- VALUATION OF CONDOMINIUMS -

PROJECT APPRAISAL AND REVIEW -

- BY ASHOK KELKAR -

VICE PRESIDENT , PVAI

What is a condominium?

Condominiums are buildings in which individuals separately own the air space inside the interior walls, floors and ceilings of their unit, but they jointly own an interest in the common areas that they share ? such as the land, lobby, hallways, swimming pool, and parking lot. In addition to paying a mortgage, each owner is responsible for paying a monthly fee to the condo association, which is made up of the unit owners. The fee covers maintenance, repairs, and building insurance. Most housing condominiums are apartments, although there are mobile home condominiums as well

They are an appealing way to enter the housing market if the cost of a single-family home is out of your reach. Condos are especially popular among single homebuyers, empty nesters, and first-time buyers in high-priced housing markets. Unlike a house, condos offer a lifestyle that is free of yard work and exterior maintenance and repairs. Many condominium communities also offer amenities such as exercise rooms, tennis courts, and swimming pools that you might otherwise be unable to afford if you purchased a single-family home.

They are a good way to enter into homeownership. The high price of single-family homes and the influx into the housing market of more single homebuyers have made condos relatively hot national investments. They have held their value as an investment despite economic downturns and problems with some associations. Condominium associations have also worked hard in recent years to clean up their image. Disputes and lawsuits were once rampant. But now associations have become savvier about property management and have taken steps to prevent legal problems and disputes.


condominium (international law).

Condominium (international law) is a territory in which two sovereign powers have equal rights
Condominium is a type of joint ownership of real property in which portions of the property are commonly owned and other portions are individually owned

A condominium, or condo for short, is a form of housing tenure. It is the legal term used in the USA and in most provinces of Canada for a type of joint ownership of real property in which portions of the property are commonly owned and other portions are individually owned. In Australia and the Canadian province of British Columbia, the legal term for this is known as strata title.

Often, it consists of units in a multi-unit dwelling (i.e., an apartment or a development) where the unit is individually owned and the common areas like hallways and recreational facilities are jointly owned by all the unit owners in the building. It is possible, however, for condominiums to consist of single family dwellings: so-called "detached condominiums" where homeowners do not maintain the exteriors of the dwellings, yards, etc. or "site condominiums" where the owner has more control over the exterior appearance. These structures are preferred by some planned neighborhoods and gated communities.

A homeowners association, consisting of all the members, manages the common areas usually through a board of directors elected by the members. The same concept is also used in other countries with different names, such as "unit title", "common hold" or tenant-owner's association. Another variation of this concept is the "time share". Condominiums may be found in both civil law and common law legal systems as it is purely a creation of statute.
Non-residential condominiums

Condominium ownership is also used, albeit less frequently, for non-residential land uses like offices, hotel rooms, retail shops, and group housing facilities like retirement homes or dormitories. The legal structure is the same, and many of the benefits are similar; for instance, a nonprofit corporation may face a lower tax liability in an office condominium than in an office rented from a taxable, for-profit company. However, the frequent turnover of commercial land uses in particular can make the inflexibility of condominium arrangements problematic


Enkay Condominiums - Noida Gurgaon, India

Description: The property is in close proximity to shopping malls- departmental stores and recreational/medical facilities.

Facilities: 24 hour Reception, Reception Hours(), Security, Concierge, Lounge, Car Parking, Maid Service, Business Facilities, Laundry Service, Shopping Service, Gardens, Entry phone, Welcome Pack, Balcony, Air Conditioning, Ceiling Fans, Bath, Shower, Full Kitchen, Kitchenette, Microwave, Pots, Iron, Safe, Phone, Fax, TV, Cable, Satellite, Alarm Clock, Comments(Additional Services
- Grocery delivery service
- Morning Newspaper
- Laundry service
- Doctor on call -Taxi Service/Own Travel Agency
Within the same Apartment Building we have options of Three- two and one bedroom apartment. )

Comments: Enkay Condominiums"- is the first chain of Service Apartments in Delhi. We have are apartments in Gurgaon- New Delhi and Noida. The latter being the latest
property introduced by us. These Service Apartments are self-contained ready to move in accommodation alternatives.

Enkay Condominiums are tastefully furnished apartments- fully equipped and professionally managed. The apartments provide economical and feasible alternatives to hotels/guest houses. The Noida Apartments are located in Sector 31- which is in close proximity to corporate centres- shopping malls and recreational facilities in Sector 18. Moreover these apartments provide the flexibility of stay from one month to a year as required.

