Th­ese val­u­a­tions could be tricky

Weekend Argus (Saturday Edition) - - PROPERTY -

IF MU­NIC­I­PAL val­u­a­tions are higher than prices achieved, buy­ers could be forced to pay trans­fer on the higher fig­ure.

Mu­nic­i­pal val­u­a­tions of res­i­den­tial prop­erty are time and again a cause of con­tention, says Lan­ice Stew­ard, MD of Anne Porter Knight Frank.

“If the mu­nic­i­pal val­u­a­tion of your prop­erty is above the gen­uine mar­ket value and you do not get it al­tered in the next round of reval­u­a­tions, you could find that when you de­cide to sell your prop­erty the buyer has to pay trans­fer duty on the higher mu­nic­i­pal val­u­a­tion, not on the price achieved. This could be a cause of con­sid­er­able an­noy­ance.”

Stew­ard says it is the duty of the agents to prove the mar­ket price has not been ar­ti­fi­cially ma­nip­u­lated to achieve a lower trans­fer duty.

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