1.

For the market value of the property 3 years average GLV is taken to determine
value in LARAR.
2. Value nearer to that place or village is the basis for fixing market value in LARAR.
3. District Collector has the power of taking possession of acquired land.
4. As per Section 23 of LARAR, the market value is determined as on Date of
publication.
5. As per Section 23, 15% additional percentage value given for compulsory
acquisition by court.
6. The District Court As per Section 49, who has the power to acquire a part or full area
of the building.
7. 5 years is the minimum period for return of the unutilized acquired property.
8. An assigned government / patta land can be taken for acquisition.
9. Limit of acquisition of land is restricted for Agricultural lands.
10. Exemption of stamp duty is the power given in Section 51 of LARAR.
11. Basement as per Building bylaws is excluded in floor area ratio if Used as car park.
12. For group housing, the density pattern is taken per dwelling unit as 4.50 persons per
DU.
13. Size of the plot determines the number of dwelling unit.
14. As per the building byelaws, the minimum open car space as per parking standards
Is 18 sq. m.
15. As per the building byelaws, the minimum covered car space as per parking
standards, is 23 sq. m.
16. As per the building bye-laws, the minimum basement car space as per parking
standards, is 28 sq. m.
17. Rent Control Act is applicable for properties like tenanted properties.
18. As per Rent control Act, the tenancy right is only occupancy right and the eviction
right is to the landlord.
19. Ownership rights in rent-controlled properties Can not be transferred.
20. The value of the Rent Controlled properties will have a low market value.
21. In rent control act, the fair rent is to be determined on date of petition.
22. In rent control act, the depreciation is determined by linear method.
23. 50% over building plinth area is an appurtenant land, as defined in rent
control act (Tamilnadu)?
24. In case of a rented building in third floor, 1/3 share of the land is proportioned
(Tamilnadu)?
25. Ownership rights under licensed properties cannot be transferred
26. Tenancy period under licensed properties is as per license agreement.
27. The value of the licensed property can be done by income approach method.
28. Indian Easement is the law by which the property acquisition cannot be made.
29. Government Grants act 1895is the name of the act which governs grant?
30. How the Government land is transferred by assignment.
31. Assignment by issue of patta is the Method of assignment.
32. Town property is the property type which is not assigned by the Government
normally.
33. Indian succession Act, 1925 is the act which governs succession.
34. Transfer of Property act, 1882 is the law which is not governing succession.
35. Owner’s legal heir can acquire ownership by succession.
36. Lease is not the way for property transfer to owner’s legal heir?
37. An adverse possession is governed by Transfer of property act 1882.
38. Transfer of Property act, 1882 governs the Conveyance of property.
39. Imbedded to earth –building is an Immoveable property as per transfer of Property
Act.
40. Physical delivery of property is not required for registration of property in transfer.
41. Mentally restarted/legally disqualified are not eligible for registration of property in
transfer.
42. Rights is on intangible assets are not corporeal rights.
43. A sole ownership means a person owning a thing.
 44. A co-ownership or concurrent ownership means Two persons owning at the same
time.
45. A trust and beneficial ownership is Solely for the benefit of the trust.
46. An absolute ownership means Clear, perfect title, vested ownership.
47. A contingent ownership means Conditional right, with limitations.
48. A corporeal Possession or a direct and primary Possession is Owner of a building,
car, factory.
49. Servant holding owner’s money is a Representative Possession.
50. Concurrent Possession is possession held by two persons jointly at the same time.
51. Undue ownership rights when person is not having the right claim is an Adverse
Possession.
52. Transfer of property act, 1882 applies to Conveyance of property.
53. As per Transfer of property act, 1882, the property that can be transferred is Clear
perfect title ownership.
54. Person pledging an interest is called a mortgagor.
55. Person securing loan advanced is called a mortgagee.
56. Principal + interest on loan secured is called a mortgage money.
57. Mortgage deed is called Transfer deed for loan secured
58. If sale conditions are not there in the mortgage deed mortgage by conditional sale
become non-effective.
59. The Local body authorities for nonpayment of statutory taxes, has taken land of a
company as security and mortgaged towards the taxes due to them. Till the
time of repayment of taxes it enjoys the land and derived the benefits and
adjusted towards the company’s dues to them. This is Usufructuary type of
mortgage.

60. As per Section 96, mortgage done by deposit of title-deeds is called English
mortgage
61. non-consent of non-assigning party are rights conferred in assignment.
62. When Contract contain non assignment clause revocability of a gifted assignment
cannot be carried out.
63. If law confer sale power a lien is not called as common-law lien.
64. Lease requires registration as per the Transfer of Property Act, 1882
65. Conditional transfer as per Sec. 25 is possible if the condition is possible & can be
fulfilled.
66. Transfer as per Sec. 53 does not mean fraudulent if Transfer is done with
consideration done.
67. While transfer of property to lessee under lease, the lessor is not required to
pay capital gains.
68. If both land and building are given on lease, it is called occupational lease.
69. A leased property is normally valued by income approach.
70. Capital value is net income multiplied by years purchase.
71. 99 years lease with renewal clause is called a perpetual lease.
72. Lease for life is not common in India.
73. Net profit rent for lessee = Rack rent minus ground rent minus outgoings.
74. The rights of lessor / lessee depends upon the conditions stipulated in the
lease deed.
75. Even in a perpetual lease, the lessee’s right will be low, if the unexpired period is
less.
76. The handing over of open land back to the lessor is called Reversion.
77. A property is a bundle of rights.
78 The word “covenant” indicates the terms and conditions stipulated in any deed.
79. A man cannot grant a lease to himself.
80. Perusal of lease deed is the first duty of a valuer if he wants to value a leasehold
property.
81. A “deposit” is the amount which is returnable on fulfillment of certain conditions.
82. The amount of Re. 1 per annum is the reciprocal of the sinking fund.
83. The rate of capitalisation in leasehold depends on the money market from time to
time.

84. The capital value of income can be determined from the net income and the
percentage return required on investment.
85. The rate of capitalisation for a leasehold interest in general is 1% more than the
freehold interest.

86. A token amount or a nominal rent is called as a Acknowledgement rent.

87. If the unexpired period of lease is short, the value of lessor’s share will be more.
88. If the unexpired period of lease is very long, the value of lessee’s share will be
more.
89. A leaseholder’s interest in a property will normally decrease with the passage of
time and ultimately extinguish with the expiry of lease.
90. Net Rent = Gross rent - Outgoings.

91. Longer period of lease enables the lessee to recover his capital invested in the
improvement of the land.
92. Ground rent is well secured when improvement is done on the land given on lease.
93. In the case of sub - lease, if the proposed ground rent is higher than the original
ground rent, then it is known as improved ground rent.

94. Valuation procedure for a freehold property and a leasehold property with a
perpetual lease is not same.
95. The provisions or terms of lease would decide the share value of lessor and
lessee.
96. When lessor’s interest is valued, single rate table is normally to be used.

