Valuation (REAL ESTATE) B.ARCHITECTURE

CONTENTS:-
REQUIREMNETS FOR GETTING LICENSE OF VALUER
ROLE OF VALUER WITH VARIOUS AGENCIES FOR LOANS,
MORTGAGE,
PROPERTY DISPUTES IN COURT OF LAW ETC.
MORE WORKS OF VALUER AND VARIOUS
FORMS TO BE FILLED BY VALUER IN HIS
WORK.
FORMATS OF VALUATION REPORT FILLED BY VALUER.
TERMS OF ENGAGEMENT FOR EMPANELMENT OF VALUERS.
IBA SUB-COMMITTEE ON
MORTGAGE AND VALUATION OF PROPERTY
SUBMMITTED BY:-
KIRAN MAI DASDATE- 18.04.2016

CRITERIA FOR EMPANELMENT OF VALUERS
IN ORDER TO ENSURE THAT THE VALUERS EMPANELLED WITH THE BANKS
AND
HOUSING FINANCE INSTITUTIONS ARE COMPETENT AND CAPABLE OF
PROVIDING HIGH QUALITY OF SERVICE, THE FOLLOWING CRITERIA NEED
TO BE
ADHERED TO WHILE EMPANELLING VALUERS.
A) EDUCATIONAL QUALIFICATIONS AND PREVIOUS WORK EXPERIENCE
IT IS NECESSARY THAT A VALUER POSSESSES PROPER EDUCATIONAL
QUALIFICATIONS WHICH MAKE HIM COMPETENT TO CARRY OUT THE TASK
OF
VALUATION OF IMMOVEABLE PROPERTY. IN ADDITION, RELEVANT WORK
EXPERIENCE IS ALSO IMPORTANT. PERSONS POSSESSING THE FOLLOWING
EDUCATIONAL QUALIFICATIONS
01

S.
NO.
EDUCATIONAL
QUALIFICATION
WORK
EXPERIENCE
REMARKS
1 BACHELOR’S
DEGREE IN CIVIL
ENGINEERING /
ARCHITECTURE /
TOWN PLANNING OR
EQUIVALENT.
5 YEARS
WORK
EXPERIENCE
IN
THE FIELD OF
VALUATION
AFTER
COMPLETION
OF
THE DEGREE
OR
EQUIVALENT
THEY MUST COMPLETE A 6
MONTHS
PRESCRIBED COURSE IN
VALUATION
WITHIN A PERIOD OF 5 YEARS
FROM
THE DATE OF THEIR
EMPANELMENT
AND THE CUT OFF DATE FOR THE
SAME SHALL BE 1ST APRIL, 2015.
( FOR PRACTICING VALUERS WHO
ARE
ABOVE 60 YEARS OF AGE, THEY
MUST COMPLETE A 2 WEEKS
PRESCRIBED COURSE ON
VALUATION
WITHIN A PERIOD OF 3 YEARS OF
THEIR EMPANELMENT ).

S.
NO.
EDUCATIONAL
QUALIFICATION
WORK
EXPERIENCE
REMARKS
2
3
BACHELOR’S DEGREE IN CIVIL
ENGINEERING /
ARCHITECTURE /
TOWN PLANNING OR
EQUIVALENT
WITH PASS IN
VALUATION EXAMINATION
CONDUCTED BY THE
INSTITUTION
OF SURVEYORS, INDIA (
VALUATION BRANCH
MASTER’S DEGREE IN
VALUATION
AWARDED BY A RECOGNIZED
UNIVERSITY IN INDIA
2 YEARS WORK
EXPERIENCE IN
THE FIELD OF
VALUATION AFTER
COMPLETING THE
EXAMINATION
MASTER’S DEGREE
IN VALUATION
AWARDED BY A
RECOGNIZED
UNIVERSITY IN
INDIA
-
-

S.
NO.
EDUCATIONAL
QUALIFICATION
WORK
EXPERIENC
E
REMARKS
4 BACHELOR’S DEGREE IN CIVIL
ENGINEERING / ARCHITECTURE
/
TOWN PLANNING OR
EQUIVALENT
WITH PASS IN
EXAMINATIONS CONDUCTED BY
THE ROYAL INSTITUTE OF
CHARTERED SURVEYORS
(RICS)
OR AMERICAN SOCIETY OF
APPRAISERS ( ASA ) OR
APPRAISAL INSTITUTE ( AI ),USA
- SINCE THE PROCESS OF
PROCUREMENT OF
MEMBERSHIP
WITH THESE
ORGANIZATIONS
INCLUDES TRAINING AS
AN INTEGRAL
COMPONENT, NO
FURTHER
EXPERIENCE
REQUIREMENT IS BEING
PRESCRIBED.NOTE :- DIPLOMA HOLDERS IN CIVIL ENGINEERING / ARCHITECTURE OR
EQUIVALENT WITH 8 YEARS OF EXPERIENCE ARE
ALSO ELIGIBLE FOR EMPANELMENT AND SHALL BE PERMITTED TO UNDERTAKE
VALUATIONS WITH VALUE UPTO RS.50
LAKHS ONLY.
EVIDENCE OF PREVIOUS EXPERIENCE NEEDS TO BE PROVIDED TO THE BANK /
HOUSING FINANCE INSTITUTION. IN CASE OF COMPANIES UNDERTAKING
VALUATIONS, THE QUALIFICATIONS AND EXPERIENCE SHALL APPLY TO THE
LEAD
VALUER IN THE COMPANY.

