If the cadastral value of real estate is unreasonably high, the owner has the right to apply for revaluation. The article provides step-by-step instructions on how to reduce the cadastral value of real estate, as well as the specifics of the reduction depending on the type of object - an apartment, house, non-residential premises.
Legislatively, the procedure for reducing the cadastral value of objects is regulated by the following acts:
- Federal Law No. 237 “On the state cadastral valuation” of July 03, 2016 - establishes the principles and procedure for the valuation;
- Decision of the Plenum of the Supreme Court No. 28 of June 30, 2015 - regulates particular situations that arise when considering cases on the recalculation of the cadastral value of immovable objects;
- Federal Law No. 221 “On the State Cadastre of Real Estate” dated July 24, 2007 - provides clarifications on cadastral errors and inaccuracies that affect the result of the assessment;
- Federal Law No. 135 "On valuation activities" dated July 29, 1998, which regulates the procedure for conducting valuation work in the territory of the Russian Federation.
Based on legislative guidelines, you can give step-by-step instructions for reducing the cadastral value of real estate.
Step 1. Determining whether there are grounds for revaluation
If the owner has discovered an overestimation of the cadastral value, it is necessary to make sure that the increase was unreasonable. As a rule, interest in the price of an object according to the cadastre comes after receiving a receipt from the tax office, which indicates a payment that does not suit the owner.
The amount of property tax directly depends on the cadastral value of an apartment, house or non-residential premises, so the expediency of lowering the price according to the cadastral data is obvious.
You can determine what data is contained in Rosreestr by obtaining an extract from the USRN indicating the cadastral value. You can order an extract in several ways:
- Personal appeal to the territorial Rosreestr at the location of the property.
- Visit to the territorial MFC.
- Submission of an application for an extract through the portal of the State Service.
- Submission of an application on the official website of Rosreestr.
- Sending an application for issuance of an extract by mail. You will need to send a registered letter with acknowledgment of receipt to the addressee.
Obtaining an extract is subject to state duty. Its size for citizens is 300 rubles, for legal entities - 950 rubles. You can pay at any branch of the bank or through the Internet banking system.
Next, you will need to compare the price indicated in the statement with the approximate value of the property on the market. You can view ads for the sale of similar properties. If the value in the statement is higher than the market value by about 30% or more, then this is a serious reason for revaluation.
Another important point is that you can apply for revaluation no later than five years (and in some regions of the Russian Federation 2-3 years) after the date of change. This is due to the fact that after a specified period, a planned revaluation takes place. Its results can also be challenged.
Step 2. Contacting an appraisal company
To prove the difference between the market and cadastral value, the conclusion of a professional appraiser licensed to carry out such activities will be required. Contacting an appraisal company is inevitable. A specialist appraiser will analyze the documents and tell you how expedient it is to engage in real estate.
Of course, the services of an appraiser are paid. On average, they will cost 7-10 thousand rubles. Prices vary by region.
If the appraiser confirms that the cost is too high, you will need to conclude an agreement with him to carry out appraisal work. The cost of preparing a valuation report depends on the complexity of the object and its location.
If inaccurate information contained in the unified register has been identified, then an appropriate conclusion will be required. It is also done by an appraiser. The cost of the examination is 10-20 thousand rubles.
The prices are impressive. However, the payment of unreasonably high tax can lose significantly more.
Step 3. Collection of documents
To start the procedure to reduce the cadastral value, you will need to prepare a number of papers:
- an extract from the USRN indicating the cadastral value;
- a copy of the title document - a certificate of ownership, a contract of sale, gift, etc.;
- assessment report or conclusion on the unreliability of information in Rosreestr;
- general passport of the Russian Federation.
The institution will also need to fill out an application of the established form to reduce the cadastral value of real estate.
If any documents are missing or the data in them does not correspond to reality, the application will not be accepted for work.
Step 4. Applying to the commission for consideration of disputes on cadastral value
The commission will be formed in Rosreestr. When contacting the owner, an application form will be issued, which indicates the personal data of the owner, as well as a phone number, address and e-mail for communication. It will also be necessary to state the reasons for initiating the process of contesting the cadastral value.
An application may not be accepted for consideration for the following reasons:
- there are no documents, the list of which is given above;
- deadlines for filing an application for revaluation have been violated;
- the cadastral value of the property is identical to its market price.
In all other cases, the application is submitted to the work of a special commission.
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Step 5. Waiting for the decision of the commission
The application will be considered within a month from the moment of acceptance. After consideration, the applicant will be notified of the results. In addition, he has the right to attend the meeting of the commission.
