DEPARTMENT OF ESTATE MANAGEMENT

FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING,

UNIVERSITI TEKNOLOGI MARA PERAK
GROUP ASSIGNMENT FOLDER

Course Code : REM311

Course Name : VALUATION FOR SPECIAL PROPERTIES
Name of Group Members Matric No.
Nor Haris bin Nor Hizam 2020610914

Nur'Illiyin Su’aida binti Nor Azman 2020609848

Dzareel Aimanuddin bin Ajman 2020460126

Name of Group Leader : Nur'Illiyin Su’aida Binti Nor Azman

Matric No : 2020609848
Assignment Title: Valuation of Oil Palm Plantation (Lot 2590) for Purchase Purpose

Submitted to: Dr. Lizawati Abdullah

Due date of Assignment: 26.01.2023 Submission Date : 26.01.2023

DECLARATION : We declare that no part of this assignment has been copied from other
person’s work except where due acknowledgement is made in the text, and no part of this
assignment has been written for me by any other person except where such collaboration has
been authorised by the lecturer concerned.

Group’s Leader Signature: NIS Date: 26.01.2023

A lecturer/tutor has and may exercise a right not to mark this assignment if the above
declaration has not been signed. If the above declaration is found to be false, no mark will be
awarded for this assignment

Copyright@Real Estate Management Dept, UiTM Perak

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 L&H VALUATION FIRM (BANGSAR SOUTH) SDN. BHD
(Co. No. 011129 (1) (Board of Valuer’s Registration No. VE (1) 7222(1)
No. 11, Jalan 1/112a, Bangsar South,
59200 Kuala Lumpur, Malaysia.
Tel: 03-0333 2111
Fax: 03-0112 6798
E-mail: LH_valuation@gmail.com
Website: www.lhvaluation.com.my

Our Ref : ILYS141102 (R)

Your Ref : S1893467000

Date of Valuation: 23rd October 2022

PRIVATE AND CONFIDENTIAL

No.3 Jln Sawi 3,
Taman Bahagia Baru Bt.5,
Jln Kluang, 83300,
Batu Pahat, Johor.

Attention : JAMALIAH BINTI SARIKIN, SITI MUNAWARAH BINTI

SARIKIN AND SITI SA’IMAH BINTI SARIKIN.
Dear Sir,

RE : REPORT AND VALUATION FOR PURCHASE

PROPERTY : AN OIL PALM PLANTATION

✓ LOT. NO. 2590,

✓ GM 2321
✓ NO. 2590, JALAN PARIT MAHANG,
MUKIM KAMPUNG BAHRU,
RENGIT, JOHOR.

CUSTOMER : MR. MOHD SIRHAN BIN ABDUL MALIK

According to the details mentioned aboved, a details of report in terms of valuation was
prepared in advance before 1st January 2023 as the property is ought to be valued in purpose
of purchase by searching its market value. Thus, a proper valuation with refrence to Market
Value will be stated in the report.

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The property was inspected and values analytically with full of care, all of relevant data was
well searched and examined into small details. In accordance with professional valuers in
terms of reference and subject to the limiting conditions stated in the last pages of this report.
Based on all of the circumstances above, opnion of value in terms of its Market Value is;

RM 261,000.00 (RINGGIT MALAYSIA TWO HUNDRED AND SIXTY-ONE

THOUSAND ONLY).

All the process of valuation including the site inspection was executed successfully, with full
of care and to our best as we are informed with the purpse of this valuation which are
considered as confidential and must be kept secure for the sake of owner and Majlis Daerah
Batu Pahat.

“We hereby confirmed that we have carried out the Report and Valuation as an Independent
Valuer and the valuation fee charged thereof is not contigent on the desire for a particular
opinion of value of recommendation. Further we have also exercised as independent view and
judgment in carrying out the Report and Valuation.”