B) MINIMUM AGE REQUIREMENT :-
AGE IS AN IMPORTANT CRITERIA WHILE EMPANELLING VALUERS. THE
MINIMUM AGE FOR EMPANELMENT WITH BANKS AND HOUSING FINANCE
INSTITUTIONS SHALL BE 25 YEARS AND THERE IS NO MAXIMUM AGE LIMIT
FOR A VALUER TO REMAIN ON THE PANEL.
C) MEMBERSHIP OF PROFESSIONAL BODIES :-
IT IS IMPORTANT THAT A VALUER ACTIVELY PARTICIPATES IN PROFESSIONAL
ACTIVITIES IN VARIOUS PROFESSIONAL BODIES. IT SHALL BE NECESSARY
THAT
EVERY VALUER EMPANELLED BY BANKS / HFIS IN INDIA BE A MEMBER OF
ANY ONE OF THE UNDERMENTIONED ASSOCIATIONS NAMELY :-
 - INSTITUTION OF VALUERS ( IOV )
 - INSTITUTION OF SURVEYORS ( VALUATION BRANCH ) ( IOS )
 - INSTITUTION OF GOVERNMENT APPROVED VALUERS ( IGAV )
 - PRACTICING VALUERS ASSOCIATION OF INDIA ( PVAI )
 - CENTRE FOR VALUATION STUDIES, RESEARCH AND TRAINING ( CVSRT )
 - ROYAL INSTITUTE OF CHARTERED SURVEYORS, INDIA CHAPTER ( RICS )
 - AMERICAN SOCIETY OF APPRAISERS, USA ( ASA )
 - APPRAISAL INSTITUTE, USA ( AI )

D) CATEGORIES OF VALUERS
THE OBJECTIVE OF CATEGORIZATION OF VALUERS IS TO ENSURE THAT
WHILST LESSER VALUE ASSIGNMENTS ARE HANDLED BY RELATIVELY
JUNIOR
VALUERS,THE SENIOR VALUERS CAN HANDLE HIGHER VALUATIONS.
THE EMPANELMENT OF VALUERS THEREFORE SHALL BE IN THE
FOLLOWING
CATEGORIES :
S.NO. CATEGORY
OF
VALUER
WORK EXPERIENCE IN
UNDERTAKING
VALUATIONS
VALUE OF
PROPERTY FOR
ASSIGNMENT OF
VALUATION
WORK
1 A MORE THAN 10 YEARS NO LIMIT
2 B MORE THAN 5 YEARS
AND LESS
THAN 10 YEARS
UPTO RS.25
CRORES
3 C UPTO 5 YEARS UPTO RS. 1 CRORE*

*IN CASE OF METROPOLITAN CITIES, THE LIMIT SHALL BE RS. 3
CRORES.
NOTE :- IN CASE OF DIPLOMA HOLDERS, THE WORK EXPERIENCE
SHALL BE
8YEARS AND THE VALUE OF PROPERTY FOR ASSIGNMENT OF
VALUATION
WORK SHALL BE RS. 50 LAKHS.
VALUERS NEED TO FURNISH PROOF OF EXPERIENCE.
E) REGISTRATION WITH GOVERNMENT :-
REGISTRATION WITH THE CENTRAL / STATE GOVERNMENTS IS
DESIRABLE BUT
NOT COMPULSORY. HOWEVER, IT MAY BE NOTED THAT FOR
UNDERTAKING
VALUATIONS UNDER THE SARFAESI ACT, VALUATION HAS TO BE
OBTAINED
FROM REGISTERED VALUER UNDER THE WEALTH TAX ACT ( SECTIONS
34 AA
TO 34 AE ). THE IBA HAS MADE A REPRESENTATION TO THE MINISTRY OF
FINANCE THAT VALUATION BY COMPANIES SHOULD BE PERMITTED.
THEREFORE, PENDING THE ABOVE, WHILE ASSIGNING / OUTSOURCING
VALUATION WORK TO VALUERS, IT IS NECESSARY THAT BANKS TAKE

F) REFERENCES :-
CARRYING OUT A REFERENCE CHECK IS EXTREMELY IMPORTANT IN
ORDER
TOVERIFY THE COMPETENCE OF A VALUER. VALUERS NEED TO
SUBMIT AT
LEAST 3 REFERENCE LETTERS AND BANKS NEED TO VERIFY THE
QUALITY OF
SERVICES PROVIDED BY THE VALUER IN THE PREVIOUS INSTANCES
BEFOREEMPANELLING THE VALUERS ON THEIR PANEL. THE
REFEREES SHALL
BE EITHER (I) BANK MANAGERS WHERE PREVIOUSLY THE VALUER
HAD
DONE VALUATIONS OR (II) COMPANIES FOR WHOM THE VALUER HAD
PREVIOUSLY DONE VALUATIONS. THE REFERENCE LETTER SHALL BE
ON THE
LETTER HEAD OF THE BANK / HOUSING FINANCE COMPANY / ANY
OTHER
COMPANY WHEREVALUATIONS HAVE BEEN DONE AND SHALL BE
DULY

 THE VALUER IS A CITIZEN OF INDIA
 THE VALUER HAS NOT BEEN REMOVED / DISMISSED FROM SERVICE
(
PREVIOUS EMPLOYMENT ) EARLIER
 THE VALUER HAS NOT BEEN CONVICTED OF ANY OFFENCE AND
SENTENCED TO A TERM OF IMPRISONMENT
 THE VALUER HAS NOT BEEN FOUND GUILTY OF MISCONDUCT IN
PROFESSIONAL CAPACITY
 THE VALUER IS NOT AN UNDISCHARGED INSOLVENT
 THE VALUER HAS NOT BEEN CONVICTED OF AN OFFENCE
CONNECTED WITH
ANY PROCEEDING UNDER THE INCOME TAX ACT 1961, WEALTH TAX
ACT
1957 OR GIFT TAX ACT 1958.
 THE VALUER POSSESSES A PAN CARD NUMBER / SERVICE TAX
NUMBER
AS APPLICABLE.
AT THE TIME OF EMPANELMENT, THE VALUER SHALL GIVE AN
UNDERTAKING

