In the last 6-8 years, state valuation has been one of the most acute problems for property owners. The cadastral value determined with the direct participation of Rosreestr is usually overstated in 60% of cases. As a result, owners and tenants are charged excessively large payments, which leads to infringement of their interests.
However, the normative acts in force today can successfully challenge the value of real estate in the State Property Committee. This article describes the features and rules of the revision, as well as samples of applications for the revision of the cadastral value.
Regulatory framework
When deciding on a change in the cadastral price of real estate, it is necessary to rely on the following regulations and court decisions:
- Code of Administrative Procedure of the Russian Federation (CAS RF).
- Land Code of the Russian Federation (LC RF).
- Federal Law of July 3, 2016 No. 237-ФЗ “On State Cadastral Valuations of Real Estate” (entered into force on January 2017).
- Decree of the Government of the Russian Federation No. 316 "Rules for the assessment of land."
- Federal Standard for Assessment (FSO).
- Decisions of the Plenum of the Armed Forces of the Russian Federation dated September 27, 2016 No. 36 and No. 28 dated June 30, 2015
- Resolution of the Presidium of the Supreme Arbitration Court of June 28, 2011 in case No. A27-4849 / 2010.
In addition, it is recommended to pay attention to the practice of the Moscow City Court for 2015-2017.
The concept of cadastral value
According to the law, the cadastral value is the estimated value established according to the results of the state valuation taking into account the purpose and location of the property.
The determination of the value of objects is carried out in accordance with the requirements of federal legislation of the Russian Federation. It should also be borne in mind that the RF Labor Code allows regions to approve average indicators for each municipal district. 
The cadastral value is used to calculate tax and rent payments, buyback prices. Due to the use of the mass valuation method (without taking into account the individual characteristics of the object), it is very different from market prices up or down.
With the entry into force of 01/01/2017, Federal Law No. 237, a transitional period was announced and the cadastral value of real estate was “frozen” until 01/01/2020. Prior to this period, indicators as of 01/01/2014 are used for calculations. However, “ freezing ”does not prevent interested persons from applying for adjustment of the state price of real estate.
Reasons for revising property value
The results of T-bills of objects can be reviewed or challenged if they somehow affect the interests of interested parties. For example, due to inaccurate definitions of the value of the land, the owner is charged a non-levy tax.
In the samples of applications for revision of the cadastral value, as a rule, the following reasons are indicated:
1. Invalid information about the property used in the process of its assessment. At the same time, the uncertainty should be understood as the detected distortion (intentional or accidental) of information about the characteristics, condition, location of the object. In particular, these may be:
- Incorrect definition of category or type of use.
- Ignoring individual indicators, negatively affecting its actual value.
- Unscrupulousness of commercial appraisers.
- Incomplete and inaccurate inventory data.
2. The need to establish in relation to the object its market value at the date on which the result of the assessment of the State Property Committee was obtained.
Federal law allows you to challenge the cost of the commission for the examination of disputes in Rosreestr or in a court of general jurisdiction.
Parties to the dispute
The following persons may submit an application for review of the result of determining the cadastral value:
- Property owners, including shared.
- Persons owning plots on the basis of the right of permanent use or inherited possession.
- Tenants of real estate, provided that the fee is calculated based on the price specified in the state cadastre.
- Former property owners, if the information of the State Property Committee somehow affects their interests as taxpayers.
When applying to the court as an administrative defendant indicate one of the subjects:
- The body (ministry, department, management) of the executive branch that approved the results of the cadastral valuation, and the body that conducted it.
- Authorities with the authority to correct cadastral or technical errors. They are indicated in the claims challenging the results of the assessment in connection with inaccurate information about the subject of the assessment.
As practice shows, the Department (Ministry) of property relations of the region will be the appropriate defendant. Also, third parties will need to be involved in the case. They can be:
- The Ministry of Ecology and Nature Management (Natural Resources) of the subject of the Russian Federation.
- Territorial office of Rosreestr.
- Branch of the Federal Cadastral Chamber for the region.
- Administration of a municipal district or rural settlement,
- IFTS of Russia by region / region / republic.
The procedure for applying to the commission
In accordance with the requirements established by the Ministry of Economic Development of the Russian Federation, commissions are formed and operate at the Territorial Departments of the Russian Federal Register of the constituent entities of the Russian Federation.