Thank you.
For and on behalf of,

L&H VALUATION FIRM (BANGSAR SOUTH) SDN. BHD

……………………………
SR NUR’ILLIYIN SU’AIDA BINTI NOR AZMAN
REGISTERED VALUER (V-1129)

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 TABLE OF CONTENTS

SUMMARY OF VALUATION 1
1.0 SUBJECT OF VALUATION 2
2.0 PURPOSE OF VALUATION 2
3.0 TERM OF REFERENCE 2
4.0 DEFINITION OF VALUATION 3
5.0 BASIS OF VALUATION 3
6.0 DATE OF VALUATION 3
7.0 LOCATION 3
8.0 PARTICULAR OF TITLE 4
9.0 DESCRIPTION OF PROPERTY 5
10.0 NEIGHBORHOOD 5
11.0 OCCUPANCY STATUS 5
12.0 SERVICES 6
13.0 PLANNING 6
14.0 METHOD OF VALUATION 6
15.0 EVIDENCE OF VALUE. 7
16.0 OPINION OF VALUE 7
17.0 CERTIFICATION 8
18.0 DATA ANALYSIS 9
19.0 VALUATION 11
20.0 APPENDICES 14
LIMITATION CONDITIONS 24
REFERENCES 26

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 SUMMARY OF VALUATION

VALUER REFERENCE : MC/SU/SPA5678/2022

PURPOSE OF VALUATION : Purchase (Market Value)

DATE OF VALUATION : 23rd October 2022

PROPERTY ADRESS : Lot. No. 2590, Jalan Parit Mahang,

Mukim Kampung Bahru, Rengit, Johor.

TYPE OF PROPERTY : A parcel of agricuture land completed

with 20 years oil plam cultivation.

LAND AREA : 2.3371 hectares (5 acres 3 rode 4 pole)

PROPERTY CONDITION : Great

PARTICULAR OF TITLE : Lot. No. 2590,GM 2321, Mukim of

Kampung Bahru, District of Rengit, Johor.

TENURE : Freehold

MARKET VALUE : RM 261,000.00

THIS SUMMARY OF VALUATION SHOULD BE READ TOGETHER WITH THE

WHOLE REPORT.

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 REPORT AND VALUATION OF AGRICULTURE SPECIAL PROPETY
LOT NO. 2590, JALAN PARIT MAHANG, MUKIM KAMPUNG BAHRU, RENGIT,
JOHOR.

1.0 SUBJECT OF VALUATION

The subject property is a freehold property with the land title held under Geran Mukim (GM
2321) with No. Lot 2590. The property is under Mukim Kampung Bahru and located at the
District of Rengit, Johor Darul Takzim. The subject property is categorised as Agriculture Land
specifically for oil palm plantation with total land area of 2.3371 hectares or (5 acres 3 Rood
04.0000 Pole). It can be classified under smallholding agricultural land since the land area is
lesser than 40 hectares.

2.0 PURPOSE OF VALUATION

Mr. Sirhan has assigned to value the interested property (Lot 2590) which is oil palm plantation
within its boundary and to determine the market value of the agricultural land which currently
has ongoing cultivation and production of oil palm plantation. The selected subject property is an
agricultural land focusing on oil palm plantation and it is located at Lot 2590, Parit Mahang,
District of Rengit, Mukim Kampung Bahru, 83200, Johor Darul Takzim. Since the transaction of
agricultural land – oil palm plantation is very rare to happen also considered as special
properties, therefore the selection of choosing the method of valuation for the purpose of valuing
the purchase price or market value of the property due to a little number of transactions data
occurs for sale and purchase of oil palm plantation. The age of cultivation of the oil palm is
expected around 30 years and more with expected height around 35 to 45 feet per tree. A higher
tree produced a better grade of oil however the higher the tree will harden the process of
harvesting of the oil palm since it includes a human labor in the process.

