The Valuation and Property Services Department assesses the market value of any property transferred according to Para 17 of Stamp Act 1949.
It said there are a few interpretations for “market value” from different parties, including professional bodies, acts as well as court’s decision in the case of compulsory land acquisition. The definition clearly states that market value is not entirely referring to the amount agreed between willing buyer and willing seller, but has to include other factors such as possible relationship between the two parties . The property also has to be marketed in open market and both buyer and seller should have adequate information regarding the subject property.
Market value definition encompasses a few components – a willing buyer and a willing seller; in an arm’s length transaction; after proper marketing; and where the parties each had acted knowledgeably, prudently and without compulsion The writer’s concern on the tendency by government valuers to ignore independent professional valuers who also use accepted valuation methods can be explained by Standard 11 of MVS which states that the valuer should use appropriate approach or method of valuation in carrying out the valuation. Approaches as stated in MVS are comparison approach, income approach and cost approach, said JPPH.