97. A lease where lessee has undertaken to carryout all the repairs and to bear all
outgoings is called as “Full Repairing Lease”.
98. In the case of perpetual lease with covenant of renewal, the lessor cannot
terminate the lease or refuse to renew the same as long as the lessee do not
violate any terms specified in the lease agreement.
100. Lower the rate of capitalisation, higher is the value of the asset.
101. If the document creates an interest in the property, it is a lease. But, if it only
permits another person to make use of the property for a temporary period, then
it is a license.
102. The owner of a freehold property can do anything with his property.
103. A freehold property is the highest form of ownership.
104. License and lease are not same.
105. The leaseholds are less attractive than freeholds from the investment point of view.
106.The sub - lease can be granted only for a period which is less than the original
lease period.
107. A rent is governed by the Rent control act. A licence is governed by the Easement
act,
108. A lease is governed by the Transfer of Property act.
109. Schedule III cannot be adopted for valuation of leasehold rights.
110. Section 3 of the transfer of property act, defines notice.
111. Transfer of property is defined in section 5
112. Section 6 lays down that property of any kind may be transferred, except
as otherwise provided by this act or by any other law for the time being in force
113. Fraudulent transfer is contained in section 53.
114. Plaintiff seeks specific performance of an oral contract and alternatively
pleads benefit of section 53 - A of the transfer of property Act - Alternative
relief cannot be granted.
 115. Property acquired by a male under Hindu succession act depends upon
facts and circumstances,
116. A Hindu dies intestate leaving behind two sons one daughter and
widow. His property shall devolve to Sons, daughter and widow.
117. As per Muslim law the estate of a deceased person devolves after his/her
death.
118.In Muslim law, a gift consideration is called Hiba - bil – iwaz.
119.Under Muslim law, the only natural guardian is Father.
120. The actual expenditure in manufacturing an asset is called as Cost
121. The amount paid for acquiring ownership is called Price.
122. Cost plus profit is called as Price.
123. Price Need not be always more than the cost.
124. An estimate of the price as it ought to be, is called as Value.
125. Mr. X has spent Rs. 1 crore in constructing a residential building and he
offers Rs. 1.15 crores to sell it. The cost is Rs. 1 crore
126. Mr. Y purchases a house for Rs. 1.15 crore as against the cost of 1.00
crore as incurred by Mr. X. Rs. 1.15 crore is the cost in the hands of Mr. Y.
127. The tag attached to a product in a shop for the purpose of selling is called as
Price Tag.
128. For the purpose of giving loan to a property under mortgage, the bank is
directing its valuer to certify Value.
129. To construct a new building, Mr. X has applied loan. After the
construction is completed, the bank directs the valuer to certify the Cost of
const ruction.
130. After the construction of his new building, the assesee for the purpose of
income tax approaches the valuer and request him to certify the Cost.
131. The rental value of the property assessed by the local authority for levy of
property tax is called as Annual letting value
132. The value which can be defined as an estimate of the price the property
would realise in the open market under private or public auction is called as Auction
value.
133. The written down value of an asset as shown in the books of account is called
as
Book Value.
134. When a property is sold by the owner under distress condition, the sale
price is called as Distress value.

135. When a property is sold in the open market under normal conditions, such
value is called as Market value.

136. The value of a running business of an industrial or commercial establishment

with all its tangible and intangible assets is called as Going concern value.

137 When the auction is carried out under order of the court and is also
supervised by the court, such value is usually called as Liquidation value.
138. When sufficient time is given for auction to liquidate the assets, it is called as
Orderly liquidation value.
139. When the assets are liquidated as quickly as possible with a little market
exposure and short time, it is called as Forced liquidation value.
140. The estimate value of mortgage loan amount that could be safely advanced by
the bank is called as Mortgage value.
 141. Replacement cost minus depreciation is called as Depreciated replacement
cost
(DRC).

142. It is an estimated value of the property worked out on notional concepts for
special purpose, say for purpose of taxation. The value is called as Notional
Value.

143. This term in common parlance would mean net money likely to be realised by
the owner after the sale of the property. The value is called as Realisable
Value.
144. The minimum price mentioned in the advertisement for the purpose of
auctioning
is called as Upset value (Reserve value)
145. Salvage value is the price expected for a building whose useful span of life
is over but is still continued use. It is the value at the end of utility period of
the asset without being dismantled.
146. Scrap value (Junk value) is the value of dismantled materials which has
become completely useless for any further use.
147. Speculative value is the value of a property to a speculator who invests in the
property with the sale motive of selling the property at a profit within a short
time.
148. Mr. ‘X’ would like to buy a car with the special registration number 1 or 786 by
giving extra amount. This value is called as Special value.
149. It is the true value of the property as distinct from the agreement value. A
property is purchased for Rs. 50 lakhs but the sale agreement is made for
Rs. 25 lakhs. Rs. 50 lakhs is called as Intrinsic value.
150. It is a value of the property estimated in accordance with the provisions of
the concerned statute like wealth tax schedule III. The value is called as
Statutory
value.
151. The four essential elements of value are: Utility, scarcity, demand and
Transferability.
152. No one would like to buy a property if it has no Utility.
153. The property has value only if it can be transferred.
154. A temple property is Non - marketable property.
155. A temple property is not marketable, yet it has got value. Instead of
market value, we may call it as Notional value.
156. A temple property can be valued by assuming Hypothetical sale (not
actual sale).
157. If any commodity is available in abundance, it will Lose its original value,
158. If there is no demand for a product or no paying capacity to buy a product
It loses value
159. The property has a value only if it can be transferred.
160. In order to possess value, an asset ought to have Utility.
161. The properties which are available in limited quantity and are not in
abundance command High Value.
162. The ownership and possession of the property can be transferred by way
of sale, lease, mortgage, will, etc. and hence it has a value. This is called
Transferability
163. The factors such as local population, employment opportunities, changes
in capacity of local residents, trend of city growth are
Micro economic factors
164 Domestic savings, fixed capital formation in construction and real estate
sector, flow of capital investments in bank, fixed deposits, shares, debentures,
government securities are Macro economic factors.
165. Demand and supply of properties and income fetching properties are
called as Economic factors.
166. State and Central governments, policies of land development, economic
& Taxation policies of government, money market situation, recession period
in real estate are Economic factors;
167. Inflation or deflation in nation’s economy, availability of money on credit
from bank, burden of property tax, employment opportunity are Economic
factors.
168. Land characteristics like size, shape, plot area, frontage, orientations, soil
type, topography are Physical (Technical) factors
169. Infrastructure facility like roads, water supply, drainage, power supply,
telecommunication links are Physical (Technical) factors
170. Prominence and placement like main road, by - lane, dead end road,
remote area location are Physical (Technical) factors.
171. Building characteristics like RCC framed structure, further life, age of
structure, deterioration, specification of building, workmanship quality,
intelligent building & green building concepts, obsolescence, maintenance are
Physical (Technical) factors
172. Functional aspects like optimum use of inner space with minimum
wastage, amenities like swimming pool, garden, lift, security system, intercom
facility, health club, children’s play area are Physical (Technical) factors
173. Environmental aspects like noise, smoke pollution level, sea front,
nuisance due to railway track, industries, air port, climatic conditions are
Physical factors
174. Natural calamity like earth quake prone areas, flooding and cyclone
hazards, Tsunami prone area are Physical factors
175. Soil condition - Rocky soil, hard muram, black cotton soil, reclaimed soil,
filled up ground are Physical factors.
176. Rent control act, Urban land ceiling act, Coastal regulations, Ecological
restriction are examples for Legal factors.
177. Transfer of property act with lease provisions, Covenants under lease or
conveyance deed, Easement act for licenses, Civil procedure code are
examples for legal factors.
178. Land acquisition act, Building Bye-laws, Town planning acts, Zoning
regulations, Laws governing building construction like development control
rules, FSI norms, Open space regulations, etc, Wealth tax, Income tax act are
examples for Legal factors
179. Law on earth quake resistant building, Reservation under different acts
are examples for Legal factors
180. Safety distance from industrial belt, hazardous zone, etc., height
restriction rules near airport area, safety distance from high tension lines,
railway tracks, highways, water courses, are examples for Legal factors
181. Locality (like poor class, middle class, posh areas); Neighbourhood (like
well developed, less developed, slum, cremation ground, dumping ground,
nuisance due to community hall); Civic amenities (like proximity of shops, mall,
market, hospital, bus stand, railway station) are examples for Social factors
182. Populations (density in area and population growth), Means of
communication (railway, roadway or waterways) are Social factors.
183. Prestige aspect (prominent location, renowned personality, well known
celebrity, famous sport champion, industrialist, politician); Political factor
(Linguistic or religious communal unrest) are examples for Social factors
184. Racial habitation (like parsi colony, mohamedan colony, hindu colony,
catholic colony), Religious factors (like proximity of temple, church, mosque)
are the examples for Social factors,
185. Personal factors like Sentimental, Considerations, Belief in vaastu, Liking
for specific neighbourhood are the examples for Social factors

