In addition to the “administrative” (in the Rosreestr Commission for the consideration of disputes regarding the results of determining the cadastral value), there is the possibility of revising the established cadastral value through the court.
The procedure for considering claims to challenge the cadastral value in court is regulated by Chapter 25 of the Code of Administrative Proceedings (CAC) of the Russian Federation.
To challenge the cadastral value of real estate through the court, you must draw up a statement of claim or contact a law firm to draw up such a statement. In Art. 246 of the Code of Arbitration Code of the Russian Federation determines the scope of those documents that are necessary for filing a claim in court. It is worth noting that the CAS of the Russian Federation imposes a special requirement on a person who can be a representative in the case: the presence of a higher legal education.
It is important to clarify that citizens (individuals) can file a claim in court to challenge the cadastral value, bypassing the commission under Rosreestr, while for legal entities, until August 2017, a mandatory pre-trial procedure for challenging the cadastral value was provided. But after the amendments to Part 1 of Art. 22 of Law No. 237-FZ, a preliminary application to the Commission is no longer mandatory and legal entities can also immediately apply to the court.
Depending on whether the filing of the claim was preceded by a pre-trial appeal to the Commission for Consideration of Disputes on Cadastral Value under Rosreestr, the following may be filed in court:
1. Administrative claim to challenge the results of determining the cadastral value.
2. An administrative claim to challenge the decision, action (inaction) of the Rosreestr Commission for the consideration of disputes regarding the results of determining the cadastral value.
The statement of claim itself may contain the following requirements:
on establishing its market value in relation to the property;
on changes in the cadastral value due to the identification of inaccurate information about the valuation object used in determining its cadastral value, including the correction of a technical and (or) registry error.
In cases of establishing cadastral value in the amount of market value, the administrative defendants are the state body or local government body that approved the results of determining the cadastral value and Rosreestr.
The administrative claim must meet the requirements of Art. 125, part 1, 2 art. 220, part 1 art. 246 CAS RF and contain the following information:
1. The name of the court to which you are filing the claim.
2. Full name, place of residence or place of stay of the applicant, date and place of birth; name or full name the representative, his postal address, information about higher legal education - if the claim is filed by the representative; telephone numbers, fax numbers, email addresses.
3. The name of the administrative defendant and its location, as well as its telephone numbers, fax numbers and email address (if known).
Required documents
The following documents must be attached to the administrative claim:
notification of delivery to other persons participating in the case, copies of the administrative statement of claim and documents attached to it that they do not have, or copies of the statement and documents according to the number of administrative defendants and interested parties;
an extract from the Unified State Register of Real Estate on the cadastral value of the property, containing information about the disputed results of determining the cadastral value;
a copy of the title or title document for the property;
documents confirming the unreliability of information about the property used in determining its cadastral value - if an application for revision of the cadastral value is submitted on the basis of the unreliability of the specified information;
a report drawn up on paper and in the form of an electronic document - if the application for revision of the cadastral value is submitted on the basis of establishing its market value in relation to the property;
decision of the commission (if any);
a document confirming payment of the state duty (its amount is 300 rubles);
documents certifying the status and powers of a lawyer, if the representative has the status of a lawyer; documents on higher legal education, as well as certifying powers - for a representative who is not a lawyer;
other documents confirming the requirements.
An administrative claim to challenge the cadastral value and documents must be submitted to a court of general jurisdiction at the level of a constituent entity of the Russian Federation, which is the supreme court of the republic, a regional and regional court, a court of a federal city, a court of an autonomous region and an autonomous district, at the location of the customer works or the state body that determined the cadastral value (see clause 15 of article 20 of the CAS of the Russian Federation and clause 3 of the Resolution of the Plenum of the Supreme Court of the Russian Federation dated June 30, 2015 N 28 “On some issues that arise when courts consider cases challenging the results of determining the cadastral value real estate objects").
You can file an administrative claim to challenge the cadastral value within the following deadlines:
in case of challenging the results of determining the cadastral value - within five years from the date of entry into the Unified State Register of the disputed results of determining the cadastral value.
in case of challenging the decision, actions (inaction) of the commission - within three months from the day the applicant became aware of such a decision.
From 01/01/2017, an administrative claim and the documents attached to it can be submitted to the court in electronic form, if there is a technical possibility for this in court.