The commission has the following composition:
- Representatives of the executive authorities of the region.
- Authorized employees of Rosreestr.
- Delegates from the Union of Entrepreneurs.
- Members of SRO evaluators.
A statement is sent to the commission stating the reasons why the SCN indicators should be adjusted. The application form for the revision of the cadastral value is given below.
The application is not considered in case of:
- There are no documents required to resolve the dispute, or they were filed in an unacceptable form (photocopy, with written corrections, etc.).
- Missed statute of limitations. In samples of applications for revising the cadastral value on this basis, plaintiffs usually refer to the fact that the period began to flow from the moment they became aware of the wrong price in the State Property Committee.
- The contested price of the property's property was previously set equal to the market price.
The appeal is considered within a calendar month from the date of receipt. The applicant's commission must be notified in advance of the date of the meeting. He is also entitled to attend and orally explain his arguments. After considering the application, examining the documents and arguments, the commission decides on the revision of the cadastral price or on the refusal to satisfy the requirements. In case of a positive decision, the corresponding notification is sent to the Federal State Budgetary Institution “FKP Rosreestra”.
The applicant has the right to appeal the refusal of the commission in court.
List of documents
Depending on the method of changing the cadastral value, the set of documents required to confirm their requirements varies.
When applying to the commission at the Territorial department of Rosreestr, you will need:
- Title document for evaluation. In the Unified State Register at the time of application, there must be a record of the applicant's right.
- Certificate of assessment result (extract from the USRN). Also, the cadastral value in Rosreestr can be found by ordering a certificate of the value of the object, cadastral passport.
- Evidence of the unreliability of the information that was taken into account when determining its value in the State Property Committee.
When applying to the commission, an expert opinion on the market price of the property is optional.
A more extensive package of documents must be collected when reviewing the cost in court. In addition to the above, it includes:
1. Statement on the revision of the cadastral value of the property, drawn up taking into account art. 125 CAS RF. In particular, the document should contain:
- Information about the applicant and the defendant, including known contact details.
- Description of the property whose price is being reviewed.
- An indication of a violated rule of law, an explanation of the circumstances justifying the opinion of the plaintiff.
2. The opinion of the expert (appraiser) on the value of the market value on paper, as well as in electronic form.
3. Confirmation of a technical error made during the GKO process.
4. Commission decision (if any).
5. A receipt (payment order) on the payment of state duty. In accordance with paragraphs. 7 p. 1 art. 333.19 of the Tax Code of the Russian Federation, the administrative plaintiff is obliged to deposit funds for each object, the value of which is disputed.
Features of the application for judicial review of the value of real estate
When contesting prices, it is necessary to correctly formulate claims. In an application to the court for a review of the cadastral value, an interested person may put forward one of the following requirements:
1. Set a price similar to the market price for real estate. Cases on such appeals are considered according to the rules of Ch. 25 CAS RF.
2. Change the cadastral price in connection with the identification of inaccurate information that was used in the T-bills process.
3. To challenge (cancel in whole or in part) Commission decisions. The matter is resolved taking into account the norms of Sec. 22 and 25 CAS RF.
The courts emphasize that the revision of the cadastral value of land cannot be combined with property requirements (revision of tax or rent payments, recovery of damage).
Below is a sample application for a revision of the cadastral value drawn up taking into account the requirements of the CAS RF and the Decisions of the Plenum of the RF Armed Forces.
The above form allows you to draw up an appeal both on the issue of changing the cadastral price to the market price, and in the event of a technical error or unreliability.
Appeal procedure
Cadastral value lawsuits are reviewed according to the rules of administrative proceedings in regional courts (supreme court of the republic, regional court, etc.) A lawsuit to change the price of real estate in connection with the inaccuracy of information should be considered within 2 months, and the case of contesting the decisions of the commission - in 1 month.
In the course of consideration of the case, the applicant must confirm all his arguments set forth in the application for review of the cadastral value. In such disputes, the main role in the proof is given to written evidence - documents, photographs, as well as the conclusions of invited experts.
After the completion of the process, the court decision that has entered into force will allow making amendments to the Unified State Register.