Czech Republic in 2000 - Property Appraisal
by
Zbyněk Smejkal
Key words: Real estate, property appraisal, appraisers
organisation, appraisers certification.
Abstract
1. History of property appraisal in Czech Republic
Before 1989, real estate appraisals in the
Czechoslovak Republic were primarily carried out for tax purposes and
for cases of civil litigation. The appraisals were solely made on the
basis of state-issued price regulations; as there was no market
environment, there was no such a thing as a 'market price'. The term
'personal possession' only applied to family houses, recreational
cabins and cottages, and garages, whereas all other real estate was
mostly owned by the state.
Only after 1989, when most property was returned to
people through restitution and a large portion of formerly state-owned
property was privatised, did real estate acquire specific owners.
Trading with real estate commenced; real estate became the subject of
liens in banks, and therefore it was necessary to determine its price,
and also its market price. Thus the events of those years, apart from
appraisement which followed valid price regulations (determination of
the official price), brought about market appraisement.
2. Czech Association of Certified Property Appraisers
Since 1989, property appraisals have been carried
out by two groups. The first, original group, active before 1989, is
composed of experts appointed according to Act no. 36/67 Coll.
concerning Experts and Interpreters. The second group was formed
spontaneously in the nineties; this group includes appraisers working
on the basis of Trading Licences. A prevailing portion of appraisers
was recruited from the Experts.
There are approximately 4,600 experts active in the
field of real estate appraisement. In order to be appointed an expert
in this widest expert field according to the Act indicated, it is
necessary to successfully complete postgraduate training at schools in
Prague and in Brno. The experts mainly appraise real estate for the
purpose of assessing tax base, i.e. for inheritance tax, gift tax, and
real estate transfer tax.
Experts, who mainly focus on appraisement according
to the administrative (official) price, are associated in the Chamber
of Sworn Experts and in the Association of Experts and Appraisers.
Appraisers, who solely focus on appraisement of
market prices, are grouped in the Czech Association of Certified
Property Appraisers and in the Czech Chamber of Property Appraisers.
An important representative of these associations
is the Czech Association of Certified Property Appraisers,
which currently has approximately 250 members.
3. Appraisers Certification and EN 45 013
The certification of the appraisers of the Czech
Association of Certified Property Appraisers takes place in one of the
above two companies, the Bankovní institut a.s. (Banking Institute,
Joint-Stock Co.). The Banking Institute is a company with Czech and
foreign banks as major shareholders, which was established to provide
further training, particularly to bank operatives. This company now
certifies more than 15 various fields of activity.
The certification of the property appraisers
according to EN 45 013 is exclusively intended for appraisers trained
by the Banking Institute; it consists of a written part, where the
applicant submits three appraisals and the price map of the town where
he/she lives. After these materials are reviewed, an oral exam follows
in about one month. If it is successfully passed, the applicant
acquires the certificate.
Ing. Zbyněk S mejkal
President of the Czech Association of the Certified Property
Appraisers
Týnská 21
110 00 Praha 1
Czech Republic
Tel. + 420 2 2482 7144
Fax + 420 2 2482 6507
E-mail: dsmejkal@a-consultplus.cz
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