Each property owner is required to pay property tax annually. Its size depends on the cadastral value of real estate calculated by Rosreestr employees or invited specialists. Often, property owners are faced with the fact that they have to pay too high a tax. This is due to the overstated cadastral price of an apartment or other premises. Therefore, citizens and companies often think about reducing the cadastral value of real estate. The process may be carried out in a pretrial or judicial manner.
The concept of cadastral value
Any significant actions with real estate, involving the inclusion of information in the cadastre, lead to the need to pay taxes to the owners. For this, payment is calculated, and the cadastral value is necessarily included in the formula. It is determined by cadastral engineers, which takes into account the location, area and other parameters of the object.
This indicator is represented by the value of real estate in monetary terms. It should be approximately equal to the market price, but often it is necessary to encounter overestimated indicators. Therefore, a reduction in the cadastral value of real estate is required.
When is the metric used?
Cadastral value is applied in different situations, which include:
- calculation of property tax, which must be paid by all owners of real estate, represented by companies or individuals;
- determination of the tax base for the sale of an apartment or house owned by a citizen for at least three years;
- tax payment by companies or individuals who receive income from leasing the property;
- calculation of the size of the notarial fee upon entry into the inheritance.
This indicator is used in different situations, and property owners are interested in having an optimal and objective size. Therefore, it is often necessary to reduce the cadastral value of a property. This allows you to significantly reduce the amount of taxes transferred to the budget for various transactions with an apartment or other premises.
Factors Affecting the Cadastral Price
The calculation of this value is carried out by cadastral engineers who are employees of the Rosreestr or the organization with which the contract was concluded by a state body. The process is carried out annually, so the indicator is constantly changing. It is influenced by many different factors that change quite often. Therefore, when calculating the cadastral value, factors are considered:
- area of the room;
- the location of the facility, not only the geographical location, but also the house building;
- the degree of depreciation of the property and its external condition;
- inflation rate in the country;
- infrastructure development of the area where the facility is located;
- standard of living of people living in the area;
- changes in the real estate market.
Most often, property owners have to deal with an increase in the indicator. However, they do not receive any justification for such growth. Therefore, they often think about reducing the cadastral value of real estate, which will significantly reduce the amount of funds transferred to the budget for the use or disposal of their property.
Who performs the assessment?
Cadastral value is established exclusively by cadastral engineers.They can work in Rosreestr or in special appraisal companies that are involved in cooperation by a state organization. The assessment process is considered to be complex and lengthy, as many different factors have to be evaluated. Therefore, when attracting third-party organizations, a special competition is held.
The competition is organized exclusively among the largest companies that have the necessary licenses and permits for this type of activity. The selection process takes into account different criteria:
- Term of the work;
- organization status in the market;
- different permissions and licenses.
After choosing the right organization, a contract for long-term cooperation is concluded. It is the employees of the selected company that annually evaluate real estate owned by individuals or various enterprises.
Assessment process
Before you begin the process of reducing the cadastral value of a property, it is important to understand how this parameter is determined. The procedure consists of several stages:
- a decision is made to conduct a regular assessment;
- a list of objects is compiled for which it is necessary to determine the cadastral value;
- a competition is held on the basis of which an appraisal company is selected;
- an official contract is drawn up with the selected contractor;
- direct cadastral valuation by a designated expert;
- based on the work performed, a report is generated on the results obtained;
- the results are checked, and then approved by the management of Rosreestr;
- necessary changes are made to the USRN;
- tax and other indicators are calculated based on the indicator in the register.
Not always the results of the assessment are objective, which leads to the need to reduce the cadastral value of real estate by the direct owners of the objects. The procedure can be performed in various ways. To do this, you will have to independently turn to independent evaluators for a second study. If the results are significantly different, then the owner of the object will have an objective reason to challenge the indicator. Often errors are due to the fact that cadastral engineers do not have reliable information about the object under study.
The consequences of incorrect calculation
If the appraisers really make serious mistakes, this will lead to numerous negative consequences for the owner of the object. In particular:
- property tax will be too high;
- the procedure for selling or donating real estate is complicated, since a tax has to be paid for this process.
