An accurate evaluation for financial security
Real estate

Documents used in the valuation process

Posted by
Iulia Topal

A set of documents is required to prepare a valuation report. Depending on the type of building to be valuated (apartment, house, land, office space, etc.) this set of documents differs.

Some of the documents are required regardless of the type of property, others are specific to the type of property. The necessary documents regardless of the type of property are: deeds of ownership, the survey and/or the site plan in the cadastral documentation and the land book extract. Other documents that are required are the following: urban planning certificate or building permit (if a land is evaluated), building permit and reception report (if it is a house), rental contract, etc. When submitting a request for the preparation of the evaluation report it is important to communicate for what type of building the evaluation report will be drawn up and what the purpose of the preparation of this report is (bank guarantee, taxation, financial reporting, information, etc.), so that the valuator can communicate the necessary set of documents.

In the case of an apartment, the requested documents are the following: deed of ownership, the survey of the apartment, land book extract for information. In some cases, it is useful to have the energy certificate of the apartment, as well as the pre-contract (if it is an apartment in a new building).

The deeds of ownership required for the preparation of the valuation report are the deeds of oqnership that are mentioned in the land book extract. In general – if the apartment we are going to evaluate is in an old building, it is the last deed of ownership, and in the case of newly built buildings is the deed of dismantling. If the ownership has been acquired on the basis of several deeds (e.g. a sale-purchase qgreement and a certificate of inheritance) all these documents will be required.

The apartment's survey is part of the cadastral file. It is the sketch of the apartment drawn up by a cadastrist expert, which contains the actual sketch of the apartment and a table with the measured surfaces. The survey is a mandatory document for the preparation of the valuation report for several reasons. One of these reasons is that at the time of the inspection any differences between the survey and the situation on the ground shqll be identified. Another reason is that, in certain situations, the area entered in the survey will be used in the report. If the owner of the apartment does not own a copy of the cadastral file, he may request from the Cadastre Office the release of a duplicate.

The land book excerpt for information represents the cadastral-legal situation of the building. It contains information on the area of the building and its description, the ownership and any existing encumbrances on the property. This document can be requested online on the Cadastre Office's website.

In the case of apartments located in newly built buildings, along with the building, undivided shares from the common parts are also sold, these being found only in the pre-contract.This is why in some cases, in order to be able to fully describe the property and the undivided shares entered in the valuation report, the pre-contract will be requested.

A valid urban planning certificate or a valid building permit is required for the valuation of a land. In many cases, when we tell the customer that it will be necessary to send us this document we are asked the question: "What is it necessary for? The land is free and I don't want to build now." The answer is the following: the market value of the land will be estimated according to the accepted use and the urban indicators found in the certificate (POT, CUT, height regime). Without this document it will not be possible to accurately estimate the value of the land.

For more complex types of goods for which valuation reports are requested, the list of documents and necessary information will be determined on a case-by-case basis and communicated to the customer before the start of the valuation process.

We are aware that for the customer the collection and transmission of the necessary set of documents can be a fairly laborious and time-consuming process, but if all the necessary documents and information are made available to the valuator from the beginning, the ealuation process will have a much shorter duration, and the additional questions to the client will be kept to a minimum.

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