186. It is worth of an asset to specific user and therefore it is subjective and is

usually measured by cost of replacing the property less depreciation. It is non
market based value. It is called as Value in use
187. It is the price that would tend to prevail in a free, open and competitive
market on the basis of an equilibrium, set by forces of demand and supply. Highest
and best use or alternative use of the property is also considered while estimating
value. We may say it is also Fair market value Value in exchange
188. The things which can be physically touched or felt like land, furniture, jewelry
are called as Tangible asset
189. The things which cannot be touched but have the right of ownership of non -
material things are called Intangible asset
190. Land, building are the examples of Tangible asset
191. Copyrights, goodwill are the examples of Intangible asset
192. Property consisting of land and objects and substances permanently attached
to the ground is called Real property,
193. Plant and machinery, jewellery are considered as Movable property
194. A property is a Bundle of rights.
195. If a thing can be owned only by one person at a time, it is called as Sole
ownership
196. If two or more persons own a thing as in the case of a house or land. It is called
Co-ownership
197. It is an example of duplicate ownership which allows the separation of the
powers of the management and the rights of management. It is called as Trust
198. The legal relation between a person and an object denoted as Ownership
199. Life estate is one in which a property is conveyed to a person only for the
terms of his life.
200. It is the most complete ownership in real property. It implies absolute
ownership. The owner’s right is unrestricted in time (till perpetuity). This is called as
Freehold
201. A freeholder gives out to someone for use for a fixed duration under certain
terms and conditions. This is called as Lease
202. The use of someone’s land without obtaining the title is called as Easement
203. The owner of the adjacent premises may use the land owned by his neighbour
on a temporary basis is called as Easement right
204. It is a rate of interest at which the investor is willing to invest his capital to get
benefit. It is called Rate of capitalisation
205. If a person deposits Rs. 10,00,000, in a bank as fixed deposit, the bank offers
interest at 8% on Fixed deposit. This 8% is called as Rate of capitalisation
206. The rate of return expected by the investor for recoupment of capital invested
in the property is called as Rate of redemption of capital
207. Rate of capitalisation is known as Remunerative rate of interest
208. Rate of redemption is also called as Accumulative rate of interest

Capi t al value x ℜ. 1
209. Rate of Capitalisation = Year’s Purchase

210. The year purchase to receive annuity of Re. 1 at 8% rate of return is

=100/8=12.5%
211. Net Income x Years Purchase gives Capital Value.
212. The amount that has to be set aside annually by building owner at given rate
of interest for the period equal to past age of the building is called Sinking fund
213. The formula for Annual sinking fund is
r
( 1+ r )n−1

214. Annuity is defined as the net annual payment (return on investment) for the
capital invested in an immovable property
215. Mr. X get a rate of return of 6% from his investment on commercial shop of
value 1 crore. What is the annuity?
6
Annuity= Rs.1,00,000× 100 =RS .6,00,000/¿
216. Mr. X invests money in a nationalised bank as fixed deposit. The bank gives 8%
as annual interest on fixed deposit. The monthly interest amount Rs. 80,000. What
is the fixed deposit amount (Capital value)?
Let P be the fixed deposit.
r=8%
Time=1 Year.
Monthly Interest=Rs.80,000/
 P × 8 ×1 P × 8 ×1
Annual Interest= 100
, Monthly Interest= 80,000= 100 ×12
P= Rs.1,20,00,000/

217. Mr. X invests money Rs. 15,00,000 in a bank and he gets ever month Rs.
10,000 as monthly interest. What is the rate of interest (Rate of Capitalisation)?
P=Rs.15,00,000/
r=?
Let Time=1 Year.
Monthly Interest=Rs.10,000/
1500000× r × 1 1500000× r × 1
Annual Interest= 100
, Monthly Interest= 10,000= 100 ×12
=8%
218,Net annual income is called annuity
219. Time value, interest rate, future value are valuation concept of an
annuity.
220. Invested Amount + interest received is Capitalization.
221. Yield rate is Interest versus capital value
222. Discount rate is Inverse interest rate.
223. Remunerative rate of interest is Comparable rates with other investments
224. Accumulative rate of interest is Total interest portion on accumulation
225. Year’s Purchase is Method of valuing future income
226. Rate of return is% net income of capital value investment
227. Sinking fund is Reserve fund for future capital expense
228. Range of Rate of sinking fund 3 % to 8%
229. Redemption of capital Capital+ accumulative interest recoupment.
230. Rate of redemption of capital when compared to market rate is Lower.
231. For short term period leased properties or building having a shorter life span,
the rate of redemption of capital has to be dealt with Terminable income
232. Reversionary value is Difference of capitalization value and market rent value
233.Reversionary yield Anticipated yield on estimated rental value
234.The formula for Amount (A) is
A=P (1+r)n
235.The formula for Amount of Re. 1 per annum (APA) is
( 1+ r )n−1
APA=
r

236. The formula for Annual Sinking Fund (ASF) is

r
( 1+ r )n−1

237. The formula for Present value of Re. 1 per annum at Years Purchase is

238. The formula for Present value (PV)

1
( 1+ r )n
239. A leasehold property is normally valued by Income approach
240. If years purchase (Y.P.) is 12.5, then the rate of return is
100/12.5= 8%
241. If the unexpired period in lease is short, then the lessor’s share will be more
242. If the unexpired period is very long, the value of lessee’s share will be more
243. The value in the hands of lessor and lessee mainly depends on Terms &
conditions of the deed
244. Poor Govt. budgetary allocations affects the real estate value?
245. When there is No urban infrastructure development the real estate value
comes down?
246. JNNURM linking is not a finance type used for urban infrastructure
development?
247. CRISIL is the authority for Rating of bonds?
248. Bonds is not a Public - Private Finance options.
249.Centralization of Governance is not a function of JNNURM.
250. What is the gross amount which will fetch for Rs 1,000 at 10% on simple
Interest for2 years term?
1000× 10× 2
I= 100
= Rs.200/
Amount= 1000+200= Rs.1200/

