WHAT TO DO IF WILL IS NOT DISCLOSED TO THE VALUER

KNOWLEDGE BANK FROM B KANAGA SABAPATHY

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Message from B K Aruna-24/09/2024
D/o, B Kanagasabapathy

Question from a fellow valuer:

After executing an equitable mortgage, some individuals write a ‘WILL’ in favor of their close relatives and often do not disclose this to the banks. The ‘WILL’ need not be registered. Under such circumstances, what can a valuer do when valuing such properties?

Opinion:

A valuer may not be aware of any such ‘WILL’. They can only peruse the title deeds. Even if there is a ‘WILL’, such information may not be made available to a third party for obvious reasons. As a result, some bankers have started obtaining an affidavit from the owner of the property stating:

“Subsequent to the creation of the equitable mortgage, I have not made any ‘WILL’ for this property, thereby not jeopardizing the bank’s interest.”

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With best wishes,

B. KANAGA SABAPATHY
[email protected]
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