Establishment Of Property Value

According to Ivy. Michael, the use in the Law on Executive Production of the term, different from the terminology of the law on appraisal activity “market price”, is in different subjects and research methods.

Thus, the relations arising in connection with the establishment of property value fall within the scope of regulation of the Federal Law “On appraisal activities in the Russian Federation”, according to which appraisal activity refers to the professional activity of subjects of appraisal activity aimed at establishing market value or other value in relation to objects (v. 3). In this case, the subject of valuation, applying various approaches to valuation, investigates directly the property in order to establish one of the types of value stipulated by the federal valuation standards.

The definition of the market price involves a completely different subject and research methods. In determining the market price, the subject of the research is not a specific property and its consumer utility (in order to establish a monetary valuation, i.e. value), but a number of transactions for the sale of identical (homogeneous) property in the market (for the purpose of comparing prices and determining the market value) . The subject is an open market and transactions executed on it with identical (homogeneous) property; this method is used primarily for comparison (besides this, the method of price for subsequent sale, etc.) [345] can also be used.

In this regard, Ivy. Michael, a bailiff who assesses seized property on his own, is not obliged to follow the rules of the Federal Law “On appraisal activities in the Russian Federation” and federal appraisal standards (but this does not mean that the bailiff cannot be guided by them). one need only focus on prices prevailing in the region, on similar products, using the information published by the Federal State Statistics Service, trading houses, by Jamie, as well as the data contained in the Monthly Statistical Bulletin “Price indices and tariffs”, in various price journals and private newspaper ads [346] .

With all the attractiveness of such an approach for the purposes of enforcement proceedings, especially given that the bailiff usually does not have special knowledge in the field of property valuation and does not have the technique of applying valuation approaches, it is not possible to agree with this approach.

First, as already noted, the Law on Enforcement Proceedings gives the bailiff the right to evaluate property, which means that the latter, by virtue of direct indication of the law and official position, is the subject of valuation activity.

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Secondly, being the subject of valuation activity, the bailiff must be guided by the Federal Law “On appraisal activity in the Russian Federation” and federal appraisal standards.

Thirdly, the Law on Enforcement Proceedings does not establish the procedure, rules for conducting and requirements for the process and the result of the assessment carried out by the bailiff. Such rules and requirements are established only by the Federal Law “On appraisal activity in the Russian Federation” and federal appraisal standards. The refusal of their application entails a complete lack of regulation of the relations of evaluation in the enforcement proceedings and the inevitable violation of the rights and legitimate interests of the parties.

Fourth, by imposing an arrest on the debtor’s property and preparing it for enforcement, the bailiff must determine the value of a particular property (particular thing) to be sold, taking into account its specific properties. It is necessary to take into account, among other things, the improvements and deterioration of a specific property that affect its price.

Thus, the subject of the study of the bailiff is not the market and the transactions made on it with identical (homogeneous) property, but the specific property, its consumer properties, its value, which is established, including through its correlation with other analogues, t. e. through a comparative assessment approach.

Fifth, the subject of arrest and evaluation (including provisional) may be property that has no analogues, or property, reliable information about transactions with analogues of which or their characteristics may be unknown or inaccessible to the bailiff. In this case, the property is also subject to valuation, but using other approaches.

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