Why is an interim report on cadastral revaluation made?

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The assessment of cadastral value is an issue that worries many and causes quite a lot of controversy. Recently, the state switched to a new scheme for determining the value of private property. This reform affected both ordinary citizens and legal entities. Several years have passed, but disputes over the state assessment are still not subsiding.

This assessment was carried out on a massive scale and in a rather formal manner, so many citizens and legal entities were faced with the fact that their objects were assigned a value significantly higher than the market value.

It is also worth mentioning here that the economic situation at the moment is not very favorable and, therefore, market prices for many objects have decreased significantly - the difference between the state assessment in Rosreestr and the market value has increased again.

All this gives us a reason to turn to this topic again. Some did not agree with the state assessment from the very beginning, some had a reason to file for a revision of this assessment right now, when real estate prices on the market have fallen significantly.

What is cadastral value and how is it determined

First of all, you need to understand that the cadastral value and the market value are very different. The cadastral value was introduced by the state to calculate property taxes for citizens and legal entities. Let us recall that taxes were previously calculated based on inventory value; more recently, they began to be calculated based on cadastral valuation.

Recently, Rosreestr conducted another assessment of the property of citizens and companies. The new state assessment of private property already includes taking into account the location of the property, its area and other important characteristics that make up its real market value. Therefore, in many ways, the cadastral value is already closer to the market value than the initial inventory value, which has always been significantly lower than the market.

The introduction of cadastral value is nothing more than an attempt by the state to bring the value of objects according to the state register closer to the market value in order to increase the collection of taxes from private property.

The timing of cadastral valuation and revaluation is at least once every 5 years and no more often than once every 3 years. The initial state cadastral assessment was carried out throughout the country based on the decision of regional and local authorities. At the request of local authorities, the Cadastral Chamber, based on data from Rosreestr, compiled lists of objects for assessment, indicating their main characteristics in its database. Then, on the basis of a competition, organizations that had the appropriate licenses to conduct state assessments were selected, and contracts were concluded with them to carry out the relevant assessment work.

These organizations determined the cadastral value on the basis of Federal legislation, guided by the rules for conducting valuation activities. To establish the cost, information from the real estate market in this particular region, the location of the property, the availability of roads and social infrastructure in the area, taking into account other significant factors, were used.

Then the Cadastral Chamber carried out an examination of the reports with the obtained assessment results. After which these approved data were entered into Rosreestr.

Note that this was a mass assessment of objects, and usually appraisers distributed the objects on the list for evaluation into groups, based on the principle of their similarity. Then, based on a single valuation formula or an accepted valuation model in a given region, the cadastral value was determined for all objects of this group.

Thus, we can say that the cadastral value according to the state register is, in fact, a conditional and in many ways simply a calculated value, which was assigned en masse based on the properties of objects indicated in Rosreestr.

The cadastral value of real estate is influenced by the following main factors:

Location of the property;
Area of the object, area of the land plot;
Type of object, its purpose for use;
The presence of other real estate objects located within the boundaries of the land plot, as well as the market value of similar nearby objects.

In view of the fact that the initial assessment of the cadastral value was carried out throughout the country on a massive scale, we can often find examples of this value being overstated compared to the market value, sometimes even several times.

If you are faced with the fact that the cadastral value of your property is higher than its current market value, it makes sense for you to re-evaluate it.

5.7.Method of indexing past results

This method allows determining the cadastral value of a group of objects by indexing the value of the cadastral value obtained as a result of the previous cadastral valuation. The appraiser does not have the right to independently apply this method without obtaining the customer’s approval. To apply this method, the appraiser initiates a meeting with the cadastral valuation customer, presents a justification for the impossibility of calculating any of the groups of objects using the methods described above, the inappropriateness of valuing objects of the presented group using individual valuation methods, as well as the approximate value of the multiplier coefficient taking into account price changes. The customer’s decision approves the assessment of the groups under consideration by the method of indexing previous cadastral valuation results with a mandatory indication of which cadastral valuation data should be subject to indexation.

Method for indexing the results of assessment of neighboring constituent entities of the Russian Federation. This method provides for the possibility of using the results of cadastral assessment of the constituent entities of the Russian Federation neighboring the subject being assessed. The procedure for applying indexation of data from neighboring entities is similar to the procedure for indexing past periods. The difference lies in the fact that at the IEC, in addition to justifying the impossibility or inappropriateness of using other methods, data is presented on the known characteristics of the groups in question in neighboring regions, possible deviations from the assessment results, taking into account regional differences and a different assessment date.

