This page provides information on what is appraisal companies, what services they provide. Tariffs and terms of independent property evaluation are given in the relevant sections of our site:
- Real estate: apartments, land, residential houses, garages.
- Cars, equipment, fixed assets.
- Shares and other securities, corporate rights.
When is an appraisal firm needed in practice?
Appraisal firms are contacted in specific real-life and work-related situations: for example, when re-registering real estate with a notary (sale, gift, inheritance), for participation in legal proceedings (e.g., during divorce or property division), for proper accounting of assets, as well as in cases of property insurance, business purchase or sale, or revaluation of company assets. In all these situations, an official property appraisal report is required, which has legal force and can be used in notarial, judicial, or financial procedures.
It is important to know that an appraiser cannot conduct property appraisals independently as a professional activity with the issuance of official documents. They are allowed to work only as part of an appraisal company — a subject of appraisal activity — or as an individual entrepreneur (FOP), provided that the company or FOP holds a valid appraisal activity certificate (SOD). No matter how experienced an appraiser is, they do not have the right to issue an official report solely as an individual.
Below, we will take a closer look at what exactly constitutes an appraisal company, which documents confirm its right to conduct property appraisals, and what permits the appraiser themselves must have. This information will help understand how to choose the right appraisal firm and what to pay attention to when ordering an appraisal.
Appraisal company = The subject of valuation activity
As you already know the valuation of property is the process of determination of cost. The property to be valued is the property whose value is determined. And if this question is becoming more or less clear, then let’s look at the question of who is the subject of the evaluation activity, that is, who has the right to make this evaluation.
At first glance, the question of who is entitled to carry out the evaluation is obvious: the appraiser does the evaluation. However, it is not so true. According to the Law of Ukraine «On valuation of property…» the subject of valuation activities cannot be the appraiser as an individual. Only enterprises and private entrepreneurs who must have at least one appraiser and, in the case of land valuation, two appraisers must be allowed to conduct the evaluation. This right is confirmed by the certificate of valuation entity issued by the State Property Fund of Ukraine.
At the same time the document, which is the result of the valuation (report on the valuation of the property) must be signed by both the appraiser and the director of the appraisal company. Even if it is the same person, the signatures are still two.
What permit documents of the appraiser and appraisal company do they have
Appariser as a individual has three approval documents for evaluation:
- Qualification certificate – means that the appraiser has passed the qualification examination.
- Certificate of qualification of the appraiser, which must be taken at least every two years.
The appraisal company, as a subject of valuation activity, is required to have a certificate of the entity of valuation activity issued by the State Property Fund of Ukraine. Certificates are issued for a period of three years.
Purpose of Property Valuation in an Appraisal Company
Property valuation is always carried out with a specific, legally defined purpose, and the valuation report can be used only for that purpose. The purpose of the valuation determines not only the procedure itself but also the specifics of the documentation.
For example, valuations prepared for a notary in cases of sale, gift, or inheritance must be registered in the State Register of the State Property Fund of Ukraine. This ensures that the report has legal force and can be used for transferring ownership rights and calculating tax obligations.
Valuations prepared for company accounting or for court proceedings do not require such registration. However, the report must comply with procedural requirements or accounting standards.
Clients most often approach an appraisal company in the following situations:
- For a notary: property transfer in cases of sale, gift, or inheritance. The property value confirmed by the appraisal company’s report is used by the notary to determine tax obligations and other mandatory payments that the parties must make to the state budget.
- For court proceedings: when disputes over property arise—for example, during divorce, division of joint property, or inheritance disputes. In such cases, the appraisal company provides an independent and substantiated valuation, which the court accepts as evidence. It is also common for clients to apply to the court for inheritance formalities when there are no disputes between heirs but, for some reason, it is impossible to register the documents with a notary. Most often, real estate and vehicles are the subject of such court proceedings.
- For company accounting: revaluation of company assets or valuation of property sold to employees—for example, most often laptops and smartphones, less frequently vehicles. The results of the valuation allow reflecting the actual value of assets in accounting records and correctly calculating taxes, including in cases of asset sales.
Thus, turning to an appraisal company is necessary when an official, legally significant property valuation is required for a specific purpose. This ensures transparency of transactions, minimizes the risk of legal and financial disputes, and provides reliable information for management decision-making.
How to Choose an Appraisal Company
When choosing an appraisal firm, it is important to consider several key factors. First, check that the company has a valid Certificate of an Appraisal Activity Entity (СОД) and that the appraisers hold the appropriate qualification documents. This ensures that the appraisal will be official and legally significant. You can also verify this information on the website of the State Property Fund of Ukraine, which issues certificates and credentials to appraisers.
Second, pay attention to the company’s experience with your type of property. For example, appraising real estate, vehicles, or corporate rights has its own nuances, and it is important that the specialists have practical experience with these specific assets. It is also useful to know whether the company has worked with notaries, courts, or corporate accounting departments, depending on the purpose of your appraisal. Knowledge of procedural and accounting requirements is essential for the specialist who will prepare documents for you in case of a court claim.
Finally, consider the timeframe for preparing the report and, perhaps most importantly, client reviews of the company. The most reliable source of reviews, where ratings cannot be manipulated, is Google Maps.
More information about what permits appraisers and appraisal companies need, as well as about how appraisers differ from experts, and valuation from expertise, can be obtained by reading the article «real estate appraiser».