ROLE OF VALUER WITH VARIOUS AGENCIES
FOR LOANS AND MORTGAGE:-
ROLE OF VALUER WITH APPLICATION OF STANDARDS FOR SECURED
BANK
LOANS
IT IS NECESSARY FOR VALUERS TO CONSISTENTLY APPLY THE BASIC
VALUATION CONCEPTS AND STANDARDS AND PROVIDE A CLEAR AND
OBJECTIVE OPINION ON THE VALUE OF THE PROPERTY CONCERNED
FOR
BANK LOANS.
B) SCOPE:-
THIS APPLICATION COVERS SITUATIONS WHERE VALUATION IS
REQUIRED OF
PROPERTIES WHICH ARE OR ARE PROPOSED TO BE HELD AS
SECURITY FOR
LENDING BY WAY OF MORTGAGE AND THE ROLE OF THE VALUER IN
THIS
APPLICATION.

MORTGAGE – THIS TERM IS GENERALLY UNDERSTOOD TO BE A
PLEDGE OF
AN INTEREST IN PROPERTY AS SECURITY OR COLLATERAL FOR
REPAYMENT
OF A LOAN WITH A PROVISION FOR REDEMPTION ON FULL
REPAYMENT. IN
THE EVENT THE BORROWER DEFAULTS, THE LENDER HAS THE RIGHT
TO
RECOVER THE LOAN BY DISPOSING THE PROPERTY PLEDGED
THROUGH A
DUE PROCESS OF LAW.
D) APPPLICATION:-
 IN PERFORMING VALUATIONS OF PROPERTIES FOR LENDING
PURPOSES,
VALUERS WILL NORMALLY ADOPT THE ‘MARKET VALUE’ OF SUCH
PROPERTY
IN ACCORDANCE WITH THE STANDARDS GIVEN IN THIS DOCUMENT.

 LOANS FROM BANKS AND FINANCIAL INSTITUTIONS ARE SECURED
BY
SPECIFIC PROPERTY. VALUERS NEED TO HAVE A GENERAL
UNDERSTANDING OF THE REQUIREMENTS OF SUCH INSTITUTIONS
AND POSSIBLY THE STRUCTURE OF LOAN TERMS AND AGREEMENTS.
EXPLANATIONS :-
 THE MANNER IN WHICH THE PROPERTY WOULD ORDINARILY
TRADE IN
THE MARKET WILL DETERMINE THE APPLICABILITY OF THE VARIOUS
APPROACHES TO ASSESSING THE MARKET VALUE. BASED UPON
MARKET INFORMATION, EACH APPROACH IS TO BE USED.
 ALL VALUATION METHODS SHOULD BE BASED ON MARKET
OBSERVATIONS. CONSTRUCTION COSTS AND DEPRECIATION,
WHEREVER
APPLICABLE, SHOULD BE DETERMINED BY REFERENCE TO AN
ANALYSIS
OF MARKET BASED ESTIMATES OF COSTS AND DEPRECIATION.
 WHEN A LENDER DESIRES A VALUATION ON A BASIS OTHER THAN

 INVESTMENT PROPERTIES – INCOME PRODUCING
PROPERTIES
ARE USUALLY VALUED AS INDIVIDUAL PROPERTIES. LENDING
INSTITUTIONS
MAY AT TIMES LIKE TO HAVE A PROPERTY ASSESSED AS PART OF A
PORTFOLIO OF PROPERTIES. IN SUCH INSTANCES, THE DISTINCTION
BETWEEN THE VALUE OF THE INDIVIDUAL PROPERTY, ASSUMING IT IS
SOLD INDIVIDUALLY, AND ITS VALUE AS PART OF THE PORTFOLIO,
SHOULD BE CLEARLY EXPRESSED. WHILE THE VALUER MAY COMMENT
ON THE EXPECTED DEMAND AND MARKETABILITY OF THE PROPERTY
OVER THE LIFE OF THE LOAN, IT IS NORMALLY OUTSIDE THE SCOPE
OF
THE VALUATION EXERCISE TO ADVISE ON THE ABILITY OF A TENANT TO
MEET FUTURE LEASE OBLIGATIONS.
 OWNER OCCUPIED PROPERTIES –
SUCH PROPERTIES VALUED FOR LENDING PURPOSES WILL
NORMALLY BE
VALUED ON THE ASSUMPTIONTHAT THE PROPERTY IS TRANSFERRED
UNENCUMBERED BY THE OWNER’S OCCUPANCY IE. THE BUYER IS

BUT IT DOES REQUIRE THAT ANY SPECIAL ADVANTAGE ATTRIBUTABLE
TO
THE OWNER’S OCCUPANCY, WHICH MAY BE REFLECTED IN A
VALUATION OF THE BUSINESS, BE EXCLUDED FROM THE VALUATION.
 LEASES BETWEEN RELATED PARTIES –
WHERE PROPERTY OFFERED AS SECURITY IS SUBJECT TO A LEASE
TO A
PARTY CONNECTED TO THE BORROWER, THE VALUER SHOULD
CONSIDER
THAT THE LEASE CREATES A MORE FAVOURABLE INCOME STREAM
THAN
WOULD BE OBTAINABLE ONA LETTING TO AN UNCONNECTED THIRD
PARTY IN
AN ARM’S LENGTHTRANSACTION AND THE LENDER SHOULD BE
ALERTED AND
IT MAY BEAPPROPRIATE TO DISREGARD THE EXISTENCE OF THE
LEASE IN A
VALUATION OF THE PROPERTY AS SECURITY.
 SPECIAL CONCESSIONS –