The review may result in a denial of reassessment or a satisfactory resolution. Members of the commission independently notify Rosreestr of the adopted verdict. In case of refusal, the owner can challenge this decision in court within 10 days.
Step 6. Drawing up a claim in court
Starting from January 2017, citizens and organizations have the right to sue immediately, bypassing the special commission. However, this method is often more expensive, so many people use the old algorithm.
The statement of claim is filed at the location of the defendant (Rosreestr). The document specifies one of the following requirements:
- challenge the decision or actions of the commission;
- establish a cadastral value for real estate, taking into account the revealed false information.
In addition, the claim indicates the name of the court, the plaintiff and the defendant, information about the violation of the rights or legitimate interests of the applicant, the grounds and arguments for confirming the requirements, as well as a list of attached documents.
The claim is accompanied by exactly the same documents as when applying to the commission and the administrative decision made. You will need to make notarized copies of the papers for the defendant.
Filing a lawsuit in court is subject to a state fee. For citizens, its size is 300 rubles, for organizations - 2000 rubles.
Step 7. Court session
The court will consider the statement of claim within one to two months, depending on the circumstances of the case. In the process of consideration, the plaintiff must prove the illegality of the previously established cadastral value.
If, as a result of the court session, the cadastral value of the object is adjusted, the changes will be applied from January 1 of the year in which the claim was filed. That is, the tax inspectorate will have to recalculate the property tax.
How to reduce the cadastral value depending on the object
Consider the features of reducing the cadastral value depending on the type of real estate: apartment, house or non-residential premises for commercial purposes.
Flat
The main reason for the decrease in the cadastral value of the apartment is the incorrectness of the information specified in the general real estate register. As a rule, errors are made in the process of analyzing data for evaluation purposes.
The Plenum of the Supreme Court of the Russian Federation established that it refers to unreliable information (Resolution No. 28 of June 30, 2015):
- incorrect handling of information during calculation;
- erroneous information in the list of real estate units awaiting revaluation;
- ignoring the emergency condition of the apartment;
- use in the assessment of incorrect factors that had a direct impact on the result.
During the assessment, a specialist may misinterpret the purpose of the apartment, its technical condition, location and other factors.
It is important to take into account the regulations of the regions. In some areas, the calculation of property tax on an apartment is based on the inventory value. In this case, the revaluation of the cadastral value will be refused.
House
When determining the cadastral value of a house, the following data are taken into account:
- area;
- year of construction;
- materials used in construction;
- the location of the building;
- the presence or absence of communications and engineering equipment.
This list includes other characteristics. However, often, when determining the cadastral value, the actual wear and tear of the house, its real condition, is not taken into account. For this reason, the final result is not always correct and can be challenged.
Non-residential premises
Reducing the cadastral value of non-residential premises is more often of interest to legal entities. For them, it is most expedient to reduce this indicator. As judicial practice shows, in some cases it is possible to reduce the price according to the cadastre by 5 times.
Since 2017, legal entities may not waste time applying to a special commission. Previously, this was a mandatory procedure prior to going to court. Now this is not required.
If necessary, seek legal advice. You can get legal help on our website. Ask an expert in a special window.
Now you know how to reduce the cadastral value of real estate, the step-by-step instructions presented above are a clear and detailed algorithm of actions. However, in order to go to court, you will most likely need the help of a professional lawyer.
The cadastral value of a house, plots, building or any other structure can be considered the “starting point” for determining the tax base for property tax. Simply put - the higher the cadastral value of the house, the more tax will have to be paid for it.
However, the system for determining the cadastral value is designed in such a way that an ordinary citizen does not actually take any part in this process. In accordance with the laws in force, the cadastral value is determined by experts who have an appropriate agreement with local authorities. That is, in fact, proceeding only from the documents available to these same bodies.
Where does the inflated cadastral value come from?
As already mentioned, the cadastral value of the house is set by independent experts. They study real estate documents, and then with the help of complex mathematical models, using special computer programs and statistical data, they derive the final figure. When determining the cadastral value, many data are taken into account and included in the program, including:
- the total area of the object;
- year of construction;
- materials from which the house was built;
- geographical location of the building;
- availability of engineering systems and communications.
This is, of course, not a complete list. All these data are taken from the information that the local authorities provide to the experts on the basis of available documentary data. Theoretically, it is believed that the cadastral value should correspond to the market value as much as possible. However, this is far from always the case: after all, when conducting expert work, the real state of homeownership is not taken into account. And its wear is often quite significant.
