We are often asked for "a certificate for the building", and the first question we ask back is: who wants it, and why? A bank valuation report and a structural stability certificate are both prepared by engineers after a site inspection, but they answer completely different questions.
A valuation report answers: what is it worth?
Banks ask for a valuation report before giving a home loan, a mortgage or a loan against property. It is also used for visa and net worth statements, for dividing family property, and for sale or purchase decisions.
The engineer visits the property, checks the documents, measures the building and assesses the land, the construction and its condition. The report then states a value, and explains how that value was reached. Banks usually have their own format and checklist, so share it with the valuer at the start.
A stability certificate answers: is it safe?
A structural stability certificate confirms that a building is structurally sound for its use. Schools are often asked for one, factories need one for licence renewals, and owners sometimes need one before adding a floor, changing how a building is used, or after visible damage.
Here the engineer looks at the structure itself: cracks, the condition of columns, beams and slabs, signs of settlement, and the loads the building carries. Where needed, simple tests are done on the concrete. The certificate states whether the building is fit for its purpose, and lists any repairs needed first.
A quick way to tell them apart
- If a bank, a buyer or an embassy is asking, you most likely need a valuation report.
- If a school department, a factory inspector or a licensing authority is asking, you most likely need a stability certificate.
- If you are planning to add a floor or change the use of a building, start with a structural assessment.
Before you book either one
Ask the organisation requesting it for their format and any requirements for who may sign it. Have the property documents and any approved drawings ready, and make sure the engineer can access every part of the building during the visit.
We prepare bank valuation reports, structural stability certificates and technical valuations of machinery and assets. Tell us who the document is for, and we will tell you exactly what is needed.
Written by the team at Prasanth Associates.