Why you cannot sacrifice on expert land valuations report in realty?

 

Authentic and market leading land valuations services from an unmatched expert is of paramount importance. When the parties to the realty transaction aim to reap utmost efficiencies and monetary appreciations from their deals, they must religiously follow the directions of a registered valuer.

Land, as we all reckon, is a dear resource to all of us, and it is such an element to our lives that we cannot do without. Similarly, there is an important and fragile element associated with the price of a plot of land that needs to be determined in utmost compliance with the market indicators.

Delivering a market value of a land and that too a fair one; can only be done by certified valuations expert. Such a person who has the necessary knowledge to not only gauge the value of the land at this time, but also has the ability to seemingly project its future value appreciation in the present times.

The reason why we cannot sacrifice on availing best valuations services is because the transactions in the realm of realty business have a dynamic group of factors that affect its transaction conduct and outcomes both. Realty deals warrant availability of robust valuations opinion that is well supported by in-house investment market expertise and steering governmental and regulatory compliances.

The hypothesis to necessitate the dire requirement of availing world class property valuation services in realty markets valuation is also supported by the following: i) The need for gaining valued opinions compliant with regulatory standards, financial reporting, compliance to IFRS, FRS and GAAP accounting standards. ii) Granting support required by lending institutions in their decision making by giving quality due diligence and testing property performance comments. iii) Corporate transactions also seek formal opinion on value in support of an intended sale or purchase of an entity which includes property. iv) Property transactions that need expert opinion of value in regards to either sale or a purchase of property. v) Property valuation services may also be required in the event of listings on international stock exchanges for fund raising purposes.

The value that land valuations experts instill in property transactions is irreplaceable and bankable. Without an authentic valuations report on the product to be transacted i.e. real estate property, the transaction stands not acceptable by the government, agencies, banks, lenders, financers and even the law of the land itself.

In the business context, the services and opinions of valuations experts holds high importance since they expect valuers to connect their conclusions to the challenges posed by the different business decisions so as to streamline business processes. The highlighted factors above, flag the burning need and efficiencies that expert valuations services can inject into your commercial property transactions thereby making valuations totally warranted.

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What are the Best Practices for Registered Land Valuers?

The responsibility of land valuations is not only a complex one but also ethically important and multidimensional. Land valuations actually determine the actual saleable fair market price of a piece of land in the open market. The valuations of a piece of land has various implications since the valuer is entrusted with the task of assessing the value of the most precious resource that mother nature has blessed us with i.e. land and that too with quality.

To ethically and truthfully discharge their duties, land valuations experts require adhering to certain recommended best practice processes, such as:

1) Hold relevant valuers qualifications and exhibit proficiency
2) Compliance with the defined and accepted terms of engagement
3) Utilize inspection notes
4) Documenting and linking the comparable records with valuations
5) Quality reporting and adhering to vigorous quality assurance measures
6) Disclose the approach to quantify valuations.

The valuers should be capable of demonstrating the reason why they are best suited to conduct the land valuations for the clients. Their relevant qualifications and expertise should be proved and well exhibited whilst they should also be able to display appropriate command over the dynamics of the property markets in the concerned geography. Not holding the concerned geographical market expertise can significantly dampen the services provided by the valuers since this may give a way to claims related risk bearing for the clients and the servicing valuer firm itself.

To conduct unmatched land valuations and to earn the respect of their clients, valuers must disclose terms of service engagement prepared in compliance with the global valuers standards. The valuers should also follow a succinct and well structured framework for preparing valuations report. There should be utmost commitment to achieve quality assurance standards. Proper valuation standards only will lead to fair decisions for the betterment of clients and lenders.

It is also crucially needed that an audit route of information be followed all through the way of a transaction with appropriate provisions to include explanatory statements wherever required i.e. building a checklist. Well drafted comparison information of the identical property deals in the vicinity of the concerned property must also be provided so as to further authenticate the land valuations result. The land valuations experts should also clearly explain what method of valuation calculation have they used and for what reason.

These are some of the best practices measures that registered valuers can follow to cater the expectations of their clients well and thereby also making the transaction cycle running smooth for lenders and their own firms too.

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The Finer Points Of Property Conveyancing

Buying and selling of real estate property is quite complex and is not as simple and straightforward as other asset purchases and sales. The biggest reason for confusion amongst consumers on issues related to conveyancing is because they have very little knowledge or information on the same. Therefore in this article apart from sharing some information about the basics on property conveyancing, we will also look at the finer aspects of this important process.

Property conveyancing or property settlement as it is also called in some quarters is all about ensuring smooth transfer of property ownership from the seller to the buyer. The reason why we need the services and support of property conveyancers is because there are a number of legal requirements that have to be complied with. There is the need to effect transfer of property in the books of the government without which the transaction will not be complete. This is perhaps the biggest area of challenge for customers and the role of conveyancers becomes very critical here.

They help in the entire legal aspects of conveyancing. When a seller offers his property for sale, the onus lies on the buyer to find out that the title of the property is pure and there are no legal shortcomings attached to it. Towards this objective it is very important to look up the property and legal documents very closely. If needed, the conveyancers also make a personal visit to the property to ensure that everything is in order. They pay special attention to easements which could come as a big surprise for the buyer at a later point in time.

The conveyancing team also helps in finding out the fair value of the property in question. Though the market could give reasonable good indication about the fair value, when the same is authenticated by a valuer or appraiser then it becomes legally authentic information. Additionally, valuers also go beyond the obvious and supply the buyers with lot of subjective pieces of information such as the amenities and facilities available, the quality of infrastructure in the neighborhood and so on. The valuation report also forms the main basis for fixing of new property taxes and also for finding out the stamp duty payable on the property.

Apart from the roles of these two individuals, there are also documentation specialists who work in close coordination with the real estate lawyers and attorneys. They help the lawyers to draft property and legal documents, vet them, prepare them and get them executed at the right place and at the right time. Hence, at the end of the day property conveyancing is the sum total of many heads working in unison.

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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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