Draft Law No. 7386 on changes in property valuation and professional valuation activities in Ukraine was registered in the Verkhovna Rada
What is proposed in the draft law?
Introduction of international valuation standards into the national practice of property valuation;
improvement of the stages of professional training of appraisers; introduction of a system for confirming the qualifications of appraisers;
simplification of the conditions for acquiring the right to conduct valuation activities;
improvement of measures aimed at regulating professional valuation activities;
introduction of disciplinary sanctions for violations of property valuation legislation by appraisers;
regulating the registration of property valuation results in electronic form;
strengthening public regulation of property valuation, etc.
What are the risks?
The draft law should be revised because:
It does not comply with the Constitution in terms of allowing for the expropriation of property for public needs or for reasons of public necessity bypassing a court decision.
It gives excessive powers to state bodies responsible for managing state and municipal property.
The status, powers, operation, and funding of the training centre managed by the State Property Fund of Ukraine (SPFU), which provides professional training to appraisers, are not fixed.
The level of transparency and involvement of the public (in the form of representatives delegated by self-regulatory organisations of appraisers) in the regulatory process is reduced.
The legislation uses evaluative concepts and contains gaps, including in terms of payment for the procedure of registration of an appraisal report.
Excessive powers are granted to the Appraisal Council, as the procedure for its formation, quantitative composition and how representatives of self-regulatory organisations will be selected in order to comply with the quota principle are not specified. It is only stated that they are to be approved by the Evaluation Council.
It suggests ‘monopolisation’ and lack of competition between educational institutions during the qualification exam.
The procedure for confirming a foreign qualification document is not transparent.
More details in our conclusion.