Federal Law on Appraisal Activity: innovations and amendments

       The Federal Law from 21.07.2014 №225-FL entered into force, amending the basic for appraisers Federal law on appraisal activity. The law is intended to improve the legal regulation of appraisal activity in the Russian Federation.

       More serious are the requirements for the duties of appraisers and legal entities that have made labour contracts with appraisers. So, appraisers are required to provide information on signed reports to the SRO quarterly.

       Since June 1, 2015 in case of a mandatory assessment (this includes transactions with state and municipal property, stocks, insolvency procedures and others), appraisers must include information on reports into the Unified Federal Register of data on the facts of legal entities activity.

       Legal entities that employ appraisers are obliged to insure their liability. The insured sum, within which the insurer undertakes to pay insurance compensation at each insured event, can’t be less than 5 million rubles.

       It is possible to appeal actions (omissions) of an expert or experts from appraisers self-regulatory organization for the report examination and the examination results to the appraisers self-regulatory organization by the stakeholders.

       Along with the previously legally defined by the appraisers national association, the law provides the establishment of the Council on the appraisal activity under the Russian Ministry of Economic Development that will participate in the consideration of major issues on assessment activity, previously referred to the national association competence. This applies to both state assessment policy directions and evaluation federal standards, regulatory legal acts drafts on assessment and etc. The Council consists of seven representatives of appraisal services consumers, including credit institutions (nominated by their associations), SRO and assessment organizations, two representatives of the RF Ministry of Economic Development and a Russian State Register representative.

       Self-regulatory organizations of appraisers must develop rules of business and professional ethics in accordance with the standard rules, which will be adopted by the Ministry of Economic Development upon recommendation from the Council.

       According to the amendments, market value determined in the evaluation report, is recommended for transactions only within 6 months from the reporting date, except as required by law.

       The regulations on state cadastral valuation are presented in the new version. In particular, now such an assessment will be carried out not more than once every three years (in the cities of federal significance - not more than once every two years) and not less than once in a period of five years from the date as of which the state cadastral valuation was held.

       Detailed information is given in the comparative table of amendments into the law on the websites of the Appraisers Union of the Republic of Tatarstan  ocenshiki-rt.ru or оценщики-рт.рф.