3.0 TERM OF REFERENCE

The instruction received by Mr. Mohd Sirhan bin Abdul Malik to value a land cultivated with oil
palm three Lot 2590, GM 2321 under Mukim Kampung Bahru and located at the District of
Rengit, Johor (“hereinafter referred to as the subject property”) within its boundary. To prepare
this valuation report, investment method are used to discover market value of the special
property.
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4.0 DEFINITION OF VALUATION

A valuation is an act of valuing the capital or rental value, especially the appraisal of property
through written opinion on any given basis, with or without assumption or qualifications.
However, some property might be different in terms of valuing the property especially valuation
for special properties which different due to their specialised nature is rare. The specialised
nature can be defined in terms of the construction, arrangement, size or location of the property
or any combinations of these factors. Oil Palm plantation, golf course, petrol stations, cinema,
hotels are some of the examples of special properties. Therefore, a valuation report which a
written document that contains the results of a valuation must strictly followed all the
requirements in MVS 8 (Malaysian Valuation Standard) while writing a value report (Valuation
Reports). A valuation report delivered in a manner other than a full report must adhere to MVS
13's requirements (Update Valuations).

5.0 BASIS OF VALUATION

According to Standard 3 (MVS), it mentioned that the basis of valuation, Market Value shall be
applied for any Sale and Purchase transaction. While for Standard 4 MVS explained the
definition of “Market Value” as an estimated amount for which an asset or liability should
exchange on the valuation date between a willing buyer and a willing seller in an arm’s length
transaction after proper marketing and where the parties had each acted knowledgeably,
prudently and without compulsion. However, before estimating the market value, a Valuer must
foremost estimate the highest and best use of an asset which that use may be for the continuation
of an asset’s existing use or for some alternative use determined based on the market.

6.0 DATE OF VALUATION

The property was inspected on 23rd October 2022. For the purpose of this valuation, the date of
inspection is taken to be the date of valuation.

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7.0 PARTICULARS OF TITLE

No. Lot Lot 2590

Title Number GM GM 2321
Bandar/Pekan/Mukim Mukim Kampung Bahru
District Rengit
State Johor Darul Takzim
Tenure Freehold - In perpetuity
Road Name Jalan Kampung Parit Mahang, Parit Botak, 83200
Senggarang, Johor
No. File CLR475/29
Category Land Use Agriculture
Land Area 2.3371 hectares or (5 acres 3 Rood 04.0000 Pole)
Owner I. JAMALIAH BINTI SARIKIN, 1/3 BHGN
No. KP: 670730-01-5582
NO.19 JLN.PJS 10/1 SUBANG INDAH 46000
PETALING JAYA,
WILAYAH PERSEKUTUAN KL.
II. SITI MUNAWARAH BINTI SARIKIN, 1/3 BHGN
No. KP: 640701-01-6044
NO.3 JLN SAWI 3 TAMAN BAHAGIA BARU
BT.5, JLN KLUANG, 83300,
BATU PAHAT, JOHOR.
III. SITI SAIMAH BINTI SARIKIN, 1/3 BHGN
No. KP:720222-01-5896
53-5-13 TAMAN PANTAI INDAH PANTAI
DALAM, 59200, KUALA LUMPUR,
WILAYAH PERSEKUTUAN KL.
Refer to Appendix A for land title.

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8.0 LOCATION

The subject property is land cultivated with oil palm tree located at Lot 2590, Parit Mahang,
83200 Rengit, Johor. Geographically, it lies approximately 29 kilometers from Batu Pahat and 15
kilometers to Bandar University Parit Raja. Subject property is accessible from Plaza Tol Ayer
Hitam. Head southwest through Jalan Batu/Route 50. Straight and Within 12 kilometers turn left
onto Jalan Parit Jambul, and then turn left onto Jalan Parit Lapis Sempadan. After that, straight
and within 1.3 kilometers turn right onto Jalan Parit Botak/J9. Straight and subject property will
be found within 6 kilometers which is lot 2590. Refer to Appendix B for location plan.

9.0 NEIGHBORHOOD

The subject property is located at Lot 2590, Parit Botak, 83200 Senggarang, Johor. The subject
property is near with oil palm factory which is Mahang Sawit Enterprise Sdn. Bhd. Surrounding
of the property is mostly agriculture land cultivated with oil palm tree and also kampung land.
Besides, the subject property also near with small industry that produced food which is Salleh
Food Industries Sdn Bhd and only 1.4 kilometers with Klinik Desa Parit Kemang. After that,
there are few schools at the area of subject property such as Sekolah Agama Seri Bahagia
Kampung Parit Mahang and Sekolah Menengah Kebangsaan Tunku Mahmood Iskandar.