When evaluating a house, experts, of course, cannot take into account all the individual features of the structure, since they simply may not be reflected in the documentation. In addition, it is no secret that in our economically unstable times, the market value of real estate objects can seriously change - and most often become cheaper (if, for example, we talk about the secondary housing market). Well, besides all this, a banal mistake can creep into the calculations of experts - such cases are far from uncommon.
How to change the value of a house?
It is possible to reduce the cadastral value of a house for one of the following reasons:
- the information that was used in determining the cost does not correspond to reality;
- the market value of the house did not correspond to the cadastral value at the time of its establishment.
There are two ways to challenge the cadastral value of houses. The first of them is an appeal to a special commission to consider disputes over cadastral value. And for legal entities (if, for example, they own a house) - this is a mandatory step. It is quite complicated, not only because of its duration (the law allows the application to be considered up to six months). As a rule, these commissions are “sharpened” in advance to refuse to satisfy a request for a revision of the cost, and therefore they try to use any tricks and subterfuges. And it is extremely difficult to do without a competent lawyer in this case.
For individuals, fortunately, this stage is optional (although not forbidden). Ordinary citizens with their demands can apply directly to the courts. However, even here everything is not easy. Firstly, to consider the case, you should prepare a fairly impressive package of documents, write a competent application and comply with all the requirements of the procedural law on filing a claim with the court. In particular, for ordinary citizens, a special problem is the need for physical presence in a court session and defending one's point of view on an independent basis. However, these problems can be completely solved with the help of competent specialists, for example, our law office "Academy of Law".
Legal entities are also not deprived of the right to apply to the courts regarding the reduction of the cadastral value (however, only after passing the aforementioned commission). All of the above problems of individuals are just as relevant for organizations and enterprises. But we are ready to provide them with prompt and high-quality assistance in these matters.
By contacting the "Academy of Law", you get a firm guarantee of legal support at a high professional level. The full-time specialists of our bureau have considerable experience in resolving issues of reducing the cadastral value of objects and ensuring the protection of the interests of owners. We serve all categories of the population, including municipalities, large commercial companies and private landowners, providing legal services at competitive rates and in the shortest possible time. Consultation of a competent lawyer from the Academy of Law will help you avoid serious difficulties in the course of the proceedings.
In 2016, for the first time, property owners received notifications about the payment of property tax, calculated according to the new rules. Many were unpleasantly surprised by its size.
Situations when an unexpectedly large figure is found in such a notification are not uncommon. The reason lies in the amount of the cadastral value of the property, on the basis of which the tax is now calculated.
So, in Moscow, apartments worth up to 10 million rubles. are taxed at a rate of 0.1% of the cadastral value, over 10 million rubles. - at a rate of 0.15%. The final tax amount is determined taking into account the area and inventory value of the property.
A young married couple living in Butovo in a one-room apartment on the fifth floor of a 16-storey panel house with an area of 38 sq.m and a market value of about 6 million rubles, according to the boldest estimates of its owners, was quite surprised to learn that the cadastral value their housing is 9 million rubles. Until 2015, the husband (a bank employee, has been the sole owner of the apartment since 2009) paid a tax of 220 rubles. Taking into account the revision of the cadastral value, the amount of tax for 2015 amounted to 1028 rubles, and in 2020 the family budget will miss 4263 rubles.
The cadastral value of an apartment, house or plot is determined in the course of a mass appraisal by state experts (or experts hired by the state), using market information and object characteristics from publicly available sources. At the same time, appraisers do not go to the site, so their assessment often does not take into account a number of significant factors (the current state of the apartment, distance from roads, and so on), which leads to errors. As a result, it may turn out that the cadastral value of the property is clearly overstated compared to its market value, which entails a significant increase in tax. The only way to fight such injustice is to challenge the results of the evaluation.
Considering the odds
The cadastral value of objects is registered in the State Real Estate Cadastre (GKN). You can find it out on the website of Rosreestr or by requesting an extract from the State Property Committee at the territorial division of Rosreestr.
Before starting a dispute with the state, a citizen should determine whether the game is worth the candle. To do this, you need to order an assessment of the market value of the apartment from an independent expert. Carrying out this procedure and preparing a report is not a cheap pleasure. If it costs about 3-5 thousand rubles for the owner of a Moscow apartment, then at least 10 thousand rubles will have to be paid for the assessment of a residential building or land plot.
