The General Valuation values as of 01.01.2021 do not represent the market value of a property
Our office's clients often refer to the value stated on the title deed as the general property valuation for 2018 and 2021. This creates significant confusion among buyers, sellers, etc., regarding how much weight should be given to such valuation in negotiations for property sales, resolving property matters, property transfers, property purchases, exchanges, etc. As real estate consultants, we always strive to explain to our clients the purpose of the general property valuation. Our view is that such a general valuation should not be included on the Τitle deed, as it can only cause harm to individuals who have not studied the concept of general property valuation.
Some useful information that the reader should be aware of includes the following:
The general valuation was carried out on the basis of the current legislation, i.e. pursuant to the provisions of Part VII – Valuation of Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224. According to the provisions of section 2, of this law, the definition of the “general valuation value” is as follows:
“General valuation value” is the amount determined by carrying out a general valuation or a revaluation or a revision of a general valuation, which is as close as possible to the actual value.
It is highlighted that the definition of “General Valuation Value” should be interpreted in conjunction with the provisions of section 69(1) of the above-mentioned law, according to which the Council of Ministers orders a General Valuation to be carried out for the purpose of ensuring a modern and uniform valuation of the immovable property in order to reflect as closely as possible the “value” of the property. Uniformity is ensured by adopting values per square metre, per town planning zone, per geographical area, which are subject to adjustments according to the physical and legal characteristics of the land and buildings, ensuring that groups of properties with similar physical and legal characteristics have similar General Valuation Values.
The General Valuation at 01.01.2021 may be used only for tax purposes. In case a land owner or other person with an interest in a property needs a valuation for other purposes, such as for purchase/sale, investment, borrowing, compulsory acquisition, he/she should consult a qualified real estate expert, member of the RICS and E.T.E.K. (Scientific Technical Chamber of Cyprus).
Demos Georgiou MSc, ΜRICS
BSc (Hons) Property Management and Investment
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