INSTITUTION OF VALUERS Plot No. 3, Parwana Road, Pitampura, New Delhi - 110 034
VALUATION OF REAL ESTATE SIX MONTHS COURSE GENERAL INFORMATION Name of the course : Six Month Course on Valuation of Real Estate All graduate Engineers I Architects, empanelled with Banks, will be eligible to register for the Course. All candidates are to apply in the prescribed application form (Annexure - I) The Institution reserves the right to reject any application, which is not properly filled-in, does not accompany the prescribed fee, which is not received within the stipulated date or for any other reason. The decision of the Institution in this respect shall be binding upon the applicant. The Course Fee is INR 40,000 for members of Institution of Valuers and INR 60,000 for non-members. Course fee once paid are neither refundable nor transferable to a subsequent course or to any other account except in case of rejection of an application. In such case of rejection of an application, the fee paid will be refunded after deduction of the processing fee of INR 1,000. The Institution conducts the course in the Real Estate Valuation branch only The Course shall be held under the aegis of different branches at different months of the year at different cities in India. The Course shall be of six month duration There shall be compulsory classes to be attended by the registered candidates on Saturdays and Sundays for the first five months. Two classes will be held in Saturday and four classes will be held in Sunday. Duration of each class will be of 1 (one) hour only. There shall be an examination on the Sixth Month of the Course. Candidates having minimum 50% attendance shall be allowed to appear in the examination. The following are the subjects to be studied by the candidates: o General Law o Real Estate Laws o Standards, Business Practices & Ethics o Basic Principles & Procedures of Valuation o Advance Valuation & Report Writing 2
SIX MONTHS COURSE VALUATION OF REAL ESTATE There will be Multiple Choice Question (MCQ) on each subject in the examination Duration of Examination will be of 2 hours Each paper will be of 100 marks. Pass Mark in each subject is 50 and in aggregate are 250. If a candidate obtains 250 marks in aggregate but in between 40 to 49 in one of the subjects, he will be declared as passed in the examination. Programmable calculator and mobile phone are not permitted to use in the examination hall. Non-programmable calculator may only be allowed. All successful candidates will be awarded with a Certificate by the Institution of Valuers at the end of the Course All study materials will be supplied by Institution of Valuers MEDIUM OF EXAMINATIONS AND UNITS English is the medium of examinations. SI units, standard symbols and notation shall be used. SYLLEBUS General Law The Indian Contract Act, 1872: Communications, acceptance and revocation of proposals (Sec. 3); What agreements are contracts (Sec. 10); Who are competent to contract (Sec. 11); Void Agreements (Sec. 24, 25, 27, 28, 29); Contingent contract defined (Sec. 31); Obligations of parties to contract (Sec. 29); Of consequences of breach of contract (Sec. 73, 74, 75); Contract of indemnity defined (Sec. 124); Contract of guarantee defined (Sec. 126); "Agent" and "Principal" defined (Sec. 182); Agents duty to principal (Sec. 211-221); Principal's duty to agent (Sec. 222-2205); Effect of agency on contracts with third persons (Sec. 226-238). The Arbitration & Conciliation Act, 1996: Arbitration Agreement (Sec. 07); Power to refer parties to arbitration where there is an arbitration agreement (Sec. 08); Number of arbitrators (Sec. 10); Appointment of arbitrators (Sec. 11), Place of arbitration (Sec. 20); Language (Sec. 22); Forms and content of arbitral award (Sec. 31); Role of conciliator (Sec. 67); Settlement agreement (Sec. 73). The outline of Indian Constitution : The Government machinery, the separation of powers - the executive, the legislature and judiciary, Organization of Courts and their jurisdictions, Fundamental Rights. 3