Fully furnished apartments. Each apartment has a living room ( Fully furnished with seating for five people and a dining table for four). The living room is Air-conditioned. The master bedroom and additional room have attached bathrooms and are air-conditioned. One additional utility room ( where a single bed or a Study table can be put on request). In additional to this there is another guest bathroom.
Each of the Bathrooms have instant geysers for hot water with shower curtains and a bucket and mug.
The kitchen has necessary amenities such as Fridge- microwave- stove- toaster- Kettle for tea or coffee etc. All crockery- cutlery and glassware is provided.
24 Hours Security.
Each Apartment is provided with an inverter.
Telephone facility ( ISD/STD) in each Apartment.br>Coloured T.V with 24 hours cable connection.
Iron and Iron Board., Parking Facility.
Clean Towels- bedding & Linen provided.

Enkay Condominiums"- is the first chain of Service Apartments in Delhi. We have are apartments in Gurgaon- New Delhi and Noida. The latter being the latest property introduced by us. These Service Apartments are self-contained ready to move in accommodation alternatives.

Enkay Condominiums are tastefully furnished apartments- fully equipped and professionally managed. The apartments provide economical and feasible alternatives to hotels/guest houses. The Noida Apartments are located in Sector 31- which is in close proximity to corporate centres- shopping malls and recreational facilities in Sector 18. Moreover these apartments provide the flexibility of stay from one month to a year as required.
Amenities include 24 Hours Security. Each Apartment is provided with an inverter.
Telephone facility ( ISD/STD) in each Apartment.br>Coloured T.V with 24 hours cable connection. Iron and Iron Board. Parking Facility. Clean Towels- bedding & Linen provided.

CONDOMINIUMS are fully furnished apartments. Each apartment has a living room ( Fully furnished with seating for five people and a dining table for four). The living room is Air-conditioned. The master bedroom and additional room have attached bathrooms and are air-conditioned. One additional utility room ( where a single bed or a Study table can be put on request). In additional to this there is another guest bathroom. Each of the Bathrooms have instant geysers for hot water with shower curtains and a bucket and mug. The kitchen has necessary amenities such as Fridge- microwave- stove- toaster- Kettle for tea or coffee etc. All crockery- cutlery and glassware is provided.

In India we may consider

• THESE CONSIST OF PROJECTS OF MORE THAN ONE BUILDING HAVING OR ONE BUILDING HAVING MORE THAN ONE WING WITH EXTRA AMENITIES BESIDES THE CONSTRUCTION.

• COMMERCIAL STRUCTURES / SHOPPING COMPLEXES HAVING LARGE NUMBER OF OFFICES OR SHOPS AT DIFFERENT LEVELS OR SHOPPING MALLS AND MULTIPLEXES.


VALUATION OF CONDOMINIUM BUILDINGS WITH LAND

A. INTRODUCTION


• INSTRUCTIONS FROM CLIENTS

• DATE OF INSPECTION

• PURPOSE OF VALUATION REPORT


B. LOCATION


• THE SITUATION

• ROAD AND ACCESS

• SURROUNDING PROPETIES

• AMMENITIES AVAILABLE

• PRESENT USE


C. SITE

• SIZE AND SHAPE

• TOPOGRAPHY

• BOUNDARY


D. BUILDING STRUCTURES

• BUILDING PLANNING

• SPECIFICATIONS

• OTHER SPECIAL AMENITIES

• INFRASTRUCTURE BUILDINGS

• BREAK UP - CARPET, BUILT UP AREA

• WORKING OF SALEABLE AREA

• NO. OF FLOORS AND ROOMS

• TERRACES ATTACHED TO FLATS


E. SERVICES

• ELECTRICAL SUPPLY

• WATER SUPPLY

• STREET LIGHTING

• INTERNAL ROADS FOR ACCESS

• STORM WATER DRAINS

• DRAINAGE

• COMMUNICATION

• TRANSPORTATION

F. APPROVALS FROM AUTHORITIES FOR CONSTRUCTION

• ZONING REGULATIONS & RESTRICTIONS

• DEVELOPMENT POTENTIAL

• ULC CLEARANCE

• IOD & COMMENCEMENT CERTIFICATE

• OCCUPATION CERTIFICATE

• ANY OTHER CLEARANCES


STAGE OF CONSTRUCTION

• BUILDINGWISE STAGE OF WORK OF CONSTRUCTION .

