BGP Litigation associate Natalia Yurchenkova speaks with about Rosreestr's refusal to reassess the cadastral value of real estate in Moscow

"Natalia Yurchenkova, a lawyer at BGP Litigation, says the commission has refused to reassess the cadastral value for various reasons: the report does not contain a precise description of the property, encumbrances over the property are not indicated, or an appraiser has not inspected the property. According to the expert, usually the commission issues refusals on the grounds that the market value report does not comply with a formal requirement: for example, the arguments given are unsound and do not mean that the appraiser set the market value incorrectly. But the commission does not check the accuracy of the market value, she emphasizes".

"Natalia Yurchenkova also notes that the commission's refusal to consider owners' applications on the merits because a new cadastral value has been approved is completely unlawful, and advises them to take their cases to court. Since 1 January 2017, determination and disputing of the cadastral value of a property is regulated by new legislation, the provisions of the law On Appraisal Activity in the Russian Federation currently in force setting out the procedure for challenging the cadastral value of property, and also the Administrative Court Procedure Code of the RF. It is not obligatory to apply to the commission first: a cadastral valuation can be disputed before the commission or in court.

Yurchenkova also added that in 2017 Muscovites can expect to receive notices of even higher tax assessments, although the tax is for the year 2016, not 2015, so individuals will be able to dispute the cadastral value on which they are based in court, relying on the services of an independent appraiser. Cases on reassessment of the cadastral value of a property must be heard on the merits, irrespective of whether or not the latest cadastral valuation has been approved or entered in the state cadaster of real estate before a judgment is rendered. "Under the current statutory regulation an applicant has the right to a recalculation of the tax base starting from the first day of the tax period, and for other purposes envisaged by the legislation, from the first day of the calendar year in which the application for review of the cadastral value is filed, but not earlier than the date the disputed cadastral value is entered in the state cadaster of real estate", she says. A reasonable solution, in Yurchenkova's view, would be to analyses all factors affecting the value of a property. For example, a property may be in need of repair or have defects, lowering its value".

The full article (in Russian) is available here: "Росреестр против: почему москвичам отказывают в пересмотре кадастровой стоимости".