251. What is the gross amount which will fetch for Rs 1,000 at 10% on Compound
interest amount for 2 years term?
A=1000× (1+10/100)2 = Rs.1210/

252. Present value of rupee Calculation - What is the Present value of rupee for
Capital amount receivable at a future date of Rs 10,00,000 at 6 % compound
interest rate for10 year term?
1
= ×10,00,000=¿Rs.5,58,390/
( 1+ .06 )10
253. Amount of Re. 1 / year (annum) Calculation - Rs 500 deducted every month
and invested annually towards PF account from salary for a period of 20 year terms
and at a 7% of compound interest?
( 1+ .07 )20−1
APA= ×6000= Rs.2,46,000/
0.07
254. Annual sinking fund Calculation - To find out the depreciated worth of the
building to set aside annually for 10 lakhs as Capital recoupment amount expected
at a 4% interest rate for the period unexpired period of lease of 60 years.
0.04
×1000000 = Rs,4200/
( 1+ .04 )60−1

255. Present value of future income of Re. 1 / year (Single rate basis) - Annual
Rental income from property is Rs 48,000 /-. If the building is demolished after 40
years, what will be the present value of the property @ 7% interest rate?
1
(1- ¿ ×1 /.07 × 48,000=¿Rs.6,39,936/
( 1+ .07 )40
256. Present value of future income of Re. 1 / year (Duel rate basis) - The annual
rent received from the property is Rs 48000 /-. Expected rate of return is 10%
future life of the building is 50 years. .Recoupment rate is 4% on capital. Find the
purchase price.
1
Y.P. = r +S
( 1+ .04 )50−1
S= =152.66
0.04
I=1/S= 0.0065
1 1
YP= r +S = .10+0.0065 =9.38
Capitalised Value= 9.38× 48000=¿ 4,50,240/

257. Investment in immovable properties is considered as Sound investment

258. When compared to the yield rate available for long term investment in
Government security, the return of return on investment in real estate is
considered as Higher.
259. In case of any sale or transfer, getting back the capital invested is Certain
260. For owner occupied properties in a developed area, capital appreciation is
Fairly good chance
261. If the Land alone is fully developed and rented out, the method to be used
Income approach
262. Land fully developed, partly owner occupation partly rented out Owner by
market approach & rented portion by. income approach
263. Land partly developed and rented, additional FSI available in the property
Rental method & market approach.
264. Rental method is applicable for properties like Tenanted property.
265. As per which Act, the tenancy right is only occupancy right Rent control Act.
266. As per which Act, the eviction right is to the landlord Rent control Act.
267. As per which Act, Reversion of the property is to the landlord Rent Control Act
268. The value of the Rent Controlled properties will have a Low market value.
269. What is the Government Act for lease Transfer of property Act
270. Deduction allowable under Indian Act on rental income of house property is
30%
271. License is defined in Section 52 of Indian Easement Act
272. When a parcel of land is given on lease, the rent reserved in lease is known as
Ground rent.
273. The rent mutually fixed by the owner and the tenant is called as Contractual
rent
274. The rent which can be legally charged by a landlord from a tenant or the rent
derived by a court of law is called as Standard rent.
275. The rent which includes the premium is called Virtual rent.
276. When the lessor leases the property on lease he will get Head rent.
277. When the head lessee sub leases the property he will get Rack rent.
278. The difference amount between the amount received by the head lessee by
sub leasing the leasehold property and amount paid by the head lessee to the
lessor is called Profit rent.
279. Secured ground rent is 1% to 2 % less in comparison with unsecured ground
rent.
280. Notional rent is the rent assumed if the property is Owner occupied or vacant
premises
281. Lease requires registration as per the Transfer of Property Act.
282. 99 years with due provision for renewal is specifically called as Perpetual
lease.
283. Lessor gives an Open plot of land on lease to the lessee for the construction of
building for a lease period. This lease is Building lease.
284. Lessor gives a building (i.e.) both land and building on lease to the lessee for a
lease period. This lease is Occupational lease.
285. A lease agreement in which the lessee pays all outgoings apart from his head
rent. Such lease is called Full repair lease.

286. What is the lease name when the lease period is fixed till the death of lessee
and the lease period expires on lessee’s death Life lease.
287. A perpetual lease can be valued in the hands of Lessee.
288. A leasehold property is normally valued by Income approach.
289. If years purchase (Y.P.) is 12.5, then the rate of return is 100/12.5=8.00%
290. The value in the hands of lessor and lessee mainly depends on Deed Terms.
291. If the unexpired p.eriod in lease is short, then the lessor’s share normally will
be More.
292. If the renewal clause is not stipulated in the lease agreement then the lessor’s
share will be More.
293. If the lessee surrenders the development in the property free of cost after
expiry of lease period then the lessor’s share will be More.
294. If the periodical rent revision in terms of market rent during lease period, then
the lessor’s share More,
295. If the unexpired period is very long, the value of lessee’s share will be More.
296. If there is no restrictive conditions in the lease deed, then the value of lessee’s
share will be More.
297. If the profit rent is more and balance lease period is more, then the value of
lessee’s share will be more.
298. Premium means Non-refundable Price.
299. Premium is defined in transfer of Property Act Section 105.
300. Remunerative rate / Accumulated rate of investment of lease period for 50
years and above will be Equal.

301.Real estate economics is the application used for

a) Predict patterns of prices b) Predict patterns of supply c) Predict patterns
of demand
302. Financial institutions are not the main participants in real estate markets?
303.The following forms the demand side of the market:
a) Owner using for his own b) Owner for investment purpose c) Renter or
tenant
304. Insurance companies people are all not forming supply side of the market.
305. The following are the characteristics of real estate economics:
a) Durability on construction b) Heterogeneity in terms of its location, the building,
and its financing. c) Pricing of real estate
306. The market adjustment process subject to:
a) Time delays b) Due to delayed finance c) Design and construction
307. When the real estate market considered in terms of both an investment and
consumption good following items are considred:
a) The expectation of attaining b) the intention of using it a return
308. The following variables affecting demand schedule in real estate:
a) Population size and population b) More people in the economy growth
c) Family size, family age composition, net migration, death rates.

