Determination of the compensation sum in default of agreement12
1
Where no agreement can be reached on the value of the premises, either party may serve on the other a notice (the “valuation notice”) requiring the amount to be determined by a chartered surveyor.
2
Where a valuation notice has been served, the appointment of a chartered surveyor shall be agreed by the parties within one month of the service of the valuation notice and, where agreement on such appointment cannot be reached, either party may request the President of the Royal Institution of Chartered Surveyors to appoint a chartered surveyor.
3
Where a chartered surveyor has been appointed in accordance with paragraph (2), the following provisions shall apply as appropriate—
a
where the appointment has been made by the President of the Royal Institution of Chartered Surveyors, the parties shall be equally liable for the costs of that appointment;
b
unless the parties agree that the chartered surveyor shall act as an independent expert, he shall act as an arbitrator and the provisions of the Arbitration Act 19963 shall apply; and
c
where the chartered surveyor acts as an independent expert, the parties shall—
i
be bound by his final decision; and
ii
each party shall bear their own costs and shall be equally liable for the fees and costs of the chartered surveyor.