FORMAT FOR VALUERS

(A)

REAL-ESTATE

1.0

VARIOUS TYPES OF PROPERTY VALUED BY VALUERS IN PRACTICE

1.1

Open land

1.2

Built-up properties
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6

2.0

Owner occupied single family residential building

Owner occupied residential ownership apartments
Owner occupied commercial properties
Hotel buildings, cinemas and nursing homes
Special properties (i.e. industrial buildings)
Any other type of the property not covered above

GENERAL INFORMATION ABOUT PROPERTY

2.1
2.2

Name of the owner

Details of property to be valued
(i)
Address of the property with City Survey No. R.S. No., Ward No.
etc. precise identification of the property with exact location.
(ii)
Title - Freehold / Lease-hold
(iii)
Names of owners / occupants
(iv)
Nature of interest of the owner / occupant in property
(v)
Area of land / property

2.3

Information of the town

- Growth of population in last decade & its projection
- Main economic activity and its growth & its projection especially
secondary & tertiary sector employment.
- Demand and supply of housing, shopping, commercial and
industrial as may be applicable based on population growth, growth
in employment in economic sectors and rate of construction of
various types (by use) of buildings.
- Quantity and quality of infra-structure / utility services provided &
their future requirements.

2.4

Information about the area in which property is located

-

Character and type of locality

2.5

3.0

Housing HIG, MIG, LIG, Professionals

or
Commercial City centre / District centre, Types of shops
or
Industrial Small, Medium, Large
Availability of labour, raw material etc.

Quantity and quality of infra-structure / utility services.

Development trend and future potential

Site plan showing location of the property valued/ project site with
reference to important land marks in the town / city & access.

VALUATION OF OPEN LAND

3.1

Information to be furnished by the Valuer

- Area and shape of land
- Dimension of each side of the plot
- Frontage on roads and widths of roads
- Demarcation of land
- Soil bearing capacity, foundation conditions, level of land and cost
of leveling if any
- Tenure of land
- Is it Freehold or Lease-hold land ?
In case of lease-hold
Name of Lessor
Name of Lessee
Date of commencement of lease
Period of lease
Date of termination of lease & unexpired/remaining
period of lease.
Premium paid
Ground rent per annum, reserved under lease, fair
market rent & outgoings to be borne by lessee.
Covenants of lease with regards to
Termination of lease

3.2

Renewal of lease
Payment of unearned increase in the event
of sale or transfer
Conditions of transfer
Repairs & maintenance
Is land affected by Land Reforms Act, Revenue Code of the State
Government ? Furnish details
Land Use Zoning as per Regional/Dist. Plan, Master Plan /
Development Plan, T.P. Scheme.
Development plan / Master plan / T.P. Scheme proposals affecting
or benefitting the land such as reservation for public purpose like
health facilities, playgrounds, recreation garden, road widening, new
road, transport facilities etc. Give details if any.
What is permissible FSI / FAR ? How much is it utilised / untilised
or balance? Other D.C. rules, Bye-laws affecting land values.
Is there any outstanding liability for property tax, income-tax or any
other taxes, levies which can be recovered by attachment of
property, earlier mortgage charges etc..
To collect data regarding sale transactions (Ref. Decisions
(Competent Authority vs. Smt. Bani Roy Choudhry 131 ITR 578)
in the vicinity which have taken place in nearby areas and compare
the sale instances with property in question with regard to following
factors and prepare an analytical report: Date
Area / Size, shape, frontage etc.
Physical
Location including proximity to amenities and facilities like
educational, health, shops and markets, transportation,
municipal services etc.
Social including type and class of locality
Economic
Legal
Utility and potential use
Transferability
Scaled Plan showing land to be valued and instances of sales with
rates of land values, dates of sale of areas sold should accompany
the Valuation Report.

While valuing large plots of land on the basis of sale instances of small
plots of land, details of hypothetical layout and development schemes

with estimated values of laid out plots and annual cash flows should be
given taking into consideration the court judgements in this regards.
If the sales of comparable lands with large areas are available,
hypothetical layout schemes should not be followed.
3.3

Lease-hold land
Income approach to valuation be applied by keeping in mind terms and
condition of lease agreements and other relevant facts mentioned
under para no. 3.1.

4.0

VALUATION OF BUILT-UP PROPERTIES

4.1

Is the construction carried out as per plans approved by Municipal

Authorities / Local Authority ?

4.2

Is it owner occupied / vacant / rented / leased / given on leave and

licence or any other manner permissible under the law ? Specify if
there is any other occupancy.

