Certified Government Valuation

Apply for Land Valuation Certificate

A land value certificate is a legally binding document that certifies that an entry in the Land Values Register is accurate. It is the most important document for the property description details to be filed on the Property Registration.  This certificate will assist in identifying the land current market worth.

Steps to apply for the Land value certificate:

• The applicant must go to the tahsildar office in the area where the land is located to get a land valuation certificate.
• Consult the authorised person at the tahsildar office for information on how to apply for a valuation certificate.
• The applicant must submit the concerned authority with their land details, such as their survey number, Land Deed, Land Revenue Receipt, and so on, to verify their land record register.
• Collect and fill the application form
• Submit the necessary paperwork to the appropriate receiving authority
• Authorities will review the application and documents once they receive it
• If everything is in order, the application will be approved along with the application fees
• An acknowledgment receipt will be issued once the authorities have manually or electronically processed the application.
• The land valuation certificate will be sent or handed over directly to the applicant once completed, sealed, and signed.

To get a land valuation certificate, you’ll need the following documents: Aadhaar Card, voter’s ID, Proof of property ownership, Encumbrance certificate, Land Tax Details etc. 

The valuation certificate will take 15 days to process from the moment the application is submitted. The applicant will be notified of the estimated date of certificate collection.

Need for land valuation certificate

• A valuation certificate is mandatory for applying for a bank loan.
• It is also required for tax purposes.

Building Valuation Certificate for Registration

A building valuation certificate is used to demonstrate the applicant’s property value. A building valuation certificate is a government official document that summarises the value of the building. Valuation experts issue this certificate after they have verified the building’s value, location, type of ownership, title documents, building laws, and construction year, among other things. These specifics will help in the registration process.

Direct Comparison Approach Meaning with Example

The theory behind a direct comparison strategy is based on the assumption that similar properties must be sold for similar prices. This approach is ideal for obtaining mortgage loans. The direct comparison method of valuation determines the current market value by “comparing” it to similar property values collected on the open market.

The direct comparison approach would’ve been simple if the properties were not so unique. Every property is different, from its size to its features, finishes, appliances, number of bedrooms and bathrooms, etc. Using the direct comparison method, the appraiser adjusts the sales price of the comparable property based on these factors.

The direct comparison method of valuing is demonstrated in the following example:

A 3BHK home was recently sold for 60 Lakhs because the house offers more vehicle parking space. A homeowner in the same neighbourhood would expect their property to sell for a higher price. In this situation, the assessor will determine the comparable property’s attributes and compare them to those of the subject property. Then they will adjust the comparable property’s valuation to make it more similar to the subject property. After this, the adjusted valuation of the comparable property must be close to the subject property’s market value.

Government Property Valuation Methods & Approach

Property can be valued using a variety of methods and approaches. Let’s take a look at some of them:

Government Valuation of Land in India Overview

One of the most well-known industries worldwide is the real estate industry. Following agriculture, the real estate sector generates the second-highest number of jobs in India. In India, a govt value of land is required for various reasons, including bank loans, property listing, investing, homeowner’s insurance, and taxes.

Land valuations also benefit interested parties in establishing the selling or buying cost of the land. Determining govt value of land is high, particularly given the huge inventory of land held by governments. The changing nature of land market values necessitates frequent adjustments, most usually once a year.

Guidelines for Valuation of Immovable Properties 2021

• According to the govt value of landguidelines, parties may proceed with transferring the Authority issues a no-objection certificate (NOC).
• This Act forbids the registrar from registering a transaction unless it has received an appropriate authority’s NOC.
• If the property is not revealed or the cost of the property is not disclosed, the District Valuation Officer will perform the job of the Assessment Officer.
• This rule also applies if the property is worth more than Rs 300 lakhs.
• An amending order cannot be issued after the passing of 4 years in respect to a NOC.