• STAGE OF WORK FOR SERVICES

• STAGE OF WORK AND PROGRESS AS PER PROGRAMME OF WORK

• REASONS FOR DELAY IF ANY

• PLANNED DATE OF COMPLETION

• IF COMPLETE PRESENT CONDITION

INSPECTION OF CONSTRUCTION


• QUALITY OF CONSTRUCTION MATERIALS

• WORKMANSHIP QUALITY

• ANY CHANGES IF SPCIFICATION OR PLANNING OF THE BUILDING LAYOUT

• WHETHER THESE CHANGES ARE APPROVED OR NOT

• ANY HINDRANCES FOR WORK


G. VALUATION PRINCIPLES


• DATE OF VALUATION

• LIMITING CONDITIONS

• VALUATION APPROACHES

• COMPARABLE PROPERTIES

• GOVERNMENT ASSESSED RATES

• PRESS SURVEYS

• ANALYSIS OF RATE ADOPTED

H. SPECIAL COMMENTS & VALUATION AS PER USPAP DIRECTIVES


• VALUER MUST BE AWARE OF , UNDERSTAND & CORRECTLY EMPLOY RECOGNISED METHOD, TECHNIQUES TO PRODUCE CREDIBLE RESULTS

• NOT COMMIT SUBSTANTIAL ERROR OF OMMISSION OR COMMISION

• NOT RENDER MASS APPRASAL IN A CARELESS & NEGLIGENT MANNER

• IDENTYFY CLIENT& INTENDED USER

• IDETIFY PURPOSE AND INTENDED USE OF APPRAISAL REPORT

• IDENTIFY SCOPE OF WORK TO COMPLETE ASSIGNMENT INCLUDING ANY SPECIAL LIMITING CONDITIONS

• IDENTIFY EXTRA ORDINARY ASSUMPTIONS & HYPOTHEITICAL CONDITIONS

• IDENTIFY EFFECTIVE DATE OF APPRAISAL

• DEFINE VALUE DEVELOPED, IF THIS MARKET VALUE, ASCERTAIN WHETEHR VALUE IS MOST PROBABLE PRICE

• ANALYSE RELEVENT ECONOMIC CONDITIONS AT TIME OF VALUATION

• INCL. MARKET ACCEPTIBILITY SUUPLY, DEMAND, SCARECITY OR RARETY

USPAP DIRECTIVES

• VALUER MUST BE AWARE OF , UNDERSTAND & CORRECTLY EMPLOY RECOGNISED METHOD, TECHNIQUES TO PRODUCE CREDIBLE RESULTS

• NOT COMMIT SUBSTANTIAL ERROR OF OMMISSION OR COMMISION

• NOT RENDER MASS APPRASAL IN A CARELESS & NEGLIGENT MANNER

• IDENTYFY CLIENT& INTENDED USER

• IDETIFY PURPOSE AND INTENDED USE OF APPRAISAL REPORT

• IDENTIFY SCOPE OF WORK TO COMPLETE ASSIGNMENT INCLUDING ANY SPECIAL LIMITING CONDITIONS

• IDENTIFY EXTRA ORDINARY ASSUMPTIONS & HYPOTHEITICAL CONDITIONS

• IDENTIFY EFFECTIVE DATE OF APPRAISAL

• DEFINE VALUE DEVELOPED, IF THIS MARKET VALUE, ASCERTAIN WHETEHR VALUE IS MOST PROBABLE PRICE

• ANALYSE RELEVENT ECONOMIC CONDITIONS AT TIME OF VALUATION
INCL. MARKET ACCEPTIBILITY SUUPLY, DEMAND, SCARECITY OR RARETY

. IDENTIFY CHARACTERISTICS OF THE PROPERTIES THAT ARE RELEVENT TO THE PURPOSE AND INTENDED USE OF THE MASS APPRAISAL INCLUDING

THE GROUP WITH WHICH A PROPERTY IS IDENTIFIED ACCORDING TO SIMILAR MARKET INFLUENCES.

