The validity period of such certificates varies. It all depends on the nature and purpose of the assessment. Usually the period is not less than 6 months, but in each specific case it can be more or less.
Market
Market value identify companies so that the owner can sell the property, pledge, rent or deposit authorized capital. To do this, you need to know the market value of housing. Usually it greatly exceeds the cadastral value.
Thanks to such information, the owner can adequately assess the cost of the apartment. Putting it up for sale, it's important to know the right price, otherwise the buyer will have to wait for years. Or, if you lower the price, you will lose part of the possible profit.
Market valuations are often carried out by private companies. The final figure is influenced by:
- Layout.
- Number of rooms.
- Footage
- Infrastructure.
- Availability of communications.
- State of repair.
Therefore, the final figure can be almost twice the cadastral value.
Attention! Help about market value valid for six months. The fact is that the real estate market is changing very quickly. Therefore, it is impossible to predict an adequate cost for more than six months.
Housing prices are constantly changing. In an unstable economy, it is impossible to predict the cost for more than 6 months.
Inventory
This type of assessment is carried out by BTI employees. This price is much lower than the market price, because the analysis takes into account:
- Footage
- Availability of communications.
- Year the house was built.
Employees are not interested in either repairs or infrastructure. That is why the price is much lower.
It is issued on a special form. The service is paid (about 600 rubles). If the BTI contains information about the valuation of real estate, then the period for issuing the certificate is up to 10 working days. If you need to visit the apartment and carry out the assessment procedure itself, the time period may be long. It all depends on the workload of specialists.
The validity period of the certificate itself is unlimited. The date of issue is important. That is, if a certificate is taken to establish the amount of inheritance, then the certificate must be issued immediately after the death of the owner. Then the data in it will be relevant.
If you need help for bank workers or for privatization, it must be received in the current year.
It does not have a clear expiration date.
Cadastral
Important! A cadastral assessment is necessary to determine rent for land, redemption amount. Conducted by government agencies.
Before the introduction of the unified register of the Unified State Register of Real Estate, the amount of taxes for real estate was determined based on the balance sheet (inventory) value. For an apartment of 30 sq. m. citizens need to pay no more than 500 rubles.
With the introduction of the Unified State Register civil servants plan to introduce tax calculation based on cadastral value. It is higher than the balance sheet. Accordingly, the tax amount will increase. But there are also advantages. With the introduction of such a register, calculations will be made in the shortest possible time. And you can privatize or change the owner within 10 days.
Until such innovations come into force, the calculation is made at the book price. The cadastral valuation period may vary. But the law defines maximum period- 5 years.
Validity period for assessing the market value of housing for a mortgage
Upon registration mortgage loan You will have to provide the bank with a certificate of the market value of the apartment. It is necessary so that the bank can calculate the loan amount. And if the terms of the contract are not met, the apartment will be sold at auction, setting the price based on this amount.
The legislation establishes the general validity period of the certificate as 6 months. After this period, the price for the apartment is not recommended, so the bank most likely will not accept such a certificate.
Often the assessment is carried out immediately before the execution of the contract, so its duration is unimportant. The assessment is carried out by the borrower for own funds. To ensure the security of the transaction and to ensure that the bank will accept the certificate, it is recommended to conduct an assessment in companies that cooperate with the bank.
How long does it take to analyze apartment prices?
Because the procedure for determining the market price is carried out by private companies, it is difficult to name a specific period of time. A specialist needs to study the situation on the real estate market, the infrastructure, the condition of the house and the apartment itself.
All this determines how long the procedure will take. Usually the process does not take more than two days. But in different cases the time may be increased. To know exactly the time frame, you need to contact the selected company.
Reference! The assessment period depends on the type of procedure, complexity, the company that will perform the work and the specialist himself.
The market price certificate becomes invalid after 6 months, the inventory certificate has no specific validity period, and the cadastral certificate becomes invalid after 5 years. For a mortgage, as well as for other purposes, the certificate will be valid for six months.
Validity period of the Property Complex Assessment Report and regulations governing this period. General requirements to the contents of the assessment report of the subject of assessment.
Question: Please tell me whether there is a validity period for the Property Complex Valuation Report and how it is regulated. Property Complex was assessed for the parent company's contribution to the subsidiary's charter.
Answer: The general deadline has not been established.
According to Art. 12 Federal Law “On Valuation Activities” the total value of the market or other value of the valuation object, indicated in the report drawn up on the grounds and in the manner provided for by this Federal law, is recognized as reliable and recommended for the purposes of concluding a transaction with the object of evaluation, if in the manner established by law Russian Federation, or the court has not established otherwise.