VALUATION OF REAL ESTATE SIX MONTHS COURSE The principles of evidence; Law of Evidence - Burden of proof; Presumption and conclusive proof. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Application of Act (S-2); Definition (S-3); Notification and Acquisition (Chapter IV); Rehabilitation and Resettlement Award (Chapter V); Acquisition of part of house or building (S-94); Acquisition of land at cost of a local authority or Requiring Body (S-95); Exemption from Income Tax, stamp duty and fees. Real Estate Laws National Housing & Habitat Policy Promoters Act: Definition of Promoter, Developer, Registration of Promoter; Ownership of Flat - Absolute, Exclusive, Dual; Definition of Flat, Apartment, Duplex Bungalow, Building; Agreements - Promoter, owner of land, builder and purchaser; Assignment of benefit of agreement; Building Contract; Agreement with purchaser and advance; consequences of non-registration of agreement, advance or deposit taken by promoter; Conversion of agricultural land for non-agricultural purpose (residential) - permission mandatory; effect of town and country planning Act on such conversion; effect of Fisheries Act; effect of other special Acts. Apartment Ownership Act: Ownership of apartment; Common areas and facilities; Certain work prohibited; Joint and several liability of vendor for unpaid common expenses; Roof right; Co-operative Societies Act: Status of co-operative Housing Society; tenements in co-operative Housing Society and ordinary tenancy; co-operative Housing Society functioning; induction of member in co-operative Housing Society; expulsion of member; dispute between co-operative Housing Society and member; Eviction from co-operative Housing Society flat; Transfer of co-operative Housing Society flat I land; nomination by a member Urban Land (Ceiling and Regulation) Act 1976 : Application; Ceiling limit; Exemption of ceiling; transfer of excess vacant land Transfer of Property Act: Transfer of property defined (S-5); What may be transferred (S-6); Persons competent to transfer (S-7); Operation of Transfer (S- 8); Vested Interest (S-19); Contingent Interest (S-21); Conditional Transfer (S-25); Sale (S-54); Rights and liabilities of buyer and seller (S-55); Mortgage (S-60); Rights and liabilities of Mortgagor and Mortgagee; Charge (S-62); Lease defined 4
SIX MONTHS COURSE VALUATION OF REAL ESTATE (S-105); Lessor, lessee, premium, rent defined (S-106); Rights and liabilities of lessor and lessee (S-108); Exchange (S-118); Gift defined (S-122); Transfer how effected (S-123); Easement Act: Easement (Chapter I); The imposition, Acquisition and transfer of easement (Chapter II); Extent of easement (S-28); Extinction, suspension and revival of easements (Chapter V); Licenses (Chapter VI) Premises Tenancy Act: Exemption - Obligation of landlord and tenant - Control of eviction of tenants - provisions regarding rent. Building By-laws: Procedures of Sanction; Authorized Technical Persons; Requirement as to sites and means of access; Open Spaces; Area and Height Limitations; Parking; Provisions for more than one building in a plot; Existing Building; Requirement of parts of Buildings; Fire protection and exit requirement Standards, Business Practices & Ethics International Valuation Standards: Generally Accepted Valuation Principles (GAVP), Code of conduct; IVS 1, 2, 3; Guidance Notes (GN) 1, 2, 11. Business Practices & Ethics Membership Composition of Institution of Valuers; Objectives of Valuation Work: Various Kinds of Objectives of Valuation Work; Objective Character of the Results of an Valuation Undertaking. Valuer's Primary Duty and Responsibility: Valuer's Obligation to Determine and Describe the Apposite Kind of Value or Estimated Cost; Valuer's Obligation to Determine Numerical Results with Whatever Degree of Accuracy the Particular Objectives of the Valuation Necessitate; Valuer's Obligation to Avoid Giving a False Numerical Result; Valuer's Obligation to Attain Competency and to Practice Ethically; Professional Character of Valuation Practice; Valuers' Responsibility to Third Parties. Valuer's Obligation to His Client: Confidential Character of an Valuation Engagement; Valuer's Obligation to Give Competent Service; Valuer's Obligation Relative to Giving Testimony; Valuer's Obligation to Document Valuation Testimony; Valuer's Obligation Relative to Serving More Than One Client in the Same Matter; Agreements and Contracts for Valuation Services. Valuer's Obligation to Other Valuers and to the Society: Protection of Professional Reputation of Other Valuers; Valuer's Obligation Relative to Society's Disciplinary Actions. 5