 TRADE RELATED PROPERTIES –
SOME PROPERTIES WHERE THE
PROPERTY IS APPROVED AND PURPOSE DESIGNATED FOR A
PARTICULAR USE ( SUCH AS HOTELS OR CINEMAS, FOR
INSTANCE )
IS USUALLYVALUED BASED ON PROFITABILITY BUT EXCLUDING
PERSONAL GOODWILL. IN SUCH CASES, THE LENDER SHOULD
BE
MADE AWARE BYTHE VALUER THE DIFFERENCE IN VALUE THAT
MAY
EXIST BETWEEN ANOPERATING CONCERN AND A NON
OPERATING
CONCERN WHERE THEBUSINESS IS CLOSED. IF THE INCOME
FROM
A PROPERTY IS CRITICALLY DEPENDANT ON A TENANT OR
TENANTS
FROM A SINGLE SECTOR OR INDUSTRY OR SOME OTHER
FACTOR,
WHICH COULD CAUSE INCOME INSTABILITY IN FUTURE, THE
VALUER

 FORCED SALES –
LENDING INSTITUTIONS MAY REQUEST VALUATIONS
ON A FORCED SALE OR LIQUIDATION FOR DISPOSAL OF THE
SECURITY. AS THE IMPACT OF A CONSTRAINT ON THE PRICE
OBTAINABLE WILL DEPEND UPON THE SPECIFIC
CIRCUMSTANCES
UNDER WHICH THE SALE TAKES PLACE, IT IS NOT REALISTIC
FOR THE
VALUER TO SPECULATE ON A PRICE THAT COULD BE OBTAINED
WITHOUT KNOWLEDGE OF THE REASONS FOR THE
CONSTRAINT OR
THE CIRCUMSTANCES UNDER WHICH THE PROPERTY MIGHT BE
OFFERED FOR SALE. ASSUMPTIONS MADE IN SUCH A SITUATION
SHOULD BE CLEARLY STATED AND VALUER SHOULD DRAW THE
LENDER’S ATTENTION TO THE FACT THAT THE OPINION IS VALID
ONLY
AT THE VALUATION DATE AND MAY NOT BE RELIED UPON IN THE
EVENT OF A FUTURE DEFAULT, WHEN BOTH MARKET
CONDITIONS

 E) REPORTING REQUIREMENTS :-
IN REPORTING MARKET VALUE FOR LENDING SECURITY PURPOSES,
THE
VALUER SHALL MAKE ALL DISCLOSURES AS REQUIRED UNDER THE
STANDARD ON VALUATION REPORTING.
 F) DEPARTURE PROVISIONS :-
IN FOLLOWING THIS APPLICATION, ANY DEPARTURES MUST BE IN
ACCORDANCE WITH PROVISIONS IN THE STANDARD ON VALUATION
REPORTING.

MORE WORKS OF VALUER AND VARIOUS
FORMS TO BE FILLED BY VALUER IN HIS
WORK :-

FORM TO BE FILLED BY THE VALUER FOR
RECORDS TO
MAINTAIN A REGISTER OF VALUATION WORK
OUTSOURCING BANKS :-
VERY BANK / HOUSING FINANCE INSTITUTION SHALL MAINTAIN A
REGISTER
OF VALUATION WORK OUTSOURCING. WORK SHALL BE OFFERED TO
VALUERS BASED ON THEIR PERFORMANCE AND IF FOR ANY REASON,
A
VALUER DOES NOT TAKE UP THE WORK, THE SAME SHOULD BE
RECORDED
AND THEN THE WORK ALLOTTED TO ANOTHER VALUER.

Format of Valuation Report
( for all properties of value more than Rs. 5 crores )
S.No. Chapter Content
I Introduction 1. Name of Valuer
2. Date of Valuation
3. Purpose of Valuation
4. Name of Property Owner/s
5. Name of Bank/HFI as applicable
6. Name of Developer of the Property
( in case of developer built properties )
II Physical
Characteristics
of the Property
1. Location of the property in the city
2. Municipal Ward No.
3. Postal address of the property
4. Area of the plot/land ( supported by a plan )
5. Layout plan of the layout in which the property is
located
6. Details of Roads abutting the property

7. Demarcation of the property under valuation on a
neighbourhood layout map
8. Description of Adjoining properties
9. Survey no. if any
10. Details of the building/buildings and other
improvements in terms of area, height, no. of floors,
plinth area floor wise, year of construction, year of
making alterations/additional constructions with
details, full details of specifications to be appended
alongwith building plans and elevations
11. Plinth area , Carpet area and Saleable area to be
mentioned separately and clarified
12. Any other aspect
III Town Planning
Parameters
1. Master plan provisions related to the property in
terms of landuse,
2. Planning area/zone,
3. Development controls,
4. Zoning regulations,
5. FAR/FSI permitted and consumed,

6. Ground coverage,
7. Transferability of development rights if any,
Building
bye-law provisions as applicable to the property viz.
setbacks, height restrictions, etc.
8. Comment on surrounding landuses and adjoining
properties in terms of usage.
9. Any other aspect
IV Legal Aspects of
the Property
Description of legal aspects to include:
1. Ownership documents,
2. Names of Owner/s
3. Title verification,
4. Details of leases if any,
5. Tenureship in terms of freehold or leasehold,
Restrictive covenants if any,
6. Agreements of easements if any,
7. Notification for acquisition if any,

8. Notification for road widening if any,
9. Heritage restrictions if any.,
10. All legal documents, receipts related to electricity,
water tax, property tax and any other building taxes
to be verified and copies as applicable to be enclosed
with the report,
11. Comment on transferability of the property
ownership,
12. Building plan sanction, illegal constructions if any
done without plan sanction/violations.
13. Any other aspect
V Economic
Aspects of the
Property
1. Details of ground rent payable,
2. Details of monthly rents being received if any,
3. Taxes and other outgoings,
4. Property insurance,
5. Monthly maintenance charges,
6. Security charges, etc.
7. Any other aspect