The final value of the market or other value of the valuation object, determined in the report, with the exception of the cadastral value, is recommended for the purpose of determining the starting price of an auction or competition item, completing a transaction within six months from the date of preparation of the report, except in cases provided for by law Russian Federation.
Rationale
Federal Law of July 29, 1998 No. 135-FZ
On appraisal activities in the Russian Federation
Article 11. General requirements for the content of the report on the assessment of the object of assessment11233
The final document drawn up based on the results of determining the value of the appraised object, regardless of the type of value determined, is the assessment report of the appraised object (hereinafter also referred to as the report).12
The report is prepared on on paper and/or in the form electronic document in accordance with the requirements of federal valuation standards, regulatory legal acts of the authorized federal body exercising the functions of legal regulation of valuation activities.7
The report must not be ambiguous or misleading. In the report in mandatory the date of the assessment of the subject of assessment, the assessment standards used, the goals and objectives of the assessment of the subject of assessment, as well as other information necessary for a complete and unambiguous interpretation of the results of the assessment of the subject of assessment reflected in the report are indicated.6
The report must indicate:6 the date of compilation and the serial number of the report; the basis for the appraiser’s assessment of the appraisal object; information about the appraiser or appraisers who carried out the assessment, including last name, first name and (if any) patronymic, number contact phone number, postal address, e-mail address of the appraiser and information about the appraiser's membership in self-regulatory organization appraisers; 1 information on independence legal entity, with whom the appraiser concluded employment contract, and the appraiser in accordance with the requirements of Article 16 of this Federal Law;2
purpose of assessment;1
an exact description of the valuation object, and in relation to the valuation object belonging to a legal entity - details of the legal entity and, if any, book value of this object ratings;2
valuation standards for determining the value of the valuation object, a list of data used in the assessment of the valuation object, indicating the sources of their receipt, assumptions adopted when assessing the valuation object;2
the sequence of determining the value of the appraised object and its final value, restrictions and limits of application of the result obtained; the date of determination of the value of the appraised object; the list of documents used by the appraiser and establishing the quantitative and qualitative characteristics of the appraised object. The report may also contain other information that, in the opinion of the appraiser, essential for the completeness of the reflection of the method used to calculate the value of a specific valuation object.1
To carry out the assessment individual species objects of assessment, the legislation of the Russian Federation may provide for special forms of reports.1 The report must be numbered page by page, bound (except when the report is prepared in the form of an electronic document), signed by the appraiser or appraisers who carried out the assessment, and also affixed with the personal seal of the appraiser or appraisers or the seal legal entity with which the appraiser or appraisers have entered into an employment contract.2 A report drawn up in the form of an electronic document must be signed by a highly qualified electronic signature in accordance with the legislation of the Russian Federation.17 In cases provided for by this Federal Law, regulatory legal acts authorized federal body performing the functions of legal regulation of valuation activities, the report is subject to publication in the manner established by the authorized federal body carrying out the functions of legal regulation of valuation activities.1
Article 12. Reliability of the report as a document containing information of evidentiary value29374
The final value of the market or other value of the valuation object, indicated in a report drawn up on the grounds and in the manner provided for by this Federal Law, is recognized as reliable and recommended for the purposes of concluding a transaction with the valuation object, if in the manner established by the legislation of the Russian Federation, or in court the procedure has not been established otherwise.39 The final value of the market or other value of the valuation object, determined in the report, with the exception of the cadastral value, is recommended for the purposes of determining the initial price of the subject of an auction or competition, completing a transaction within six months from the date of preparation of the report, with the exception of cases provided for by the legislation of the Russian Federation.4
Article 13. Contestability of information contained in the report8315
If there is a dispute about the reliability of the value of the market or other value of the valuation object established in the report, including in connection with another existing report on the valuation of the same object, this dispute is subject to consideration by a court, an arbitration court in accordance with the established jurisdiction, an arbitration court by agreement of the parties to a dispute or agreement or in the manner established by the legislation of the Russian Federation regulating valuation activities.50 A court, arbitration court, arbitration tribunal has the right to oblige the parties to complete a transaction at a price determined during the consideration of the dispute in a court hearing, only in cases where it is mandatory to complete the transaction in in accordance with the legislation of the Russian Federation.
An appraiser's report is a document that appears in transactions between citizens and organizations when registering rights to property and in other cases. Legislation imposes requirements on it in order to guarantee reasonable results.