Besides, the subject property only takes 13 minutes to Pekan Parit Raja that have many facilities
available in the area such as LOTUS Parit Raja, University Tun Hussein Onn Malaysia and Kolej
Kemahiran Tinggi Mara Sri Gading. Refer to Appendix B for location plan.

10.0 DESCRIPTION OF PROPERTY

The site consists of 5 acres 3 rode and 4 pole (2.3371 hectares) land area of oil pam plantations
in which it is divided between ditch (parit) to differentiate the site, there is no fences surrounding
the site, a width of 11.78 meters and length of 1717 meters. It is located in Parit Mahang, Mukim
Kampung Bahru, Rengit, Johor. The average number of oil palm trees for one acre is around 54-
56 trees. Thus, the total number of oil palm trees on this site is 275 trees. The age of these oil
pam trees is around 20 years as it was first planted on year 2003 by the owner of the land. Refer
Appendix D for details.

There is only one access to the site, and it is a small concrete bridge which is built to connect the
road and the site over a ditch. It may only fit motorcycles and not four wheels vehicle. The type
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of land is alluvial soils which is best for oil palm plantation. The type of the species is DxP
which is Dura x Pisifera and the name of the species is Yangambi pisifera. The type of the
fertilizer is Germany LDN which is water soluble and functioned to nourish the soil and the
fruits of the plantations. The total of fertilisers used for the site is 10 bags of Germany LDN
which equals to 500 kg and it is done 2 times per month. The average fruits harvested is 1 tan per
acre for each month which could be gained upon being harvest as the fruit is harvest twice a
month.

11.0 OCCUPANCY STATUS

The subject property is fully operated as agriculture land specifically for oil palm plantation
which harvest twice a month. The total land area of 2.3371 has been cultivated as oil palm
plantation with age of cultivation of 20 years old by the owner of the land.

12.0 SERVICES

The common services that help to ease the process of production of the Subject Property is
hardware store, petrol station and oil palm industry. There are a few petrol stations provided at
the area such as ‘5Five’ Petrol Senggarang and Caltex Senggarang that do not exceed 9
kilometers from the subject property. Besides, the nearest transportation facilities with the
subject property takes 38 minutes which is Terminal Bas Express Batu Pahat. Public amenities
and services such as lamppost (street lightings), bus stop, sewage system and road maintenance
that have been implemented by Majlis Daerah Batu Pahat.

13.0 PLANNING

The subject property is designated for agricultural purpose.

14.0 METHOD OF VALUATION

The market value for vacant land is calculated by using comparison method in order to be
included in the investment method which has been used in order to value Lot 2590, Parit Botak,
83200 Senggarang, Johor. Investment method is an analysis based on the relationship between
the rate of return that an investor or buyer expects or required and the net income that a property
produce. The purpose of using this method was to calculate purchase of the property.

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15.0 EVIDENCE OF VALUE

Based on all of the information gathered during the site visit in which the income made for each
month of the year including the cost of maintenance, browning, harvesting commission, taxes,
general overhead and manure, the market value is calculated by using investment method and the
land value is verified through comparison method and all of comparable properties is gained
from JPPH as below:

Comparable Property 1:

Comparable Property 2:

Comparable Property 3:

16.0 OPINION OF VALUE

The valuation report is required for purchase purpose of Market Value and the said valuation was
done with full of care and righteousness by extracting the information of income made by the
products of oil palm plantation and the cost by using inverstment method.

By considering all of the small details of the special property after site inspection, we are of the
opinion that the Market Value of the subject property; Lot. No. 2590, Jalan Parit Mahang,
Mukim Kampung Bahru, Rengit, Johor with GM 2321 title being good, marketable, registrable
and free from legal encumberances is RM 261,000.00 (RINGGIT MALAYSIA TWO
HUNDRED AND SIXTY-ONE THOUSAND ONLY).

