KNOWLEDGE BANK FROM B KANAGA SABAPATHY
LET KNOWLEDGE SPREAD
Message from B. K. sir 11.03.2023
Points to be remembered by a panel valuer when he does valuation for collateral securities :
1. Value varies with purpose. The purpose of valuation for collateral security is to certify mainly the present market value. Insist for an engagement letter from the bank.
2. Perusing the relevant title deeds and the latest legal opinion are your prime duties.
3. It is the duty of the borrower (owner) to identify his property correctly and it is your responsibility to verify the identification of the said property.
4. If you are not able to identify the property correctly in spite of serious efforts, do not take up such risky assignment.
5. The properties can be inspected by your staff and the reports can be prepared by your sub-ordinates. There is nothing wrong in it. But, before signing, it is your duty to inspect the property physically. And that is the expectation from the bank also.
6. Valuation report is an ambassador of the valuer. Let your report be detailed and informative giving all the vital informations. Along with the report, enclose the engagement letter, the line sketch, key plan, co-ordinates and also the photograph of the property.
7. Never certify any market value for non-marketable properties.
8. Advise the bank about the number of title deeds involved in the subject property along with the registration numbers of the deeds, marketability and enforceability aspects.
9. While doing valuation of leasehold properties, never proceed with the valuation without perusing the lease deed and the conditions stipulated in it.
10. If the borrower becomes a defaulter and if his accounts becomes NPA, value is to be certified by SARFAESI valuer and that time, he should not be in a position to find any discrepancies in your report. You should know how to defend.
With best wishes,
B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com
About the Author:-
- Mr. B. Kanaga Sabapathy born in 1951, is a Civil Engineer who belongs to the 1972 batch of Regional Engineering College, Tiruchirappalli in Tamilnadu.
- He is a Registered valuer of the Central Board of Direct Taxes, a Professional Engineer and also a Chartered engineer. Valuation is his main profession..
- He was the National Vice-President of the Institution of Valuers (India) for 11 terms.
- He is a regular contributor of articles in the Indian Valuer Journal from the year 1985. His articles especially his regular column “Questions & Opinions” are very popular among the practising valuers in India.
- His book “Guidelines on Valuation for Banks” (2002) is used to be referred by many banks. The valuation formats designed by him were accepted and adopted as the formats by many banks in the country.
- His son K. Arun and daughter B.K. Aruna are also approved valuers and they also contribute articles to the Indian valuer journal.
- His guru: Mr. C.H. Gopinatha Rao, Chennai.
- His mentor: Mr. R.K. Gandhi, Mumbai.
- His role model: Mr. S. Rajaratnam, Chennai.
- His best students: Thousands of valuers in the country
