Importance Of Certification Of Property Valuer

The role of property valuers is extremely important when it comes to smooth transfer of ownership from one person to another. Unlike purchase and sale of other movable and immovable assets, when it comes to real estate property, each and every transaction has to be recorded in the government books and the respective stamp duty and applicable taxes have to be paid for. For all this to happen there has to be a fair market value of the property in question. While the market value could be a rough indicator of the possible value of a property, the same does not have legal sanctity. It is here that the role of property valuers becomes very important. They not only take the trouble of giving the right and fair market value of the property in question but also provide other useful bits and pieces of information that are of extreme importance and significance to the buyers and sellers.

In view of the extremely important role being played by valuers, it is important to ensure that as customers we choose only the right valuers. The first and foremost point that should be kept in mind is to choose only those valuation specialists or appraisers who have rich experience and expertise in this field. More importantly they should be certified under the law to carry out their valuation business. When a valuation company or individual is certified it certainly means that they have the wherewithal, skill set and possibly even experience to handle the most difficult types of valuations that the customers may come up with.

Further it would be pertinent to note that certification of a valuer does not remain valid for an indefinite period of time. It has to be renewed regularly. The need for such renewal is to ensure that the valuers are following all the rules and regulations that have been set forth when the certificate was issued to them in the first instance. The authorities who are permitted to issue these certifications will make personal visits to the offices of these valuers and appraisers. They will have a look at the entire property valuation process. They will ensure that things are in place and the customers’ interests are protected at all points in time. They will also ensure that the interests of other stakeholders like banks and financial institutions are also taken care of.

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Why Is Certifying A Property Valuer Important

Before understanding the importance of certifying a valuer it would be pertinent to have a closer look at the need to go in for valuer in the first place. If you are buying or selling a home, apartment or commercial property it is important for you to ensure that it is valued by a competent and qualified professional so that the fair market value of the same can be determined. When we talk about competent we talk about valuers who have a certificate to run their business in the city, the region or the country in which they are operating. Running a valuation business is illegal and customers who take their services will be put into lot of trouble for such acts which might have been done because of lack of knowledge or ignorance. Hence, the onus lies on the customers to find out whether a particular valuer has the relevant certificate under the law to carry out the business.

Certificate of a valuer is not an easy process and takes time and effort. Usually the government outsources the entire job of certifying valuers to third party service providers. These service providers are manned and run by qualified and certified valuers and other professionals. Hence, if there is a request for certifying a valuation company, these service providers get in to the act. They visit the valuation company and have a close look at the various procedures and processes that are being followed by them. They spend quite a few days analyzing each and every process in minute details. Only when they are satisfied with the entire process do they go ahead with the certification.

The certification does not have an indefinite life and is valid only for a particular period of time, usually 4 to 5 years. The onus lies on the valuation company to ensure that they have the certificate renewed before the expiry period. The renewal process again would call for a complete examination of the entire processes and remove any bottlenecks or hindrances should there be one. Hence, at the end of the day there is no denying the fact that whether you are a small valuer or a big one, the onus lies on you to have your business certified by the competent authority before moving forward.

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