· Cost, price, and value · Types of value · Basic elements of value – marketability, utility, scarcity, and transferability · Factors affecting value – physical, economic, legal, and social · Highest and best use, value in use, value in exchange · Real property: rights and interests in real estate; types of ownerships and types of occupancy in real estate · Annuities; capitalization and rate of capitalization; years purchase; sinking fund; redemption of capital; reversionary value · Construction and use of valuation tables · Urban infrastructure and its influence on value of real estate · Real estate market and its characteristics; investment in real estate; factors influencing demand and supply schedule in real estate · Concepts of green building.

INCOME APPROACH TO VALUE

· Relation between income and value · Valuation of property affected by the Rent Control Acts; licensed property under the Easement Act, 1882; leasehold properties under the Transfer of Property Act, 1882 · Derivation of yield rate from market derived data · Remunerative rate of interest and accumulative rate of interest · Types of rent: outgoings, income, yield, years purchase · Determination of market rent and standard rent · Lease – lessor and lessee: types of lease; lease provisions and covenants · Valuation of lessor’s interest, lessee’s interest including sub-lease in leased property; premature termination of lease or surrender of lease · Real estate as an investment; yield from real estate vis-à-vis other forms of investments; sound investment comparison · Investment decisions: discounted cash flow techniques, internal rate of return, net present value and capital assets pricing model · Profit method for valuation of special properties: hotels, cinema, mall, petrol pump, hill resorts.

MARKET APPROACH TO VALUE

· Types of market · Market survey and data collection; sources of sale transactions · Comparison of sale instances: factors of comparison and weightages for adjustment in value · Hedonic model and adjustment grid model under sales comparison method · Land characteristics and its effect on land values · Hypothetical plotting scheme for value of large size land · Residue technique and other development methods · Valuation for joint venture development of property.

COST APPROACH TO VALUE

· Methods of cost estimates for buildings · Life of building: economic, physical, legal · Factors affecting life of the building · Total life, age, estimating future life · Various methods of computation of depreciation, functional, technological, and economic obsolescence · Reproduction cost/replacement cost, depreciated replacement cost (DRC) working, adopting DRC as value subject to demand and supply aspect · Land value by market approach and building value by cost estimation method for owner occupied bungalows, factories, public buildings.

VARIOUS PURPOSES OF VALUATION

· Valuation of properties for purposes such as: bank finance, auction reserve, building insurance, sale, purchase, valuation disputes in court, probate, partition, rent fixation, stamp duty, capital gains tax, as per rule 11UA of the Income Tax Act, 1961, lease and mortgage of property, any other purposes not referred above · Valuation standards as per the provisions of the Companies Act, 2013 · Indian accounting standards (Ind AS 16, Ind AS 36, Ind AS 40, Ind AS 113) as applicable to valuation · Valuer as an expert witness in court · Valuers’ functions & responsibilities, error of judgement and professional negligence.