Valuation – Technical Scrutiny

We suggest having a valuation (technical scrutiny) carried out before you initiate a legal scrutiny especially if you are buying a resale independent house or a resale apartment with a Cat 3/Cat 4 builder. The chances of deviation are higher in these cases. The technical scrutiny will help you ascertain the following.

1) The deviations, if any, from the sanction plan

2) The market value of the said property

The deviations, if any: The bank loan depends on this. If the deviation is beyond the permissible limits of the bank/HFC then they may not give you the loan.

Smaller & midsized builders tend to deviate from the sanction plan thereby decreasing the chance of getting a bank loan for the purchase of the property. If the engineer approves it and confirms that there is no deviation or the extent of deviations is in the acceptable limits then you can go to the next step which is legal verification.

So, involve a good engineer to check if it’s built as per the sanction plan issued by the sanctioning authority or are there any deviations. For buildings in Bangalore where the sanction plan was issued after August 2013, deviations are generally not accepted by most banks.

For plan sanctions issued prior to August 2013 certain degree of violation are accepted. The degree of deviations accepted will differ from bank to bank.

Market Value:

The valuation report will help you ascertain the market value of the said property thereby indicating if you are buying it at the right price point.

The engineer will factor in the following to arrive at the market value.

1) Location of the property

2) Approach Roads to the property

3) Amenities in the apartment

4) Proximity to major schools, hospitals etc

5) Age of the property

6) Development in and around the property

7) The Undivided share of Land (UDS) in case of apartments

8) The plot area in case of independent houses and plots

9) The Built-up area & quality of building materials used

10) The Government Guidance Value prevalent in the area

The valuation given by different engineers can vary to an extent of 5 to 10% depending upon how they perceive and value each of these parameters.

Obtaining a valuation report is more economical than obtaining a legal report. Secondly it can be done in a few days’ time. Only if there are no deviations or if they are in acceptable limits and there is certainty of getting a bank loan you can proceed with the next step which is legal scrutiny.

The cost of valuation will be in the range of Rs 2500 to Rs 3000 plus taxes.

The documents required are

1) Sanction Plan of the apartment/House/layout approved by the competent authority like/ BBMP/BDA/BMRDA etc.

2) Copy of the last sale deed executed for the said apartment/house/plot.

3) Occupancy Certificate (OC) in case of apartments, if received. 

If you want to avail a valuation report (technical report) in Bangalore from engineers empanelled with banks like SBI and other government departments like Income Tax, BBMP etc.

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