The cadastral value of real estate is one of the key values used in real estate and taxation. It represents the value of a property, determined by government authorities based on cadastral data. In this article we will look at what cadastral value is, how it is determined and why it is important for property owners.
What is cadastral value?
Cadastral value is the estimated value of real estate, established on the basis of state cadastre data. Unlike the market value, which depends on supply and demand in the market, the cadastral value is determined based on a number of objective factors, such as:
- Object location.
- Purpose and use of the object.
- Area and technical characteristics.
- Infrastructure and environment.
How is the cadastral value determined?
The cadastral value is determined by government authorities based on the mass valuation methodology. The main steps of the process include:
- Data collection: Information about each property is collected and systematized in the cadastre.
- Analysis and Evaluation: Specialists analyze and evaluate the collected data using mathematical models and statistical methods.
- Cost approval: The results obtained are approved at the state level and entered into the cadastre.
Why is cadastral value needed?
Cadastral value plays an important role in several aspects:
- Taxation: Property tax for individuals and legal entities is calculated based on the cadastral value. This makes the taxation process more transparent and objective.
- Real estate valuation: The cadastral value serves as a guide for real estate valuation when concluding purchase and sale transactions, rentals and other transactions.
- Legal issues: In the event of litigation regarding the value of real estate, the cadastral value can be used as an objective assessment criterion.
How to challenge the cadastral value?
Sometimes the cadastral value can differ significantly from the real market value of the property, which can lead to overestimation of tax payments. In such cases, property owners have the right to challenge the cadastral value. To do this you need:
- Collect the necessary documents: Technical passport of the object, certificates of ownership and other documents.
- Contact the dispute resolution commission about the results of determining the cadastral value: Submit an application and provide the necessary documents.
- Conduct an independent assessment: If necessary, you can order an independent assessment of the market value of the property and provide the results to the commission.
Conclusion
Cadastral value is an important element of the real estate accounting and taxation system. Understanding the principles of its definition and methods of challenging allows property owners to more effectively manage their property rights and responsibilities. It is important to remember that the cadastral value can significantly influence the amount of tax payments, so you should carefully monitor its relevance and correctness.