List of Documents Required for The Valuation

Property valuation or Government valuations of property are critical in purchasing or selling any property, whether business and residential. The most critical documents to have on hand during any property valuation process are as follows:

• Legal documents such as a house agreement, a purchase receipt, and a loan statement to legally indicate the ownership of the property to be appraised, certain documents must be supplied to the property management firms.
• Electricity bill to locate the special identification number for the electric connection meters issued by the service provider to the property.
• Real Estate Regulatory Authority or RERA number: It is required for valuing properties that are still under development. This permits the valuation company to verify that the project is RERA-registered. & be able to verify a project’s legitimacy.
• Layout plan: If you’re working on a large project with several phases, the layout reference number must be confirmed to match and restrict the building’s actual location and registered address.
• Commencement Certificate: It is a document that certifies the construction of a property. The purpose of this certificate is to ensure that the approval number on the building permit letter matches the sanction plan number.
• Building sanction plan: It’s a project layout created by an architect that includes the entire floor, building, & room identification. The active city planning authority must approve the proposal before the building is planned and executed.

• Occupation Certificate/ Building Completion Certificate: The OCC/BCC issued by the approving authority is detailed in this document. It should have the same number as the sanction plan.

Maharashtra Property Valuation

A property valuation is an estimate of the value of your home based on its location, condition, and a variety of other variables. It’s a legal document that verifies the specifics of an entry in the Land Values Register. A property’s value can be used to determine a fair price for a plot of land, a factory, or a building. A government approved valuer can perform a property valuation.

The estimated worth of property varies from state to state, and Maharashtra is no exception. The real estate prices in Maharashtra are always in the headlines. When compared to other Indian states, Maharashtra property prices are high. One of the key elements contributing to its exorbitant real estate prices is its location.

Property Valuation’s Importance in Maharashtra-

• Before buying or selling a home, a valuation can assist you in determining the property’s fair market value. In Maharashtra, the value of a property can vary from one city to another. Thus getting a property valuation would help you understand the situation better. A  government valuer will come to your home and estimate its current value in the financial and real estate markets, taking into account all of the aspects that go into determining a home’s value.
• If you want to rent your property, you’ll need to give your potential tenants a reasonable price. The appropriate rent is usually 6-10% of the property’s estimated price.
• A valuation is also required if a buyer seeks to take out a loan using the property as collateral. The projected value of the property heavily influences the loan amount.
• A govt valuation of property is also required if a person wishes to transfer their home to someone else. The assessed property value is taken into account when calculating wealth tax, property tax, municipal tax, etc.

Property Valuation Certificate Online

A property’s valuation certificate is prepared by an expert government valuer as well as by external sources. Your lender will want a valuation by one of his panel inspectors if you are applying for a mortgage to ensure that the entire debt of the mortgage would be covered if it is not paid. An approximated property value is only applicable for a specific period because of changing market conditions or investment factors, among others.

The property valuation online method is a simple yet quick way to estimate the value of a property for a rough estimate. Several websites offer online property valuation reports. You can search by entering a government approved property valuer near me to find a legitimate person who can perform the property valuation.

The government approved valuers are a group of experts who represent various forms of valuations, including property valuation.

To acquire the report, it will only ask for the bare minimum of information about your property. First, you must specify whether it is a piece of land, an apartment, an office space, an industry, or a building.

The property valuation online report will be prepared and sent to you through email once you enter the property type, city, zone, locality, built-up area, and property age.

RBI Guidelines for Valuation of Immovable Properties

RBI Guidelines for Valuation of Immovable Properties are as follows:

• A person residing in India can purchase, transfer, or invest in any immovable property located outside of India, according to the guidelines, even though he purchased it while he was a non-resident
• The sale proceeds of such property cannot be repatriated without RBI clearance by the individual who purchased the property under FEMA Section 6(5)(iv) or their successor.
• The Assessing Officer can refer the valuation of a capital asset to a valuation Expert for Capital Gains purposes under section 55A of the Tax Act.

