Any real estate object, whether it is a land plot or an apartment, is subject to mandatory state cadastral valuation. Since the cost is estimated by generalized and averaged indicators, it is often overstated. But it is precisely on the basis of the cadastral value that taxes are accrued. Is it possible to challenge the cadastral value of an apartment and how to do it?
Why is it necessary to dispute the cadastral value?
The Russian tax legislation enshrines the norm according to which the amount of taxation for property owned is determined by the cadastral value. This indicator is calculated by appraisers. In most cases, the calculated cadastral value is irrelevant. After all, housing conditions are changing, legislative amendments are being introduced. A change in the cadastral value is possible only after contesting it. Using this procedure, you can reduce the amount of paid taxes.
How is the cadastral value determined?
This indicator is calculated based on the results of the cadastral valuation. The state assessment is carried out by order of the authorities of the constituent entities of the Russian Federation or local municipalities. Next, a list of those properties that need to be assessed is revealed. The selection of a specific independent appraiser is made by competition. After the appraiser completes his work, the results of the event are approved by the regional or municipal authorities. After the approval of the cadastral value, the results are entered into the State Property Committee. Revaluation of the cadastral value, in accordance with applicable laws, is carried out once every five years, and in Moscow and St. Petersburg - with a frequency of two years.
How to find out the cadastral value?
The cadastral value is recognized at the address of the property through the Rosreestr website. To do this, enter the address on the site page with reference information. You can also use the cadastral number of the object.
The cadastral number at the address is also determined by the public card, which is also available on the Rosreestr portal.
In order to receive official paper confirming the cadastral value, you should make a request through the Rosreestr portal or in the following organizations:
- Branch of the Federal Cadastral Chamber,
- Multifunctional Center.
Who can demand a reduction in cadastral value?
This important indicator can be challenged by:
- owners of real estate, including shared property,
- owners with the right to lifetime ownership of the inherited property or permanent use,
- previous owners who wish to reduce the amount of property taxes accrued to them,
- tenants of state or municipal real estate, when the monthly fee is determined by the cadastral value,
- prosecutors who protect the interests of citizens, the state, municipalities, constituent entities of the Federation,
- persons who have the exclusive right to rent or buy out property from municipal or state ownership, when the price is determined on the basis of the cadastral value.
It is important to note that if the former owners dispute the value, this indicator may be revised for the tax period during which the application is submitted. The cadastral value for the previous period will not be reviewed.
Reasons to challenge
How to challenge the cadastral value of an apartment? Before you begin the challenge process, you should make sure that there are good reasons for this. Here are the main reasons to dispute:
- when determining the value, doubtful and inaccurate coefficients and data were used;
- the discrepancy between cadastral and market values, when the valuation was carried out relatively long ago;
- application of generalized assessment methods without taking into account the individual characteristics of the property;
- amending legislation.
Methods for calculating value are constantly changing. In addition, they are purely individual for each region.
Appeal to the Rosreestr commission
How to challenge the cadastral value of an apartment? This can be done by contacting a special commission that was created by Rosreestr. The right to challenge the results of an unsatisfactory estimate of the cadastral value is enshrined in Russian law.
The commissions responsible for resolving disputes work in all administrative units of the Russian Federation. The composition is approved by Rosreestr. As a rule, it includes senior officials of Rosreestr, employees of the Cadastral Chamber and local administration, as well as representatives of independent appraisal bureaus.
The contest of the cadastral valuation begins only in those situations when the relevant parties apply to the commission.
The commission accepts and considers absolutely all appeals. At the same time, both individuals and legal entities can apply. Moreover, various organizations of the state structure, for example, the local administration, can apply to the commission when they have disputes regarding property owned.
The application is accompanied by a package of documentation, which includes:
- Statement of review.
- Cadastral passport for the apartment. Rosreestr, or rather, the Cadastral Chamber, which is its integral part, is engaged in the issuance of this document. A passport can only be issued after technical accounting is completed. This document needs to be updated periodically, since its validity period is exactly one year. The cadastral passport must indicate the address of the property, years of construction and the last major overhaul, materials used in the construction of walls and ceilings. In addition, it is important that the presence of communication systems (sewage and water supply), as well as the type of heating of the room, is noted. It is issued at the branch of the Cadastral Chamber or at the IFC. The passport production period is 5 working days.
- If there is ownership of the apartment, its owner, submitting the application, must submit the relevant documentation confirming this status. A notarized copy of the certificate of ownership is also suitable.
- If the cause of the dispute is the presence of inaccurate information about the real estate property, supporting documentation will be required.
- The results of the appraisal report, which reflects the current value of the apartment on the real estate market.