THE APPROPRIATE MARKET AREA AND TIME FRAME RELATIVE TO THE PROPERTY BEING VALUED AND

THEIR LOCATION AND PHYSICAL, LEGAL, AND ECONOIMIC CONDITIONS

LOCATION OF MARKET AREA


IDENTIFY AND ANALYSE THE EFFECT ON USE AND VALUE OF FOLLOWING FACTORS

EXISTING LAND USE REGULATIONS

REASONABLE PROBABLE MODIFICATIONS OF SUCH REGULATIONS

ECONOMIC SUPPLY AND DEMAND

THE PHYSICAL ADAPTABILITY OF REAL ESTATE,

NEIGHRHOOD TRENDS

HIGHEST AND BEST USE OF THE REAL ESTATE


IDENTIFY THE APPROPRIATE PROCEDURE AND MARKET INFORMATION REQUIRED TO PERFORM THE APPRAISAL INCLUDING PHYSICAL, FUNCTIONAL AND EXTERNAL MARKET FACTORS AS THEY MAY AFFECT APPRAISAL.

EMPLOY RECOGNISED TECHNIQUES FOR SPECIFYING PROPERTY
VALUATION MODELS.

EMPLOY RECOGNISED TECHNIQUES FOR CALLIBRATING MASS APPRAISAL MODELS.

ANALYSE EFFECT ON VALUE, IF ANY, OF ANTICIPATED PUBLIC OR PRIVATE IMPROVEMENTS, LOCATED ON OR OFF THE SITE, TO THE EXTENT THAT MARKET ACTIONS REFLECT SUCH ANTICIPATED IMPROVEMENTS AS OF EFFECTIVE DATE OF APPRAISAL.

CLEARLY AND ACCURATELY DISCLOSE ALL EXTRA ORDINARY ASSUMPTIONS, HYPOTHETICAL CONDITIONS OR LIMITING CONDITIONS THAT DIRECTLY AFFECT THE APPRAISAL AND INDICATE ITS IMPACT ON VALUE.

STATE THE PURPOSE AND INTENDED USE OF THE APPRAISAL.

SET FORTH THE EFFECTIVE DATE OF APPRAISAL AND DATE OF REPORT

EACH WRITTEN MASS APPRAISAL REPORT MUST CONTAIN A SIGNED CERTIFICATION THAT IS SIMILAR IN CONTENT TO FOLLOWING FORM.


I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE & BELIEF


. THE STATEMENT OF FACTS CONTAINED IN THIS REPORT ARE TRUE AND CORRECT

. THE REPORT ANALYSES, OPINIONS AND CONCLUSIONS ARE LIMITED ONLY BY THE REPORTED ASSUMPTIONS AND LIMITING CONDITIONS AND ARE MY PERSONAL, IMPARTIAL AND UNBIASED PROFESSIONAL ANALYSIS, OPINIONS AND CONCLUSIONS.

. I HAVE NO PRESENT OR PROSPECTIVE INTEREST IN THE PROPERTY THAT IS THE SUBJECT OF THIS REPORT AND I HAVE NOPERSONAL INTEREST WITH RESP[ECT TO THE PARTIES INVOLVED.

. I HAVE NO BIAS WITH RESPECT TO THE PROPERTY THAT IS THE SUBJECT OF THIS REPORT OR TO THE PARTIES INVOLVED WITH THIS ASSIGNMENT.

. MY ENGAGMENT TO THIS ASSIGNMENT WAS NOT CONTIGENT UPON DEVELOPING OR REPORTING PREDETERMINED RESULTS.

. MY COMPENSATION FOR COMPLEING THIS ASSIGNMENTIS NOT CONTNGENT UPON THE REPORTING OF A PREDETERMINED VALUE OF DIRECTION IN VALUE THAT FAVOURS THE CAUSE OF THE CLIENT, THE AMOUNT OF VALUE OPINION, THE ATTAINMENT OF A STIPULATED RESULT OR THE OCCURRENCE OF A SUBSEQUENT EVENT DIRECTLY RELATED TO THE INTENDED USE OF TIS APPRAISAL.

. MY ANALYSIS, OPINION AND CONCLUSION WERE DEVELOPED AND THIS REPORT HAS BEEN PREPARED IN CONFORMITY WITH USPAP.

. I HAVE ( OR HAVE NOT ) MADE A PERSONAL INSPECTION OF THE PROPERTIES THAT ARE THE SUBJECT OF THIS REPORT. ( IF MORE THA ONE PERSON SIGNS THIS REPORT, THIS CERTIFICATION MUST CLEARLY SPECIFY WHICH INDIVIDUALS DID AND WHICH ONE DID NOT MAKE A PERSONAL INSPECTION OF THE APPRAISED PROPERTY )

. NO ONE PROVIDED SIGNIFICANT MASS APPRAISAL ASSISTANCE TO THE PERSON SIGNING THE CERTIFICATION. ( WRITE NAME OF PESONS PROVIDING ASSISTANCE )