LATEST PROPERTY VALUATION PROCEDURES, PROCEDURES

Process, order and procedures for property valuation? Regulations on valuation?

It can be seen that valuation contributes to market transparency and promotes the efficient development of the market. At the same time, it plays a role in determining the property value of many different objects and purposes. The correct valuation of assets helps economic activities become efficient and brings benefits to the participants in economic relations. So what does the law say about the process and order of procedures for property valuation?

1. Process, order and procedures for asset price appraisal

The valuation process is based on Circular 28/2015/TT-BTC on Vietnam Valuation Standards No. 05, 06 and 07 issued by the Minister of Finance including the following steps:

Step 1. General determination of the property to be appraised and determine the market or non-market value as the basis for valuation.

General determination of appraised assets and determination of market value or non-market value as a basis for valuation, including:

+ Determine the basic legal, economic - technical characteristics of the property to be appraised

+ Determining the users of the appraisal results

+ Determining the valuation purpose and valuation time.

+ Determine the value basis of valuation.

+ Identify assumptions and special assumptions

Step 2. Make a price appraisal plan.

+ The formulation of a price appraisal plan aims to clearly define the scope and content of work, the progress of each work content and the implementation progress of the entire appraisal.

+ Contents of the plan include:

– Define the goals, requirements, scope and content of the work.

– Determine the method and method of conducting the appraisal.

– Determine the necessary data for the appraisal, the documents to be collected about the market, the appraised property, the comparable property.

– Identify and develop document sources, ensure reliable and verifiable sources: Research documents and documents on properties to be appraised.

– Develop the implementation schedule, determine the order of data collection and analysis, and the allowable time limit for the order to be performed.

– Determine the implementation organization, allocate resources: Make a plan to assign appraisers and support staff to carry out the customers appraisal request, ensuring the application of the quality control process. business valuation.

– Determine the content of the work to hire a consultant (if any).

Step 3. Field survey, collect information.

Step 4. Analyze the information.

Step 5. Determine the value of the property to be appraised.

Step 6. Make a report on valuation results, valuation certificate and send it to customers and related parties.

2. Regulations on valuation

According to the provisions of Clause 15, Article 4 of the 2012 Law on Prices: “Price appraisal is the determination of the monetary value of a variety of assets by an agency or organization with the function of price appraisal. civil service in accordance with the market price at a certain place and time, serving a certain purpose according to the price appraisal criteria.”

By definition, the content of the valuation is clearly defined as the assessment or re-evaluation of the value of the property, and must also clearly state the time, the basis of the valuation, etc., on the other hand this law. It also clearly states that the determination of the value of all types of assets is reduced to the standard value of money, which helps to ensure uniform appraisal activities.

Through the law, we can simply understand that valuation is the process of determining the market value of an asset, which is the assessment and re-evaluation of the propertys value according to the market price at a time, place and according to the market price. a certain standard. Valuations share several elements such as: An estimate of present value, in monetary terms; on the subject of property, real estate or ownership rights to property, immovable property; upon request, for a certain purpose at a specific place, time, and time; appraisal based on the use of data, market factors, ... to make conclusions about the price.

Therefore, we can understand: Property valuation is an activity carried out by organizations with the function of valuation to determine the monetary value of assets specified in the Civil Code, ensuring ensure that it is consistent with the market value at a given location and time based on valuation standards, in order to serve different purposes in socio-economic life.

The role of the appraiser:

First, appraisal contributes to ensuring the accuracy of property valuation for many public purposes. Currently, the issue of ensuring transparency in the procurement of public assets as well as determining the value of enterprises with state capital is becoming very necessary and effective. Valuation activities have made an important contribution as a reliable basis as well as a guaranteed price reference channel to help state agencies get closer to property values. Based on the characteristics of the appraisal and we can see that the appraisal activity is a process with many factors affecting the fake appraisal results, but they are all managed and limited to certain standards. promulgated by competent state agencies.

Second, the valuation reduces the burden and limits the risk in the responsibility of determining the value of the customers property. In fact, determining the value of the property is not too difficult, but in some cases In the event that the customer himself determines the value of the property he owns, there is no guarantee of transparency and correctness and is not legal for a third party. Therefore, valuation agencies and organizations participating in asset price appraisal are considered as an objective third party that has the function of accurately appraising the value of assets, reducing the burden of individuals and organizations that have self-assessed property in cases of procedural errors or inaccurate valuation results.

Third, appraisal has become a method of resolving disagreements between parties in property valuation disputes. In this case, valuation participates as an independent and fair method precisely between the organizations involved in the property value dispute here, this role mainly affects the target audience. between the mortgagor and the mortgagee, simplifies the interests of the parties in determining the collateral in the banks credit activities.

According to Master Dinh Thuy Dung