vustudents
09-11-2012, 11:59 PM
Q.What are the guide lines prescribed by the law for the determination of market value of the property.
1. Introduction:
Court is empowered to determine the market value of the property. under Punjab pre- emption act there are sound guidelines for the determination of market value of the property.
2. Relevant provisions:
Sections 27, 28 Punjab pre- emption act.
3. Definition of market value:
The worth of property at the time of sale is market value.
4. Evidence of market value:
The best evidence of market value is price paid.
Case law
PLD 1970 SC 299
It was held if a price is mentioned in the sale deed shown to have been paid by the vendee, the court need not to determine the market value of the property to fix the price.
5. When market value is determined:
According to Sec. 27 (i)
"Where the parties do not agree to the price at which the pre- emptor shall exercise his right of pre- emption, the court shall determine whether the price at which the sale purports to have taken place was fixed in good faith or paid and if it finds that the price was not so fixed or paid, it shall fix the market value of the property as the price to be paid by the pre- emptor.
6. How the market value is determined:
According to Sec. 28 for the purpose of determining the market value of a property the court may consider the following among other matters, as evidence of such value.
(i) The price of value actually received or to be received by the vendor from the vendee.
(ii) The estimated amount of the average annual net profits for the property.
(iii) The value of similar property in the neighbourhood and.
(iv) The value of the similar property as shown by previous sales made in the near past.
7. Conclusion:
To conclude I can say that, the competent court can determine the market value of the property keeping in view the matter prescribed in pre- emption law.
1. Introduction:
Court is empowered to determine the market value of the property. under Punjab pre- emption act there are sound guidelines for the determination of market value of the property.
2. Relevant provisions:
Sections 27, 28 Punjab pre- emption act.
3. Definition of market value:
The worth of property at the time of sale is market value.
4. Evidence of market value:
The best evidence of market value is price paid.
Case law
PLD 1970 SC 299
It was held if a price is mentioned in the sale deed shown to have been paid by the vendee, the court need not to determine the market value of the property to fix the price.
5. When market value is determined:
According to Sec. 27 (i)
"Where the parties do not agree to the price at which the pre- emptor shall exercise his right of pre- emption, the court shall determine whether the price at which the sale purports to have taken place was fixed in good faith or paid and if it finds that the price was not so fixed or paid, it shall fix the market value of the property as the price to be paid by the pre- emptor.
6. How the market value is determined:
According to Sec. 28 for the purpose of determining the market value of a property the court may consider the following among other matters, as evidence of such value.
(i) The price of value actually received or to be received by the vendor from the vendee.
(ii) The estimated amount of the average annual net profits for the property.
(iii) The value of similar property in the neighbourhood and.
(iv) The value of the similar property as shown by previous sales made in the near past.
7. Conclusion:
To conclude I can say that, the competent court can determine the market value of the property keeping in view the matter prescribed in pre- emption law.