Updated guidance on state cadastral valuation

Source: Consul Group

Rosreestr Order No. P/0336 of 4 August 2021 approved updated methodological guidance for carrying out state cadastral valuation. Its application became mandatory on 1 March 2022.

The main changes:

1. In preparing to carry out a state cadastral valuation, a budgetary institution collects and processes the necessary information on a continuing basis, irrespective of when that information was obtained.

The previous version contained a limitation: account was taken of information formed before 1 January of the year in which cadastral value is determined.

If any changes to a property occur in the year in which the state cadastral valuation is carried out, that information will therefore be taken into account in calculating cadastral value.

The collection, processing and taking into account of information also covers properties whose cadastral value was set at market value. Data as at 1 January 2022 must accordingly be taken into account when the state cadastral valuation is carried out in 2022.

2. If the area of a property changes, its cadastral value is determined in proportion to the change. There is a condition: the cadastral value with the latest date of application was set at the property's market value (paragraph 73 of the guidance).

The previous version of the guidance did not allow the results of a market-value determination to be used. If the characteristics of a property changed, the competent authority calculated cadastral value by reference to unit indicators. That cadastral value then had to be challenged afresh, by having it set at market value. Where a market value had already been established for the property, the approach meant that the original cadastral value, which had already been challenged, would be restored to the Unified State Register of Real Estate (EGRN).

Owners can now expect that, if the area of a property changes, they will not have to challenge the cadastral value a second time. The new calculation will be made using the market value determined under Articles 22 and 22.1 of Federal Law No. 237-FZ.

Overall, the new guidance keeps continuity in the rules for determining cadastral value and contains no radical change. At the same time it shows a move towards property owners, and a step back from over-regulating the procedure by which cadastral value is determined.

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Ilya
Tsirulev

Head of Construction and Real Estate

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