Contents of Valuation Report:

Particulars of Land :

(i)   Mouza                                     : (ii)  J.L No.                                     : (iii) Plot/Holding No.                      : (iv) Sub-registered Office               : (v)  Police Station                           : (vi) District                                     :

Details of Title Deeds:

(i)   Name of Owner   : (ii)  Name of Seller   : (iii) Khatian No.  : (iv) Plat No.         : (v)  Area of Land (Length & wide-sft.)                :

Location of the Land:

Present status of the Land        :

Low/Medium/High Land          :

Agriculture/Residential/Commercial   

iii.  Whether developed contiguous Land  :

Date of purchase  and purchase price of the land proposed for mortgage should be referred in the valuation certificate in  order  to check- over  valuation  within  a short period without any virtual development                            :

Proposal for mortgage of land & property located at river erosion areas should be avoided  :

Surrounding important marked  places/Industrial Area etc.        : vii. Periphery of the Land (Chouhaddi)    :  

viii.  Assessment of present value of Land    (a)        Commercial Value       :

(b) Government’s rate of valuation    : (c) Valuation of Land with basis of Valuation        :

   Buildings/Structures:

    Description and assessment

of Valuation of Buildings        :

   Year of Construction               :

iii.  Nature of Construction                        :

1.   Floor Area                               :
2.    Depreciation Value                  :
3.   Present Value of the Building  :

5.    Description of other structure :
6.     Semi Pacca                              :
7.    Tin Shed Structure etc (Lump sum)                       :

6.    Summary of assessment                :
7.    Force sale value                             :
8.    Physical possession of the Plot      :
9.    Photographs of the Land and Building                         :

10. Hand sketch Map/Location Map    :
11. Nature of title/possession               :

Purchased/Heba/Gift/Partition deed/purchased from power attorney holder should be specified             :

12. If the original title deed is reportedly lost/burnt/stolen should be specifically noted                      :

13. Machineries and equipment :
14.    Imported/Local                                    :
15.    Installed/Under process for installation                         :

1.    Condition of machineries        :
2.    Year of purchase/year of manufacture                                    :

1.    List of Machineries with specifications/Brand/Country of origin and source of procurement     :

1.     If the Machines are Imported in that case landed cost as per documentary evidence like Invoice, bill of entry etc. should be invariably mentioned.         :

1.    Quantity                                   :
2.    Basis of inventory/valuation of such machineries should be given                                   :

1.     Unit Price                                 :
2.     Total Price                               :
3.    Present Value /Book value       :
4.     Rate of depreciation                :
5.               Basis of Valuation                   :
6.   Force  sale value/Book value   :
7.    Layout sketch/Plan

of machineries                         :

1.    Photographs                             :

Basis for estimation for valuation of land & building to be taken as   collateral security against loans & advances :                                                                To determine the basis of valuation of land is rather a difficult and tricky proposition as there is no uniformity in price of land. It has been observed on many occasions that the plot lying side by side and having equal facilities may fetch different price without any apparent and convincing reason, we may as such consider the basis of valuation of a plot being purchased and sold in the locality for 02 (two) years. We may also enquire from the local people and inhabitants of the area at a random basis to arrive at an average consensus value as to the present price of the land in the locality. Again, value of the land in the present market context is a relative term as the seller and the buyer look at its from different view point. Moreover, it differs from a willing seller and an unwilling seller and similarly a willing buyer may have different value than that of an unwilling buyer.   Besides, the Buildings may be valued taking into consideration on the present cost of construction materials, labour cost and workmanship etc. as well as we may take into consideration the materials used for the construction of the building already built and the quality of its finishing work, fixture and fittings etc. to arrive at a fair and reasonable value of the same.   However, Bank may summarize the criteria for valuation of Land & Buildings under the following broad heads :   (1)        Average buying/selling rate of land in the locality for 02 (two) years i.e. last year and the year under review (present year) shall be taken into consideration at the time of valuation of land & buildings of an area. (2)        Enquiry from the local people near by the plot in question about the selling/buying rate of land in the area at random basis is to be done. (3)        Collection of rate of sell of land from the near by sub-register office of the Government are to be undertaken for valuation of land.

(4)  Consideration of valuation of the questioned land for residential/commercial/industrial/other important purpose based are to be made.

(5) Present market context-basis of valuation of land is to be ensured.

(6) Communication infrastructure basis of valuation of land are to be viewed. (7)  Special emphasis may be given on first party property for valuation of land proposed to be mortgaged.

(8) Third party property may be taken into consideration for valuation with certain amount of conservatism.

(9) “Future prospect for development of land & buildings” in question may be taken into consideration for valuation.

(10)      Future probability of acquire/acquisition by Government may be inquired and a certificate to this effect be given & taken into consideration for valuation.

(11) Enquiry about master plan of the Govt. for the area should invariably be inquired about.

(12) Legal aspect basis of valuation of Land may also be considered for the Bank’s interest point.

(13) Co-sharer/partnership of land may be valued with special care & caution. (14) Rural dwelling houses cannot be taken as mortgage against loans and advances as per the laws of the land, which should invariably be maintained. (15) Vacant land or planned construction may be valued with due weightage. (16) Constructed first class building with approved plan may be valued judiciously.

(17) Depreciation of first class pacca building should invariably be made as per the following rate on total cost of construction :

(a)        Depreciation for 1 – 10 years old building       :  ½% per year

(b)        Depreciation for 11 – 20 years old building     :  1% per year

(c)        Depreciation for 21 – 30 years old building     :  2% per year

(d)        Depreciation above 30 years old building        :  3% per year (18)      Semi-pacca construction/building without approved plan of the competent authority of the area shall not be considered for valuation, if otherwise approved by competent authority of the Bank.

(19)      Boundary wall of any sort shall not be considered for valuation.

(20)     Revision of valuation of landed properties/buildings may not be acceptable before elapse of minimum 01 (one) year from the date of 1^st valuation unless approved by competent authority of the Bank.

(21)      All constructed building must have approved plan of the competent authority for valuation consideration.

(22)      All the proposed property to be taken for mortgage against loans & advances should be classified under the following broad heads and valued accordingly to the above common & acceptable criteria:  

(i)         City corporation area (ii)        Municipality area (iii)       Pourasova (iv)       Industrial area (v)        Other area :      a)  Urban

1.             b)  Rural

(23)      Lease hold property, allotment of land & building by Rajuk, Cantonment Board, any other Government authorities, Developer, etc requires their written consent to take mortgage of any land & buildings.

(24)      Valuation may be considered to be done on the basis of price of land as per record of different development authority like Rajuk, KDA, CDA, etc.

(25)      Valuation may be considered to be done on the basis of value estimated by City Corporation, municipality, pourasova etc.

(26)      Valuation may be considered to be done on the basis of valuation acceptable by Income Tax Department and authorized audit authority.   Valuation of land in all the areas in Bangladesh should invariably be calculated/estimated following strictly the above criteria so that smooth documentation & perfection of credit culture in ANY BANK could be ensured.