Many people consider property valuation a mere formality, but Ukraine’s Law “On Property Valuation” contains several key rules that every client ordering an appraisal of an apartment, house, car, or land plot should know. This overview will help you understand how to correctly order a valuation, avoid mistakes, and get a legitimate report that can be used for transactions, court, or inheritance.
1. Who can order a valuation
The first rule often overlooked: only the property owner or a person authorized by the owner through a power of attorney can be the client. No one else can officially order a valuation. This is important for all transactions: sale, rent, inheritance, or loans secured by property. If the client does not meet this requirement, the report may be considered invalid.
2. Written agreement is mandatory
Another important point: a valuation is conducted only based on a written agreement between the client and the appraiser. The agreement should specify the subject of the valuation, its purpose, deadlines, and the rights and obligations of the parties. The agreement guarantees the legality of the process and protects both sides.
3. Key provisions of the law that clients often miss
- Valuation methods: the appraisal must be performed using officially approved methods — market comparison, income method, or cost approach. This ensures the report reflects real market value.
- Documentary evidence: all data used by the appraiser must be verified with documents — technical passports, cadastral data, certificates of property condition, etc.
- Validity period of the report: the report is valid for a limited time — market values change, and an old report may not reflect the current value.
- Appraiser independence: the law requires objectivity and absence of conflicts of interest to ensure the report is accurate and unbiased.
4. Practical benefits for clients
For clients, knowing these key provisions means a safe transaction, accurate valuation of property, and a legitimate report for a notary, bank, or court. There is no need to study the law in depth — just knowing the main rules ensures the valuation is completed smoothly and delivers useful results.
Conclusion
Ukraine’s Law “On Property Valuation” is not as complicated as it seems. The main rules for clients are simple: only the owner or an authorized person can order a valuation, it is conducted only based on a written agreement, reports are prepared using approved methods with documented data and appraiser independence. Knowing these points helps clients benefit from the valuation and avoid legal issues.