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HOW TO START PRACTISING VALUATION?

B. Kanaga sabapathy
Tiruchirappalli

1. How to become a valuer?

There are three types of valuers :

* Approved valuers recognised by Institutions like the Institution of Valuers

* Registered valuers under Central Board of Direct Taxes
* Registered valuers under the Companies Act

2. Who can become a valuer to do valuation of land and building?

Any civil engineer or architect is eligible to do the valuation of immovable properties.

Similarly, a mechanical engineer is eligible to do valuation of plant & machinery.

3. Whether one valuer can do valuation of many class of assets?

He can do provided he has the necessary educational qualification, knowledge,

experience and also necessary recognition from the concerned authorities who
accept his reports.

4. What are the few professional bodies related to valuation as on date?

Name of a few valuers’ institutes Website

Institution of Valuers (IOV) www.institutionofvaluers.net

Institute of Surveyors (valuation [email protected]

Branch)

Institute of Government Approved www.goernmentapprovedvaluers.com

Valuers (IGAV)

Practising Valuers Association of www.pvai.org

India (PVAI)
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The Indian Institute of Valuers (IIV) www.iivindia.org

Centre for Valuation Studies, www.valuationstudies.com

Research and Training (CVSRT)

Royal Institute of Chartered Surveyors, www.rics.org

India Chapter (RICS)

Council of Engineers and Valuers www.cevindia.org

5. How to start practising as a valuer?

If any one wants to be very successful in valuation career, *he / she must possess :

* Necessary educational qualification

* Practical experience

* Due recognitions

(Note: *In this book, only ‘he’ is adopted. It can be read as he/she.)

(i) DIPLOMA ENGINEERS :

* A diploma engineer can become a licensed surveyor in the local

municipality or corporation and can do the valuation for the purpose of
visa, buying, selling, partition, family settlement, WILL, fixation of rent
apart from preparing detailed and abstract estimates for housing loans.
Recognition as a valuer depends upon the acceptance of the reports by
the clients.

* He can become a member in Indian Society of Technical Education

(MISTE) and in Indian Council of Arbitration (MICA).

* He can apply to financial institutions for empanelment and if empanelled,

he can do valuation of small valued properties.

* He can do part time BE. Once he becomes a graduate engineer, then,

getting further recognitions is not that difficult.
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* His visiting card is :

B. Ashok Gupta
DCE, MISTE, MICA
Licensed Surveyor
Consulting Engineer
Valuer
Arbitrator

(ii) B.E. WITH LESS THAN 5 YEARS OF EXPERIENCE :

* He can become a licensed surveyor in the municipality or corporation.

He can become an Associate Member in the Institution of Engineers
(AMIE) and also a Chartered Engineer (C. Eng.). He can become a
member of the Indian Society for technical education and also in the
Indian Council of Arbitration.

* Apart from preparing drawings and estimates, he can do the valuation

for the purpose of visa, buying, selling, partition, family settlement, WILL,
fixation of rent apart from preparing detailed and abstract estimates for
housing loans. He can attend the basic training programmes on
valuation and study the books on fundamental principles of valuation.
He can work as an assistant with a senior valuer and get practical
exposure in valuation.

* He can apply to financial institutions for empanelment and if empanelled,

can do valuation of small value properties.

* He can do postgraduate in valuation in any of the recognised

universities.

* His visiting card is :

B. Ashok Gupta
BE, AMIE, C.Eng(I), MISTE, MICA
Chartered Engineer
Licensed Surveyor
Valuer
Arbitrator
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(iii) B.E. WITH MORE THAN 5 YEARS OF EXPERIENCE :

* He can become an Associate Valuer (AIV) of the Institution of Valuers,

obtain the Approved valuer certificate and start practising independently.
(Depending upon the rules and regulations, he can become a member
in any of the valuer organisations in India).

* He can apply to banks for empanelment and if empanelled, he can do

valuation for properties. Initially he can concentrate more on housing
finance valuation.

* He can apply to any Registered valuers organisation, undergo 50 hours

mandatory training programme, appear for the IBBI examination, pass
and thus, he can become a registered valuer under the companies act.

* He can attend the training programmes, seminars, conferences, buy

many books on valuation and start acquiring more knowledge.

