PROPERTY APPRAISAL

Everyone in our life is surrounded with diverse objects, personal and real estate which are used in all aspects of our activity. And there is constant exchange with these objects: they are sold, purchased, exchanges and inherited…That is, they always have certain value for somebody (individuals and legal entity or government) and hence, it is an object to be appraised.

On the one hand, every person is an evaluator who always values various objects, for example, his old car for sale and chooses a new car at reasonable price for possible purchasing and so on. However, there are many aspects of appraisal which require special knowledge and skills acquired during practical activities. So, on the other hand today there is a professional appraisal institute which provides services related to evaluation of various immovable and movable objects of various forms of ownership for different purposes: privatization, mortgage, heritance, buying and selling, taxation etc.

According to the Article 6 of the Law of Turkmenistan “On Appraisal Activity” dated 2012 (with all amendments) these objects are as follows:

Objects of appraisal are movable and immovable estates, particularly:

  1. Intangible assets and intellectual property;
  2. Legal claim, debenture (debts);
  3. Enterprises as property;
  4. Other objects of civil laws to which the legislation of Turkmenistan provides for their civil turnover.
Why is appraisal required?

More often situations when appraisal is required are:

  • Mortgage lending;
  • Assessing of contribution to the authorized capital;
  • Making managerial and investment decisions;
  • Assets revaluation;
  • Property disputes and judicial contest;
  • Calculating of insurance amounts for property;
  • Implementing of construction-related projects or reconstructing property objects.

There are cases when property assessment is not compulsory but it would be reasonably effective for making managerial decisions. Voluntary property appraisal allows reduce costs and increase income from property-related transactions, fairly compensate damage, stand up interests in court, tax and customs authorities