309. For Calculating Market Demand following are considred.

a) Household demand and b) Income or permanent income or measure of wealth
annual income c) The price and quality factor
310. When the supply is in excess of demand, it is called as Buyers market.
311. When the supply is less than demand, it is called as Sellers market.
312. In buyers market, the king is Buyer
313. In sellers market, the king is Seller.
314. Expectations of people about likely fall in price of real estate in near future
results in Stable market.
315. Under market approach, we can normally value only Marketable properties.
316. Non - marketable properties can be valued by Cost approach.
317. ‘Highest and Best use’ aspect is to be considered in Market approach.
318. ‘Market is Supreme’ - This aspect holds good in Market approach.
319. In the demand and supply curve, price is plotted as Y-axis.
320. In the demand and supply curve, quantity of goods available is plotted as X-
axis
321. Transaction takes place after higgle haggle (bargaining) for the price. This
process is explained by Bell curve.
322. The four factors - economic, physical, social and legal factors mainly affect
Value.
323. Sale recorded at Registrar’s office is one of the sources where Sale instances
can be collected.
324. Formula for success in any valuation assignment is Registrar of documents.
325. For collecting data for sale comparisons, a good source of information is
Registrar of documents.
326. Before undertaking comparison with sale transactions, the valuer’s prime duty
is Study the title deed.
327. Sale transaction records cannot be fully relied upon because of Black money
transaction(parallel economy).
328. The weightages adopted in sale transaction may Change from locality to
locality.
329. The weightage to be applied to sale instance rate in the case of landlocked
land is -75%
330. The weightage to be applied for forced sale by authorities is say-15%.
331. The weightage to be applied for low lying plots Deduct for cost of earth filling.
332. The weightage to be applied for large size plot- 15% to - 40%.
333. The weightage to be applied for properties pending litigation (stay in the court
against sale) - 30% or more.
334. The adjustment grid model can be adopted mainly for Flats.
335. For adjustment grid model, the (minimum) main attributes of the properties
are 4 (Location, size, age, specification)
336. In the adjustment grid model, negative weightages are given for Inferior
specification.
337. In the adjustment grid model, positive weightages are given for Superior
specification.
338. Under the adjustment grid model, the rate adjustment is mainly to be given
first for Time.
339. The factors to be considered under Hedonic Pricing Model (Adhoc Comparison
Technique) are Size, Time, Location, Age.
340. The value of land mainly depends on Economic, technical, social and legal
aspects.
341. If the land is situated in a business area of the town, the rental value is More.
342. The important criteria for the selection of the best land in the town is
Location, location & location.
343. If the land is situated where there are no infrastructure facilities like water,
power, drainage, the value is Less.
344. When the land is large, the land rate is comparatively Lower.
345. Wider frontage plot in a commercial zone is valued More.
346. Return frontage is known as Corner plot.
347. The plots having road in the front and rear side is called as Double frontage,
348. When the width of road is more, normally the value is said to be More.
349. The concept of floating FSI or transferable right for development of the land is
TDR aspect.
350. Hypothetical plotting scheme is mainly used to value Large open land.
351. Hypothetical building scheme is normally used for Under utilised property
with less FSI,
352. Sale comparison method and development method (Residual technique) are
the two main methods under Market approach
353. When total unavailability of sale in.stances are there, the method useful to
find the land rate is called as Development method(Residual technique)
354. By using this method, land value can be arrived at. The method is called as
Development method.
355. Joint venture is mostly applicable for Apartment building
356. In a joint venture development, the ratio normally represents Promoter :
Landlord.
357. In a joint venture, the land rate is to be considered based on Prevailing market
rate.
358. In a joint venture agreement, the building is rate is based on The proposed
specifications of building.
359. In a joint venture arrangement, the share of the landlord will be more if the
land rate is High.
360. In a joint venture agreement, the share of the builder is less when Building
rate is less than the land component.
361. In a joint venture agreement, the two main factors which decide the ratio
normally is Lan.d rate & FSI
362. The actual cost of construction of a building in terms of money as actually
spent by the owner is called as Historic cost.
363. The cost of building in the year 1990 is 5 lakhs to Mr. A; If it is sold to Mr. B for
Rs. 10 lakhs in the year 2000, the original cost to Mr. B is Rs. 10 lakhs.
364. The depreciated replacement cost of the building to the new owner is called
Original cost
365. The term - loss in money value due to age, usage, wear and tear is called as
Depreciation.
366. To arrive at the book value, the essential data is Historic cost.
367. The area of the building multiplied by unit rate of building is called as Flat rate
method.
368. The method devised by CPWD to work out the cost estimate for the building
proposed to be constructed is called as Cost index method.
369. Latest CPWD plinth area rates are as on 01.10.2012
370. The most reliable and accurate method to estimate the cost is Detailed
estimate method,
371. This method is widely used to file claim under land acquisition act and for
insurance companies Reinstatement method,
372. The actual service life (planned life) of the building is called Economic life.
373. Economic life of a RCC roofed load bearing building is normally considered as
50 - 60 Years.
374. The actual survival life of the building before collapse is called as Physical life.
375. The life of building becomes obsolete due to changes in life style of society.
This is called Obsolescence life.
376. A building is erected in a lease land which has 30 year lease period. The valuer
has to adopt the life of the building as 30 years only. This is called Life due to legal
constrains.
377. Excess wear and tear Reduces the life
378.The economic life of RCC framed structure is normally 60-80 Years.
379. For the purpose of calculating depreciation, a valuer normally adopts
Economic life.
380. High rise RCC framed buildings which are not designed for earthquake
resistance features like shear walls may have Reduced life.
381. Materials used in the construction, workmanship, soil conditions, weather
conditions, etc., determines Total life of building.
382. Decrease in value of the property through wear, deterioration and
obsolescence is called as Depreciation.
383. The normal wear and tear which occurs due to the usage of the asset is called
as Physical depreciation.
384. A residential building existing on the plot which is placed in commercial zone is
a glaring example of Economic obsolescence.
385. Dilapidation of building or heavy structural repair is also Economic
obsolescence.
386. Many palaces are converted into Hotels. This is due to Functional
obsolescence.
387. A computer may become obsolete within two or three years due to Functional
obsolescence
388. Old load bearing structure with more thick walls is an example for
Technological obsolescence.
389. The method of depreciation widely used by Chartered Accountants for
Taxation purpose is called as Written down value method.
390. Statutory depreciation method is also called as Written down method.
391. The method where equal percentage of depreciation is allowed on its original
cost(Replacement cost) for each year of life is called as Straight line method.
