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Realty assessors will be taken to court in Russia

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Realty assessors will be taken to court in Russia

On September 15th, in the office of Colliers International on the 52nd floor of “The Tower on the Embankment”, a seminar on the state’s cadastral evaluation of real estate in Moscow took place.

To remind you, there is no integral methodology to determine prices for real estate, so market professionals gathered together to exchange their experiences. The seminar was initiated by the NAI Becar agency and the Russian office of the British agency RICS.
The head of the evaluation department of FSUE “Technical Inventory Bureau”, Dmitry Kovalev, spoke about methodological approaches and the results of state cadastral evaluation of capital construction objects in Moscow.
In particular, he remarked that in 2014 there were about 6m capital construction objects for evaluation. 380,000 objects did not fit in any category of building, as the “On the state cadaster of realty” law, dated 2007, is out-of-date and does not provide for the correct evaluation of realty.
The evaluation was carried out according to the methods developed by the “Technical Inventory Bureau”, dated 2010. There are a number of difficulties that assessors of capital construction objects must deal with: for instance, the lack of a building’s date on technical conditions, which prevents the correct evaluation of realty. That’s why Moscow’s arbitration courts are overwhelmed with cases, Kovalev said.

A way out of this complex situation was proposed by the Director of the Appraisal Institute for Property and Financial Activity, RF Supreme Court expert committee member Nickolai Volovich.
He criticized the “on the order of cadaster evaluation of real estate” federal law introduced to the State Duma. “It is necessary to form an evaluation system on a state level in Russia”, he said. “It is necessary to attract private companies with great experience, as in Germany or Denmark”.
The Director General of Valrus Ltd, Pavel Kartsev, and the Director General of the International Evaluation Center, Igor Artemenkov, shared their experiences at the seminar.
As Irina Aksenova, the head of the British Agency of Professional Assessors’ sub-office in Russia and the CIS – RICS, said to our correspondent at the end of the seminar, in England an assessor is fined for an incorrect evaluation to the tune of 40,000 – 60,000 pounds, and he is automatically blacklisted.
But Russia has chosen its own way – for the first time in the world, the introduction of criminal responsibility for realty assessors has been proposed.

Moscow. Our correspondent, Alexei Nevsky.

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