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Reviewing Reports

Article 13 of the Law of Ukraine "On the assessment of property, property rights and professional activities in Ukraine" envisages reviewing the property evaluation report (Property Valuation Act).

Review report on the assessment of the property lies in its critical review and provide an opinion as to its completeness, correctness of the implementation and compliance with the applicable procedures of property valuation to the requirements of regulations on the property assessment, in the manner prescribed by this Law and regulations of assessment;

According to the National Standard #1:

Review report on the assessment of the property is made at the request of the person who uses the assessment of the property and its results for decision-making, including at the request of customers (taxpayers) of the property, state and local governments, courts and persons interested in unbiased critical examination of the property, as well as on the appraisal activity subject’s own initiative. The reason for the review is a written request to persons who under the Law of Ukraine "On the assessment of property, property rights and professional activities in Ukraine" have the right to review the report on the property evaluation (the reviewers).

Review is an unbiased objective examination of the property valuation by a person who has no personal financial or other interest in the outcome of such an assessment, according to his direction and qualification certificate specialization. According to the results of his work reviewer prepares a countersigned written review. Review must not contain his own conclusion about the value of the assessment. Any judgments about the value of the assessment, expressed in monetary terms may be reflected by the reviewer only in the form of property valuation report, compiled in complete form in accordance with national standards.

If in the written request about the need to review the property valuation report is set a requirement to provide an opinion on the assessment value, this requirement is satisfied by the property assessment. When reviewing the property evaluation report by an appraiser who works in such the appraisal activity subjects as public authority or municipality, the requirement to provide an opinion on the property value is satisfied by organizational support for an independent property valuation by the appraisal activity subject or the management subject. In this case, the persons who require for the property valuation in the process of reviewing, provide contracting for the property assessment in accordance with the law.

The review has to include:

  • grounds of review;
  • full name of the evaluation report of the property that was a subject to review, information about its makers, their qualification and opinion on the possibility of property valuation by these persons in accordance with the legal requirements for professional appraisal activity;
  • period of the review and the date of signature;
  • conclusion about the validity of choosing the type of cost and its compliance with regulations of assessment;
  • conclusion about the baseline data and other information (their completeness, adequacy for property valuation and disclosure in
  • the report)collected by the maker of the property valuation report;
  • opinion on compliance and correct application of methodological approaches, methods and evaluation procedures during the assessment with regard to the purpose and framework of evaluation, the validity of used assumptions;
  • general conclusion about the reliability of the property assessment. Review may also contain a list of comments to the report on the property assessment, validated by the reviewer, including warnings about the possibility of these observations impact on the valuation reliability.

During the review, the reviewer should not take into account any additional information about the object of evaluation or similar property that occurred after the date of making the property valuation report and opinion on the value of the property before signing reviews.

Review must include a conclusion on compliance of the report to requirements of the regulations of assessment and the possibility of using it with the appropriate order, including the reliability of valuation.

The report is classified by the following criteria:

  • Report fully complies to the regulations of assessment;
  • report in general complies to the regulations of the property assessment, but has minor flaws that do not affect the accuracy of evaluation;
  • report does not fully meet the requirements of regulations to the property assessment and has significant shortcomings that affected the reliability assessment, but can be used for the purpose specified in the report, after correcting these deficiencies;
  • report does not meet the regulations of assessment, is faulty and (or) unprofessional and can not be used.

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