Reporting Value

Reporting value may be as simple as just a word of mouth, or a one page Certificate of value or several pages compilation providing full description of the property, the methodology of arriving at value and all factors considered in the valuation process. A standard valuation report however would normally include the following clauses:

  • Land Reference Number: this is the unique number which refers to the property and distinguishes it from the other. It is never duplicated. In a multi-development, in addition to the Land Reference Number, the House Number or sub-plot Number is used.
  • Date of Inspection: this is a significant date as property may have two contrasting values on two different dates. You may inspect a property several kilometers away and it take you several days to compile the report. In between anything can happen including total destruction of the property rendering your report defective on submission. Only this date will put the report into perspective.
  • Situation: this describes the location of the property, by road, neighborhood, proximity to a landmark e.g. a school, and jurisdiction e.g. municipality.
  • Tenure (Title): this describes the nature of the title being valued e.g. freehold, leasehold or sub-leasehold interest.
  • Registered Owner: this states the registered owner/proprietor of the freehold, leasehold or sub-leasehold interest being valued.
  • Encumbrances: this states the liabilities on the land, and third party rights e.g. charges/mortgages, caveats, prohibitions, cautions etc.
  • Area of Land: the size of land in standard measure e.g. hectare, acre, square meter or square foot.
  • User: this states the user reserved in the title. Any change of user is usually endorsed in the title.
  • Zoning: this describes the characteristics of the planning zone where the property is located in terms of the permitted developments, ground coverage, plot ratio and minimum plot subdivision.
  • Rates: this states the outstanding rates due to the Local Authority (City Council, Municipal Council or Town Council),
  • Land Rent: this states the outstanding rent due to the Central Government in relation to a leasehold property.
  • Services: this describes the urban services connected to the property; water, electricity, sewer etc.
  • Developments: this describes the developments on the land; construction, accommodation, built up areas, and photographs.
  • Condition of Repair/Stage of Construction: For developed properties the condition of repair is described here. For properties under construction, the details will also be placed here including the percentage of work done and outstanding works.
  • Occupancy/Tenancy: this describes the persons in actual occupation of the property and their relationship with the registered owner.
  • Basis of Valuation and definitions of terminologies: this provides the definition(s) of the value(s) being assessed and the method(s) for arriving at the value. When reporting a value other than market value, this becomes very important.
  • Any Assumptions, other factors that might impact on the value; environmental, legal or planning are noted.
  • Valuation: this state the value(s) being reported. The most common values being, market value, mortgage lending value, forced sale value, rental value, investment value and insurance value.

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