Appraiser report - a document that appears in transactions between citizens and organizations when registering the right to property and in other cases. Legislation requires it to guarantee reasonable results.
A bit about legislation
The basic regulatory act is the Law on Valuation Activities. At the level of the Ministry of Economic Development, standards for valuation activities have been adopted . In addition, it indicates how the report of the appraiser should look. Numerous nuances are described in detail in these documents. Naturally, these orders are in accordance with the law.
Assessment is required. This is what the Law on Valuation Activities reads, as well as other acts. It should be carried out at the disposal of state or municipal property, mortgage lending, before signing the marriage contract. In fact, this procedure cannot be dispensed with by filling out an inheritance or by filing a lawsuit with a court in a property dispute. The appraiser's report is now in demand in many cases.
Where does the document come from
They conclude a contract with a specialist. The selection of an appraiser may be made by a government agency or interested individual. For example, an assessment of an object may fall on a participant in privatization auctions. In any case, an agreement is signed. The document is made in paper or in electronic form. In the second case, the use of an enhanced digital signature is mandatory. Document components:
- name of the parties;
- purpose of work;
- information about the object to be evaluated;
- what type of valuation should be carried out (market or cadastral price);
- how much the service is evaluated;
- time after which the appraiser's report should be submitted;
- Information about the SRO, which the independent appraiser is in, or the organization for which he works;
- information about the liability insurance of the contractor.
The agreement indicates the standards on the basis of which the assessment should be carried out.
Report Requirements
There are additional requirements for the appraiser’s report. They relate to the specifics of the subject of evaluation. In particular, evaluation has its own characteristics in the nuclear industry, real estate, etc.
The report indicates information from the contract regarding the grounds, goals and timing of the procedure:
- an accurate description of the object or subject of assessment;
- assessment standards ;
- sequence of actions of a specialist;
- The date on which the task was completed.
The report of the independent appraiser or working for the organization is signed by him, a stamp is placed - his own or the organization in which he works. The appraiser is not limited in the amount of information that he can add to the report, the main thing is that there should be a minimum of information in accordance with the law and standards. It must be remembered that, despite all the requirements and rules, in any report there is a certain share of assumptions and probabilities, although seriously the figures obtained by different experts should not differ.
Property Valuation Features
Citizens and organizations are primarily interested in the market valuation of objects. The inventory or cadastral value is calculated for some types of taxes, and the appraisers almost do not encounter it. There are several ways to calculate market value:
- costly;
- profitable;
- comparative.
The first method is based on the technical characteristics of the facility, the calculation of the costs of re-equipment and conversion. The second depends on the potential income from a particular object, for example, on the amount by which the cost of an apartment or land will increase after some time. The third method is based on a comparison of similar objects. Of course, individual characteristics are taken into account. This is what the apartment appraiser’s report is usually based on.
Real estate appraisal experts are the easiest to find. Almost all of them work with real estate agencies, in the BTI (both in private and in state).
How is the evaluation process built?
The report of the real estate appraiser is based on the same scheme:
- existing knowledge is collected (technical documentation);
- the analysis is carried out, including the surrounding area (the degree of development of roads, public infrastructure).
Literally every detail plays a role. Even in one house, apartments are priced for completely different amounts. The area of ​​the object, the level of improvement of the house itself also apply to this. The house may be located near a prestigious area, while its life is nearing completion, which also affects the price. The price is reduced if the house is in good condition, there is a store nearby, a pharmacy, but there is no transport infrastructure. This is the basis for the report of an independent appraiser.
The specialist needs:
- Documents from cadastral registration. If there is no cadastral passport, they are asked to provide a technical passport, which is compiled in the BTI.
- Explication, floor layout.
- Documents confirming ownership of real estate.
If redevelopment is planned, a project of work is provided, as well as other information, depending on the situation. The specialist directly says what he needs.
Assessment and Litigation
Disagreement with the findings of the report is expressed in the lawsuit. It can concern both the results of the assessment itself and other actions if they are based on the assessment or are somehow related to it. Arbitration courts deal with almost all such cases. Although it is now possible to challenge the appraiser’s report in the administrative process (cadastral valuation). Agree or not - the judge decides only after the examination. It differs in only two ways:
- carried out by decision of the court;
- the expert is warned of criminal liability for a false conclusion.
Getting an examination in court is the only way to challenge the outcome of an assessment. The cost of the procedure is not particularly different in the country. The exception is the metropolitan regions. For the assessment of similar objects, experts ask about the same amount. Low or high price does not mean quality, it is better to read customer reviews. If you touch upon a question such as the validity period of an appraiser’s report, then it is usually equal to 12 months. But the law may establish other terms.