July 14, 2023
Appraisal activities in Kazakhstan
- General provisions
- Objects and types of assessment
- Grounds and conditions for the assessment
1. General provisions
According to Article 1 of the Law of the Republic of Kazakhstan “On Valuation Activities in
the Republic of Kazakhstan” (hereinafter referred to as the Law), valuation activity is the professional activity of valuation entities aimed at establishing a market or other valuation object provided for by this Law, other laws of the Republic of Kazakhstan and valuation standards as of a certain date.
An appraiser is an individual who carries out professional activities on the basis of a certificate of qualification “appraiser” issued by the Chamber of Appraisers, and is a member of one of the chambers of appraisers. Based on the results of the assessment, an assessment report is compiled.
An expert is a member of the expert council of the Chamber of Appraisers who has a certificate of qualification “expert”. If there is a dispute about the reliability of the market value or other value of the valuation object established in the valuation report, including in connection with the existing other valuation report of the same object, an expert examination of the valuation report may be conducted. This is handled by the expert council of the Chamber of Appraisers.
With the adoption of the Law, self-regulation in appraisal activities was introduced on the basis of many chambers of appraisers. At the same time, according to Article 4 of the Law, the appraiser has the right to carry out appraisal activities independently, engaging in private practice, as well as on the basis of an employment contract between the appraiser and a legal entity.
According to Article 17 of the Law, the Chamber of Appraisers is obliged to issue certificates of qualifications “appraiser”, “expert” after passing the appropriate procedure in accordance with Article 23 of the Law. An appraiser may be a member of only one chamber of appraisers (article 18 of the Law).
2. Objects and types of assessment
According to Article 6 of the Law, the types of assessment are mandatory and initiative assessment. Mandatory assessment in accordance with the legislative acts of the Republic of Kazakhstan is carried out for:
• taxation of property in accordance with the tax legislation of the Republic of Kazakhstan;
• privatization, transfer to trust management or lease (lease with subsequent purchase) of state property (do not apply to cases of transfer to trust management or lease of property assigned to the National Bank of the Republic of Kazakhstan, subsidiaries of the National Bank of the Republic of Kazakhstan);
• mortgage lending: when providing a mortgage loan, as well as when it is necessary to sell collateral;
• foreclosure and seizure of property for state needs;
• determining the value of the debtor’s property when the debtor or the claimant objects to the assessment made by the bailiff;
• determining the value of property that has entered state ownership;
• in other cases established by the laws of the Republic of Kazakhstan.
The initiative assessment is carried out on the basis of the will of the customer to conduct an assessment by the appraiser in accordance with this Law and other regulatory legal acts of the Republic of Kazakhstan.
3. The grounds and conditions of the assessment
The right to conduct an assessment is unconditional according to Article 6 of the Law.
The basis for the evaluation is an evaluation contract concluded between the appraiser or a legal entity with which the appraiser has concluded an employment contract and the customer in accordance with this Law and the civil legislation of the Republic of Kazakhstan.
Under the contract for the evaluation, the appraiser or the legal entity with which the appraiser has concluded an employment contract undertakes to perform services to determine the market or other value of the object of evaluation, and the customer undertakes to pay for these services.
The norms of the Civil Code of the Republic of Kazakhstan (Special Part) on the contract for the provision of paid services are applied to the contract for the assessment.
The evaluation contract must contain:
• the details of the parties:
for an individual – surname, first name, patronymic (if it is indicated in the identity document), individual identification number, place of residence (postal address);
for a legal entity, including with which the appraiser has concluded an employment contract, – name, place location (legal address), business identification number, bank details;
• name and (or) location of the assessment object, type of the assessment object;
• description of the evaluation object;
• the date of determining the value of the valuation object;
• purpose of the assessment;
• type of assessment;
• the type of value being determined;
• timing of the assessment;
• an indication of the evaluation standard that will be applied during the evaluation;
• conditions, procedure and amount of payment for services rendered;
• rights, obligations and responsibilities of the parties;
• details of the document confirming the customer’s ownership of the evaluation object or other grounds granting the customer the right to conclude an evaluation contract;
• details of the certificate of qualification “appraiser” (number and date of issue, indicating the chamber of appraisers that issued it);
• the customer’s right to pre-trial regulation of the property liability of the appraiser or the legal entity with which the appraiser has concluded an employment contract;
• information on ensuring the property liability of the appraiser or the legal entity with which the appraiser has concluded an employment contract;
• other conditions not provided for by this Law.