Non-governmental experts may be prohibited from challenging the cadastral valuation

Non-governmental experts may be prohibited from challenging the cadastral valuation

Non-governmental experts may be prohibited from challenging the cadastral valuation
The State Duma received a draft resolution, according to which examinations related to challenging the cadastral value of construction sites and territories can only be carried out by state experts.

The proposal was posted by the Ministry of Justice on October 11 on the Federal Portal of Draft Normative Legal Acts to assess the regulatory impact.  If it is adopted, then challenging the cadastral valuation will actually become impossible, since we are talking about the prohibition of any forensic examinations in determining the market value in administrative cases.

The Association of Lawyers and Legal Companies for Registration, Liquidation, Bankruptcy and Legal Representation noted that if the resolution is adopted in the current version, then the incorrect assessment will be transferred not to private appraisers, but to the state examination of another region.  However, the legal community doubts the effectiveness of such measures.
Experts believe that this may lead to the monopolization of one of the types of forensic expertise.
In addition, the adoption of the resolution will lead to violations of the rights of participants in the process, difficulties and delays in challenging the cadastral valuation.  The Association stressed out that the initiative may unreasonably exclude a number of highly qualified, but non-state experts from the judicial system.

In paragraph 23 of the ruling of the Supreme Court No. 28 of June 30, 2015, it is said that if questions that require special knowledge in the field of assessment arise, the court can appoint an expert examination.  Its purpose is to establish the market value of a property.
However, forensic evaluations are not presented in the list of types of forensic examinations carried out by the state institutions. 
The Association noted that the examination for determination of the value is very popular, it belongs to the category of administrative cases for challenging the cadastral value.  In the first 8 months of 2021 alone, 10,781 such disputes were initiated in the courts.  In 2020, 20,746 similar cases were completed, in 2019 - 22,374. Over the past 5 years, more than 85,000 cases were initiated to assess the cadastral value of property.

According to statistics, in almost every case, forensic examinations are assigned, and sometimes they are repeated.  ‘Rusbankrot’ was informed by the Association that several thousand non-state experts are involved in cases of challenging the cadastral value.  A complete ban on their participation will lead not only to obvious monopolization, but also to a collapse in the consideration of disputes over time and quality.

The experts also stressed out that the adoption of the decision would violate the rights to a fair trial, since the circle of participants in the case would be artificially limited.  The explanatory note to the draft says that it was decided to introduce a new rule to combat the bad faith of non-state forensic experts.  However, there are no reliable facts about this statement.
Participants challenging the cadastral valuation fear that if only state experts are involved, the authorities will have certain leverage, which will increase corruption.
Questions are also raised by the point in which it is noted that the decree will not entail social, economic and other consequences, including for the entrepreneurs.  But the very essence of the disputes affects the tax burden of business and has a direct impact on the entrepreneurial activity.  For all these reasons, the expert community demanded to exclude the clause challenging the cadastral valuation from the draft resolution.


25.10.2021