4.3

Market Approach
Owner occupied single family residential building, owner occupied
apartment in a multi-storied building, owner occupied shop and office in
a multi-storied building may be valued by market approach or by
income approach by estimating fair market rent (by Comparison) &
capitalizing net income.
Statement showing sale transactions (Ref. Competent Authority vs.
Smt. Bani Roy Choudhry 131 ITR 578) along with names of seller /
purchaser / dates of execution and registration, registration number,
area (open & built up) sold, consideration or price paid and plan /
scaled map showing property under valuation and sale instances with
overall rate of consideration, area and date to be submitted with report,
analysis and comparison of sale with property and estimating value of
property as on relevant date, by such analysis.

4.4

Income Approach
All rented properties and properties capable of fetching rent may be
valued by income approach. Balance potential if any, to be valued
separately.
Statement showing sale transactions and rental instances and plan
showing sales and rentals to be submitted with Valuation Report.
Analysis of sales, finding rate of interest yeilded and rentals for
estimating market value of property be made.
4.4.1 Hotel and Nursing Home buildings to be valued by income
approach.
These property are sold as fully operational business units and
the valuation of operational entity includes
-

land and buildings

trade fixtures, fittings, furniture, furnishings and equipment
markets perception of the potential together with benefit of
existing approvals, licences, permits contracted future
bookings, existing membership which are an important part
of the ongoing business.

Valuer to report on following issues : -

5.0

Validity of various licences, permits etc. required to carry on

the business
Sustainability of the business and possible future
fluctuations
If existing use is not likely to be sustainable due to change
in demand for particular trading activity or property likely to
sell in the open market for a use other than the existing use,
then value on alternative use also reported.

Valuer to furnish details about type of construction etc. as under :5.1

Description / type and accommodation for each building under

consideration

Private / Public
House / Bungalow / Flat / Factory

5.2

Exterior

5.3

Detached / Semi-detached / Mid-terraced / End-terraced

Converted / purpose built
Number of units in block
Lift - Y / N
Number of floors / storeys
Floor Level
Approximate year of construction (any extensions ?)
Mixed use
Current use of rooms
Other accommodation, garden, grounds
Garage (single / double)
Out buildings

Roofs
Walls
Chimney stacks
Flashings
Gutters / downpipes
Elevators
DPC / ground level
Exterior joinery
Exterior decoration
Boundaries / retaining walls
Gates
Trees

Interior

Roofs
Ventilation of roof space
Walls / partitions
Plaster
Ceilings
Floors
Kitchen / bathroom / general fittings
Double glazing
Interior decorations
Celler

5.4

Services installed, with plumbings, fittings, etc.

5.5

Water, electricity, solar

Drainage
Sewearge

Defects and potential defects

Rot
Woodworm
Damp (use of meter)
Cracking (settlement, subsidence, wall tie corrosion, heave etc.)
Standard of maintenance

(B)

PLANT AND MACHINERY

1.0

Report for plant and machinery shall contain

1.1

The purpose of valuation

1.2

The quotation received from suppliers of machinery for current

cost of brand new machine.

1.3

Statement showing list of plant and machinery along with technical

specifications, Year of installation, Year of manufacture, Replacement
cost new/Reproduction cost new with all inputs like Ex-works price of
each machines, cost of packing and forwarding, excise duty/custom
duty, sales tax of applicable, handling, transit insurance, transportation,
foundation, erection installation & finance charges/pre-operative
expenses at least of majority of equipment by abc analysis,
depreciation, depreciated replacement cost.
Calculation of Reproduction Cost New and Replacement Cost
New will be shown separately along with basis of arriving these
two costs.

1.4

Basis of Valuation like speaking order.- if cost approach is adopted

the DRC must be subject to potential profitability.

1.5

Assessment of present condition, estimated economic balance life

estimate of future repair cost.

1.6

Assessment of technological, functional and economic obsolescence if

any.

1.7

Whether regulatory measures are complied with

1.8

In case of production plants comment on efficiency of plant

Layout-whether there is any imbalances in different production section.
Approach to valuation if (a)

estimated economic balance life of plant and machinery

is more than estimated economic balance life of buildings
in which they are installed.

(b)

(c)

estimated economic balance life of plant and machinery is more

than unexpired of lease of land/building and there is no renewal
clause.
Raw material is finite

NOTE :
The above format given by the Centre For Valuation Studies,
Research & Training is for guidance.