CONFIDENTIAL BUTHM Universiti Tun Hussein Onn Malaysia UNIVERSITI TUN HUSSEIN ONN MALAYSIA FINAL EXAMINATION SEMESTER I SESSION 2015/2016 COURSE NAME : STATUTORY VALUATION COURSE CODE : BPE 22703 PROGRAMME : 2BPD EXAMINATION DATE —_—_:_ DECEMBER 2015 / JANUARY 2016 DURATION : 3 HOURS INSTRUCTION : ANSWER ALL QUESTIONS THIS QUESTION PAPER CONSISTS OF THREE (3) PAGES CONFIDENTIALCONFIDENTIAL BPE 22703 Qi Q QB Based on Local Government Act (Act 171), Local Authorities are required to prepare ‘Valuation Lists of all rateable holdings within their rating areas, and new Valuation Lists must be prepared once in every five years. (a) Explain FOUR (4) importance of Valuation Lists in the administration of rates. (10 marks) (6) Discuss FOUR (4) benefits of conducting a property revaluation exercise. (10 marks) ‘The Town and Country Planning Act 1976 provides the Local Authorities the power to levy a development charge on changes made to the land use or density of a site. (a) Explain the effects on land values through the imposition of development charges. (10 marks) (b) Discuss factors that will be taken into account by Local Authorities in computing the development charge to be paid for a development with excess floor area or building height. (10 marks) ‘The conveyance of property attracts a duty under the Stamp Act 1949 on the person who receives the transfer of a property, (a) Explain the significance of Stamp Duty in term of property market. (10 marks) (6) @ Calculate the stamp duty payable based on the market value of a property worth of RM 1,000,000 at the date of transfer. (3 marks) CONFIDENTIALCONFIDENTIAL BPE 22703 at (ii) A property was recently sold at RM 950,000. However the market value of the property was only RM 750,000. Calculate the amount of Stamp Duty to be paid by the purchaser and justify your answer. (7 marks) Real Property Gains Tax Act is a charge on actual gain accruing between the date of acquisition and the date of disposal. (a) Discuss with examples how this tax can influence the number of transactions and the Real Property Market value (10 marks) (b) Explain the terminologies of Acquisition Price and Incidental Costs. (10 marks) Land Acquition Act, 1960 provides law relating to the compulsory acquisition of property. The act empowers the State Authority to acquire private lands for public purposes. (@) Explain the meaning of public purpose. (5 marks) (b) Under the Land Acquisition Act, 1960 the ownersare also entitled for compensation for their losses. There are a number of items to be considered for compensation, Discuss the items given below: (Freehold and Leasehold properties (ii) Severance and Injurious affection (ii) Cost of Removal and Incidental cost (15 marks) -END OF QUESTIONS- 3 CONFIDENTIAL