What is that all about:
1. For what would you need a garage evaluation
2. How much does the such evaluation cost
2.1 What documents have to be provided to the appraiser
2.2 What to do if there are no documents
3. What depends on the cost of a garage or parking lot
1. For what would you need a garage evaluation
Evaluation of garage is the determination of the market value of this type of real estate by a professional appraiser, who has permits for this type of activity.
As in case with evaluation of real estate of other types, the determination of the cost of the garage is most often needed in such cases (by the frequency of customer visits):
- Re-registration of property rights. Most often referred to the sale of the garage. Less often – the signing of gift or exchange agreements. The appraiser prepares documents that are submitted to the notary when signing relevant contracts. Taxes and mandatory payments depend on the valuation value, which have to be paid at the notary.
- Entry into inheritance rights. Main procedure of entry into the inheritance on real estate implies the opening of hereditary case with a notary. Six months later, the title of the property is changed from the deceased to the heir. This evaluation procedure is very similar to that of a garage sale or gift. The main difference is in required document set as for notary, as for appraiser. If, for any reason, the heir will enter into the rights by a court decision, the design of the assessment and the procedure for its conduct will have some features.
- Court disputes. The most common case here is property valuation on divorce of spouses. Less often come to us for the preparation of documents for inheritance through the court. For example, if due to objective or subjective reasons the deadline for such re-registration by a notary is exceeded. Or there were some problems with the title documents proving ownership of the garage.
Depending on the purpose of the evaluation, the documents are different. The same applies to the procedure of the appraiser’s work. It was particularly important to observe all the necessary formalities when preparing documents for presentation in court. Otherwise, the assessment of the garage may be found to be defective, and it will not be possible to use even on formal grounds of violations.
Pay attention to experience and reputation of real estate appraiser, especially when preparing documents for filing a claim in court or when applying to appraisal company already in the course of the trial!
2. How much does the such evaluation cost
The cost of garage evaluation depends on two factors:
- characteristics and location of the garage.
- purpose of evaluation (notary or court).
Evaluation of the typical (common) garage for a notary costs 1000 UAH and is carried out for 1 day. We will send ready documents at our expense by New Post.
By «common characteristics» we mean a garage box for one car, located on the territory of the garage cooperative. If the task is to evaluate the car maintenance station on several boxes and with high ceilings for lifts, the cost of the appraiser’s work is determined individually.
Also, there is no unambiguous pricing when making an evaluation for presentation in court. Much also depends on the characteristics of the property, as well as the circumstances of the case and the presence of a full set of documents. In any case, the cost of estimating garages for the court is not less than 2000 UAH and is determined individually depending on the specific situation.
2.1 What documents have to be provided to the appraiser
As we have already written above, the most common case of evaluation of real estate is its re-registration with a notary – purchase-sale, gifting, exchange.
Only three documents need to be provided to the appraiser to purchase-sale or gift garages:
- ownership.
- technical passport.
- owner identification (tax) code.
Title of ownership. This is a document that confirms that the property belongs to a certain owner. There are many variants of such documents. If the garage at one time was bought, then there is a contract of sale. If the property was given – a gift agreement. If there was a court – the court decision. In the inheritance – the certificate of the right to inheritance. And so on. It may also be sufficient to extract from the property register.
Technical passport. A document that reflects all the characteristics of the garage or parking. Including those that do not appear in the «ownership». For example, the size of the main and additional areas (ground floor and basement), the presence of an inspection pit, the material of walls and floors and the like. Sometimes the owner does not have a technical passport. In such situations, we advise to contact a notary, who will draw up the documents, with the question of whether he needs a registration card for the transaction. If the notary can re-issue the documents without him, the appraisers will also do the work on the title documents. However, if the notary says that the technical passport needs to be updated, you need to contact the evaluators only with a new TP. Otherwise, the evaluation may not correspond to the new technical passport, and the notary simply will not conduct the transaction.
Tax code of the owner. Evaluation of the real estate of individuals for re-registration with a notary must be registered in a special state register. In addition to the characteristics of the real estate object itself and the estimated value, information about the evaluator (owner) is entered there. Such information may be either a series and passport number or an identification tax code. We understand customers’ concerns about sending their passport data to appraisers. Therefore, we suggest that you simply provide us with your tax number to indicate these data in the state register.
2.2 What to do if there are no documents
Here again, it is necessary to separate the situations for which an evaluation is made.