392. Constant percentage method, constant rate of depreciation is first assumed
and depreciation is calculated by applying formula.
393. as Economic obsolescence.
394. An asset suffering from severe economic or functional obsolescence may have
High depreciation.
395. Cost of creating a new building having identical utility and performing similar
functions as being performed by the existing old asset is called as Replacement
cost.
396. Reproduction cost is cost to produce exactly similar asset (i.e. exact replica -
mirror image) of the old existing asset to be valued. It has same utility, functions,
similar specifications.
397. Current replacement cost minus depreciation is called as Depreciated cost
(Net present value).
398. To calculate depreciated replacement cost, the value to be considered is only
Replacement cost.
399. Replacement cost and reproduction cost are Not same.
400. For building insurance, only this cost is to be used Reproduction cost.
401. In land acquisition matters, if any ornamental building is acquired, this cost to
be considered is only Depreciated reproduction cost.
402. Net present value is used to indicate Current value of the asset.
403. Net present value is also called as Depreciated cost.
404. Market value of the building is estimated by using the formula Net Present
Value Replacement cost - Depreciation. This approach is called as Cost approach.
405. This method is not helpful in estimating values of premises which are rented
Cost approach.
406. In Cost approach method, land is separately valued and building is separately
valued.
407. Land married with structure does not fetch same price in market as a Virgin
land
408. In the areas where much sale transactions have not taken place, land value
estimation is Very difficult
409. Forced sale value and orderly liquidation value are the two classifications
under Liquidation
410. When the property is to be partitioned according to predetermined shares, the
basis of valuation should always be Market value.
411. Forced sale value and realisable value are Not the same.
412. Value of brick field is usually calculated on the basis of 10 years profit for the
lessee’s interest
413. When doing valuation of fisheries, the year’s purchase for such fisheries
normally can be10 to 12 on net profit
414,Collecting stamp duty for the deeds registered in the registrar’s office is State
subject
415. The procedure adopted by many states for fixing guideline rate is Not uniform.
416. Market value by adopting guideline rate fixed by local registrar’s office and by
adopting prevailing market rate - are not the same.
417. An applicant has proposed to construct a residential building and he applies
loan of the building, the bank asks the valuer to certify the Cost.
418. A borrower is pledging his property as a collateral security to a bank. The bank
directs the valuer to certify the Market value.
419. The borrower’s account becomes NPA. The bank has taken symbolic
possession. Under the SARFAESI act, the bank directs the value to certify the
Auction value.
420.When the pledged property is to be auctioned, the upset price is to be fixed by
the Bank
421. Debt Recovery Tribunal and SARFAESI are not the same
422. The reserve price (upset price) will be fixed based on the Value certified by the
valuer
423. Reserve price will be Less than the value certified by the valuer.
424.In the probate petition of the legal heirs, a valuation report is required to
Decide the court fees.
425.When a person dies after leaving a WILL, it is necessary for the executor of the
WILL to obtain a Probate from the high court.
426. Even if the WILL is signed by the deceased, it will be declared null and void if it
is not countersigned by Two witnesses.
427.The value of the property for probate purpose is to be determined as on The
date of filing probate petition to the court,
426. Courts have upheld that valuation of property for probate purposes and court
fees for probate cases should be estimated as per the provisions of Wealth tax
rules.
427. The process of officially proving a WILL to be valid is called Probate.
428. Certificate issued by a court that the WILL of a deceased is legally valid and
that the executors appointed under the WILL are authorised to administer. This
process is called Probate.
429. Probate for WILL is required to be carried out Only in Calcutta, Madras,
Mumbai.
430. A person who mortgages his property in lieu of security payment or loan is
called as Mortgagor,
431. The person who advances funds or loan amount against the security offered by
the property owner is called as Mortgagee,
432. Mortgagor does not give possession of the property to the mortgagee but he
gives as Simple mortgage.
433. The mortgage deed provides for conditional sale of the property by the
mortgagor to the mortgagee. This mortgage is called as Mortgage by conditional
sale.
434. The Mortgagor delivers possession of the property to the mortgagee. The
mortgagee receives rents and profits from the property and retains possession till
the full loan money is paid. This mortgage is called as Usufructuary mortgage.
435. The Mortgagor delivers to the mortgagee title deeds with intent to create a
security thereon. This mortgage is called as Equitable mortgage.
436. If an asset is created through finance obtained from the bank, such security is
known as Primary security.
437. The additional security (apart from the primary security) pledged to the bank is
called as Collateral security.
438. For the construction of a residential building, an applicant obtains loan from a
bank. The cost on completion is Market value.
439. In the case of collateral securities, the bank directs the valuer to certify
Market value.
440. If there is a default of repayment of loan by the borrower, the account
becomes the bank directs the valuer to certify Auction value.
441. Valuers prefer to estimate forced sale value a certain percentage less than the
fair market value. This percentage normally is15%.
442. The term in common parlance would mean net money likely to be realised
after the sale of the property is Realisable value.
443. Valuers prefer to estimate auction value a certain percentage less than the fair
market value. This percentage normally is 30%.
444. An estimate of minimum price likely to be offered by the bidders in the public
auction of the mortgaged property is called as Reserve price.
445. Before proceeding with valuation, is it the duty of a valuer to ask for
documents like title deeds, plan, etc.
446. Valuer is not a fortune teller and he can at the most foresee market conditions
only for 1 year.
447. There is not hard and fast rule that auction value should be always lower than
the fair market value.
448. Authorised officer under this act has more powers than a court receiver. He
can possession of the property from the tenants also. This act is known as SARFAESI
Act 2002.
449. A temple is a Non marketable property.
450. To ascertain the rent for the premises proposed to be occupied by Central
government department CPWD is ascertaining the rent for them
451. Plinth area rates prescribed by CPWD is being adopted by CPWD at the time
of fixing rent for the buildings proposed to be occupied by the Central government
departments.
452. While fixing rent for the premises, CPWD follows the method purely based on
recognised principles of valuation .Also on the basis of comparative study of
prevailing rent in that locality.
453. In the case of metropolitan cities, the percentage rate of return to fix rent for
non-residential purposes adopted by CPWD is10%.
454. In the case of mofussil towns the percentage rate of return to fix rent for
non-residential purposes adopted by CPWD is 9%.
455. In the case of metropolitan cities, the percentage rate of return to fix rent for
residential purposes adopted by CPWD is 9.50%
456. In the case of mofussil towns the percentage rate of return to fix rent for
residential purposes adopted by CPWD is 8.50%
457. To ascertain the rent based on the recognised principles Method of
depreciation is adopted by CPWD Straight line method.

