The procedure for challenging the cadastral value of a land plot

Independent valuation experts at OK "VIK" LLC have long been preparing land valuation reports to challenge the cadastral value in Russia. The employees of our valuation company have significant experience and knowledge in this direction. This direction began to develop after the revaluation of the cadastral value; as they say, the only thing worse than the laws in Russia is the practice of their application. Many individuals and legal entities have faced the problem of significantly inflated cadastral values ​​and significantly increased taxes and rents.

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Why is cadastral value needed?

According to the Tax Code of the Russian Federation, this type of value is recognized as the basis for calculating tax. Accordingly, a decrease in cadastral value will lead to a decrease in tax. Similarly to calculating the tax from the cadastral value, the rent for land is also determined, where the cadastral value can also serve as the base.

What affects the recalculation of the cadastral value? So, the cadastral value has a direct impact on the determination of land tax and rent. For most individuals and firms, this cost item was insignificant, however, after the revaluation of the cadastral value, it increased significantly, and in a large number of cases its increase is not justified, since the acquired cadastral value is significantly higher than the market value.

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Where can I challenge the cadastral value?

The cadastral value can be challenged both judicially and administratively. That is, you can immediately go to both the court and the commission for resolving disputes about the results of determining the cadastral value (Clause 1, Article 22 of Law No. 237-FZ).

As we have already noted, from January 1, 2023, new rules for appealing the cadastral value will come into effect: you first need to apply for a revision of the cadastral value to a special budget institution. Some regions may start working in a new way earlier. On the website of the regional department of Rosreestr there is information about the introduction of the new procedure.

Therefore, for such regions there is a pre-trial appeal procedure.

Why change the cadastral value?

Challenging the cadastral value of a land plot is often of interest to aggrieved taxpayers. If the cadastral value is more than 30% separated from the market value, then there is every reason to start fighting for its reduction and, accordingly, a reduction in the tax base. For some property owners, the tax savings can be significant and amount to millions. If you are an ordinary owner of a small summer cottage in the Moscow region or beyond its territories, then it is better not to delay and also enter into battle. Having achieved the truth once, you will not have to pay increased tax on the cadastral value annually.

What is cadastral value and why does it need to be challenged?

Each property (including land) has a cadastral value.
But everyone knows what it is. Cadastral value is the value of an object, information about which is included in the state real estate cadastre. It is determined during the state cadastral valuation and is regulated by the Federal Law of July 29, 1998 No. 135-FZ “On Valuation Activities in the Russian Federation.” You can find out the cadastral value of a land plot or other object in Rosreestr. The cadastral value of a land plot is the basis for calculating the tax for it. In addition, the cadastral value of land can affect the cost of its rental if the rental assessment is based on it (cadastral value). The lower the cadastral value of the land, the lower the tax and rental value on it.

Previously, this cost item was insignificant for both individuals and legal entities. But after the revaluation of the cadastral value and its increase several times, everything changed. However, in most cases, the overestimation of the cadastral value of land is unjustified, since the new cadastral value is significantly higher than the market value.

How do you understand that you need to challenge the cadastral value of real estate?

The easiest way is to order an independent assessment of the cadastral value from the Star Service Center for Cadastre and Registration. This will allow you, with small expenses, to get an objective estimate of the cost and an understanding of how much you can save after recalculating the land tax.

The Law “On Valuation Activities” has a clause that regulates the procedure for challenging the cadastral value. offers full legal support in any real estate matters. A team of experienced lawyers will represent the interests of customers in the courts. Experienced experts will suggest the optimal strategy for reducing taxes, which can be implemented without risks. We will collect all documents, certificates, prepare extracts and organize the work of the commission to reduce the cadastral value.

Due to the fact that when calculating the cadastral value, rather rough, not always objective or controversial criteria are taken into account, as a rule, changing the cadastral value is a simple and effective procedure that has more advantages than disadvantages.

Grounds for challenging the cadastral value

You can challenge the cadastral value if there is a good reason for this. Such a reason could be:

• unreliability of information about the object used in determining the cadastral value;
• establishing the market value of the object on the date on which its cadastral value was established.

The second basis is the case when, in fact, the cadastral value will not be disputed, but will be established anew. In this case, the property is subject to an individual assessment, and based on the results of this assessment report, it receives a fair cadastral value.

If at least one basis fits your situation, then challenging the cadastral value of the land plot makes sense.

Stages of challenging cadastral value

Challenging the cadastral value is a multi-stage process. During this process, an assessment of the property, its market value is made, an expert opinion and a report on the value of the property are drawn up, and then an application is submitted to the Territorial Commission.

Stage 1. Assessing the prospects for contestation.

