Inventory value and its definition

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-09 14:06

Today, the market economy uses the inventory value of real estate. It is used in the calculations of state bodies and has its own rights. However, it is inferior to other types of value, taking into account the already outdated methods of making an inventory cost.

Concept

Inventory assessment is required for transactions of inheritance, privatization, sale or exchange of housing. The inventory value of a property is its replacement price minus its depreciation and changes in the cost of services, works and building materials. It is indicated in the technical passport for the object and a special certificate as of the day of the assessment. It includes all costs for construction work, but does not take into account the costs for the purchase of land and other details. The inventory value is required exclusively for settlements with government agencies and differs significantly from market indicators.

Bureautechnical inventory

The assessment of the property is the responsibility of the BTI. The guidance for this bureau is the statutory procedure for assessing buildings. The replacement value of the building is calculated using the price level determined in 1991. In addition, coefficients and indices are required, which were introduced by a decree of the USSR Gosstroy in 1983.

The bureau must issue a certificate indicating the inventory value of the object, if it is really necessary. It is worth noting that it is not necessary to arrange it in advance. This is due to the fact that its duration is limited. In addition, BTI annually submit this document to the tax authorities on January 1.

How can I get help?

From the material presented above, it becomes clear that the certificate, which displays the inventory value, is obtained at the BTI. The document and the information contained in it can be provided to the owner of the property and the tenant. It is also available for representatives who have a power of attorney certified by a notary. To determine the appraised value of the apartment, you must contact the BTI, which is located at the place of residence of the applicant.

To apply to these authorities and obtain a certificate, it is worth preparing the following documents:

1. Application for the provision of the relevant document.
2. Proof of ownership orcontract of social employment.
3. A document that certifies the identity of the applicant.

Then the BTI employee will determine the day of receipt of the necessary certificate. The inventory value of real estate is determined and confirmed by a document on a paid basis.

It is worth noting that today the BTI does not issue certificates of this type if they are required when inheriting housing. To do this, you should contact Rosreestr. This body provides services for issuing a certificate showing the cadastral value of real estate. The notary who draws up the inheritance will accept it if it has not yet expired.

Can the document be disputed?

If the inventory value of the object, which was determined by the BTI, in the opinion of the owner, does not correspond to reality, it is worth finding out if it can be challenged. There are only two reasons to revise the grounds for reassessment:

1. Representing false information about an object.
2. Inventory value is above or fairly close to market price.

This is due to the fact that the market valuation is several times higher than the inventory valuation. The exception is housing located in new buildings. It can also happen if the BTI is engaged in determining the market value, if it has the appropriate license for this. To revise the inventory value, you need to do the following:

1. An application is being submitted to the arbitration court. It is necessary to file a claim against the BTI, which conducted the assessment of housing. In this statementit is necessary to indicate the requirement - revision of the inventory value.
2. The following documents are attached to the application:

• corresponding object passport,
• notarized copy of the certificate of ownership,
• as well as a document confirming the incorrectness of the information.

If done correctly, it is likely that the inventory value of the house or apartment will be revised.

How is inventory value calculated?

It is worth noting that the inventory cost is calculated using the formula:

Ci=Sv ∙ (1 - Ifiz / 100 ∙ Ki), where

Sv is the replacement cost.

Ifiz is an indicator of physical depreciation. Ki is the differentiation coefficient housing.

This formula allows you to most accurately calculate the required indicators, therefore it is used by government agencies.