Cadastral value is represented by the price of the apartment, determined by cadastral engineers. When calculating it, different housing parameters are taken into account. This indicator is used in the process of calculating property tax and other values. Often the price is too high, because often it even exceeds even the market indicator. Under such conditions, property owners have a question: how to challenge the cadastral value of an apartment? The process is considered quite simple and understandable, but for this it is important to prepare in advance evidence of the correctness of the homeowner.
The concept of cadastral value
It is represented by the value determined by state bodies. The calculation procedure is implemented by employees of the local administration. The obtained value is applied in calculating the property tax.
In the evaluation process, indicators of similar objects and the unit cost of 1 square meter are used. The evaluation procedure is carried out by special appraisers who previously participate in the tender.
The cadastral value is set for a period of 3 to 5 years, but often it is excessively high. Therefore, people have a question: how to challenge the cadastral value of an apartment and a plot?
The procedure may be performed in an administrative or judicial manner. Before going to court, a citizen can try to resolve the issue through state bodies, since often with the correct preparation of a claim it is possible to change the price of housing.
Who is involved in the process?
How to challenge the cadastral value of an apartment in the Moscow region or another region? The procedure can be performed in different ways, but its sole owner should be engaged in its implementation. The applicant may be:
- private person who owns an apartment, land or other real estate;
- a company for which various objects used for business activities are registered (if the cadastral price is too high, this leads to a significant increase in tax deductions);
- government agencies that have different real estate.
Any owner can use the help of a trustee to challenge the indicator. To do this, you need to draw up a notarized power of attorney for the selected specialist.
When is it advisable to deal with the procedure?
It is important to know not only how to challenge the cadastral value of an apartment to reduce tax, but also when it is relevant to perform this procedure. It is advisable to contact the state authorities with this issue when it will really be beneficial to use the new indicator. Therefore, you should initially assess how much time and money will be spent on revaluation, and then calculate the savings.
Each owner of the object must figure out how much it costs to challenge the cadastral value of the apartment. The procedure requires certain costs, and this is especially true in a situation where it is necessary to go to court to complete it.
The main costs for performing this process include:
- lost profits due to the fact that a citizen will have to regularly take leave from work to apply to state authorities;
- collection of evidence of the incorrect definition of a cadastral indicator;
- payment of state duty for going to court;
- drawing up a statement of claim;
- remuneration of an independent appraiser;
- Attraction of a lawyer or proxy.
In different situations, additional expenses may occur. Therefore, it is important to determine in advance how much the indicator can change. Then the tax is calculated, so if it decreases by more than 30%, then it is beneficial to engage in the process. If the adjustment does not exceed 10%, then it is important not to dispute the indicator.
Where to go?
It is important to decide in advance where to challenge the cadastral value of the apartment. The choice of a particular organization depends on the order in which the indicator changes:
- with the administrative method, an application is drawn up to a special commission working under the Rosreestr;
- if it is not possible to change the indicator peacefully, then a lawsuit will have to be filed.
Individuals are allowed to skip the pre-trial procedure, but companies are required to use it, as the court will have to transmit evidence that attempts were made to change the indicator in a peaceful way. If the commission, on the basis of documents and a statement drawn up by the owner of the property, makes a negative decision, then it can be appealed in court. In this case, it is easy enough to challenge the cadastral value of the apartment. Judicial practice shows that if there is real evidence of an unlawful establishment of an indicator, it is significantly reduced by a court decision.
What documents are needed?
Before challenging the cadastral value of an apartment, the owner of this property must prepare certain documentation confirming that the indicator set by the state is really overstated. Documents may vary slightly depending on where the owner is contacting (for this, you can file an application with the court or Rosreestr).
How to challenge the overstated cadastral value of an apartment or house? For this, the owner of the object must have the following documents:
- extract from the USRN, which indicates that the applicant is the owner of the object;
- if there is a certificate of ownership, then a copy is made, which is then certified by a notary;
- evidence that the cadastral value of the property is much lower than the state set indicator, with the most commonly used report on the assessment by an independent expert.
To prove the illegality of the purpose of a particular indicator, it is important to have evidence. For this, it is advisable to contact an independent appraiser, and he must be a member of the corresponding SRO. Based on the data available in the report, it is determined what the real cadastral price of the object is. This indicator is especially important for the court.
If the matter is decided through the court, then all the above documents are prepared, but the following papers will be additionally needed:
- correctly drawn up statement of claim, which should contain a requirement to reduce the cadastral value to a specific value;
- receipt confirming payment of state duty;
- a notice confirming that all participants in the case were given copies of the claim;
- a refusal received from the commission and confirming that, in an administrative procedure, the employees of Rosreestr refused to change the indicator;
- if the plaintiff uses the assistance of a lawyer or other specialist, then a copy of the power of attorney certified by a notary is additionally attached.
From the company, evidence is required that it really tried to change the indicator in a pre-trial manner. Without these documents, the claim will not be accepted for consideration.
Pre-trial Order
Is it possible to challenge the cadastral value of an apartment without going to court? Such a possibility does exist, therefore, it is advisable to initially try to perform the procedure using the administrative method. To do this, you need to contact the special commission involved in the determination of this indicator. She works at Rosreestr.