VALUATION OF REAL ESTATE SIX MONTHS COURSE Valuation Methods and Practices: Various Kinds of Value; Selection of Valuation Method; Fractional Valuations; Contingent and Limiting Conditions Affecting an Valuation; Hypothetical Valuations; Valuations In Which Access to Pertinent Data is Denied; Ranges of Value or Estimated Cost and Reliability Estimates; Values or Estimated Costs Under Different Hypotheses; Inspection, Investigation, Analysis, and Description of Subject Property; Collaboration Between Valuers and Utilization of the Services of Members of Other Professions Unethical and Unprofessional Valuation Practices: Contingent Fees; Percentage Fees; Disinterested Valuations; Responsibility Connected with Signatures to Valuation Reports; Advocacy; Unconsidered Opinions and Preliminary Reports; Advertising and Solicitation; Misuse of Membership Designations; Causes for Disciplinary Action by the Society Valuation Reports: Description of the Property Which Is the Subject of a Valuation Report; Statement of the Objectives of the Valuation Work; Statement of the Contingent and Limiting Conditions to Which the Valuation Findings Are Subject; Description and Explanation in the Valuation Report of the Valuation Method Used; Statement of the Valuer's Disinterestedness; Valuers Responsibility to Communicate Each Analysis, Opinion and Conclusion in a Manner that is not Misleading; Mandatory Recertification Statement; Signatures to Valuation Reports and the Inclusion of Dissenting Opinion Basic Principles and Procedures of Valuation Perspective of Real Property valuation characteristics of landed Properties. Introduction to investment Market. Factors influencing the pattern of yields. Role of Real Property in Investment Market. Factors influencing the pattern of yields. Concept of value. Difference between cost, price and value. Approaches of Valuation: Cost Approach, Market Approach and Income Approach. Cost Approach: Accounts Method, Detail Estimate Method, CPWD Plinth Area Method Market Approach: Direct Capital Comparison Method, Table of comparison, Belting Method. Mathematical Principles of the construction of valuation tables and their uses. Calculations involving determination of present value and the sum of an annuity; Sinking fund Theory. 6
SIX MONTHS COURSE VALUATION OF REAL ESTATE Concept of year's purchase applied to perpetual and terminable income, Mortgage installments Calculation. Advance Valuation & Report Writing Valuation of freeholds subject to leases; valuation of leasehold properties; rent, rental value and net income; outgoings, costs in use; problems of fixed income and rising costs of outgoings; advanced problems under market approach, income approach and cost approach to valuation; depreciation and obsolescence; the residual or development method of valuation; the profits basis of valuation; market value and highest and best use. The discounted cash flow techniques; net present value and internal rate of return. The determination of rents and premiums on grant and renewal of leases; synergistic value, its estimation and apportionment. Valuation for special properties (hotels, petrol filling stations, nursing homes etc.) Report on valuation of immovable property, fully owner occupied / partly tenanted, partly owner occupied / fully tenanted for the purpose of sale I purchase. Report on valuation for secured lending purposes, recommending market value and forced sale value of property. Report on valuation of valuer's report. PAYMENTS All payments for different items as mentioned above are to be made through demand draft drawn in favour of 'Institution of Valuers', payable at Delhi. Money Orders / Cheques / Postal Orders will not be accepted. The candidate's name along with the membership number is to be written on reverse of the demand draft. The fee structure may be revised by the Council without assigning any reason. Any such revision shall be duly notified in the Indian Valuer Journal and Institution's Website. 7
INSTITUTION OF VALUERS Plot No. 3, Parwana Road, Pitampura, New Delhi - 110 034