A little about legislation
The basic normative act is the law “On Valuation Activities”. Standards have been adopted at the level of the Ministry of Economic Development. In addition, it specifies what the appraiser's report should look like. These documents describe in detail numerous nuances. Naturally, these orders comply with the law.
An assessment is required. This is what the law “On Valuation Activities” says, as well as other acts. It should be carried out when disposing of state or municipal property, mortgage lending, before signing a marriage contract. In fact, you cannot do without this procedure when registering an inheritance or filing a claim in court regarding a property dispute. The appraiser's report is now in demand in many cases.
Where does the document come from?
A contract is concluded with a specialist. The choice of appraiser can be made government agency or an interested individual. For example, the valuation of an object may fall on the participant in privatization auctions. In any case, an agreement is signed. The document is drawn up in paper or electronic form. In the second case, the use of an enhanced digital signature is mandatory. Components of the document:
- names of the parties;
- the purpose of the work;
- information about the object that needs to be assessed;
- what type of valuation should be carried out (market or cadastral price);
- how much the service is estimated to cost;
- the time after which the appraiser's report must be submitted;
- information about the SRO to which the independent appraiser belongs, or the organization for which he works;
- information about the performer's liability insurance.
The agreement specifies the standards against which the assessment is to be made.
Report requirements
There are additional requirements for the appraiser's report. They relate to the specifics of the subject of assessment. In particular, valuations in the nuclear industry, real estate, etc. have their own characteristics.
The report contains information from the contract regarding the grounds, goals and timing of the procedure:
- an accurate description of the object or subject of assessment;
- sequence of actions of a specialist;
- the date by which the task was completed.
The report of an independent appraiser or one working for an organization is signed by him, and a seal is affixed - 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 it contains a minimum of information in accordance with the law and standards. We must remember that, despite all the requirements and rules, any report contains a certain amount of assumptions and probabilities, although the figures obtained by different specialists should not seriously differ.
Features of real estate valuation
Citizens and organizations are primarily interested in the market valuation of objects. Inventory or calculated for some types of taxes, and appraisers almost never encounter it. There are several ways to calculate market value:
- expensive;
- profitable;
- comparative.
The first method is based on taking into account the technical characteristics of the object, calculating the costs of re-equipment and reconstruction. The second depends on the potential income from a particular property, for example, on the amount by which the cost of an apartment or plot will increase after some time. The third method is based on comparison of similar objects. Of course, individual characteristics are taken into account. This is what the apartment appraiser's report is usually based on.
It is easiest to find specialists in the field. Almost all of them work with real estate agencies, BTI (both private and public).
How the assessment process is structured
The real estate appraiser's report follows the same scheme:
- existing knowledge is collected (technical documentation);
- An analysis is carried out, including the surrounding area (the degree of development of roads, public infrastructure).
Literally every little thing plays a role. Even in the same building, apartments are valued at completely different amounts. The area of the property and the level of amenities of the house itself also relate to this. The house may be located near prestigious area, while its service life is approaching completion, which also affects the price. The price is reduced if the house is in good condition, there is a store or pharmacy nearby, but there is no transport infrastructure. This is what the independent appraiser's report is based on.
The specialist needs:
- Documents from cadastral registration. If there is no cadastral passport, they are asked to provide a technical passport, which is drawn up at the BTI.
- Explication, floor plan.
- Documents confirming ownership of real estate.
If redevelopment is planned, a work plan is provided, as well as other information depending on the situation. The specialist tells you directly what he needs.
Valuation and litigation
Disagreement with the report's conclusions is expressed in the lawsuit. It may concern both the results of the assessment itself and other actions if they are based on or are somehow related to the assessment. Almost all of these things are done arbitration courts. Although it is now possible to challenge the appraiser's report in the administrative process (cadastral valuation). The judge decides whether to agree or not only after an examination. It differs only in two points:
- carried out solely by decision of the court;
- the expert is warned about criminal liability for false imprisonment.
Getting an expert assessment in court is the only way to challenge the assessment result. The cost of the procedure does not vary much across the country. The exception is the capital regions. For the assessment of similar objects, experts ask approximately the same amount. A low or high price does not indicate quality; it is better to read customer reviews. If we touch upon such an issue as the validity period of the appraiser's report, then it is usually 12 months. But the law may establish other deadlines.