Therefore, if the owner of the object really realizes that the cost calculated by the state body is overstated, then it is advisable to tackle the cadastral value of real estate. Judicial practice on such issues shows that if the owner of the apartment really has evidence of an incorrect calculation by the engineers, then it will not be difficult for him to win the trial.
For what reasons is the indicator overestimated?
Excessively high cadastral value is usually associated with the following reasons:
- a deliberate increase in the indicator to increase the amount of funds paid by property owners to the state budget;
- use by cadastral engineers of incorrect information about the facility;
- lack of appraisers necessary skills, abilities and experience for objective work.
Often the discrepancies are really significant, therefore, the cadastral price significantly exceeds the market value.
Dispute Methods
Reducing the cadastral value of real estate in Moscow and other regions is carried out in a similar way. Two methods are commonly used:
- Pre-trial solution to the problem.For this, a request is sent with a request to lower the indicator directly to Rosreestr. Such an application is considered within 30 days. Evidence of an incorrect assessment is attached to the application, for which you will have to first turn to independent experts to determine the cadastral price.
- The judicial method. If the indicator does not change on the basis of the application to Rosreestr, then a lawsuit is filed in court. Judicial practice of reducing the cadastral value of real estate shows: if there are really significant differences, then the court takes the side of the plaintiffs. If the claims are satisfied, then the citizen can count not only on a decrease in the indicator, but also on compensation for the costs of the assessment.
It is advisable to engage in this process only if it is certain that the difference between the real indicator and the value available in the USRN is significant.
Independent Evaluation
Initially, you will have to turn to an independent appraiser to determine the indicator, since only if you have a competent and official report, the cadastral value of real estate will be reduced. The cost of services differs significantly in different companies, but usually is within 5 thousand rubles. However, in some regions the price reaches 20 thousand rubles.
The organization or private experts with the necessary licenses and work permits should be selected. Only under such conditions will the report have legal force and reliable information. A contract for the provision of a service is drawn up with the selected expert.
Valuation of real estate to reduce the cadastral value is carried out promptly, usually the results are provided one week after the conclusion of the contract. The received report serves as evidence of the owner of the facility that the cadastral value used by Rosreestr employees to calculate tax and other payments is overstated.
The nuances of applying to the commission
The procedure for reducing the cadastral value of real estate involves an initial appeal directly to Rosreestr. A special commission is formed to consider each such appeal. It is recommended to resort to this method immediately after identifying inconsistencies and an overestimated size of the indicator.
To complete the process, the following documents are transferred to the commission:
- correctly written statement on reducing the cadastral value of the property;
- report received from an independent expert after the assessment;
- documentation confirming that the report was made by an experienced appraiser licensed for this activity;
- extract from the USRN and title papers on the property, indicating that the applicant is the owner of the property;
- extract from the house book containing information about registered persons.
Documents are considered within 30 days, after which the employees of Rosreestr provide the applicant with a written response. It is not always positive, so you will have to go to court to change the indicator.
The specifics of going to court
The procedure takes a lot of time, but practice shows that the court always takes into account the information contained in the report of an independent appraiser, which leads to the satisfaction of claims.
When applying to the court, it is required to prepare the documentation:
- a statement of claim containing information on the parties to the case, as well as on the apartment whose cadastral value is disputed;
- report of an independent appraiser;
- Rosreestr’s response to the request for a decrease in the indicator;
- receipt of payment of duty;
- title documents for real estate.
Based on these documents, a court session is appointed, where the circumstances and evidence of each party are assessed. Often there is through the court a decrease in the cadastral value of real estate in Moscow for individuals.This leads to the fact that citizens further pay tax on the basis of an objective tax base.
Conclusion
The cadastral value of any object is determined by Rosreestr. This indicator is used during the calculation of various payments and taxes. If the owner of the object is sure that the value is too high, then he can reduce it.
To reduce the cadastral value, you can apply directly to Rosreestr. If a negative answer is given, then the figure is disputed in court. Practice shows that if you have a report drawn up by an experienced expert, you can change the cadastral price.