Assessment of the real value of the property consists in determining its market price in a specific time period. Not only private individuals, but also individual state bodies resort to the services of appraisers, if such a need is due to their official activities. What documents are needed to evaluate the apartment and in what cases is this procedure carried out?
When is the cost of housing required?
Practice shows that most often the need to assess a residential property recently arises in connection with the registration of a mortgage. This is a mandatory procedure required to complete a transaction. Therefore, the question of what documents are needed to evaluate an apartment in a mortgage is becoming increasingly relevant for modern citizens. Indeed, the majority is the only opportunity to purchase their own housing.
The need to assess shares in the common property, separate rooms in communal apartments and other residential premises also arises in connection with the consideration of property disputes in courts of general jurisdiction. For example, when dividing property between spouses, proving inheritance rights, contesting certain transactions in which the object is a dwelling. In these cases, the plaintiffs are also interested in what documents are needed to evaluate the apartment. Indeed, most often the result must be attached to the statement of claim.
In addition, it is not uncommon for an owner to transfer personal property or property that is part of the organization’s charter capital as collateral. In such cases, the credit institution requires an objective value of the property pledged. The pledge acts as a guarantee of default by the borrower of obligations under the loan agreement.
The services of independent appraisal organizations are used by executive authorities represented by the Federal Bailiff Service in the presence of a court decision that has entered into force on foreclosure of collateral of an unscrupulous borrower. In such cases, the mortgage object is first seized, after which it is transferred for evaluation to independent experts. Further, on the basis of the assessment, the official transfers the property for sale, as a result of which the proceeds are sent to repay the debt under the executive document. Thus, the value determined by the appraiser is the starting price of the property sold at the auction.
Where to go?
Before deciding what documents the appraiser needs to evaluate the apartment, it is important to determine the contractor. The service costs money, so it is important to find a competent specialist. To conduct a qualitative assessment of the apartment, the customer turns to a specialized appraisal company.
When looking for an appraiser, it is important to consider some nuances. For example, if appraisal of an apartment is required for further transfer of it as a pledge when drawing up a mortgage agreement, it is necessary to resort to the services of only those companies with which the bank cooperates. Otherwise, the credit institution may refuse to accept the assessment made by a third-party company.
If the assessment is carried out within the framework of instituted enforcement proceedings and at the expense of state funds, the preparation of the report rests with the organization with which the Federal Service has an agreement. The debtor has the right to make his own assessment, however, the results will have to be challenged in court.
The further course of action provides for the conclusion of an agreement on the provision of services for the assessment of a particular property and the provision of the necessary documents for the evaluation of apartments for mortgages or other purposes. It is better to know in advance about the necessary list and prepare a package of papers in advance.
List of main documents
In this case, the appraiser will need the following documents:
- Title document for the apartment. As it may be a contract of sale (lease, gift), a certificate of ownership, a document confirming the right to inheritance, a court decision that has entered into force and others.
- Technical passport for the apartment (issued by the Bureau of Technical Inventory). This document may contain information about the cost of a dwelling at the time of its compilation, but such information is in most cases not relevant. The presence of this document is mandatory if the apartment was redeveloped.
- Passport of the owner who wants to evaluate the property. If the client is a trustee of the owner of the apartment, a notarized power of attorney is required to complete the contract.
Additional documents
In certain situations, other documents may be required. For example, when assessing property before the successor enters into inheritance rights, it is necessary to confirm his relationship with the deceased owner of the apartment. In this case, one of the following documents is provided:
- marriage certificate;
- birth certificate (in some cases, on the establishment of paternity);
- court decision confirming kinship with the deceased, and other evidence.
What other documents are needed to evaluate the apartment? Individual appraisal companies, in addition to the main ones, may request additional securities. These include a document confirming or denying the existence of a pledge, copies of documents proving the identity of each homeowner, if the property is inherited by several successors at once or is in common ownership of several citizens.
Regarding the list of documents for evaluating an apartment for a mortgage, it is important to note that when submitting papers it is important to make copies of them. They will be attached to the report on the procedure. This result is required to approve a mortgage.
If the list of documents is incomplete?
In the absence of certain documents required for assessment, the inspection of the apartment and the preparation of the report will have to be postponed until the missing certificates are received. So, for example, in the absence of a technical passport, you can order the production of such a document by contacting the BTI department. To compile a technical passport for an apartment, not only documents for a dwelling (in particular, a title document) are required, but also the actual visit of a specialist in order to establish the technical parameters of the dwelling. The approximate term of registration of the technical passport is ten days without taking into account the workload of the Bureau specialists. Therefore, it is important to know in advance what documents are needed to evaluate the apartment, and prepare all the papers before applying.
Evaluation Procedure
The evaluation process itself includes several successive stages, upon completion of which the corresponding report is issued to the customer.
After meeting with the client and concluding the contract, the specialist informs what documents are needed to evaluate the apartment.
Then he leaves for the object, during which he inspects the residential object with subsequent photofixation of the room as a whole and its individual parts (rooms, kitchen, bathroom, etc.).
Further, based on the documents submitted by the customer and the results of the inspection, the specialist carries out the necessary calculations and draws up a report on the assessment of the property.The terms of its compilation can vary depending on the complexity of the tasks, the experience of a particular specialist and the workload of a specialized organization involved as an independent expert.
Apartment Appraisal Result
It depends on a number of factors affecting the market value of the property, in particular: on the location and age of the apartment building, the availability of infrastructure, condition and technical parameters of the apartment. In addition, when determining the objective value, market prices for similar real estate objects of the primary and secondary housing market in a specific region of the country are taken into account.
Conclusion
Before applying for the procedure, it is best to know in advance what documents are needed to evaluate the apartment in order to save time. Indeed, sometimes it takes a certain amount of time to obtain some evidence and information, which may not play into the hands of the customer.