When it is planned to sell an element of fixed assets or a business as a whole, the company's owners use the services of independent professional firms to determine the price of the object of the future transaction in the current market conditions. Consultations with specialists and analytics are expensive services, so the customer company is interested in at least two issues: the validity period of the market value assessment and the ability to include incurred expenses in the calculation of income tax.
There is no legal obligation for organizations planning to sell fixed assets to conduct an independent assessment of their value. However, most companies prefer to incur additional expenses, but have an official document that will serve as protection against claims from the state and counterparties.
When a company has a conclusion about the market value, it has something to answer the questions of the tax authorities. The latter check the transactions and if they find that the cost of the fixed asset is 20% or more lower than the market average, they can hold the company accountable.
Likewise, business valuation can be used to sell the business as a whole. However, there are other reasons for its implementation: the need to obtain information about the competitiveness of a commercial structure, ways to reduce the fiscal burden, possibilities for reorganization, etc.
How long is a market value report valid?
According to the provisions of 135-FZ, the final size of the market or other price indicated in the report independent appraisers, is recognized as reliable and recommended for use during purchase and sale, if the parties acted in strict accordance with Russian legislation. Challenging the indicated value is possible in court.
The report prepared by independent appraisers contains required details– the date as of which the information provided is current. The “expiration date” of this document as such is not limited regulations. Only some of the data written in it may become outdated.
According to the provisions of paragraph 1 of FSO1, market price stated in the report is relevant for six months from the date of drawing up the document or publication of the offer for the sale of a fixed asset or business. The legislation notes that an exception to this rule is cadastral value: It has no statute of limitations.
Established legal practice shows that courts do not always interpret the expiration of a six-month period as an indicator of irrelevance and unreliability of data. To prove that he is right in the event of a dispute between the parties, the owner of the fixed asset needs to initiate judicial procedure consideration of the case.
In what cases can valuation expenses be included as tax expenses?
Current legislation states that a company or individual entrepreneur has the right to include expenses not listed in Art. 270 of the Tax Code of the Russian Federation, if they meet the following criteria:
- actual payment;
- economic justification;
- availability of supporting primary documents.
Costs associated with engaging independent appraisers, according to general rule classified as other expenses associated with production or sales. They reduce the fiscal base when calculating income taxes.
The legislation does not limit the rights of companies and individual entrepreneurs to order independent assessment, even if it is not mandatory, but voluntary. Regardless of the characteristics of the object whose value is determined and the transaction itself, expenses will reduce the tax base.
The validity period of the market value assessment report is not decisive when including the costs of specialist services in tax calculations. If the conclusions are no longer relevant, the fixed asset has not been sold, but the organization will be able to prove that its expenses were aimed at generating income (even if in fact this did not happen), it will be able to reduce the fiscal base by expenses confirmed by primary documents.
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Many people across the country are wondering why a real estate appraisal is needed. Also, the question increasingly arises about what is the validity period of a real estate assessment. To answer them you need to go “from afar.”
The idea that real estate can only be bought or sold is very erroneous. After all, a person’s real estate is “frozen capital”, which can be “unfrozen” at almost any time. Thus, real estate can serve as the basis for issuing a loan, including a mortgage type; it can be pledged, contributed to the authorized capital, and also rented out.
However, to carry out all of the above, as well as many other activities, it is necessary to know the so-called amount of available capital, that is, the value of the property owned. This is precisely why a real estate valuation procedure is required.
Valuation of real estate objects
This activity is carried out in several stages, the first of which is a direct inspection of the object that is being assessed. This inspection is carried out by a specialist chosen by you, who records the characteristics and features of the house, apartment, land plot and other things real estate. Among such characteristics that have the greatest impact on the cost of an object are:
- Condition of the building and its area.
- State interior decoration and conducted communications.
- Number of rooms.
- Location relative to main infrastructure facilities.
- And much more.
Validity period for real estate assessment
After receiving the results, people begin to think about how long the real estate appraisal is valid. The answer to this question is very simple, and it is contained in the twenty-sixth paragraph Federal standard assessments.
This paragraph, among other things, establishes the period within which the instructions in the assessment report can be used to carry out various transactions with the object, and this period is six months, that is, six months.
Organizations assessed
If you are looking for a reliable organization that can be entrusted with such an important undertaking as real estate valuation, we advise you to turn your attention to a company called ANO “Center for Real Estate and Business Valuation”. Among its advantages are the careful selection of personnel, thanks to which your assessment will be carried out exclusively by a highly qualified specialist, as well as sufficient acceptable prices for the services provided.