Possibility of challenging the cadastral value

Reducing the state cadastral assessment will first of all reduce your annual tax burden, and will also reduce the amount of taxes you pay if you decide to sell your property. If the valuation of a real estate property decreases, it is possible to reduce rental payments for it, reduce state duties and other obligatory payments to the state treasury, and reduce the cost when purchasing the property.

Let us remind you that when calculating the tax base, the Federal Tax Service is guided precisely by the data on the assessment of objects based on the Rosreestr database.

Due to the fact that the assessment was widespread and was carried out according to such new rules for the first time, the state provided citizens with the opportunity to challenge and correct the state assessment of real estate.

There are several ways to find out the cadastral valuation of your property:

View online on the Rosreestr website;
Order an extract from the Unified State Register of Real Estate;
Order a technical certificate for the property;
Using any services available to you on the Internet (it is better to double-check this data).

Subject to all state valuation rules, the resulting value should not differ significantly from the market prices of the objects. If you have identified significant differences, you can submit documents for a revision of the cadastral state valuation.

Who carries out the cadastral valuation?

The work is performed by specially trained and independent specialists who are selected through a competitive selection process at public auctions.

The law stipulates that a specialist has the right to choose the valuation method and justify the value obtained.

Information about which specialist performed this work on which area is open and freely available. Moreover, you don’t even have to personally visit Rosreestr; it will be enough to simply indicate the cadastral number of your plot in the form of a special Internet service of Rosreestr.

The service does not require any payment or registration, so it is available to every citizen of the country, no matter where he is.

Formally, the specialist appraising your land is considered independent, but usually this is how it happens - they do not receive funding from the budget and take on this or that work based on the results of an auction, that is, an out-of-town specialist who has no connections with the local one can win the competition. administration. Everything is clean and transparent, however, you should not relax, because this does not protect you from errors of a purely technical nature. Let's figure out what to do in such a situation.

Also interesting: Cadastral registration objects

What to do if the cadastral value of your property turns out to be overestimated

Formally, you can initiate a change in the state assessment calculated by an organization authorized by the Cadastral Chamber in the following cases:

If it is established that the state assessment was made on the basis of information that does not correspond to the real data;
Establishing a market value that is significantly lower than the assigned valuation in the Cadastre (in this case, the current market value at the time of the valuation is important);
A revision of the cost is also possible in other cases, for example, if the boundaries of the property have been changed, the topography of the land has changed, etc.

It is possible to challenge the results of a state assessment “retrospectively” within six months from the date of entering this information into Rosreestr. Let us also remind you that you can revise the cadastral value of your property no more often than once every three years. But such a change in assessment will come into force for new tax payments; no one will recalculate past payments to the treasury.

In order to revise the cadastral value, it is necessary to make an independent assessment and provide the required package of documents to the authorized bodies.

The owner of an object to revise its value can apply to the commission under Rosreestr, or submit documents for a review of the state valuation to the court.

An individual can use either of these two methods. To dispute the cost, a legal entity must first contact the commission, and only then go to court.

For individuals, applying for a review of the assessment through a commission is simpler, less expensive and takes less time than this procedure in court. Let us remind you that in court you will have to pay an additional state fee, and the trial itself takes several weeks.

In order to begin the procedure of challenging the state assessment, you must first contact independent experts and enter into an agreement with them for an independent market assessment of your property. Please note that in order to challenge a state assessment, an independent assessment can only be made by an organization that has the appropriate license.

Conducting an independent assessment of cadastral value

To conduct an independent assessment of the cadastral value, you must first prepare all the necessary documents for your property that the appraiser will need to carry it out.

To submit an application for revision of a cadastral valuation, an independent appraiser must provide:

Passport of the owner of this property;
Title documents for this property;
Data on the official boundaries of the land plot, communications, category of the plot, etc., other necessary information on the object;
Provide the cadastral number of the property and the current cadastral valuation that you are going to challenge.

After submitting your application, an independent appraiser will study all your documents and tell you the market valuation of your property, as well as the cost of his services for the preparation of all reporting documents and the deadlines for completing the work. The cost of these services can vary greatly depending on the region and the characteristics of the property. After this, you need to enter into an agreement to conduct an independent assessment.

Thus, before concluding an agreement to conduct an independent assessment, you need to assess for yourself the feasibility of carrying out the revaluation procedure for your property, based on the costs of this procedure and its expected results. That is, you need to compare the amount you will save by reducing the cost of the property with the cost of the services of an independent appraiser.

