Real estate appraisal
A real estate appraisal is the numerical appraisal of that property to obtain a median price set by a land expert as a standard. by the land appraiser, which includes both government and private sectors.
Reasons to have a real estate appraisal
- to be calculated as property of a person to pay taxes such as income tax, specific business tax
- Calculate the fee for transferring land ownership to the Land Department.
- When a lawsuit is filed in the court that requires a guarantee to the court in a civil case that the debt will be paid within the specified time or in a criminal case to bail the defendant. Courts often place assets that cost more than debt or fines as collateral. And brought it to the court to ensure that the contract was fulfilled.
Principles of real estate appraisal according to international principles
There are three basic principles:
- How to compare market prices
market price means The prices traded by market makers are buyers and sellers. Therefore, to use this method, they must be traded in properties of similar nature. and then bring the market price to adjust it to be the appraisal price again
- how to calculate from income
This is a way to bring that property’s average annual net income. Then divide the desired return. This method is suitable for real estate valuation used to generate income such as dormitories, condos for rent, rental houses. Calculate the appraised value based on the income received from the property per year.
- How to calculate the replacement cost
It is a method of calculating the property’s value plus the construction cost. Subtract the depreciation of the property or depreciation and then get the appraised value. This method is suitable for evaluating less traded assets. Can’t use the method of thinking from the market price comparison.
Details in the purchase and sale contract
- counterparties
The details of the parties are buyer and seller details such as name, address, ID card number, which the contracting party may be a natural person or a juristic person. It tells who is the buyer and who is the seller Denver mountain homes for sale.
- Real estate that is traded
Details of the assets that are agreed upon to buy, sell and transfer ownership to each other. In telling the property’s details, it is necessary to tell precisely what it is, such as the title deed number, land number, house number, area of a square, etc.
- Agreed price and payment method
details of how much the property price is It should be stated in both numbers and letters for accuracy and should also specify how and how the price will be paid, e.g., by cashier’s check. Half on the contract date The other half will be paid on the transfer of ownership at the land, etc.
- time to transfer
In the contract, the parties to the contract must be specified to transfer ownership in the future, so it may set a specific date or set a period. For example, both parties agree to transfer ownership within three months from the contract date, etc.
- Transfer fees and taxes
The transfer of ownership of immovable property is subject to a transfer fee that is not required by law who is obliged to pay. The parties can agree on how much the parties will pay. I may be able to split the payment in half.
- Other terms and conditions
The parties may have additional terms or conditions of sale, for example, if either party delays the performance of their duties beyond the agreed upon. May agree on the matter of interest or additional damages in this contract.
- Liability for breach of contract
Liability of the breaching party This clause may or may not be included in the contract as it is protected by law. But if to increase confidence in the contract, the liability of the person who breaches the contract can be put in place. For example, if the contract is breached, the other party agrees to use and enforce the law, etc.
- sign
In the contract to buy and sell must sign the names of the parties as necessary as evidence in the legal action which The signature of the person liable is required. Including the signature of two other witnesses in the contract, however, the signature must be written by hand only. It cannot be stamped or printed.
In addition to the details that appear in the contract, Since real estate is a property that has to be registered in a juristic act, there are many documents.