* Now, his visiting card is :

B. Ashok Gupta
BE, AIV, AMIE, C.Eng(I), MISTE, MICA
Approved Valuer
Chartered Engineer
Arbitrator
Registered valuer under Companies Act

* He can practise valuation of companies if he knows the subject.

* Simultaneously, he can do post graduate in valuation in any of the

recognised universities.

(iv) B.E. WITH MORE THAN 10 YEARS OF EXPERIENCE :

* He can apply for upgradation from AIV to FIV (provided other

conditions are satisfied).

* He can apply for upgradation from AMIE to MIE (provided other

conditions are satisfied).

* He can apply to the Chief Commissioner of Income tax of his region to

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become a Registered valuer of Central Board of Direct Taxes (CBDT).

After getting recognition, he can also start practising Income Tax
valuation - cost of construction, capital gains and Section 50C.

* Initially, he can concentrate on local banks, scheduled banks, private

banks and then he can apply for more number of nationalised banks
and start practising bank valuation as a full - time profession.

* Similarly, he can apply for empanelment for other organisations, He can

concentrate on valuation on other fields also after knowing the subject.

* Now, his visiting card is :

B. Ashok Gupta
BE, M.Sc(R.E), FIV, MIE, C.Eng(I), MISTE, MICA
Registered valuer under Companies Act
Registered valuer under CBDT
Chartered Engineer
Arbitrator

* He has become a full - fledged valuer now and he can practise valuation
from A to Z.

(v) B.E. WITH MORE THAN (SAY) 15 YEARS :

* He can become a professional engineer (PE) in the Institution of

Engineers.

* He can become a panel arbitrator (FICA) in the Indian Council of

Arbitration.

* He can apply for conversion to FIE from MIE.

* Now, his visiting card is :

B. Ashok Gupta
BE, M.Sc(R.E), FIV, FIE, FICA, C.Eng, PE
Registered valuer under Companies Act
Registered valuer under CBDT
Panel Arbitrator
Professional Engineer
Chartered Engineer
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(vi) * After obtaining the necessary qualifications, he can go on applying to

many organisations for empanelment. If a valuer is known for
shrewdness, intelligence, honesty and integrity, a day will come that
banks and other organisations will approach him for empanelment.

Note: * Overall guidance is given with regard to membership in institutions.

Readers may visit the respective websites of institutions and know the
exact particulars as on their date of applying.

* If valuer’s bill is enacted in future in the parliament, it is to be noted

that the recognition will be purely based on the contents of the valuer’s
bill.

* The above procedure is same for the architects also.

6. What are the subjects to be learnt by a valuer?

A valuer is an expert whose manifold duties are to estimate the fair value of the
properties under different circumstances. In order to become a good valuer, the
architect or the engineer must possess good knowledge of the following subjects:

* Planning and designing

* Surveying and levelling
* Quantity surveying and estimating
* Land with its different tenures and zones
* Land acquisition, town planning act and development control rules
* Arbitration
* Economics
* Fire insurance rules and regulations
* Report writing
* Financial analysis
* Building construction and maintenance
* Transfer of property act
* Building bye-laws of the local authority
* Law of easements
* Rent Control Act
* Law of contracts
* Taxation rules
* Banking norms
* International valuation standards
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* Indian valuation standards

* Code for measurement of plinth area IS 3861 - 2002
* Condition of money market and rate of interest available for general investments

7. What are the 10 basic points to be remembered by a beginner in valuation?

* He must qualify himself to be competent to do the valuation.

* He must have adequate theoretical knowledge in the field of valuation.

* He must have practical experience by doing more valuations.

* He must get recognition from various institutions.

* He must do the valuation of assets only in which he has obtained registration.

* He must proceed with valuation only after knowing the purpose of valuation.

* He must not venture into a valuation of any complicated assets in which he is

not competent.

* If he does not know how to defend his valuation, he must not take up such
assignment.

* He must not be greedy even for a day.

* He must understand that he cannot become a leading professional valuer

overnight. It requires more hard work and patience.

