This section of our site contains general information about conducting independent evaluation of real estate and property of various types. For detailed information on the evaluation of the property you are interested in we offer you to go to the appropriate section of our site or on the page “Tariffs”.
Independent or expert evaluation?
It is important to remember that the main regulatory instrument that governs evaluation is Law of Ukraine “About property valuation, property rights and professional evaluation activity”. When studying this document, it can be observed that the word “expert evaluation” is not used at all, the words “expert” and “expertise” are mentioned only with reference to a completely different Law of Ukraine “About forensic expertise”. On the other hand, the Evaluation Act utilizes the phrase “property valuation” and only a few times the term “independent evaluation”. On this basis, it can be concluded that it is correct to call the value service from the point of view of the law like “independent property evaluation“, but not the “expert evaluation”.
This confusion stems from the fact that, prior to the adoption of the above-mentioned Valuation Act, the valuation of property was carried out exclusively by forensic experts. This is where the expression “expert evaluation” or “evaluation by expert”, which is still widely used. Although it refers to an independent assessment by the evaluator and not to a forensic expert.
Further complicates the terminology situation another Law of Ukraine “About Land Valuation”, where the process of determining the market value of land throughout the text is referred to as “expert monetary valuation of land plots”.
Independent real estate valuation
Independent real estate valuation usually conventionally divided into such directions:
- independent evaluation of apartment, rooms, and also garages and parking;
- residential evaluation, cottages, summer houses and expert land valuation;
- valuation of non-residential (commercial) real estate, and also all kinds of buildings, structures, communications and anything like that.
Each of these areas is devoted to a separate section of our site, which provides detailed information on tariffs, deadlines and the procedure of independent or expert evaluation of this type of property. Here we will mention that most of the procedures and requirements for determining the value of real estate described in National standard №2 – “Evaluation of real estate”.
Valuation of property and property rights
For information on the valuation of other types of property, we also recommend you to refer to the relevant section of our site. If you are interested in the legal basis for an independent evaluation, we recommend to get acquainted with National standard №1 – “General provisions for the valuation of property and property rights”. In addition to these two standards, there are also two more (№3 and №4), which describe the valuation of property rights: stock assessment and other types of securities, trademarks, softwares, copyright and that sort of thing. However, due to the specificity of this type of work they may be of interest only for the study of subject matter specialists, so we will not consider them within the framework of this article.
Independent evaluation – why is it necessary?
We usually come up with this concept as expert evaluation in the moment, when the transaction with any kind of property, whether it is a house, land, apartment, car and so on, which need to be formalized legally. There can be many reasons for this. For example, we buy something on credit, mortgage, come into succession and much more. That is, when you need legal confirmation of the value of something.
Yes, of course, each of us can say: «And I know very well how much my car costs (house, etc.). And I do not need a other person for this». But, unfortunately, for formal legal and financial institutions such as banks or even a mere notary, this is not enough. Such institutions need a formal and reasonable confirmation of the value. That’s where the term, like independent evaluation. Also such documents have very important role in adjudicating a variety of property disputes, such as divorce.
«So, who is that person, who makes this independent evaluation?» – quite naturally you will ask. The professional activity of valuation is not engaged in the person «from the street». The appraiser – is a certified specialist. The person who has special permission to evaluate various types of property. Such permits are issued by the State Property Fund of Ukraine (certificate) and the State Committee on Land Resources (license). The appraiser is as highly qualified as an auditor, financial analyst or stockbroker.
So, let’s summarize. In what cases do you need independent evaluation? It is for:
- mortgaging;
- entry into the inheritance;
- ownership unbundling;
- credit;
- gifting;
- the introduction of the authorized capital;
- buying/selling;
- insurance;
- property dispute resolution;
- investment attraction;
- accounting purpose.
In general, all actions related to the legal registration of any transactions with any type of property. Separate direction of expert evaluation is a flood damage evaluation, which, unfortunately, we do not do. We conduct independent evaluation in Kyiv, Kyiv region and throughout Ukraine.
We will gladly answer all your questions regarding our professional activities. You are welcome to call us any time!