The case of challenging the results of determining the cadastral value is considered within two months from the date of receipt of the administrative claim in court. The review period may be extended by a maximum of one month. A case challenging a decision or actions (inaction) of the commission must be considered within one month.
When considering a case to revise the cadastral value, the applicant must prove the unreliability of the information about the property used in determining its cadastral value, as well as the value of the market value established as the cadastral value as of the date as of which it was established.
If the cadastral value of a property has been changed by a court decision, then to calculate property tax, information about the new cadastral value is applied, as a general rule, from January 1 of the year in which the application for revision of the cadastral value was submitted, but not earlier than the date the cadastral value was entered into the Unified State Register of Real Estate. value, which was the subject of dispute.
As a rule, to make a decision on the disputed cadastral value, the court appoints a special (judicial) appraisal examination. The purpose of a forensic examination is an independent (for both the plaintiff and the defendant) determination of the market value of the property. It is based on the consideration of the assessment results of this examination that a court decision is made.
Consideration of cases challenging the cadastral value most often ends with a positive court decision, with the exception of a few cases when, for example, serious errors are revealed in the documents submitted to the court (incorrect date as of which the report was drawn up, etc.).
For example, in 2017, 15,817 disputes were initiated in the courts regarding the cadastral value entered into the state real estate cadastre in relation to 28,311 real estate objects. As a result of consideration of such disputes, the plaintiffs’ claims were satisfied in relation to 8,164 claims, i.e. in more than half of the cases.
The cadastral value of real estate is necessary when making purchase and sale transactions or other transactions with property. The assessment is carried out by independent experts and provided where required. Information on the cost of housing is in the state cadastre database. Before we tell you how to challenge the cadastral value of real estate to reduce tax, let's figure out what is meant by this term.
By law, apartments, land, and houses must be assessed once every 5 years. If necessary, it can be done earlier, for example, when selling an apartment, but this must be done once every 3 years.
Information on cadastral value is obtained by making a request:
- Information is freely available on the Rosreestr website. Here they are not always relevant, since they are loaded with a delay from the State Control Committee. You must enter the address of the location of the object in a special form, and information will appear on the monitor screen.
- Order an electronic cadastral passport on the State Property Committee portal. Payment will be required for its production, after which the passport will be sent to the customer by email.
- Obtaining a text passport or a paper certificate from the cadastral chamber.
The advantage of text documents is that they have the signature of the person who performed the calculations and the seal of the chamber. This document can be presented to the authorities upon request.
Appraisals of apartments and other property are carried out by municipal appraisers and private companies. On January 1, 2017, the Federal Law on state assessment comes into force. Valid until 2020. In the future, it is planned to provide real estate valuation services by budgetary organizations.
The cadastral value is calculated using formal data. Appraisers do not visit sites. They use information about sales statistics, and this does not make it possible to estimate the cost exactly down to the ruble.
Evaluation criteria:
- The location of the apartment in relation to the city center, to the transport interchange.
- Age of the building.
- Square.
- Construction Materials.
Factors influencing the assessment:
- The price of similar apartments.
- Average cost for the same apartments in the region as a whole.
A database is compiled from the collected information. They are processed using a special computer program, which ultimately produces price range options for apartments with similar indicators.
Purpose of challenge
According to the law, the grounds for revising the cost calculation are:
1) Inaccurate information that was used to assess the characteristics of the apartment:
- About the location.
- Destination.
- About technical data.
2) The dates of market and cadastral valuation should not have a wide spread in time. These parameters are flexible and constantly changing, so the calculation must be organized simultaneously.
The dispute occurs due to the fact that the owner does not agree with the calculation made. The reason for the disagreement is the discrepancy between the assessment and the market value of the property. This creates confusion in establishing the true price of an object. As a result, the transaction is disrupted due to price discrepancies.
The officially calculated value of real estate is the basis for the correct taxation of the owner. If it does not correspond to reality, then adequate tax calculation is also impossible, so revaluation is necessary. Why do evaluators produce results that do not correspond to reality? The reason is that the market value of objects consists of several factors that are not taken into account when calculating cadastral indicators. As a result, there is a significant difference in parameters.
The ultimate goal of the challenge is to bring the cadastral value of the property to the market value. How to challenge the cadastral value of a property? The problem can be solved in two ways:
Judicial proceedings are considered more effective, since the commission is an administrative body that has less power in resolving cases of various categories.
What documents are needed to challenge the cadastral value of real estate to reduce taxes?
