This question is often asked not only by private clients, but also by business accountants and even lawyers. This is due to the fact that the legislation does not provide a clear answer to the question of which term of the expert evaluation report.
How much is the real estate valuation is valid
It all depends on the purpose of using the documents. Real estate evaluation for a notary is valid for six months. There is no fixed period of validity for court documents. However, similar to the evaluation for a notary, the court usually accepts the documents also within six months from the date of evaluation.
Expert evaluation for a notary
The most common case of evaluation of real estate is its presentation to a notary when making transactions for sale, donation, etc. Paragraph 2 Resolution of the Cabinet of Ministers of Ukraine №358 from 21.08.2014 «The evaluation for tax purposes and for the accrual and payment of other obligatory payments, collected in accordance with the legislation» says in particular, that the validity of the evaluation report for tax purposes is not more than six months from the valuation date. This period of validity the evaluator is obliged to specify in his report.
Property evaluation for court
With regard to the expert evaluation of property for presentation in court, there is no clear answer to the question of validity. On the one hand, the practice has been that the market value, which the appraiser determined, similar to the notary’s rating, valid for six months. However, the final decision is the prerogative of the judge and may depend, inter alia, on whether there have been significant changes in market conditions or currency fluctuations over the past months. In National standard №1 it is written that if there are no clear legal requirements for the validity of the report in a particular case, it is at the discretion of the evaluation user.
Valuation of communal property for rental
Here, too, has its own features, due to the fact that the review (that is, the verification of the correctness) of reports by the Department of Municipal Property of Kyiv in some cases is delayed for several months. Although the Department’s internal instructions sometimes vary in duration from six months to one year, we encourage the submission of documents without delay. As you know, the valuation of communal property is carried out on the last day of the month. That is, if the documents are made as of May 31, in order for the procedure to pass without unnecessary problems, the package must be submitted within June.
Other evaluation cases
If you are not satisfied with the answer to the question about the term of validity of the expert evaluation report (not described your case or the answer is not sufficiently legally grounded), we recommend you to read the article on the same subject on the site All-Ukrainian Public Organization «Association of Experts of Valuation». Also see a video about what is and how the real estate evaluation report looks like.