The procedure for revaluation by independent agencies usually includes:

Inspection of your property to determine its quality characteristics that affect the market value;
Analysis of current real estate market data for similar properties;
Comparing your object with similar nearby objects;
Preparation of an independent assessment report.

You should receive a report on the assessment and an expert opinion from the SRO. However, we note that not all organizations conducting independent assessments independently confirm their reports, so you may have to contact the SRO yourself. This must be done within a month and you can contact any SRO.

Please note that if violations are identified under the independent assessment procedure, the SRO expert can issue a negative opinion, indicating the existing violations.

What is the difference between the market and cadastral value of the property?

Market value is understood as the most probable price at which a given property can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and the transaction price is not affected by any extraordinary circumstances, that is, when :

one of the parties to the transaction is not obliged to alienate the property, and the other party is not obliged to accept execution;

the parties to the transaction are well aware of the subject of the transaction and act in their own interests;

the property is presented on the open market through a public offer, typical for similar objects of assessment;

the transaction price represents a reasonable consideration for the property and there was no coercion on the part of the parties to the transaction;

payment for the property is expressed in cash.

The cadastral value of a real estate property is determined for the purposes provided for by the legislation of the Russian Federation, including for taxation, on the basis of market information and other information related to the economic characteristics of the use of the real estate property, without taking into account property rights other than ownership of the property.

Determining the cadastral value involves calculating the most likely price of a property at which it can be purchased, based on the possibility of continuing the actual type of its use, regardless of restrictions on the disposal of this property.

Submitting an application for revision of the cadastral value assessment through a commission under Rosrestr

When submitting documents to the commission for review of the state assessment, you must provide:

A statement indicating the reason why the state cadastral valuation, in your opinion, is incorrect;
Cadastral passport of your property on which you are revaluing;
Copies of papers certifying your rights to this property;
Available documents confirming that the assessment was made on the basis of unreliable information;
Independent market assessment report;
Approval of an SRO expert on market valuation.

From the moment the application is accepted by the commission, it must be considered within a month. Typically such applications are reviewed within two weeks. The review of the application itself usually takes up to 7 days. The commission must then give you proper notice of its decision. Please note that the commission can contact the organization that conducted the cadastral state assessment, as well as the organization from which you ordered an independent assessment.

In order for the commission's decision to be valid, the presence of half of its members is sufficient. In addition, you yourself can take part in the meeting and be present during the discussion of your application, and you can also invite an appraiser with you.

The commission can make a positive decision on revising the state valuation - the cadastral value can be equated to the market value of the property. The commission may also refuse to revise your cadastral valuation. The commission is obliged to notify you about it in writing within 5 days from the date of making its decision.

Within the same five-day period, the commission sends its decision to Rosreestr. The minutes of the meeting held by the commission and the decision taken by it must be posted on the official website of Rosreestr.

If the commission refuses to revise the value of your property, then you have the right to go to court.

Challenging the state assessment of cadastral value in court

When considering a revision of the state assessment in court, the application must be sent to a court of general jurisdiction at the regional level at the location of the customer of the work or at the location of the government agency that determined the cadastral value of this object. This may be a regional or regional court, etc.

To begin the process of challenging the state assessment in court, you need to prepare a statement of claim and attach to it the documents necessary for your specific situation. Usually the same documents are attached to the statement of claim as for reviewing the assessment by the commission. Another mandatory document is only a receipt for payment of the state fee for the court. To be considered in court, individuals must pay a state fee of approximately 300 rubles, and legal entities - 4,500 rubles.

If you have already received a refusal to review the state assessment by the commission, then you need to challenge its decision within 3 months.

The court may involve third parties in the consideration of the case and order an additional examination of the assessment of the cadastral value.

The result of the court hearing should be a decision to revise the cadastral value or refuse to change it.

For what purpose is a declaration on the characteristics of the property provided?

In order to collect and process information necessary to determine the cadastral value, copyright holders of real estate objects have the right to provide declarations on the characteristics of the relevant real estate objects

A declaration on the characteristics of a real estate property is a legal document that indicates the actual characteristics of a real estate property, which may differ from the information in the Unified State Register of Real Estate. When receiving the declaration of the State Budgetary Institution of the Republic of Belarus “TsGKO”, the actual characteristics of the property will be taken into account, which in turn will affect the final value of the cadastral value of the property.

The declaration is submitted to the State Budgetary Institution of the Republic of Belarus "TsGKO" in the form according to Appendix No. 2 to the order of the Ministry of Economic Development of Russia dated December 27, 2016. No. 846 “On approval of the Procedure for considering a declaration on the characteristics of a property, including its form.”