Assessment Of The Practice of Due Deligence in Carrying out Mortgage Valuations in Uganda

Abstract

Mortgage”includesanychargeorlienoverlandoranyestateorinterestinlandin Ugandaforsecuringthepaymentofanexistingorfutureoracontingentdebtor othermoneyormoney’sworthortheperformanceofanobligationandincludesa Second or subsequent mortgage, a third partymortgageand a sub mortgage (mortgageact2009).Asvaluerscarryoutvaluationformortgagepurposes,they shouldbeawareofthepracticeofduediligence.Duediligencecouldbedefinedas Anobligationheldbythevaluerwhenheentersintoanagreementtofulfilacertain Valuationtasktoactwithinacertainstandardofcare. Professionalliabilityisalegalobligationheldbyvaluersarisingoutofprofessional Errorsandnegligentactsoromissionsduringthecourseofexecutingprofessional duties.Thisliabilityliesinanyprofessionandthusprofessionalregulatorybodies havethedutyto ensure thatalllicensed and practicing firm stake indemnity insurancecovers.Theliabilityheldbyvaluersinpracticeisgreatlybroughtaboutby Incompetence in practice due to less experience and poor qualifications, Inconsistency and unsystematic nature in the way tasks are accomplished. Ignorance, failure to exercise duty of care to client sin contract And third parties aswellas due diligence while conducting valuations for different Purposes also leads to this liability.