At this stage, specialists assess and analyze the prospects and possible results of the challenge. Cases are different, and challenging the cadastral value may not always be beneficial.

Stage 2. Discussion of the procedure and assessment of the object.

Once it has been established that an object (land plot) has an inflated cadastral value, specialists begin collecting the information necessary to challenge it. The object is assessed and its value is established.

Stage 3. Preparation of a report on the market value of the property.

After the object has been assessed, experts draw up a report on the results of the examination and the actual value of the object.

Stage 4. Obtaining an SRO expert opinion on the assessment report.

In order to challenge the cadastral value in the Territorial Commission, you need an expert opinion from a self-regulatory organization of appraisers (SRO) on the consistency and reliability of the appraisal report. The expert must make sure that the assessment of the market value of the property was carried out in accordance with the law and on the basis of reliable facts.

Stage 5. Submission of an application to the Territorial Commission for the revision of cadastral value.

At this stage, the application, supported by the necessary documents, is sent to the commission for consideration.

This stage is not required for everyone. Owners and individuals can challenge the cadastral value of a land plot or other object directly through the court, without contacting the Territorial Commission. For legal entities, consideration of the application by the commission is a mandatory condition for challenging the cadastral value.

Stage 6. Consideration of the issue of challenging the cadastral value in court.

If the commission gives a negative decision on the revaluation of the cadastral value, then there remains a chance to challenge the cadastral value of a land plot or other object through the court.

All these stages are interconnected. In order for a property to receive a fair cadastral value, it is necessary to go through all of them. Assessing and challenging a cadastral title can be lengthy and labor-intensive, but these procedures can be made easier by contacting the appropriate company.

Prices for challenging the cadastral value.

As a result of an incorrect assessment, an incorrect price for the plot was formed. The reason for this situation may be the presence in the immediate vicinity of areas with obviously inflated prices or the presence of open sources, information about which was unreliable. The generalization method used has too much error. This happens when the relief of the area is not taken into account, where transport communication may be complicated.

To challenge the cadastral value of a land plot and obtain reliable data corresponding to its actual value, you should contact professional appraisers who use modern techniques and are familiar with the changing market situation. Such a specialist will be able to draw a conclusion based on which it will be possible to challenge the incorrectly formed cost.

The specialist determines the cost based on the following factors:

• Purpose of the site (type). The site is used for various residential or commercial developments. In all these cases, a certain calculation method is used.
• Location of the site. In this case, the availability of roads, water supply, gas pipelines and other communication networks is taken into account.
• Conducting an analysis of market price movements. Land plots with similar parameters are identified, and thus the price of one square meter of land is formed.
• The terrain on which the land plot is located. The relief can be favorable for construction or, conversely, hinder it.
• The form of ownership also affects price formation.

Having completed the work, the appraiser forms an expert opinion, which can be the basis for considering a case challenging the cadastral value of a land plot in court or by an official individual.

The procedure for challenging the cadastral value of a land plot requires the availability of the necessary documents:

• certificate of the real value of the plot. You can get it at the Registry office.
• documents certified by a notary for ownership
• documents proving that the price was set incorrectly. They indicate factors that influence price changes. It is possible to attach photo and video materials.
• conclusion of an independent examination, which takes into account the characteristics of the site and the financial component.

If all the documents have been collected, it is advisable to contact a lawyer specializing in land law, which will help avoid mistakes and misunderstandings during the formation of a new price.

The procedure for challenging the cadastral value of a land plot provides two options. In the first, all documents are transferred to the Rosreestr commission, where this issue is resolved. The second option involves filing a claim in court. In both cases, a statement indicating personal data and characteristics of the site is attached to the documents. It is also necessary to indicate the standards by which the procedure for challenging the cost is carried out (Article 24.18 of Law No. 135=FZ). The application is accompanied by the entire package of documents and a receipt for payment of the state fee.

If the need to revise the cost is related to a change in the intended purpose of the site, the relevant certificates should be attached. It must be remembered that if the site is not privatized, all requests to change the price are rejected.

The easiest way to change the price is to contact the Land Disputes Commission, which is located at every branch of Rosreestr. However, for this to happen certain conditions must be met:

• the last assessment was carried out no more than six months ago
• legal entities provide copies of extracts from the Charter certified by a notary. Individuals provide a purchase and sale agreement.
• If the documents comply with the rules, the issue is resolved at a commission meeting.

In some cases, on the basis of current legislation, the applicant is denied a review of the cadastral value. The reasons may be different, for example, an error in the examination or documents were drawn up in violation of the rules. To avoid such a situation, it is advisable to familiarize yourself with the most common errors.