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17.0 CERTIFICATION

The valuation of the above property has been carried out by:

……………………………….

SR NUR ‘ILLIYIN SU’AIDA BINTI NOR AZMAN

REGISTERED VALUER (V-1129)

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18.0 DATA ANALYSIS

Based on all of the information gathered during the site visit in which the income made for each
month of the year which are:

Estimated Average Yield 1st 2nd Total Price Income (RM)

harvest harvest harvest per ton
(ton) (ton) (ton)

January 980 RM
1.60 0.89 2.49 2,440.20

February 1100 RM
1.58 0.95 2.53 2,783.00

March 1000 RM
1.45 1.01 2.46 2,460.00

April 700 RM
1.23 1.20 2.43 1,701.00

May 800 RM
1.65 1.06 2.71 2,168.00

June 750 RM
1.34 0.98 2.32 1,740.00

July 650 RM
1.40 1.18 2.58 1,677.00

August 660 RM
1.54 1.25 2.79 1,841.40

September 615 RM
1.68 1.09 2.77 1,703.55

October 756 RM
1.76 1.17 2.93 2,215.08

November 800 RM
1.52 1.00 2.52 2,016.00

December 700 RM
1.56 1.05 2.61 1,827.00

Total RM
24,572.23

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Meanwhile, the cost of maintenance, browning, harvesting commission, taxes, general overhead
and manure are:

Production cost per year

Maintenance 10% x RM RM
25,000.00 2,500.00

Browning 3% x RM RM
25,000.00 750.00

Harvesting commision 10% x RM RM

25,000.00 2,500.00

Taxes 5% x RM RM
25,000.00 1,250.00

General overhead 5% x RM RM
25,000.00 1,250.00

Manure 7% x RM RM
25,000.00 1,750.00

Total RM
10,000.00

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19.0 VALUATION

• Valuation of Land Value (Comparison Method)

Description Of Subject Property

Lot No. 2590

Provisional Land Area 2.3371 hectares
Location Jalan Kampung Parit Mahang
Type of house Agirculture land
Terrain A little bit lower than road level
Tenure Freehold
Date of Valuation 23.10.2022

Subject Property Comparable Property 1 Comparable Property 2 Comparable Property 3

Lot No. 2590 1713 2315 2643
MLO 624, Parit Jambi Darat, Jalan
Location Jalan Kampung Parit Mahang Parit Quarry, Jalan Parit Botak, Batu pahat 1156, Sungai Perpat, Jalan Senggarang-Rengit
Parit Betak
Consideration RM20,000.00 RM130,000.00 RM48,000.00
Land Area (hectare) 2.3371 1.3860 0.6480 3.5660

Land Value (RM/hectare) RM14,430.01 RM200,617.28 RM13,460.46

ADJUSTMENT
1. Location MLO 624, Parit Jambi Darat,
Jalan Kampung Parit Mahang Parit Quarry, Jalan Parit Botak, Batu pahat 1156, Sungai Perpat, Jalan Senggarang-Rengit
Jalan Parit Betak
5% 5% 10%
2. Site whereabouts Road frontange Road Frontange Road frontange Road frontange
0% 0% 0%
3. Land Area (hectare) 2.3371 1.3860 0.6480 3.5660
-10% -10% 10%
4. Terrain A little bit lower than road level road level A little bit lower than road level road level
-5% 0% -5%
Total Adjustments -10% -5% 15%
Land value after adjustment (RM/hectare) RM12,987.01 RM190,586.42 RM15,479.53

Conclusion: Thus, based on the calculation above, the land value is taken from Comparable Property 2 at a price of RM 190,586.42 per hectare after adjustment.

Market Value Land Area (hectare) Land Value (RM)/ hectare Land Value
2.3371 RM190,586.42 RM445,419.52
SAY RM445,000.00

Assumption:

1. The first adjustment is based on the location of comparable properties to the subject property in which 5% adjustment is made for each 10 kilometres away from the subject property in which
Comparable Property 1 is 7.4 kilometers away (5%), Comparable Property 2 is 10 kilometers away (5%) and Comparable 3 is 13.4 kilometers away (10%).