8. What are a few reference books in the subject valuation of immovable properties?

S.no. Name of the book Author

1 Elements of valuation of immovable Mr. R.K. Gandhi

properties 703, A - wing, Omkushal society,
(Junction of Tejpal scheme road no.3
and Despade marg),
Opp. Union Bank branch,
Vile parle (East), Mumbai - 400 057.
Mob : 98214 26811.
Mail : [email protected]
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2. Real estate valuation in practice Mr. Kirit P. Budhbhatti

Shri Shiv Sadan,
318, Nanda Patkar Road
Vile - Parle (East), Mumbai - 400 057.
Ph : 022 - 26104415 / 26128958.
Mail: [email protected]

3. Valuation principles and procedures Dr. Ashok Nain

Dew Drops Education Pvt. Ltd.
27-B, Dr. Rajendra road,
Kolkata - 700 020.
Ph : (91) (33) 2235 0922, 2235 3864.
Mail : [email protected]

4. * Mastering real estate valuation Mr. Syamales Datta

* Valuation of real property 55 / B, Ramsita Ghat street,
principles & practice Bhadrakali, Hooghly,
* Advanced valuation for secured lending West Bengal - 712 232.
by banks and financial institutions Mail : [email protected]

5. * Basics in Real estate valuation Mr. P.T. Hardikar

* Writing a report - Real estate 759 / 16, Deccan Gymkhana Colony,
valuation Pune - 411 004. Mob : 70280 51455.
Mail : [email protected]

6. Property valuation by income Mr. Mahendra Kakule

approach Caculo House, near Aquem PO,
Margao, Goa - 403 601.
Mob : 98224 85550.
Mail : [email protected]

7. Principles & practice of valuation Mr. D.N. Banerjee

Mr. John A. Parks Eastern Law House Private Ltd.
54, Ganesh Chunder avenue,
Kolkatta - 700 013.
Ph : (033) 2215 - 1989 / 2301.
Mail : [email protected]
Web : www.elh.co.in
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8. * Theory and practice of valuation Mr. Roshan H. Namavati

* Valuation in Court Jain book agency,
* Professional Practice C - 9, Connaught, New Delhi - 110 001.
(Estimating and Valuation) Ph : 3320806, 3321663.

9. Understanding capital gain tax made Mr. Sudhir H. Gondane

simple and easy for valuers Plot no. 3, Anand nagar, Atrey layout,
Near Datta Meghe Polytechnic,
Nagpur - 440 022.
Mob : 99704 29849.
Mail : [email protected]

10. * Tax valuation - Capital gains Mr. R. Jayaraman

* Cost of construction No. 22, Veereswaram approach road,
(under progress) Srirangam, Tiruchirappalli - 620 006.
Mob : 98424 22150.
Mail : [email protected]

11. Tax valuation Mr. S. Rajaratnam

Company Law Institute of India Pvt. Ltd.
2, Vaithyaram Street,
Chennai - 600 017.
Mail : [email protected]
Web : www.cliofindia.com

12. Practical valuation - Volume 1 to 30 Mr. B. Kanaga sabapathy

No. 1, Prestige flats; 6, Reynolds road,
Cantonment, Tiruchirappalli - 620 001.
Mob : 97918 74829.
Mail : [email protected]
Web : www.bkanagasabapathy.com

13. Guidelines on valuation of Real estate Centre for Valuation Studies, Research
and training Association (CVSRTA)
Mail : [email protected]
Web : www.valuationstudies.in

14. i) Guidelines for valuation of Income Tax department,

immovable properties - 1999 Chennai - 600 034.
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ii) Guidelines for valuation of Directorate of Income Tax,

immovable properties - 2009 New Delhi - 110 001.

These books can be dowloaded from

the internet.

15. i) Valuation practice of immovable Mr. C.H. Gopinatha rao

properties

ii) Methods of valuation Mr. P. Raghavendra rao

The above two books can be

downloaded freely for my website - BK

16. * Valuation for immovabe property Mr. N.K. Rajkumar

* Valuation for taxation 6A, 2nd cross, Ashok nagar,
Tumkur - 572 102. Karnataka
Mob : 98440 66471.
Mail: [email protected]

17. Valuation of immovable properties Dr. K. Divakar

No. 7, Balaji nagar Extn.,
Ramanathapuram,
Coimbatore - 641 045.
Mob : 94433 39279
Mail : [email protected]

(Practical valuation - Volume 30 - Fundamental principles of valuation - Chapter 2)

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Attention readers!

A valuer who would like to become a professional valuer must possess atleast
50 books on valuation in his library. Spending money for books is an investment for his
valuation profession.

“Books are invaluable assets

with no depreciation”