458. The cost inflation index is prescribed by CBDT.

459. When a property is sold after 01.04.2017, the fair market value of the property
(for the purpose of ascertaining capital gain) is to be ascertained as on 01.04.2001.
460. When a property is sold on 31.03.2017, the fair market value of the property
(for the purpose of computing the capital gains) is to be ascertained as
on01.04.1981.
461. If the FMV is to be ascertained as on 01.04.1981, then cost inflation index
for1981 - 82 is 100.
462. If the FMV is to be ascertained as on 01.04.2001, then the cost inflation index
for 2001 - 02 is 100.
463. Any profit or gains arising from the transfer of a capital asset effected from the
previous year is called as Capital gain.
464. The capital gain tax percentage for an individual is 20%.
465. The capital gain tax percentage for association of persons (AOP) is 30%.
466. The capital gain tax percentage for companies is 40%..
467. Cost inflation index and cost index are not the same.
468. A capital asset held by an assessee for not more than 24 months immediately
proceeding the date of its transfer is called as Short term capital asset.
469. Sale consideration minus indexed cost of acquisition minus indexed cost of
improvement is Taxable capital gain for seller.
470. SARFAESI ACT was enacted based on the recommendation from Narasimhan
committee.
471. SARFAESI ACT was enacted in 2002.
472. Debt Recovery Tribunal and SARFAESI are not the same.
473. NPA means Non - performing asset
474. Under the SARFAESI Act, the powers of taking possession and sell them are
vested with Banks.
475. SARFAESI act consists of 6 chapters
476. Regulations of securitisation and Reconstruction of Financial Assets of banks
and financial institution is covered in Chapter II.
477. Enforcement of security interest is covered in Chapter III.
478. Offences and penalties are covered in chapter Chapter V.
479. Under rule 2d approved value’ is dealt with.
480. Under Rule 5, valuation of immovable properties are dealt with
481. Under Rule 8 (5), sale of immovable secured assets are dealt with
482. Board of directors of the bank. are the properties that cannot be considered
as security under SARFAESI act Aircraft, ship, agricultural lands.
483.Who is the authority to empanel the approved valuer under SAFAESI act (as
on2017)
484. LARAR Act deals with Land acquisition.
485. LARAR Act was implemented in 2013.
486. LARAR Act is under the purviews of Ministry of law and justice.
487. The provisions of this Act relating to land acquisition, compensation,
rehabilitation and settlement shall apply When the government acquires land for
its own use.
488. The number of chapters involved in LARAR Act is 13.
489. Chapter I of LARAR Act deals with Preliminary.
490. Chapter 5 of LARAR Act deals with Rehabilitation and Resettlement AWARD.
491. Chapter 9 of LARAR Act deals with Apportionment of compensation.
492. The collector shall determine the market value of land As per the stamp duty
value.
493. The date of determination of market value shall be the Date of notification.
494. The collector having determined the total compensation to be paid, shall, to
arrive compensation amount 100%.
495. The collector in determining the market value of building and other immovable
property used the services of a Competent engineer.
496. The collector for the purpose of determining the value of trees and plants
attached to the land acquired uses the services of Experienced persons in the field
of agriculture.
497. The right granted by a landowner to an owner of another property for the non-
exclusive called as Easement rights.
498. When a family is partitioned and its members agree amongst themselves that
in case any of the parties wish to sell even at a future date, they must do so to one
of the other members. This is called as Self-imposed easement.
499. When a co-operative society admits only vegetarians as its members, it is
called as Self imposed easement.
500. To fix electric lines over certain lands or the right to construct underground
drains over certain lands or right to dispose water through adjoining property, right
to use water from a reservoir constructed over another property is called as Legal
easement.
501. Easements are not attached to owners, but they are attached only to
Properties.
502. Easements can be created or extinguished by owners and cannot be created
by Lessees / Tenants.
503. When the benefit of an easement is not exercised over a long period of time,
then the easement may be considered as Extinguished or released.
504. Ownership of a particular property (say a flat) is held for a specified period of
time during a year - is called as Time share property.
505. The concept of time sharing was initially introduced in the mid 1960s at a
resort in the French Alps.
506. In India, the concept of time sharing started in the year1980.
507. The promoter runs the business and lets to the owner to use the premises, as
per the Once the period is over, the entire property reverts to the original
developers. This type of arrangement is called as Form of lease on a long term
basis.
508. Time share concept is advantageous to Developer and purchaser.
509. In a hill station, this period of time share will be more valuable in May
comparatively to other period.
510. Transfer of Development Rights was initially developed in USA.
511. If a person is denied the right to use his land in a particular way, he should be
offered alternative facilities to ulitise these rights in some other way so that a public
purpose is served and at the same time the interest of the land owner is preserved.
It is called as Transfer of Development Rights.
512 TDR is a concept in Land management.
513. TDR scheme was first started in the city of Bombay.
514. Transferring the building potential from one plot (originating plot) to some
other site(receiving plot) under certain terms and conditions is called Transfer of
Development Rights.
515. One of the essential conditions of the TDR is both the originating and receiving
plot must fall within the territorial jurisdiction of the Same local authority.
516. The Development Right certificate can be sold to Any other person
517. The DRC is issued by Commissioner of the local authority.
518. For the use of TDR, areas near railway track, highways and coastal areas are
Excluded.
519. The rights under “Development Right Certificate” can Be transferable and
tradable.
520. TDR originated out of free surrender of plot reserved for public purposes like
garden, school, play ground, etc. is called as General TDR,
521. TDR originated out of free surrender of plot or portion of plot affected by new
road or road widening of existing municipal road, is called as Road TDR.
522. TDR granted to developers, in lieu of carrying out redevelopment work of
‘slum area’ plot as per government policy & norms is called Slum TDR.
523. Owner of plot on which ‘Heritage’ building exists and when FSI of such plot is
plot. Such TDR is called as Heritage TDR.
524. If originating TDR is from residential zone, it cannot be used on plot in
industrial or commercial zone and vice versa.
525. The definition for easement is given in Section 4 of Indian Easement Act
Indian Easement Act.
526. “Market value is the estimated amount for which a property should exchange
on the transaction after proper marketing where in parties had each acted
knowledgeably prudently and without compulsion”. This is as per International
Valuation Standard.
Sl.no. CASE NAME JUDGEMENT

527. K.P. VARHESE vs The estimate of FMV vary form individual to

INCOME TAX OFFICER individual. The difference between one honest
valuation and another may range upto 15%.

528 GOLD COAST TRUST vs Valuation is not an exact science.

HUMPHRAY Mathematical certainty is not demanded, nor
indeed is it possible.

529. RUSTAM C. COOPER vs Property means the highest right a man can
UNION OF INDIA have to anything, it includes ownership, estates
and interest in coporeal things and also rights
such as trademarks, copy rights, patents, etc.
Court has included all types of property viz
tangible.
530. HAYS WILL TRUST vs The most likely price, in the absence of
HAYS AND OTHERS consultation between the valuers representing
conflicting interests, would presumably be the
mean price.

531. V.C. RAMACHANDRAN If there are more than one valuation for the
vs COMMISSIONER OF same property, the one which is reasonable
WEALTH TAX, and nearer to the correct market value, having
KARNATAKA HC due regard to all the relevant facts and
circumstances of the case alone should be
accepted.
532. SUBH KARAN Valuation of fully tenanted property should be
CHOUDHURY vs made on the basis of capitalization of rental
INSPECTING ASSISTANT method.
COMMISSIONER (IAC)
 533 WENGER & CO vs Combination of methods (Owner occupied -
DISTRICT VALUATION sale comparison & tenanted portion -
OFFICER - DELHI HC capitalization method) - adopted by DVO and
his approach is not only acceptable but also in
accordance with the principles of evaluation.

534. As per K.P. Varghese vs ITO (1981) 131 ITR 597 (SC) The difference between one
honest valuation and another may range upto 15%.

535. Gold Coast Trust Ltd. vs Humphray (1949) 17 ITR 19 Valuation is not an exact
science. Mathematical certainty is not demanded, not indeed is it possible.
536. As Per Rustam C Cooper vs Union of India AIR 1970 SC 564 Property includes
ownership, estates and interests in corporeal things and also rights such as
trademarks, copyrights, patents.
537. As per Hays Will Trust vs Hays and Others (1971) 1 WLR 758 The most likely
price, in the absence of consultation between the valuers representing conflicting
interests, would presumably be the mean price.
538. As per V.C. Ramchandran vs CWT (1979) 126 ITR 157 Karnataka HC, If there are
more than one valuation of the same property, the one which is reasonable and nearer
to the correct market value, having due regard to all the relevant facts and circumstances
of the case alone should be accepted.
539.As per Subh Karan Choudhury vs IAC (1979) 118 ITR 777 Kolkatta HC (Special
Value
/ FMV) ,Valuation of fully tenanted property should be made on the basis of capitalisation
of rental method.

540. Wenger & Co. vs DVO (1978) 115 ITR 648 Delhi HC (Combination of
Methods) For owner occupied portion, the District valuation officer calculated the value
on the basis of what were the rates prevalent for sale of commercial flats in
cannaught place. For the tenanted portion, he capitalised the rental value. The
method adopted by him is acceptable.
541.As per Sorab Talati vs Josheph Michem Appeal 101 of 1949 - Vol.- 2 of SOC - page
162 (Bombay) (Invest Theory of Rent), In this case, the court approved of investment
theory in preference to comparable rent theory to fix standard rent of the rent
controlled premises. The court considered return or yield from Gilt Edged
security as the basis.
542. As per SLAO (Eluru) vs Jasti Rohini (1995) 1 SCC 717 SC, Value fetched by sale
of small extent land cannot be adopted for large extent land. Loss of land for road, and
park, expenses for development should be deducted.
543. As per Jawaji Nagnathan vs REV. DIV. Officer (1994) SCC - 4 Page 595 SC, Basic
valuation register for the purpose of collecting stamp duty cannot form a foundation to
determine the market value.
544. As per Shubh Ram and Others vs State of Haryana (2010) 1 SCC 444, The
developer who undertakes the development (of a layout) and invests money for
development would also expect a reasonable profit when the plots are sold. All
 these expenditure and factors are standardized into 33% deduction towards
expenses of development.
545. As per Jawaji Nagnathan vs REV. DIV. Officer (1994) SCC - 4 Page 595 SC, Basic
valuation register prepared and maintained for the purpose of collecting stamp
duty cannot form foundation to determine the market value of the property under
registration.