2. The smaller the size of the lot, the better as it is easier to be manage. Thus, 10% adjustment is made for Comparable Property 3 for first 2 hectare differences in terms of size. Thus, -10% is made for both
comparable property 1 and 2 as both property is smaller compared to subject property as it is more smaller and an adjustment of 10% is made for comparable property 3 as it is larger.
3. The type of terrain for subject property is a little bit lower than road level, then, it is same with comparable property 2, therefore, there is no adjustment made for Comparable Property 2,
meanwhile -5% adjustment is made for comparable property 1 and 3.

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• Valuation of Lot 2590 (Investment method)
Estimated Average Yield 1st harvest (ton) 2nd harvest (ton) Total harvest (ton) Price per ton Income (RM)
January 1.60 0.89 2.49 980 RM 2,440.20
February 1.58 0.95 2.53 1100 RM 2,783.00
March 1.45 1.01 2.46 1000 RM 2,460.00
April 1.23 1.20 2.43 700 RM 1,701.00
May 1.65 1.06 2.71 800 RM 2,168.00
June 1.34 0.98 2.32 750 RM 1,740.00
July 1.40 1.18 2.58 650 RM 1,677.00
August 1.54 1.25 2.79 660 RM 1,841.40
September 1.68 1.09 2.77 615 RM 1,703.55
October 1.76 1.17 2.93 756 RM 2,215.08
November 1.52 1.00 2.52 800 RM 2,016.00
December 1.56 1.05 2.61 700 RM 1,827.00
Total RM 24,572.23
say RM 25,000.00

(-) Production cost per year

Maintenance 10% x RM 25,000.00 RM 2,500.00
Browning 3% x RM 25,000.00 RM 750.00
Harvesting commision 10% x RM 25,000.00 RM 2,500.00
Taxes 5% x RM 25,000.00 RM 1,250.00
General overhead 5% x RM 25,000.00 RM 1,250.00
Manure 7% x RM 25,000.00 RM 1,750.00
Total RM 10,000.00

Total net profit RM 15,000.00

(x) YP for 10 years @ 9% & 3% sinking fund (income tax 25%) 4.8471

Total term RM 72,706.50

Reversion to bare site value

Land Value RM445,000
PV (10) @ 9% 0.4224
RM187,968

Market Value RM260,674.50

Say RM261,000.00

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Assumption:

1. The economic age of oil palm is assumed at 30 years. Thus, the remaining economic life for plantation is 10 years.
2. The rate of return is assumed at 9% because it includes high risk investment as oil palm is easily exposed to disease and
inflation price per ton.
3. The income tax is assumed at 25% which is equal to the Malaysian’s level of income tax.
4. The price of plantation is assumed as RM 445,000 according to the land value gained from comparison method.

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20.0 APPENDICES Appendix A

LAND TITLE

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix B

LOCATION PLAN

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix C

SITE PLAN

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

Appendix D

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 FRONT VIEW

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix D

ENTRANCE

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix D

PASSAGE IN PLANTATION

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix D

BROWNING

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix D

YANGAMBI PISIFERA

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix D

MOTORCYCLE AND TOOLS

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 Appendix D

TOOLS

NOT TO SCALE Lot 2590, Jalan Kampung Parit Mahang,

Mukim Kampung Bahru, Johor.
FILE REF NO. NIS241022 (R)