VII
Socio-cultural
Aspects of the
Property
Descriptive account of the location of the property in terms of
the social structure of the area, population, social
stratification, regional origin, age groups, economic levels,
location of slums / squatter settlements nearby, etc..
VII
Functional and
Utilitarian
Aspects of the
Property
Description of the functionality and utility of the property in
terms of :
1. Space allocation,
2. Storage spaces,
3. Utility of spaces provided within the building,
4. Car parking facilities,
5. Balconies,
6. Any other aspect
VIII Infrastructure
Availability
a)Description of aqua infrastructure availability in terms of
1. Water supply,
2. Sewerage/sanitation,
3. Storm water drainage,

b)Description of other physical infrastructure facilities viz.
1. Solid waste management,
2. Electricity,
3. Roads & Public transportation connectivity,
4. Availability of other public utilities nearby,
c)Social infrastructure in terms of
1. Schools,
2. Medical facilities,
3. Recreation facilities in terms of parks and open
spaces.
IX Marketability
of the Property
Analysis of the market for the property in terms of
1. Locational attributes
2. Scarcity,
3. Demand and supply of the kind of subject property.
X Engineering
and Technology
Aspects of the
Property
Description of engineering and technology aspects to include
1. Type of construction,
2. Materials and technology used,
3. Specifications,
4. Maintenance issues,
5. Age of the building

S.
No
.
Chapter Content
6. Total life of the building,
7. Extent of deterioration,
8. Structural safety
9. Protection against natural disasters viz. earthquakes,
10. Visible damage in the building if any,
11. Common facilities viz. lift, water pump, lights,
security systems, etc.,
12. System of airconditioning,
13. Provision for fire fighting,
Copies of plans and elevations of the building to be
included.
XI Environmental
Factors
1. Use of environment friendly building materials, Green
building techniques if any,
2. Provision for rain water harvesting,
3. Use of solar heating and lighting systems, etc.,
Presence of environmental pollution in the vicinity of
the property in terms of industries, heavy traffic, etc.
XII Architectural and
aesthetic quality of
theproperty
Descriptive account on whether the building is modern, old
fashioned, etc., plain looking or with decorative elements,

S.
No
.
Chapter Content
heritage value if applicable, presence of landscape
elements,
etc.
XIII Valuation Here, the procedure adopted for arriving at the valuation has
to be highlighted.
The valuer should consider all the three generic approaches
of
property valuation and state explicitly the reasons for
adoption of / rejection of a particular approach and the basis
on which the final valuation judgement is arrived at.
A detailed analysis and descriptive account of the
approaches,
assumptions made, basis adopted, supporting data ( in
terms
of comparable sales ), reconciliation of various factors,
departures, final valuation arrived at has to be presented
here.

S.No
.
Chapter Content
XIV Declaration I hereby declare that :
a) The information provided is true and correct to the best of my
knowledge and belief.
b) The analysis and conclusions are limited by the reported
assumptions and conditions.
c) I have read the Handbook on Policy, Standards and
Procedures for Real Estate Valuation, 2009, fully understood the
provisions of the same and followed the provisions of the same to
the best of my ability and this report is in conformity to the
Standards of Reporting enshrined in the above Handbook.
d) I have no direct or indirect interest in the propertyvalued.
e) I / my authorized representative by the name of
…………………….who is also a ‘valuer’, has inspected
the subject property on …………
f) I am a ‘valuer’ as per the provisions of the above
referred Handbook in Category …… and fulfill the
education, experience and other criteria laid out
therein.
g) I abide by the Code of Conduct as provided by the
above referred Handbook.

S.No
.
Chapter Content
Name and address of the Valuer
…….......…………………………………………………………..
………………………………………………………………………
………………………………………………………………………
Name of Valuer Association of which I am a bonafide member
in good standing …………………………………….
Membership Number …………………………………………..
Signature of the Valuer …………………………………
Date ………………...Tel.No…………………………………...
Mobile no………………………….………………………………
e-MAIL …………………………………..…………………
Enclosures : -Layout plan of the area in which the property is located
-Building plan
-Floor plan
-Photographs of the property being valued
-Any other relevant documents/extracts

FORMAT OF
VALUATION
REPORT
( FOR ALL
PROPERTIES
OF VALUE
UPTO RS. 5
CRORES )

TERMS OF ENGAGEMENT FOR
EMPANELMENT OF VALUERS:-

EMPANELLED VALUERS SHALL BE ENGAGED BY
THE
BANKS / HFIS ON THE FOLLOWING TERMS :-
 - COMMENCEMENT OF WORK – THE VALUER SHALL COMMENCE
THE VALUATION WORK AFTER A LETTER OF APPOINTMENT IS
ISSUED TO THE VALUER BY THE BANK/HFI.
 TIME FOR UNDERTAKING THE WORK – THE TIME FOR COMPLETING
THE WORK SHALL BE AS PRESCRIBED IN THE HANDBOOK ON
POLICY, STANDARDS AND PROCEDURES FOR REAL ESTATE
VALUATION BY BANKS AND HFIS IN INDIA, 2009 ISSUED BY THE
INDIAN BANKS’ ASSOCIATION AND THE NATIONAL HOUSING BANK.
 DUTIES OF THE VALUER- THE VALUER SHALL PERFORM HIS DUTIES
AS DESCRIBED IN THE ABOVE HANDBOOK.
 ASSISTANCE BY BANK/HFI OFFICIALS – THE VALUER SHALL BE
PROVIDED SUPPORT AS DESCRIBED IN THE ABOVE HANDBOOK.
 CONFIDENTIALITY AND NON DISCLOSURE – THE VALUER SHALL
MAINTAIN
CONFIDENTIALITY OF THE WORK BEING UNDERTAKEN AND SHALL NOT
DISCLOSE
INFORMATION TO ANY OTHER PERSON OTHER THAN THE PERSON
WHO HAS

