Property Valuations – What To Ask When Trying To Pick A Good Appraiser

Valuers (or appraisers as referred to in certain countries around the world) form an important part of the general economy, not just the property industry.

Types of Property Valuations

Property valuers generally specialize in a sector of the property market or in a specific sub sector of the property market. There is also plant and equipment valuers but in this article I will focus on the larger market of valuers, property or real estate valuers or appraisers.

The different types of property reports that can be conducted are:

Commercial
Retail
Industrial
Mixed use
Rental review
Litigation
Property development feasibility studies, analysis and valuations

The most common valuation type is in the residential valuations field and the sub sectors are:

Acreage
Alpine
Apartment
Bed-sitter
Coastal property
Duplex
Executive property
Flat
Government
House
Land
Leased property
Luxury property
Property investing
Property investment portfolio evaluation
Retirement living
Rural
Semi-rural
Semi-detached
Serviced apartment
Studio
Student apartment
Terrace
Townhouse
Unit & unit block
Villa

More specialized valuations include the following (it is advisable to ask the valuation firm that you are considering if they have had previous experience before commissioning to perform a valuation):

Townhouse development
Villa development
Unit block
Single tenant office
Retail strip shop
Combined office retail
Owner occupied
Leased property
Multi-tenant
Mid rise office
Small shopping centre
Warehouse
Vacant land
Special use property
Golf course
Ski resort
Unique property
Hospitality-related property (hotels, resorts, inn valuations, motels, conference center valuations)

Regardless of property size, type, or construction material (from brick to steel to weatherboard homes), a property valuer can service all your property valuation needs as long as they are qualified to do so in that field.

I would suggest checking that the Valuer is registered with the local government or regulatory body of property Valuers / appraisers before asking for any work to be conducted.

It is also advisable to see if the valuation / appraisal reports are covered by a well known professional indemnity insurance provider such as Lloyds. Valuers insurance policies vary so see what the valuers professional indemnity (PI) advantages and disadvantages are as well as its limitations.

Another mindful check method is to contact your local or country governing property body or government organization to see if the individual appraiser or property expert is adequately qualified and whether they have current qualifications that is recognized by that body. This is always a good sign to separate the professional or registered valuers from those that are not.

Land Law

According to the Indian Constitution, state legislatures are empowered to make laws and regulations regarding to a number of subject-matters, including water, land ( rights in or over land, land tenure, transfer and alienation of agricultural land), as well as the preservation, protection and improvement of stock and the prevention of animal disease. Referring to the laws and regulations adopted by the central government, get a bird’s eye view of Land Law at Indiahousing.

Land Law in India

The Registration Act, 1908 takes care of the gift of immovable property and non-testamentary instruments, annual leases of immovable property, sales, mortgages and exchanges of immovable property. The net effect has been that a large number of property transactions have been accomplished without proper registration. Further instruments such as Agreement to Sell, General Power of Attorney and Will have been indiscriminately used to effect change of ownership.

Property tax is a levy charged by the municipal authorities for the upkeep of civic services in the city. It is levied on the basis of reasonable rent at which the property might be let from year to year. The reasonable rent can be actual rent if it is fair and reasonable. In the world’s largest democracy, acquisition of landed property is a complex issue, presupposing a host of prerequisites. Indiahousing aids you with the composites of Land Law.

Land Registry

Land Registry becomes important whenever there is a change in the ownership title of a property. It is a process through which the local administrative authority keeps track of the property transaction that occurs within the boundary of its governing area. The ownership record of an immovable property is kept lying at the local authority of a region, state or country, which needs to be updated whenever a property change hands in ownership. When you register a property or a piece of land, you become a legal owner of the same, thus greatly reducing the chance of fraud and also helping you out at times of land disputes.

Land Registry in India

Land Registry in India is a subject mainly dealt by the individual state’s authorities. Most of the state has their own property registration authority which sets rules and regulation regarding the forms and charges of land registration process. Though there might be some differences in the amount of registration fees chargeable, the procedure remains more or less the same for many states in India. The important stages of land registration in India are as follows:

I. To start with, you need to go to the office of Sub-Registrar of Assurance for the purpose of searching documents pertaining to the property concerned. You must check the location details of the property and also make a note of the time period to be checked. It may cost you Rs 10,000 and may take up to 5 days to go through this stage.

II. Next stage involves the preparation of sale documents by the purchase lawyers which may take seven days at the most and may cost you Rs 18,000 to 21,000.

III. After that the payment for Stamp Duty on the final Sale Deed is made and the amount is deposited at a bank which may take hardly a day to finish. The amount you pay for the cost of Stamp Duty is five percent of the value of property concerned.

IV. In the next step the, the execution of final sale deed occurs wherein you are required to submit the documents verifying the real estate transaction that occurs between the buyer and the seller of the land. The fees and other charges you pay at the office of Sub-Registrar of Assurance may go up to Rs 30,000 in addition to the cost you pay for the scanning of the sale deed.

V. The final stage allows you to move to the municipal authority for mutation of the Title of the property, which usually takes 30 days and costs around Rs 300.