A well-prepared evaluation report is the main condition for a successful challenge of the results. Do not save money and neglect the verification of the selected expert. It must meet the minimum requirements: be a member of a self-regulatory organization of appraisers (each such SRO is obliged to post information about its members on the Internet), and also insure its professional liability (the appraiser does not have the right to refuse to familiarize the customer with the insurance contract). It would also be useful to search for information about the expert and SRO on specialized forums, review sites and on the Rosreestr website.
If the report compiled on the basis of the assessment shows that the market value of an apartment with a cadastral value of 9 million rubles. amounts to 6 or 7 million rubles, that is, it makes sense to seriously think about challenging the results. Moreover, in 2016-2019, property tax is paid at a reduced rate, and starting from 2020, owners will have to annually give the state a rather large amount of hard-earned money.
Choose a method
The cadastral value of an object can be disputed by citizens in two ways: to apply to the commission for the consideration of such disputes in the territorial division of Rosreestr or to the Supreme Court of the Republic, regional, regional court. At the same time, prior appeal to the commission is not necessary to apply to the court.
In the first case, the application of the owner of a Moscow apartment will be accepted by the commission for the consideration of disputes on the results of determining the cadastral value under the management of Rosreestr in the city of Moscow. In the second case, the Moscow City Court. The respondent in such cases is the Moscow government, which approved the results of the cadastral value, and the Rosreestr department for the city of Moscow. It is not worth delaying the appeal: this can be done within five years from the moment the contested information is entered into the State Property Committee, but only until new data is entered into the State Property Committee.
Issue price
Each of the methods has its own characteristics, associated both with the list of necessary documents, and with the time and material costs of the owner.
When applying to the commission, you need to submit an application, attaching to it a certificate of the cadastral value of the object (it can be obtained at your branch of the Federal Cadastral Chamber of Rosreestr or at the MFC), a notarized copy of the certificate of ownership and a report on the assessment of its market value. If in this report the market value of the apartment differs by more than 30% from the cadastral value, then a positive conclusion is required on the compliance of the report with the requirements of the law. It can be obtained from the SRO of your chosen appraiser. This is a mandatory requirement. In Moscow, such a conclusion costs an average of 7-10 thousand rubles. To apply to the court, in addition to the specified documents, you will need to submit a receipt for payment of a state duty in the amount of 300 rubles.
It should be borne in mind that when making a decision, the commission focuses on the size of the market value of the apartment indicated in the appraiser's report, and the court, taking into account the available evidence, can determine the market value in a different amount.
Formally, the commission should consider the application for no more than one month, but in practice the procedure rarely takes less than two months. The court, too, usually does not fit into the allotted time. Instead of the two months prescribed by law, the owner can wait six months or even more for a court decision, additional time may be taken by a forensic examination of the property (carried out by experts invited by the court). Its implementation with a high degree of probability will result in additional expenses for the owner, which will amount to at least 5 thousand rubles.
In practice, there was a case when a successful entrepreneur, the owner of a three-room apartment with an area of 117 sq.m, located on the fifth floor of an 11-storey brick building in the center of Moscow, foreseeing a significant increase in tax, tried to challenge the cadastral value of his home in court. It amounted to 32 million rubles, but the owner received an appraiser's opinion with a market value of his apartment of 26 million rubles.
The court appointed a forensic examination. A few months later, her results showed that the market value of the apartment is 31 million rubles. As a result, the court determined the market value of the apartment based on the results of this examination. The dissatisfied owner is currently preparing to pay tax for 2015 in the amount of 13.16 thousand rubles. (and earlier it did not exceed 1.8 thousand rubles).
If the owner wants to go to court with the help of his representative, then such a specialist must have a higher legal education. That is, in addition to the costs of preparing documents and the possible conduct of a forensic examination, the owner must plan the costs of lawyers (30-50 thousand rubles for the conduct of the case).
Thus, appealing to the commission at Rosreestr, as a rule, is a faster, more convenient and less costly way to challenge the cadastral value of real estate. In cases where the difference between the cadastral and market value of the property is relatively small (up to 2 million rubles), it is reasonable to choose this particular method of protecting your rights.
If everything went well, new information about the cadastral value is entered into the State Property Committee. It must be borne in mind that property tax will be calculated on the basis of new data only starting from the year when the owner applied to the commission or to the court. Unfortunately, it will not work to force the tax authorities to recalculate the tax paid for previous years.
Kira Tykhenova, Attorney at Law Office "Dmitry Matveev & Partners"
