We are all aware of the debate going on about Banks requiring Undertakings / Indemnity Bond from valuers at the time of empanelment. Inspite of several representations made at various levels including the Indian Banks Asociation (IBA), there seems to be no favourable outcome for valuers. On the contrary, the Central Bank of India has gone a step further by demanding Rs.1 lac deposit that may even be forfeited.
Attached is a copy of the letter issued by Central Bank to valuers in Mumbai. Your attention is drawn to pt. no.4 on page 1 and Undertaking on page no.3 of the letter. Other towns are likely to follow. Be prepared ....
The future of valuation professionals is in dolldrum. Our Institutions should come forward in the interest of their member & ask RBI/ IBA to protect the interest of our valuers, like wise Insurance Surveyors Institute did. They should also take a third party group insurance to protect financial loss to the members for any future claim by any bank. Such practice is common in Europian & American countries.
System of professional indemnity insurance for valuers in Denmark
The Danish Property Transaction Act covers all property transactions in which a consumer is involved. According to this Act a professional indemnity insurance is obligatory for all professionals involved and furthermore, in order to be registered as an estate agent you have to put up a guarantee of not less than 2.5 million DKK (US$1.2 million) against any claim from consumers. In other words, If an estate agent makes a wrong valution the consumer can claim his loss covered by the insurance company. All members of our association are covered by such an indemnity insurance and this will cover any loss suffered because of a wrong valuation, even if we are talking about a commercial property, where no consumers are involved.
The purchaser is liable for the following costs: half the fees for final contracts, which are calculated as 0.6 percent of the property value plus €175; lawyers’ fees, approximately €400 to €1,000, depending on the value of the property and the amount of legal work required; legal fees associated with the mortgage, 1.5 percent of the mortgage value plus €175; stamp duty and other costs, 0.6 percent to 1.5 percent of the property value.
The vendor would normally be expected to pay the estate agent’s fees of around 6 percent of the property’s value.
Posted: Wed Apr 22, 2009 10:50 pm Post subject: Indemnity as well as 1 lac security deposit by Valuer
Dear Fellow Valuers,
Being a learned professional I request you all to use a very simple principle of common sense. Rather than making noise in magazine or web site or sometimes in seminars, you guys are very learned and understand law. Why not file a PIL immediately after consulting a learned solicitor? The language the bankers use and the way they treat valuers is very insulting. I do not think even a bonded labour is treated this way in any country. I have heard lot of noise from valuers about this however there was no action seen or courage to fight. Valuers surrender finally at the feet of the bankers instead of taking any action. Please let's get united and fight for the betterment of personal, family, staff, friends, society and country at large.
By accepting less fee officially and then asking higher fees in cash to manipulate valuation is the game bankers play along with few manipulative people. If you do not discontinue to do this this practice wil continue and you will be forced to quit even if your reports are genuine , correct and without any problems. Banks will keep threatening each valuer by forfeiting it's security deposits, black listing from panel and so on........
If you think that you have right to earn and pay tax for the country's betterment please join in campaigning against such dirty actions by central bank as well as other banks.
Dear Mr Mehta,
I have read your comments on CBI Indemnity bond. Only the valuers like you can change our valuers fraternity.Our fraternity accepts whatever is thrust on them, without knowing pro & cons.
Posted: Mon Jun 14, 2010 12:58 am Post subject: Re: Indemnity as well as 1 lac security deposit by Valuer
[quote="mohit_mehta1"]
dear mr mehta,
congratulation for such a bold opinion. But the young or new valuers can’t go for such actions as they try hard to settle first, they don’t dare to speak against banks or their officers. Such actions are expected to be taken by institution or group of sr. valuers who can dare to speak and act against such rules and conditions imposed upon for betterment of valuers of india. All valuers will be thankful to them if they do this noble work. I have a question for institution of valuers that why are notthey doing anything against such acts by banks besides proud representatives of maximum number of valuers in India? What the office bearers are doing after such a big outcry by valuers from long time back against banks illegal rules and conditions. Is there any say in govt. by this big institutions of valuers? institution Please act immediately, sr. valuers do something.
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum You cannot attach files in this forum You cannot download files in this forum
(1).jpg)
.jpg)
.jpg)
half the fees for final contracts, which are calculated as 0.6 percent of the property value plus €175;