 THE BANK/HFI SHALL PROCURE FROM THE OWNER AND PROVIDE
TO THE VALUER, COPIES OF KEY DOCUMENTS SUCH AS THE SALE
LETTER/SALE DEED/WATER BILL/ELECTRICITY BILL/PARTICULARS
OF THE OWNER/RENTAL AGREEMENT/LEASE DEED/PLANS OF THE
BUILDING AS APPLICABLE, ALONGWITH THE APPOINTMENT LETTER
TO THE VALUER. ALL OTHER DOCUMENTS HAVE TO BE PROCURED
BY THE VALUER.
 THE VALUER SHALL COMPLETE THE ASSIGNMENT WITHIN THE
STIPULATED TIME PERIOD AS AGREED TO IN THE APPOINTMENT
LETTER.
 IN CASE THE VALUER TAKES UP THE ASSIGNMENT BUT DOES NOT
DELIVER THE VALUATION REPORT IN A REASONABLE AMOUNT OF
TIME EVEN AFTER THREE REMINDERS, THE BANK SHALL TAKE
NECESSARY STEPS TO RECOMMEND THE CASEFOR ADJUDICATION
BY THE CONFLICT RESOLUTION COMMITTEE AND IN THE
MEANWHILE, APPOINT ANOTHER VALUER TO UNDERTAKE THE
ASSIGNMENT. IN CASE THE VALUER TAKES UP THE ASSIGNMENT
BUT IS NOT IN A POSITION TODELIVER DUE TO ANY GENUINE
REASON, HARDSHIP OR CONTINGENCY, THE VALUER SHALL

 - The Valuer shall not sub-contract the work to any other Valuer but shall
carry out the work himself.
 Payment to the Valuer for providing valuation opinion shall be governed
as per provisions as laid down in the Handbook and as revised from time
to time.
 All communications between the Bank/HFI and the Valuer shall be in
writing / e-mail. Both the parties ie. The Bank/HFI as well as the Valuer
shall fully abide by the policy, standards and procedures laid down in
the Handbook.
 In case of any disagreement/dispute which cannot be resolved amicably
between the Bank/HFI and the Valuer shall be referred to the Conflict
Resolution Committee of the Bank/HFI. either by the Bank/HFI or the
Valuer.

FORMAT OF UNDERTAKING TO BE SUBMITTED BY TH
VALUER FOR EMPANELLMENT:-
UNDERTAKING
I, ...................................................................................son /
daughter of ………………………………………………... do hereby
solemnly affirm and state that
- I am a citizen of India,
- I have not been removed / dismissed from service/ employment
earlier,
- I have not been convicted of any offence and sentenced to a
term of imprisonment,
- I have not been found guilty of misconduct in professional
capacity,
- I am not an undischarged insolvent,
- I have not been convicted of an offence connected with any
proceeding under the Income Tax Act 1961, Wealth Tax Act
1957 or Gift Tax Act 1958 and
- My PAN Card number / Service Tax number as applicable is
………………….
Dated :…………………………….
Signature……………………………….
Name…………………………………….
Address………………………………….

IBA SUB-COMMITTEE ON
MORTGAGE AND VALUATION OF
PROPERTY:-

Convenor
Shri S Sridhar
Chairman & Managing Director
Central Bank of India
and
National Housing Bank
Members
SHRI D C JAIN
CHIEF GENERAL MANAGER –
HEAD AUDIT
IDBI BANK
SHRI NANDAN SRIVASTAVA
GENERAL MANAGER
BANK OF BARODA
SHRI D S ANANDAMURTHY
GENERAL MANAGER
CANARA BANK
SHRI S N MISHRA
GENERAL MANAGER
INDIAN OVERSEAS BANK
SHRI RAKESH SETHI
DY. GENERAL MANAGER
BANK OF INDIA
MS. ANNURADHA RAO
DY. GENERAL MANAGER
STATE BANK OF INDIA
SHRI SUDHIR JADE
CHIEF MANAGER
BANK OF INDIA

Members
INDIAN BANKS’ ASSOCIATION
SHRI K UNNIKRISHNAN
DY. CHIEF EXECUTIVE
SHRI M S RAO
CHIEF LAW OFFICER
UNION BANK OF INDIA
SHRI ASHISH MEHROTRA
BUSINESS HEAD & VICE-
PRESIDENT
CITIBANK N A
SHRI SANTOSH G NAIR
VICE – PRESIDENT & BUSINESS
HEAD
HDFC BANK LTD.
SHRI ABHAY SAKARE
DY. GENERAL MANAGER
ICICI HOME FINANCE COMPANY
LIMITED
SHRI V RAMCHANDRAN
SR. VICE-PRESIDENT

IBA STEERING GROUP ON
‘PROJECT ON DEVELOPING
VALUATION STANDARDS FOR
REAL ESTATE FINANCING IN
INDIA’ :-

STEERING GROUP MEMBERS
SHRI P K RAMASWAMY IYER
DY. GENERAL MANAGER
BANK OF BARODA
SHRI T SURENDRANATHAN
ASST. GENERAL MANAGER
CANARA BANK
SHRI P S JOSHI
UNION BANK OF INDIA
SHRI M C RUSTAGI
PUNJAB NATIONAL BANK
SHRI RAJKUMAR S CHOUHAN
BANK OF INDIA
SHRI P NARASIMHA RAO
INDIAN OVERSEAS BANK
SHRI HARISH KAUSHIK
STATE BANK OF INDIA
SHRI ABHAY SAKARE
DY. GENERAL MANAGER
ICICI HOME FINANCE COMPANY
LIMITED
IBA STEERING GROUP ON
‘PROJECT ON DEVELOPING VALUATIONSTANDARDS
FOR REAL ESTATE FINANCING IN INDIA’

