When we are planning to buy or sell a real estate property it is quite obvious that we have to go through a number of processes and steps. It is important to understand that all these processes have a legal angle to it and therefore care and caution should be exercised. Since the processes are extremely complicated and tough in most of the cases customers find it prudent to outsource it to professionals who have experience and expertise in this field. Amongst the various processes there is no doubt that valuation is often considered to be one of the most important. Property valuation is mainly about finding out the fair market value of a property that is being either put up for sale or purchase. Additionally, based on the valuation reports, property tax amounts are calculated and even stamp duty amount payable are also decided.
In view of the highly critical and vital nature of functions being performed by valuers and appraiser, it is very important that there is always an element of honest, transparency and fair play. To ensure that this happens continuously, there is a need to regulate the functioning of these service providers. The main objective of property regulators is to ensure that these service providers are playing by the rule book as far as valuation is concerned. They ensure this by paying regular visits to the valuers’ office. They examine the entire process flow and pay attention to accuracy of information, correctness of information and also the genuineness with which the information are being generated.
This process does not take place every day. Whenever a valuer has been given a certificate to operate in this business, he becomes duty bound to subject his processes being examined by government appointed and certified regulators. These regulators usually visit the valuers once or twice in a year. However if there is something wrong or fishy then the regulators have the powers to go deep into the subject. If something wrong or untenable has been found, the regulators have the power to temporarily suspend or even permanently cancel the certification. Hence, the onus lies on property valuers that they are always adhering to the rules and regulations stipulated by the regulators. The main objective is not fault finding to ensure transparency and openness in all property valuation requests.