If you plan to re-register the property at the notary, and you do not have title documents, you do not need the evaluation. Since without documents the notary can not sign anything.
Another thing, if around the garage or parking lot there is or is planned some dispute in court, and one of the parties to this proceeding does not have documents. For example, the division of matrimonial property in a divorce where one party does not provide the other. Or inheritance by a court decision precisely because the deceased did not have the correct title documents.
Thus, situations with complete or partial absence of documents at the customer in our practice occur quite often. If you find yourself in this situation you are welcome to contact us for advice. There are several types of decisions on the evaluation procedure and its results for such cases. We will advise and tell you in details on which algorithm to follow depending on the circumstances of the case. So that, as a result, the court recognized the evaluation correctly, respecting all norms and requirements of the legislation.
3. What depends on the cost of a garage or parking lot
It is important to know and understand that the market value of any kind of real estate depends primarily on its location. And only then from all the other characteristics.
In the case of garages, the most significant factors (other than location) are:
- Total area. All real estate is considered through the cost of one square meter. Therefore, it is clear that of the three almost identical rooms more expensive will be the one that has more space. However, the nuances also can be in such cases.
- Ratio of main and additional area. This factor is characteristic and specific to the garage. Often, the garage is evaluated by the main area of the first floor. The additional area of the basement can be considered only indirectly, as an added advantage. The same applies to the presence of a pit or other structural features of the box.
- Wall and ceiling material. It is clear that, other things being equal, a capital building of brick and concrete will cost more than a similar metal garage.
In general, the appraiser’s task is to find some of the most similar garages or parking lots, and to conclude that our property costs about the same as the similar. However, this is not always easy to do. And so to get a clear result.
It should be noted that all this is true first of all when making calculations and preparing documents for the court. With the notarization of real estate is somehow different.
3.1 How we evaluate garages for a notary
As we have already written above, when evaluating real estate for a notary, its results are entered in a special state register. Among other things, the purpose of the registry programme was to combat undervaluation of real estate and thus minimize taxation.
For each real estate object (or rather, its characteristics) the program automatically calculates the estimated cost. This algorithm has a number of drawbacks and in some cases produces results that are completely inconsistent with the market value of a particular property. Under this article we will not delve into why this is the case. It is only important to note that the register works more or less correctly in apartment evaluation, however, in the case of garages and parking lots sometimes the problems appear. And quite unpleasant for the customer.
Often for the garages that the register gives an explicitly and significantly inflated estimated cost. The appraiser in turn has the possibility to register a number that differs from the «register» within plus or minus 25%.
So, for example, with the actual sale of a garage box for $5,000, the registry can easily give a figure of $10,000. Well, the appraiser will not be able to register from himself less than $7,500. Thus, the customer will have to overpay on taxes and mandatory payments. What are the costs of the seller and buyer when re-registration of the property at the notary we describe below.
To avoid unpleasant situations, after receiving the documents from the customers, we first take a certificate from the register with the estimated cost of the garage. If the cost of the garage in it is significantly higher, we inform the customer before paying for our services and starting work. So, if it is on your property property in the registry established inadequate cost, you will know about it from us in advance, and not after the fact, when the money is paid and the work is done.
4. How much does the re-registration the notary cost
If you want to understand this question in detail, you can read our article: «How much does the re-registration of real estate cost in Ukraine». Here we have examined in detail the various situations with re-registration of residential and non-residential real estate. Described all types of taxes and mandatory payments to a notary. And also considered the situation where one of the parties to the real estate transaction is a foreign citizen.
Here we give a brief table concerning the re-registration of garages, parking lots (parking) and other non-residential real estate.
| All parties to the agreement are citizens of Ukraine | |||
|---|---|---|---|
| Transaction | Income tax | Military fee | Pension fund |
| Selling of premises, buildings, garages, parkings, parking lots | 5% (seller’s costs) | 1,5% (seller’s costs) | 1% (buyer’s expenses) |
| Gifting or inheritance to close relatives (spouses, children, grandchildren, siblings) | — | — | — |
| Gifting or inheritance except close relatives | 5% (new owner pays) | 1,5% (new owner pays) | — |
In addition, do not forget that the notary will take a few thousand UAH for his services. It is important to know that the reward of notaries is not regulated in any way, so everyone has different prices. If you want to save money, we suggest you go through several notarial offices with documents for the garage. And ask in each of them, what will be the total costs of re-registration. It often happens that the prices differ quite significantly.