Report of Valuation of Immovable Property

The following is included in a report on immovable property valuation:

• The reason for which a valuation is performed
• The date on which the valuation is done
• A summary of the property
• Owner name
• Property location with complete address
• Is the property in a residential, business, industrial zone
• Land area substantiated by documented evidence, shape, proportions, and physical characteristics
• Whether the land is freehold or leasehold
• Any restriction on how the land should be used
• Any easement agreements

Sample Property Valuation Certificate

19th March 2020

                                                                 VALUATION CERTIFICATE

To,

MR Rajesh Tripathi

Property Valuation Certificate owned by Mr Rajesh Tripathi at Street: Ward No. 18, Pokhara Kathmandu, Nepal.

Dear Sir,

We are pleased to present the certificate for the valuation of the property owned by MR Rajesh Tripathi, which has already been transferred to MS Sukanya Shah’s Bank in Feb 2020.

Client: Mr Rajesh Tripathi

Owner of the property: MS Sukanya Shah

Permanent Address (owner): Ward No. 18, Pokhara Kathmandu, Nepal

Contact No: 9812345678

Location of the property: Ward No. 18, Pokhara Kathmandu, Nepal

Type of Property mortgaged: Land and Building.

 After a thorough examination of all essential documents provided by our client, including ownership papers, maps, site inspection report, and detailed measuring of the site in accordance with industry standards, on the 09th of January 2020, the Consultant verified the above-mentioned property’s Fair Market Value and Distress Value as follows:

The property’s total fair market value- Rs. X

Property’s Total Distress Value – Rs. Y  (X>Y)

Also, we declare that we have no direct or indirect interest in the said property. To the best of our knowledge and belief, all of the information presented here is accurate based on the client documentation. The valuation report for the property, which was completed in February 2020, includes all of the relevant documentation submitted to the M/S MS Sukanya Shah.

Thank You.

Sincerely,

(Managing Director) ABCD Consult PVT. Ltd

Valuation Certificate for House

A house valuation certificate is a brief valuation report that includes a description of the house, the property’s current usage value, the relevant property’s market worth, the total worth of the subject property’s moveable and immovable assets etc. 

When it comes to calculating property taxes, a valuation certificate is crucial. Stamp duty is computed based on the property’s value when it is transferred. Even when obtaining loans against a home, a house valuation certificate is essential, as the house serves as either a main or secondary security.

Valuation of Immovable Property

Real estate valuation involves deciding the worth of a piece of land and building. Real estate consists of the selling or acquiring of immovable property, which necessitates a value, such as a plant and machinery. Each property has unique characteristics that distinguish it from others and must be considered while establishing its worth. It includes legal real estate interests, supply and demand, geographical suitability, site attributes, and so on.

The organisation of RNC has a long and extensive history of delivering immovable property valuation services ranging from single-family homes, residential buildings, commercial buildings such as offices and stores, educational institutions, schools, hospitals, malls, and multiplexes, to enormous towns, industrial parks, special economic zones, ports, and other industries.

Plant and machinery valuation is regarded as a difficult task due to the numerous variables involved. The form of plant and machinery used in various industries varies. The value of such assets is determined by their design and relevance to producing goods and services they are meant to use. RNC has extensive experience valuing equipment and machinery for SSI units to major industrial enterprises in cement, Pharmaceuticals, Automobiles, Real Estate, Chemicals & Fertilizers, Electronics, Consumer Goods, textiles, etc.

What Is a Check-List for Property Valuation?

The property valuation checklist includes basic questions, property usage questions, and legal information, among other things. For example:

• Average cost value and replacement cost value of the building
• Comparable price of the properties in the neighbourhood
• Has the property undergone an appraisal in the recent five years?
• Has the insured completed and signed a statement of values?
• The building’s future plans,
• Age of the property and so on.

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Frequently Asked Questions (FAQ’s)