When challenging, each party must prove the validity of its claims. The plaintiff has the responsibility to prove that false information about the property was used in the assessment. The defendant - that the calculation was made correctly, providing evidence of this.
The applicant provides the court with documents that will confirm his assumptions about errors in the assessment. The following must be provided to the commission for consideration of the case and to the court:
- Certificate of ownership of real estate.
- A certificate confirming that erroneous information was used in the assessment.
- An appraiser's report on the market value of the property at the time of calculating its cadastral value in electronic and paper versions.
- Certificate from the cadastre about the value of the property. It must contain information about the results that are subject to challenge.
- An expert opinion from SRO experts that their employee assessed the property in accordance with the law.
If an application to the court is filed by a legal entity, then it is necessary to provide materials on the pre-trial settlement of disagreements in the commission.
How does a challenge take place in the commission?
Appealing to the commission is not mandatory for citizens, so individuals usually immediately file a claim in court. The circulation period is no more than 5 years from the date of the last assessment.
Grounds for challenge:
- Unreliability of information.
- There is a large difference between the market and cadastral value of the property.
The commission considers the application within a month. The presence of the owner is not required. If the commission rejects the challenge, it will be notified in writing. The applicant can appeal the commission's decision in court.
If the commission decides that the value needs to be revised, the cadastral chamber is given an order to re-evaluate the property, of which the owner is notified by notice.
How to challenge the cadastral value of real estate in court?
Legal entities cannot go to court, bypassing the commission, to review the assessment of objects. As for individuals, they can immediately write a statement of claim to arbitration. How to challenge the cadastral value of real estate to reduce taxes in court? First of all, write a statement about the need to consider the case, indicating in it the information:
- About the property: location, area, number of floors, number of rooms, layout.
- Cadastre data.
- Market price.
When filing a claim, it is worth comparing the market and cadastral value yourself: if the difference does not exceed 10%, then the claim will not be satisfied.
The court invites representatives of the Cadastral Chamber, Rosreestr and representatives of local authorities who approved the disputed assessment of the property, as well as an appraiser, to participate in the trial. The court's decision depends on the following factors:
- On the status and authority of the appraiser.
- Differences between the market and cadastral value of real estate.
- From the demands of the owner who filed the claim.
- From the attitude of the defendant to the presence of errors in the calculations.
If the defendant does not object to the plaintiff’s demands, then the court decides to re-evaluate. If the defendant objects, the trial is conducted with the invitation of all persons related to the case.
Options for the outcome of the case:
1st option: if the claim is rejected, then the plaintiff has the right to appeal the decision to a higher court, attaching a copy of the refusal act.
2nd option: if the claim is satisfied, then the cadastral chamber is obliged to make changes to the State Tax Code in accordance with the court decision.
Judicial practice shows that in most cases it is possible to challenge the cadastral value of real estate, and the documents are sent for re-evaluation.
About the features of the contestation procedure
To summarize the above regarding the procedure for challenging the cadastral value of real estate, it is necessary to focus on important details that are established by law (Federal Law No. 135):
- The basis for revising the valuation of property is the unreliability of the information used during the valuation.
- The property owner has the right to challenge the assessment.
- For an individual, a preliminary application to the commission is not mandatory.
- Legal entities are required to go through a challenge through a commission before filing a claim in court.
- After the commission rejects the challenge, you can go to court with a claim to invalidate its decision.
- In court, it is necessary to seek the appointment of a re-evaluation to establish the true value of the property.
The court pays special attention to the appraiser’s report, the compliance of his conclusion with the requirements of the law and the rules of assessment:
- The market value assessment is carried out simultaneously with the date of the cadastral assessment, which is carried out in the subject, otherwise the court will refuse to consider the claim.
- According to the new legislative norms, it is necessary to provide to the court the conclusion of SRO appraisers - a professional association that issues a report on the work of its specialist. Incorrect execution of the SRO conclusion often becomes the reason for the court’s refusal to consider the case.
- After receiving a positive court decision, the cadastral chamber is obliged to reassess the value of the property and bring it closer to the market size.
- Information about changes is received by the State Tax Committee, from where cadastre data is issued at the request of the Federal Tax Service if it is necessary to verify the owner’s tax return.
The entry into force of the decision means that taxation must change in accordance with the court decision.
Experience as a lawyer since 2000. Graduated from the Moscow State Open University with honors. Provides consultation and assistance to citizens on all legal issues.
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