STEERING GROUP MEMBERS
SHRI RAHUL KELKAR
ASST. VICE-PRESIDENT
HDFC BANK LTD.
SHRI N UDAYA KUMAR
DY. GENERAL MANAGER
NATIONAL HOUSING BANK
PROF. DR. P S N RAO
PROFESSOR & HEAD (DEPARTMENT
OF HOUSING)
SCHOOL OF PLANNING AND
ARCHITECTURE, NEW DELHI
MS. BHARTI MANNAN
LIC HOUSING FINANCE LTD.
SHRI NARESH GIRDHAR
DY. GENERAL MANAGER
DEUTSCHE POSTBANK HOME
FINANCE LTD.
SHRI RAJEEV SATHE
CHIEF OPERATING OFFICER
DEWAN HOUSING FINANCE
CORPORATION LTD.
SHRI SANJAY JOSHI
DY. GENERAL MANAGER
HDFC

INDIAN BANKS’ ASSOCIATION
SHRI K UNNIKRISHNAN SHRI V
DY. CHIEF EXECUTIVE
SHRI V RAMCHANDRAN
SR. VICE-PRESIDENT

THE ROLE OF ESTATE
VALUER IN COURT-TRIAL
PROCEEDINGS:-

THE ROLE OF ESTATE VALUER IN COURT-
TRIAL
PROCEEDINGS:-
THE FOLLOWING ARE THE PROCEEDING OF THE REGULAR COURTS,
WHICH
IS SIMILAR TO THAT OF OTHER QUASI- JUDICIAL TRIBUNALS AND
ARBITRATORS:-
(1) PREAMBLE TO THE LITIGATION SESSION. THIS INCLUDE THE
ENTRANCE OF THE JUDGE/MAGISTRATE TO THE COURT
CHAMBER, CALLING OF THE NEXT CASE, APPEARANCES OF THE
CLAIMANT AND RESPONDENT ADVOCATES, READING OF THE
CASE FILE AND OPENING ADDRESS BY THE CLAIMANT’S
ADVOCATE.
(2) Examination of witnesses for the claimant’s. each witness is expected to
take oath before giving evidence in regular courts, although this is
discretionary at tribunals, see section 30(C) of the Lagos State Tenement
Rate Edict No. 10 of 1989.

(3) SUMMARY, SUBMISSION AND CONCLUSION FROM THE ADVOCATES.
AFTER A PERIOD OF THOROUGH EXAMINATION OF THE WITNESS BY
THE PARTIES’ ADVOCATES, THE RESPONDENT’S ADVOCATE WILL
FIRST SUMMARIZE, SUBMIT, CONCLUDE AND CLOSE HIS
PRESENTATION, THEREAFTER THE CLAIMANT’S ADVOCATE.
(4) COURT’S RULING, VERDICT OR JUDGEMENT. AFTER THE
PRESENTATIONS FROM BOTH PARTIES, AND ADMISSION OF
PROOFS AND EXHIBITS BY THE COURT, THE PRESIDING JUDGE
SHALL DELIVER THE JUDGEMENT, OR HE MAY ‘RESERVE’ HIS
JUDGMENT FOR A LATER DATE (MILLER, 1982).
 THE FIRST EXAMINATION IS CALLED ‘EXAMINATION IN CHIEF’ WHICH
THE CLAIMANT’S ADVOCATE CONDUCTS ON THE CLAIMANT’S
WITNESS. IT IS A WAY OF ESTABLISHING THE CLAIMANT’S CASE
WITH FACTS AND EVIDENCES. THE ADVOCATE QUESTIONS THE
WITNESS IN THE BOX STARTING WITH INTRODUCTORY MATTERS
LIKE NAMES, ADDRESS, OCCUPATION, QUALIFICATION AND
EXPERIENCE. (LYSAUGHT, 1984) TO ESTABLISH THE FACT THAT THE
WITNESS IS COMPETENT. HOWEVER, HE CAN NOT ASK LEADING
QUESTIONS I.E. THE QUESTIONS WHICH SUGGEST THE EXPECTED

 IT IS EXPECTED THAT THE WITNESS GIVES THE FULL
INTRODUCTORY MATTERS, BUT THIS MUST NOT BE EXAGGERATED.
(KENNETH IDUGBE V DNNIS ESECH (G)). THE ADVOCATE THEN
PROCEED TO ASK FOR THE ANALYSIS OF FACTS OF THE CASE, THE
COMPARABLE PROPERTIES IN THE NEIGHBOURHOOD INFERRED,
BASIS AND METHODS OF VALUATION AND EVENTUALLY THE
VALUATION OPINIONS. WHILE DOING THIS, THE ADVOCATE
MANEUVERS THE ESTATE VALUER TO COMMENT OR SHED LIGHTS
ON CERTAIN AREAS FOR CLARITY. THE VALUER SHOULD DISPLAY
HIS COMPETENCE IN HIS FIELD BY ANSWERING THE QUESTIONS
ASKED WITH PROFESSIONAL TOUCHES TO DISTINGUISH HIM FROM
QUACKS. THE ABILITY TO DEMONSTRATE THIS IS A WAY OF
CONVINCING THE COURT OF HIS PROFESSIONALISM AND THIS WILL
PAVE WAY FOR EASY SAIL THROUGH OF THE LITIGATION IN
POSITIVE MANNER. HOWEVER, HE SHOULD AVOID UNNECESSARY
SURPLUS IN AN ATTEMPT TO CONVINCE.
 THE VALUER MAY CONSULT HIS PREPARED PROOF OF EVIDENCE,
BUT THIS SHOULD NOT BE DONE FREQUENTLY, HENCE THE COURT
MAY PERCEIVE THAT THE ASSIGNMENT WAS A DEPENDENT WORK.
AFTER THE EXAMINATION IN CHIEF COMES THE ‘CROSS
EXAMINATION’ TO BE ADMINISTERED BY THE RESPONDENT’S
ADVOCATE CROSS EXAMINATION IS THE MOST EFFECTIVE MEANS

