PROPERTY VALUATION CERTIFICATE TAXONOMY

Seven Certificate Types — Each Required by a Different Authority

A property valuation certificate is not a single standard document. The authority, statutory purpose, valuation date, methodology and required reporting format determine which certificate is appropriate.

From bank mortgage valuation and Section 50C matters to SARFAESI, IBC CIRP, insurance, fair rent and LARR compensation, each valuation context requires evidence suited to its purpose.

BANKING MORTGAGE

Valuation Report (Comprehensive)

Bank Mortgage Lending

The full-format certificate for bank mortgage lending, including home loans, LAP, commercial and industrial mortgage.

Report Includes

Property identification and title summary
Site inspection date
Applicable CMA, Income or DRC methodology
Comparable sales analysis
Land and building split
Fair Market Value
Lender-specific property and marketability requirements
Recommended lending value at specified LTV

Accepted by the bank’s credit committee for loan sanction and renewal.

INCOME TAX FMV

FMV Certificate (Income Tax)

Taxation & Statutory Valuation

The Rule 11U / Rule 11UA standard certificate for specified income-tax valuation requirements.

Used For

Section 50C(2) challenge
Section 55(2)(b) retrospective FMV as on 1 April 2001
Section 56(2)(x) gift / below-SDV transactions
Section 45(5A) Joint Development Agreement
Section 132 enforcement proceedings

States the applicable Section 34AB Category I registration, valuation date, methodology and specified FMV.

SARFAESI MV / DSV

DSV / FSV Certificate (SARFAESI)

Security Enforcement

Market Value (MV) together with Distressed Sale Value (DSV) / Forced Sale Value (FSV) for SARFAESI enforcement.

Valuation Focus

Market Value assessment
Distressed / Forced Sale Value
Property-specific market liquidity
Auction and reserve-price context
Applicable market comparables

The DSV / FSV assessment supports the reserve-price determination in a SARFAESI property auction.

IBC / CIRP IBBI

IBBI Valuation Report (IBC CIRP)

Insolvency & Corporate Proceedings

An IBBI-compliant valuation report for IBC CIRP and Companies Act proceedings, prepared within the applicable registered-valuer framework.

Fair Value Going-concern assessment using applicable valuation methodology.

Liquidation Value Orderly but time-compressed sale assessment.

IBBI Registered Valuer signature and applicable IVS 101 reporting requirements form part of the valuation framework.

INSURANCE RCN

Replacement Cost Certificate (Insurance)

Building Replacement Cost

Establishes the Replacement Cost New (RCN) for the building component for insurance purposes.

Cost Basis

CPWD DSR rates for applicable building types
Contractor rates for commercial and industrial buildings
Building specification assessment
Equipment and structural replacement considerations

The land component is typically excluded from insurance replacement cost because land itself cannot burn down.

TENANCY RENT

Fair Rent Certificate

Market Rent Determination

Determines market rent for tenancy, rent revision and rent-control related purposes using appropriate rental evidence.

Comparable Rent Analysis

Recent lettings of comparable properties
Same locality and market segment
Floor and location adjustments
Building condition
Amenities and property specifications

Used for rent revision under applicable state rent-control frameworks and determination of fair rent under tenancy arrangements.

LAND ACQUISITION LARR

LARR Compensation Certificate

Land Acquisition Valuation

Property valuation evidence for compensation proceedings under the Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Section 26 Framework

Market value derived from registered transactions
Applicable statutory multiplier
Rural and urban valuation context
Property-specific market evidence
Compensation valuation schedule

The Government Approved Valuer’s certificate provides valuation evidence for LARR compensation proceedings.

ONE PROPERTY — DIFFERENT PURPOSES

The Certificate Purpose Determines the Valuation Framework.

Before commissioning a property valuation, identify the authority, statutory provision, valuation date and intended use of the certificate.

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