Ten points to be remembered by a SARFAESI valuer

KNOWLEDGE BANK FROM B KANAGA SABAPATHY

LET KNOWLEDGE SPREAD

Message from B K Aruna 27.08.2023

Ten points to be remembered by a panel valuer / SARFAESI valuer if he wants to be safe against any criminal proceedings at any future date :

1. Value varies with purpose. Do not forget to mention the purpose of valuation before preparing any valuation report.

2. Verify the identification of the property correctly. Perusing the legal opinion first before doing valuation and enclosing the copy along with your report will be ideal in the long run.

3. Never release the valuation report without physical inspection of the property under valuation.

4. There is nothing wrong in having many branches, but see that you can physically inspect all the properties.

5. Do not rely totally on any report prepared by your sub-ordinate especially if they are non – technical staff. Counter-check thoroughly. You will be safe.

6. Do not certify the market value of large extent of land by adopting sq.ft. rate of a plot situated in a newly formed layout. Be cautious if you want to use development method.

7. While certifying the value of any flat, counter-check the value by rent capitalisation method also.

8. When there is a huge difference between guideline rate and prevailing market rate, record the values by both methods and explain why there is a difference.

9. Don’t do inflated valuation keeping in mind about the fees you are going to receive. Never be greedy for quick money. Greediness is always dangerous for a professional valuer who wants to be ever successful in his career.

10. When you do valuation of a property in a specific place, do not rely totally on the legal opinion issued by a lawyer from another state.