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 LIMITATION CONDITIONS

1. Malaysian Valuation standards

This valuation report is carried out in accordance with the Manual of Valuation Standards
published by the Board of Valuers, Appraisers and Estate agents.
2. Measurements
All measurements are carried out in accordance with the Uniform Method of Measurement of
buildings issued by the Royal Institution of Surveyors, Malaysia.
1. Confidentially
This report is confidential to the client or to whom it is addressed and for the specific purpose to
which it refers. It may only be disclosed to other professional advisors assisting the client in
respect of that purpose, but the client shall not disclose the report to any other person. Neither the
whole, nor any part of the Valuation Report or Certificate or any reference thereto may be
included in any published document, circular or statement nor published in any way without our
prior written approval of the form and context in which it may appear. We shall bear no
responsibility nor be held whatsoever in the event of any unauthorized whether in part or in
whole.
2. Use of Report
The opinion value expressed in this report shall only be used by the addressee for the purpose
stated or intended in this report. We are not responsible for any consequences arising from the
valuation report being relied upon by any other party whatsoever or for any information therein
being quoted out of context.
3. Legal Title
Whenever possible, a private title search is conducted at the relevant Land Registry/Office but
this is done to establish title particulars relevant to valuation only. Whilst we may have inspected
the title of the property as recorded in the Register Document of Title. We cannot accept any
responsibility for its legal validity or as to the accuracy and timeliness of the information
extracted or obtained from the relevant Land Registry/Office.
4. Site Surveys
We have conducted land survey to ascertain the actual site boundaries. For the purpose of this
valuation, we have assumed that the dimensions correspond with those shown in the tittle
document, certified plan or any relevant agreement.
5. Structural Surveys
While due care has been taken to note building defects in the course of inspection, structural
surveys were conducted and any inspection of woodwork or other part of the structure which
were covered or inaccessible.
6. Deleterious or Hazardous Material
No investigations have been carried out to determine whether or not any deleterious or hazardous
materials had been used in the construction of the property (building) or had since been
Page | 24
incorporated and we are, therefore/unable to account or report on any such material in our
Report.
7. Contamination
We have not carried out investigation into the past and present use of either the property or of
any neighboring land to establish whether there has been any contamination or if there is any
potential for contamination to the property and are therefore, unable to account and report for
such contamination in our report.
8. Disease or Infestation
Whilst due care is taken to note the presence of any disease or infestation, we have not carried
out any test to ascertain possible latent infestation or disease affecting crop or stock. We are
therefore unable to account for such in our report.
9. Leases and Tenancies
Enquiries as to the financial standing of actual or prospective lessees or tenants are not normally
made unless specifically requested. Where properties are valued with the benefit of lettings, it is
therefore assumed that the lessees or tenant are capable of meeting their obligations under the
lease or tenancy and that there are no arrears of rent or undisclosed breaches of covenants and/or
warranties.
10. Development Agreement
Unless otherwise stated, no considerations are made in our valuation for any joint venture
agreement, development right agreement or other similar contracts.
11. Outstanding Debts
In the case of building where works are in hand or have recently been completed no allowances
are made for any liability already incurred, but not yet discharged in respect of completed works,
or obligations in favour of contractor sub – contractor or any members of the professional or
design team.
12. Taxation, Encumbrances, Statutory Notices and Outgoings
Unless otherwise stated, no allowances are made in our valuation for any expense of realisation
or for taxation which might arise in the event of a disposal, deemed or otherwise. We have
considered the property as if free and clear of all changes, lien and all other encumbrances which
may be secured thereon. We also assumed the property is free of statutory notice and outgoings.
13. Validity Period of a Valuation Report
A valuation is current as at the valuation date only. The value assessed herein my change
significantly and unexpectedly over a relatively short period (including as a result of general
market movements or factors specific to the particular property). We do not accept liability for
losses arising firm such subsequent changes in value.
14. Explanations
Whilst it is desirable that all the limiting conditions and exclusions which appear in Valuation
Reports be properly and fully explained, it may not be practical to do so. Neither it is possible to
have a comprehensive list to cover all other circumstances. Suffice it is to say that the above may

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appear in Valuation Reports without any further explanation and shall form part of the conditions
of the engagement between the Client and the Valuer, unless expressly excluded.

REFERENCES

❖ Market Valuation Standards, Standard 1, Market Value Basis of Valuation. Retrieved

from https://lppeh.gov.my/WP2016/circular/circullar-12011%20-
%20MVS%201%20Market%20Value%20Basis%20of%20Valuation%20(exp%20draft).
pdf

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