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Which of the following statements in relation to valuation of a building is FALSE? V1: Valuation is done either for buying or selling of the property. V2: By conducting valuation the future value of the property is determined. V3: Valuation is done for rent fixation or mortgaging.

Which of the following statements in relation to valuation of a building is FALSE? V1: Valuation is done either for buying or selling of the property. V2: By conducting valuation the future value of the property is determined. V3: Valuation is done for rent fixation or mortgaging. Correct Answer V2 only

Explanation

  • The technique of finding the fair price of an existing building or property is known as valuation.
  • Valuation of property is done to work out the amount of fair rent of a building, buying or selling of the property, etc., especially when it is requisitioned by the government or semi-government organization.

Future value of the property cannot be determined by valuation.

  1. There are generally six methods of valuation:
  2. Rental Method of Valuation
  3. Direct Comparisons of the capital value
  4. Valuation based on the profit
  5. Valuation based on the cost
  6. Development method of Valuation
  7. Depreciation method of Valuation

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