546.As per Chimanlal Harigovinddas vs SLAO Special Land Acquisition Officer The court
cannot take into account the award passed by the SLAO unless it is produced and
proved before the court. The market value is to be determined as on date of publication
of the notification under sec 4 of LAA. Plus factors and minus factors are to be
considered while determining the market value.
547. As per Commissioner of Wealth Tax, New Delhi vs. Sri P.N. Sikand (1977) 107 ITR
922 (SC). The Doctrine of Unearned Increase was enunciated because of a famous
court judgement.
548. The landmark judgement, Commissioner of Wealth Tax, New Delhi Vs. Sri P.N.
Sikand (1979) 107 ITR 922 (SC) states that the increase in value of the leasehold
interest of the property leased is to be equally shared by both the lessor and lessee.
549. A valuer is not witness of facts but he is witness of opinion of facts, i.e., on fair value
of the property.
550. If A has sold a property to B for 20 lakhs through a broker, then the broker is a
Witness of fact.
551. A has sold a property to B for Rs. 20 lakhs through a broker,. The valuer as expert
witness deposes that the value of said property is Rs. 25 lakhs. Then, the valuer is
Witness of opinion.

552. The valuer must ask for the copy of my valuation report (documents) if he is
directed to give an expert witness.
553. The first important quality of an expert honest valuer while being cross
examined is Never tell a lie.
554. A valuer should always remember that He is not witness of fact but witness of
opinion.
555. Any opinion without reasoning has no value
556. A valuer who has never faced cross examination by a senior counsel in the court
will never reach perfection in field of valuation, in spite of several years of practice
as valuer.
557. It is science of morals, that branch of philosophy which is concerned with
human character and conduct . It is called as Ethics.
558. Inadequate physical inspection or doing valuation without inspecting the
property is considered as Negligence of a valuer.
559. Failure to ascertain restrictive covenants is considered as Negligence of a
valuer.
560. Opinions regarding values with reasoning is expressed by a valuer while giving
expert evidence in the examination - in - chief in the Court
561. A flat was valued by ‘A’ at Rs. 21 Lakhs and then purchaser ‘B’ purchased from
seller ‘C’ said flat for Rs. 20 Lakhs with the help of broker ‘D’. In a court case about
correct sale value Valuer ‘A’ is not called a ‘witness of fact’.
562. Valuation of property for insurance purpose does not involve Land valuation.
563. Land does not need any insurance because it is not destructible.
564. The insurance company do not insure Land.
565. A building is a Destructible asset. and hence requires insurance.
566. Insurance policy is basically a contract document under which insurance
company promises to indemnify the insured person for the loss or damage caused by the
insured peril (fire, flood) to the insured property.
567. Insurance was first established in Britain.
568. The number of subsidiaries to the head company general insurance (India) is 4.
569. To regulate the insurance business in India, Government of India introduced a
body named as IRDA.
570. The insurance company who undertakes risk of the person taking insurance
policy s called insurer.
571. The person who seeks indemnity and insurance cover for his asset from an
insurance company is called as insured.
572. The sum for which the asset is insured by the insurer is called as Insurable
amount.
573. The annual sum payable by the insured to the insurance company for risk
protection of assets is called as Premium.
574. The (fair) reasonable value (True value) of the asset on the day of taking out of
insurance policy is called as Value at Risk.

575. If the insured amount is higher than the true worth of the asset (value at risk),
than it is called as Over insured.
576. If the insured amount is lower than the true worth of the asset / value at risk,
then it is called as Under insured.
577. Concept of insurance is based on principle of Utmost good faith.
578. Fundamental principle of insurance is Insured person should not make profit
out of insurance money.
579. Immediately on payment of premium, the insurance company issues a ‘cover
note’ and later releases the insurance policy. A risk is covered even from the Date
of issue of cover note.
580. The period of an insurance policy is normally One year.
581. The types of building insurance policy which are available with the insurance
company are Two.
582. Value at risk and insurable amount are determined on the basis of depreciated
value of building. This type policy is called Market value policy,
583. In this type of policy, a clause is added that full reinstatement of the asset will
be done by the insured company, in case of total destruction of the building. It is
called as Reinstatement policy.
584. Reinstatement policy is available for the buildings of age up to 15 years.
585. Agreed value basis policy is available only for marine insurance and goods in
transit through sea way and not for building insurance.
586. In building insurance, the normal fire policies are 3.
587.Fire Policy “A”is an all peril policy. All types of risks are covered. Damage not only
due to fire but by flood and earthquake are also covered. In this type of policy, 15%
variation in insured amount estimate and actual value at risk are admissible. If difference
is more, average clause is made applicable. This policy is offered for non industrial
buildings like residential building, office building, hotel building, hospital, etc.

588. “Fire policy B” policy covers restricted peril viz. damage by fire. However it
also covers risks in estimation is not permitted. This type of policy is also offeref for
non industrial i.e for residential and commercial structures.
589. Fire policy C policy is offered mainly for industrial buildings and godown type
structures.
590. In India reinstatement clause concept was first introduced from 1935.
591. The unauthorised and illegal structures are Not insured.
592. For the high valued properties under insurance the premium amount will be more.
593. If the insured sum is 30% less than the value at risk, then the insurance
company will pay 30% less amount of the insured sum.
594. The premium rates depend on the perils and It changes from time to time.
595. Several property owners insure the flats, shops, office for full purchase price.
This purchase price mainly includes the land component and land cannot be
insured.
596. All RCC framed and load bearing structures with brick or concrete walls, RCC
slab belong to the category of Class ‘A’ building.
597. The temporary type semi-permanent structures with AC / GI shade roof,
belong to the category of Class ‘B’ building.
598. In claiming the compensation for peril
Amount payable= Assessed loss ×
∑ insured
Risk insurable
This is called as Average clause.

599. Fire insurance is an agreement between two parties The insurer and insured
600. purpose of valuation should be the first column of valuation report.
601. Writing a valuation report requires Technical and communication skill.
602. A valuation report is to be written Only after the valuation is completed.
603. Formatted valuation reports tend to be arbitrary and are not Exhaustive.
604. Writing a report on valuation is the result of instruction from the Client.
605. While preparing a valuation report, the valuer must satisfy himself that
whatever he writes,
606. The valuer himself must verify and get satisfied that the evidence and facts
stated in the report are True and correct.
607, News paper or media reports are Non technical reports.
608. Reports for income tax valuation should be furnished in FORM 0-1.
609. IVS 103 deals with Reporting.
610. Valuation date is defined in IVS as Date on which the estimate of value
applies.
611. Valuer may not be required to give Drawing as evidence as expert in the court .
612. Pay slip of owner is not a Supporting materials to valuation report