Valuation by Purpose

Appraisals for applying for a loan, use as collateral for mortgages, or resale will be related to the customer. First, the valuer must specify the name of the loan applicant as well as the name of the person who will use it to apply for a loan or the lender according to the person’s identity. Otherwise, it will not be legally enforceable. Usually, in the appraisal report for a loan application, the essential contents are as follows : Right document details Verification of right document of the land office Certification of land location according to the right document Certification of building location on land. (Is there any intrusion?) Building ownership inspection Building inspection on the land inspection Valuation method and market information Certification of the appraised value Certification of valuer’s independence Mortgage purpose valuation from financial institutions, it is recommended that customers check with that institution if they can contact to request for the valuation report with an external valuer or not.

Conducting a valuation report to negotiate debt restructuring and request on increasing the monetary amount with the creditors. This type of property valuation is required to appraise the value to be present to benefit or achieve the objectives of both parties. For your information concerning this valuation, please note that they can inform our valuers if the appraisal is for the existing customers who used the service before. We will make a review of the previous information, which will be convenient and lower service cost.

To participate in the auction, you must have the property’s market price to help you with decision-making. Participating in the auction, whether as a creditor, debtor, or even investor, fewer objection rights are given according to the new rules in these modern days.  In addition, another group of users recommended for this type of property valuation is when facing unfair trading, for example, when the selling price of the Legal Execution Department may be lower than the actual market value, which would cause the defendant to suffer from the sale. Therefore, the valuation report will be required to oppose and reference for the court.

There are plenty of cases of appraising for using a court witness as evidence which includes regardless of whether in the form of document or witness person as a professional and independent. In addition, this type of valuation can be used even in the process of negotiation before being brought to the court’s attention. By using this valuation service regardless of whether the plaintiff or the defendant, the user is required to provide all the truths of the issues concerning the negotiation as well as the controversial and argument of the opposite party for the valuers. Valuation under the court’s order resulting from the request from one of the parties to provide the concerned documents necessary for the valuation is one of the lawyer’s strategies in terms of enabling the disclosure of property accounts so that the appraisal will be completed. By doing this, the valuers will send a list of required documents and information and the Interview methods that must be cooperated under a court order to make an accurate valuation base assumption. Otherwise, it will lead to arguments, and the report will need to be revised, which will be a waste of time and money. In some cases, such as if the lawyer is already hired, it might be better for the valuers to directly summarize the issues with the lawyer in charge of the case. Last but not least, in case the valuers have to attend the court as a witness, there will be a scope of providing service that will be separated.    The required documents for this purpose of the valuation are : Draft of indictment or prosecution (if any) Court’s order to arrange the appraisal (if any) Document of right in the disputed property Documents concerning the property details

Assets that have been installed in the production line or service from the beginning until the present may be outdated or performance degraded, which is not enough to produce or provide services to meet the changes in market demand or customer trends. It is necessary to improve the production line or machines and equipment to serve customers, including demolishing the buildings and rebuilding them to be modern. On this occasion, the appraisal of the property for selling separately is necessary to come to the customer service to determine the value of the property after demolition or to sell it separately in the antique market, which there is still a lot of demand for the service to be performed when the properties are still remain in the original location to determine the number of properties that can be sold out in the form of a group of ready to use asset (Used Machine Value), dissembled assets for reassembly (Value in Exchange), scrap property (Scrap Value) in order to set the price appropriately according to the market demand. This includes setting the price for accounting when disposing and distributing among the group of subsidiaries. For example, there is a need to move the plant and machines production base from the parent company in one country to a subsidiary in another country. Another example is the service of a fitness center that wants to sell and discard the old set of exercise equipment that is outdated, not in the popularity of customers to be replaced with the new equipment, etc.