- The documents are enclosed by the expert opinion of the evaluation office. This paper should contain information that substantiates the fact that the cadastral value of the market does not match. It should also be indicated that the conclusion is drawn up in accordance with the current legislative norms of the Russian Federation, as well as the norms and rules relating to valuation work.
A full package of documentation is transferred to the commission through the regional branch of Rosreestr.
If the Rosreestr’s commission refuses to review the cadastral value, the owner has the right to apply to the court with a statement of claim.
It is important to note that individuals, as well as individual entrepreneurs, have the right to file an application immediately with the court, or for starters they can try to contact the commission. However, legal entities, state structures, municipalities do not have such a right: they must contact the commission and get its decision.
Challenging in court
The reduction of the cadastral value through the court is impossible without a statement of claim. In this situation, the public service Rosreestr acts as a defendant in the case.
The list of documentation that must be attached to the application is similar to that submitted to the Rosreestr commission. However, as a supplement, it is necessary to pay the state fee for considering a lawsuit. An appropriate receipt must be attached to the documents. The state duty is levied only in the event of litigation.
A decrease in cadastral value is possible only if the claim is fully satisfied in favor of the plaintiff owner. After that, the Rosreestr must enter the relevant changes into the database (state real estate cadastre). The SCN contains information that is referred to in determining the market value of an immovable property.
By the way, most claims to challenge the cadastral value of apartments are satisfied, which cannot be said about land plots. When evaluating apartments and residential buildings, quite often circumstances arise in which actual errors are made. The cost of the apartment is calculated to the ruble.
A fairly common mistake of the owners is that they attach a contract for the purchase of housing to the lawsuit. Apartment owners naively think that the price in the contract will somehow help to influence the cadastral value. But in reality, everything is different. Neither Rosreestr employees nor judges need a contract. The amount indicated in it is in no way connected with the cadastral valuation of the property.
Who will be the defendant?
How to challenge the cadastral value of the apartment, we have already figured out. And who will act as a defendant when considering a case in court? There may be several options:
- the local administration or the municipality of the Russian region, whose responsibility was to approve the results of the cadastral valuation,
- Rosreestr branch in a specific subject of the Federation, since it performs the functions of conducting state cadastral valuation,
- a service that is responsible for correcting cadastral and technical errors when the cost needs to be reduced due to inaccurate information about the property.
In addition to the above organizations, the court has the right to bring to consideration cases and persons whose interests are affected by the revision of the cadastral value of an apartment. They may be former owners and owners of shares.
Challenging through intermediaries
How to challenge the cadastral value of an apartment through intermediaries? Often, property owners resort to the help of professionals. First you need to make an assessment. To fulfill them, you must have a special license. These activities are carried out by evaluation bureaus.
After the owner will have on hand the results of the assessment, you must go to court. To do this, you need to hire a competent lawyer who has experience in resolving such controversial situations.
The timing
An application for a revision of the cadastral value can be submitted in a 5-year period after entering information in the State Property Committee regarding a specific property. At the same time, the date of entry into the State Property Committee is also reflected in the documents confirming the cadastral value. If the owner is going to file an application with the court, you must make sure that the price of the apartment or information about the property has not changed. These cases do not have a limitation period, so the application can be submitted at any time.
The period for consideration of the application in the commission approved by the Federal Registration Service is 1 month from the date of submission of the documentation. In court, the application is considered for at least 2 months. For certain circumstances, this period may increase, for example, due to the postponement of meetings, the appointment of expertise.
Are revaluation costs reimbursed?
Reimbursement of funds spent on the revaluation of the value of real estate is possible only if the claim of the owner is satisfied. At the same time, you can claim the spent amount from the state structure, which approved the cadastral value. In the event that the reason for the revaluation was a technical error, the organization that made the error will be responsible for reimbursing the expenses.
Is it possible to appeal the decision in case of refusal?
If the Rosreestr commission refused to change the cadastral value, the owner can challenge its decision in court. If the court refused to review the cost, its decision may also be appealed. This can be done in the judicial board on civil proceedings of the Russian Supreme Court.
The cadastral value of an apartment directly determines the amount of tax charged on real estate. In most cases, this indicator is overstated. To reduce the cadastral value, there must be good reason, which are documented. To correct the situation, it is necessary to submit an application to the commission at the Federal Register or to the court. To do this, you need to find out the cadastral number at the address and collect a complete set of documents. There is no limitation period for filing an application. The period for consideration of the application in the commission is 30 days, and in court - from 2 months. A court decision may be challenged. To do this, you must file a lawsuit with the Supreme Court. Legal costs and revaluation costs are reimbursed if a decision is made in favor of the plaintiff. In addition, a qualified lawyer can be involved in the process.