How can I challenge the cadastral value of an apartment using this method? To do this, the following rules are taken into account:
- a special statement is prepared containing a request to reduce the cadastral value to an optimal size;
- necessary documents are attached to the application, which necessarily includes a report on the assessment, which indicates what the real cadastral price of the object is;
- documents of the commission consisting of Rosreestr employees and representatives of the executive are transferred;
- Before filing an application, the owner of the housing may be asked for information on what assessment activities were carried out by state experts to determine the size of the cadastral value, and they must be transferred to the applicant within 7 days;
- All submitted documents are checked within 7 days;
- then, within a month, the commission makes a decision, and during this period of time the applicant may be asked for other papers (if necessary);
- the decision is made by voting of all members of the commission;
- on the basis of the vote, a protocol is formed, after which a copy is sent to the applicant;
- if the decision is positive, then the registry is amended - property tax is recalculated;
- if the commission refuses to change the indicator, then you can either agree with this decision or appeal it through a court.
If you understand how to challenge the cadastral value of an apartment in the Moscow region or another region of the country, it is often enough to contact the Rosreestr with a statement and other documents to make the necessary changes.
How to draw up a statement to Rosreestr?
If a pre-trial method of resolving the issue is used, it is important to correctly compose a statement that is transmitted to the representative of the commission. The following data must be entered into it:
- the name of the department of Rosreestr, where pre-prepared documents are transferred;
- information about the applicant: his full name, place of residence and information from the passport;
- a request is indicated to revise the cadastral price of the property;
- information is provided about the apartment itself: its address and cadastral number;
- the reasons for revising the indicator are listed;
- a list of documents is attached to the application;
- at the end is the date of the application and the signature of the citizen.
If necessary, you can use the help of a lawyer during the preparation of this application.
Rules for going to court
How to challenge the cadastral value of an apartment in St. Petersburg or another city? If, using the administrative procedure, it was not possible to obtain a positive decision from Rosreestr specialists, then this decision will have to be appealed through a court. The procedure has the following features:
- a correctly drawn up administrative claim is filed, and for its formation it will be necessary to use the help of a professional lawyer;
- the lawsuit contains the name of the court, information about the plaintiff and the defendant, presented by Rosreestr, as well as direct legal requirements of the property owner;
- lists all the arguments on the basis of which the court should make a positive decision on the claim;
- documents confirming the plaintiff’s rightness are attached to the lawsuit;
- the court must pass the decision received from the employees of Rosreestr;
- to appeal to the court, a state duty is required.
Such cases are considered within two months. If the court makes a positive decision for the plaintiff, then a decision will be sent to the Rosreestr. Based on this document, adjustments are made to the database, so the tax will then be calculated using the new indicator. Therefore, if you understand how and where to challenge the cadastral value of an apartment, you can quickly and without different difficulties perform the procedure yourself.
Benefit from the decline
Reducing the cadastral value of any property is considered a positive decision for any property owner. The benefit from this process is undeniable, since property tax and personal income tax on income from the sale of the property are significantly reduced. Therefore, it is important to know how to challenge the cadastral value of an apartment sold in order to reduce its own costs.
For example, a one-room apartment is being sold for 1.6 million rubles, but in the Rosreestr the cadastral price is 2 million. In this case, when selling housing owned by the owner for less than three years, you will have to calculate and pay a tax of 2 million. The tax will be equal to 260 thousand rubles.
If it is possible to reduce the cadastral value to one and a half million by administrative or judicial procedure, then the income tax will be calculated already from the sale price, which is higher than the cadastral indicator: 1.6 million * 13% = 208 million. Using a deduction of 1 million is charged tax is only from 600 thousand rubles, so it will be equal to 78 thousand.
The benefit of lowering the cadastral rate is really high. Therefore, everyone should know whether it is possible to challenge the cadastral value of an apartment.
Costs of going to court
Before challenging the cadastral value of an apartment in court, it is important to find out the nuances of this process and determine how much money will be spent for different purposes. These include:
- state duty for filing a lawsuit is 300 rubles;
- payment is required for the services of an independent appraiser, which may vary significantly in different cities, but is standardly equal to 5 thousand rubles;
- if a lawyer is involved in the trial, then he will have to pay at least 3 thousand rubles;
- quite a lot of time is spent on court hearings.
Most often, owners of different property think about how to challenge the cadastral value of an apartment only with a really significantly overestimated figure. It is often necessary to face the fact that the appraiser simply makes a mistake during the work, but in this case, it is usually possible to resolve the issue using the administrative method.
Is it possible to sell an object below the cadastral price?
Any property owner decides at what price it will be sold. No one can influence his decision. Until 2017, sellers could indicate different values in the contract of sale, which allowed to significantly reduce the amount of tax. If an amount not exceeding 1 million rubles was entered, then there was no need to transfer the income tax.
To prevent the use of such fraudulent schemes, amendments were made to the legislation regarding the cadastral value. When calculating the size paid after the sale of the apartment, the cadastral and selling price are compared. The calculation is based on the highest rate. If the seller intentionally underestimates this value in the contract of sale, then the income will be calculated on the basis of the cadastral price.
Due to such nuances, the owners of residential properties often ask the question: how to challenge the cadastral value of an apartment in Moscow or another region? The procedure is not considered too complicated, but it will have to spend a lot of money and time on its implementation.
Conclusion
The cadastral value of any property is determined only by Rosreestr employees. This indicator is used to calculate tax and other values. Therefore, many people and companies are sure that it is specifically overvalued by appraisers.
It is possible to challenge the cadastral value, and for this an administrative or judicial method may be chosen. For enterprises, pre-trial order is mandatory. In order for the value to really be changed, you need to show evidence that the real indicator is much less than the value that is recorded in the Federal Register.