Appraisal with specific purpose for government agencies or private sectors who receive concessions and authorization from the government agencies to proceed with public development projects on their behalf. Projects may also be in the form of a joint venture between the government and the private sector. The reason for granting responsibility and authorization to the private sector is mainly down to the superior flexibility of operation the private sector is able to deliver in completing projects. Hence, the state’s burden and incurred costs are passed on to the private sector. As a result, the cost of expropriation or the eminent domain must be carefully obtained and examined by the private sector domain by conducting feasibility studies before any project proceeding. The procedures regarding the valuation for compensation cost for government projects begin as the private sector identifies the project’s framework and subjected area to exercise the power of the eminent domain. This includes categorizing each right and ownership document for each landowner or holder of the right. The process has to be done carefully and thoroughly in order to cover every square inch of the area. Any plot of land being left may delay the delivery of the area, hence, delaying the project entirely. After the expropriation line or area subjected for the eminent domain has been clearly stated and officially announced publicly, the next step is conducting an on-site survey of the entire area to determine details of the assets and properties located on each plot of land; buildings, houses, trees, livestock and any special structures that may exist. It is also crucial to consider the nature of possession and ownership on the ground of each plot. Otherwise, problems may arise later, which result in the non-deliverable of the land to be developed upon. Subsequently, the valuation models and approaches are identified after the exploration of the land. Valuation may adopt multiple appraisal methods depending on the type of ownership, building type, type of usage, location, etc. This type of appraisal requires the cooperation of qualified senior appraisers with a high level of expertise along with the assistance of a law firm specialized and familiar with the law on government’s expropriation. The law firm representative must be able to present at the public hearing, provide an appropriate explanation, and testify before the court when being called upon.

Appraise for using in an expropriation appeal : the appraisal issues before or after expropriation valuation, the expropriation impact that occurred to the expropriation appeal to be submitted to the committee or used in court which the scope must be clearly defined. Please refer to all required documents in this property valuation below : Notice from expropriation agencies Layout/plan of the expropriation project and parts that affect land Title deed and building plans Income structure and impact on business operations (optional)

The purpose of this valuation is similar to the valuation for financial institutions’ credit purposes. Still, most consignment mortgages are person-to-person activities that are used to borrow money between parties. In Thailand, there are two methods for registration of rights and juristic acts in the land. The first is to register a mortgage act, which is to bring a collateral property to register a mortgage with a lender. When there is a default on payment, it will have to enter the court proceedings called enforcing the mortgage. Then, the collateral property will be brought into the auction process by the Legal Execution Department. When the property is sold, it will be repaid to the creditor while the rest will be given to the debtor. However, suppose the collateral property is sold but still unable to pay off all debts. In that case, the debtor must find money to cover the remaining amount, called the shortfall, returned to the creditor. The second type of registration is called consignment. It will be more convenient for the creditor since the sale of receivables is like selling out of ownership. However, there is an option for the debtor to redeem; for example, selling with redemption is due for one year. On the registration date, the transfer of ownership will be paid in advance. If the expiration date of 1 year, the debtor does not come to redeem from the creditor, the ownership will be vested in the creditor by default without having to go through the court process of enforcing. Therefore, creditors usually prefer this option. Nevertheless, there is a disadvantage of selling with redemption, which is the high cost of lending. One of the obvious things is the transfer fee which must be paid on the registration date at the Land Department. Once the payment is made, there will be no refund, even with scheduled redemption. By comparing this transfer fee to the mortgage fee (1% of the loan amount), it will be hugely different in which the transfer fee will fall on the borrower, causing the borrower to have a lot of burdens.

Appraisal for foreclosure assets purpose to be used in setting up the price, notify the Legal Execution Department so that the creditor or debtor does not lose the right to set the property price, to be in the market price, as well as to be used as a criterion to be aware of their right on the day of the auction to allow the price of the last bidder to be knocked over at that auction due to the auction price would affect the profit and loss of the debtor and the creditor. However, according to the regulations of the Legal Execution Department, the debtor and creditor can submit the price of an independent appraiser to the committee to determine the price for consideration as a basis for setting the starting price of the auction.