John and Brenda Maria Musumeci
(appellants)v Valuer-General
(respondent)FILE NO: VLA436-10, LVA401-11, LVA440-12 and LVA208-13
DIVISION: General Division PROCEEDINGS: Appeals against annual valuations DATE OF HEARING: 1 October 2013 DELIVERED ON: 30 April 2014 DELIVERED AT: Brisbane HEARD AT: Townsville PRESIDENT: CAC MacDonald ORDERS: 1. Appeal VLA436-10 is allowed.
2. The unimproved value of Lot 551 on SP 126589 in the County of Elphinstone, Parish of Stuart is determined at One Hundred and Sixty-Two Thousand, Five Hundred Dollars ($162,500) as at 1 October 2009.
3. Appeals LVA401-11, LVA440-12 and LVA208-13 are allowed.
4. The site value of Lot 551 on SP 126589 in the County of Elphinstone, Parish of Stuart is determined at One Hundred and Sixty Thousand Dollars ($160,000) as at 1 October 2010, 1 October 2011 and 1 October 2012.
CATCHWORDS: Valuation - valuation methodology - use of sales - whether analyzed or applied value should be used in comparing subject - derivation of applied values - rationale of using applied values - relativity desirable.
Valuation - valuation methodology - use of sales - substantial difference between analyzed value and applied value - whether appropriate to apply sale - suggests sale well above market - but absence of other sales evidence.
Valuation of Land Act 1944
Land Valuation Act 2010Barnwell v The Valuer-General (1989) 13 QLCR 13 at 16
Chief Executive, Department of Natural Resources v Radlett Enterprises Pty Ltd (1997-98) 18 QLCR 397.
Fischer v The Valuer-General (1983) 9 QLCR 44 at 46.
Scougall v Chief Executive, Department of Natural Resources (1996-1997) 16 QLCR 536.APPEARANCES: Mr AJ Musumeci, one of the appellants
Mr IR Pepper, principal lawyer, Department of Natural Resources and Mines, for the respondent
Alfio John and Brenda Maria Musumeci (the appellants) have appealed against four annual valuations issued by the respondent Valuer-General under the provisions of the Valuation of Land Act 1944 and the Land Valuation Act 2010. As all the appeals concern the same property, the appeals were heard together and the evidence given was, where relevant, applied to all the appeals.
Appeal VLA436-10 concerns the unimproved value of the subject property as at 1 October 2009, issued under the Valuation of Land Act 1944 (VLA). The respondent valued the subject property at $202,500. The appellants' estimate of value in the notice of appeal was $160,000.
The remaining three appeals, which were brought under the Land Valuation Act 2010 (LVA), concern the site value of the subject property. Details of the appeals are set out in the table below:
Appeal number Date of Valuation Respondent's valuation Appellants' estimate LVA401-11 1 October 2010 $200,000 $160,000 LVA440-12 1 October 2011 $200,000 $160,000 LVA208-13 1 October 2012 $200,000 $160,000
Although, as a result of changes in the legislation, the issued valuation as at 1 October 2009 was for the unimproved value, and for the remaining three appeals the issued valuations were for the site value of the subject, the…
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- AGLC
- Musumeci v Valuer-General [2014] QLC 15
- Case
- [2014] QLC 15
- Decision Date
CaseChat Overview and Summary
The key legal issues before the court were the appropriate methodology for property valuation and the application of sales data in determining the value. The court had to consider whether the analysed or applied value of a sale should be used when comparing it to the subject property, and how applied values should be derived. The court also had to decide on the rationale for using applied values and the desirability of achieving relativity in the valuation process. The substantial difference between the analysed and applied values of a particular sale was another point of contention, as it suggested the sale was well above market value but there was a lack of other sales evidence.
In its decision, the court considered the relevant statutory provisions under the Valuation of Land Act 1944 and the Land Valuation Act 2010. The court referenced previous cases such as Barnwell v The Valuer-General, Chief Executive, Department of Natural Resources v Radlett Enterprises Pty Ltd, Fischer v The Valuer-General, and Scougall v Chief Executive, Department of Natural Resources to guide its reasoning. Ultimately, the court found that the Valuer-General's valuation was incorrect and determined the correct unimproved and site values of the property at specific dates.
The final orders of the court were to allow the appeals and to set the unimproved value of Lot 551 at One Hundred and Sixty-Two Thousand, Five Hundred Dollars ($162,500) as at 1 October 2009, and the site value at One Hundred and Sixty Thousand Dollars ($160,000) as at 1 October 2010, 1 October 2011, and 1 October 2012. These decisions provided clarity on the proper valuation methodology and the application of sales data in property valuation cases.
Orders
Orders of the court
1. Appeal VLA436-10 is allowed.
2. The unimproved value of Lot 551 on SP 126589 in the County of Elphinstone, Parish of Stuart is determined at One Hundred and Sixty-Two Thousand, Five Hundred Dollars ($162,500) as at 1 October 2009.
3. Appeals LVA401-11, LVA440-12 and LVA208-13 are allowed.
4. The site value of Lot 551 on SP 126589 in the County of Elphinstone, Parish of Stuart is determined at One Hundred and Sixty Thousand Dollars ($160,000) as at 1 October 2010, 1 October 2011 and 1 October 2012.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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