 ACCORDING TO SECTION 199 OF THE EVIDENCE ACT, CAP. 162 OF
1958, IN CROSS EXAMINATION, QUESTIONS MAY BE ASKED:
(A) TO TEST THE ACCURACY, VERACITY OR CREDITABILITY OF THE
EVIDENCE:
(B) TO DISCOVER WHO THE WITNESS IS AND WHAT IS AND IS HIS
OPINION IN LIFE;
(C) TO SHAKE THE CREDIBILITY OF THE WITNESS BY INJURING HIS
CHARACTER.
 IN CROSS EXAMINATION, SLANG AND ABBREVIATIONS SHOULD BE
AVOIDED (REES, 1994) AS MUCH AS POSSIBLE, AND THE ANSWER
TO THE CROSS EXAMINATION QUESTIONS SHOULD BE SHORT AND
DIRECT TO THE POINT. THE VALUER SHOULD NOT BE PANIC, TAKE
OFFENCE OR BE INTIMIDATED BY QUESTIONS LIKE ‘YOUR REPORT
SHOWS THAT YOU LACK EXPERIENCE’, ‘YOU ARE INCOMPETENT’
ETC.
 ALL THESE ARE ATTEMPTS TO THROW THE VALUER OFF-BALANCE
AND TO TEST HIS STEADFASTNESS. THE VALUER SHOULD BE CALM,
COURTEOUS, FIRM, AND BOLD WITH A GOOD FOCUS OF TRUTH. HE
SHOULD RATHER CONCENTRATE ON THE FACTS AND LEAVE THE
WEIGHT OF EVIDENCE TO THE COURT (MILLER, 1982).

FURTHERMORE, THE VALUER SHOULD KNOW HIS PROFESSIONAL
LIMITATIONS AND MUST STRICTLY CONFINE HIMSELF TO THE
MATTER IN WHICH HE IS ESPECIALLY SKILLED. ACCORDING TO
(REES, 1994), VALUER CAN NOT RELY SOLELY ON THE
TRANSACTION IN WHICH HE HAS BEEN INFORMED (WHETHER
ORALLY OR BY LETTER) OR WHICH HE READ IN THE PRESS. THUS,
ADVERTISED SALE/RENTAL VALUE IN THE USUAL ‘GUARDIAN’
NEWSPAPER AND ‘CASTLES’ IS PARTICULARLY OPENED TO
OBJECTION: AS THEY ARE MERELY ASKING PRICE. HOWEVER,
VALUER CAN DRAW INFERENCES OR CONCLUSIONS FROM
DOCUMENTS WHICH ARE OF UNIVERSAL APPLICATION, THOUGH HE
MAY NOT BE A PARTY TO ITS PREPARATION E.G MAPS, SURVEY
PLANS, VALUATION TABLES ETC. AFTER THE CROSS-EXAMINATION
OF THE WITNESS OF CLAIMANT BY THE RESPONDENT’S ADVOCATE,
THE NEXT STEP IS THE RE-EXAMINATION OF THE CLAIMANT’S
WITNESS BY THE CLAIMANT’S ADVOCATE.
 RE-EXAMINATION IS A FORM OF ADDENDUM OR RE-PRESENTATION
OF ISSUE EMANATED FROM CROSS-EXAMINATION. IT ARISES IN
PURSUANCE OF ISSUES LARGELY GENERATED FROM THE CROSS-
EXAMINATION AND IT IS DONE TO REDRESS THE FACTS OR
INFORMATION, WHICH WAS DISTORTED BY THE OPPONENT
ADVOCATE DURING THE CROSS-EXAMINATION, RE-EXAMINATION
MAY NOT BE CALLED FOR IF THE CLAIMANT’S ADVOCATE FEEL THAT

 AFTER THE RE-EXAMINATION IF THERE IS ANY, THE NEXT LINE OF
LITIGATION ACTION IS FOR THE ADVOCATE TO RESPONDENT TO
EXAMINE EACH OF THE WITNESS OF THE RESPONDENT IN THE
SAME MANNER AS THE CLAIMANT’S ADVOCATE DID. AFTER
EXAMINATION, THE CLAIMANT ADVOCATE WILL ALSO CROSS-
EXAMINE THE RESPONDENT’S WITNESS, AFTER WHOM THE
RESPONDENT’S ADVOCATE MAY RE-EXAMINE HIS CLIENT’ WITNESS
IN THE SAME MANNER THE CLAIMANT’S ADVOCATE DID.
RECOMMENDATION AND CONCLUSION:-
IT IS THE WISH OF THESE AUTHORS THAT LAW COURSES LIKE:
INDIAN LEGAL STUDIES, LAND LAW, LEGAL DRAFTING AND
CONVEYANCE, LAW OF TORT AND CONTRACT BE INTRODUCED
OR/AND MADE COMPULSORY FOR STUDENTS OF ESTATE
MANAGEMENT IN INDIA AND BY THE EDUCATION COMMITTEE OF
THE ESTATE SURVEYORS AND VALUERS.

Valuation (REAL ESTATE) B.ARCHITECTURE

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