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Assessment Of The Debtor’s Property

Assessment of the property of a debtor is a necessary element of the procedure for executing an executive document on the recovery of funds. An estimate of [334] is necessary to determine the subsequent price of the transaction at which the property of the debtor will be sold.

Correct determination of the price of the object of foreclosure serves as a factor determining the outcome of the entire enforcement proceedings. The timing of the sale of the seized property, and often the possibility of selling the property (and, therefore, meeting the requirements of the recovered) depends on how well its results correspond to the prevailing prices.

If the price of the seized property is overestimated, the likelihood of its sale decreases, and selling at a reduced price results in violation of the rights and legitimate interests of the debtor and the recovered.

The ratio of legislation on enforcement proceedings:

And about valuation activities:

There are different points of view regarding the question of the relationship between the two named laws [336] . Some authors believe that the provisions of the Law on Enforcement Proceedings governing property valuation can be applied to the relations in question only to the extent that they do not contradict the provisions of the Federal Law “On Appraisal Activities in the Russian Federation”, since the latter are special in nature [337] . According to others, the main place in the regulation of relations in the enforcement proceedings is occupied by the Law on the enforcement proceedings. The federal law “On appraisal activity in the Russian Federation” shall be applied only to the extent that this does not contradict it and the essence of the relations it regulates [338]. According to the third point of view, the Federal Law “On appraisal activity in the Russian Federation” does not apply to relations connected with enforcement proceedings.

We believe that the Law on Enforcement Procedure occupies the main place in the legal regulation of legal procedures for property valuation in the enforcement process. The federal law “On appraisal activity in the Russian Federation” is applicable to executive procedural legal relations only to the extent that this does not contradict the Law on Enforcement Proceedings and the essence of the relations regulated by it [339].

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n accordance with Part 1 of Art. 85 of the Law on Enforcement Proceedings, the assessment of the property of the debtor, which is levied, is made by the bailiff at market prices, unless otherwise provided by the legislation of the Russian Federation.

However, the Law on Enforcement Proceedings does not completely regulate the procedure for conducting property valuation, limited only by the indication that it is produced at market prices.

At the same time, the procedure, approaches and requirements for conducting an assessment are established by the Federal Law “On appraisal activity in the Russian Federation” and federal standards of assessment [340].

Thus, the Law on Enforcement Proceedings, imposing duties on the bailiff and granting rights for the production of the debtor’s property, makes the bailiff an appraiser, and therefore they should use the necessary concepts, approaches and requirements for conducting an appraisal.

What should a bailiff follow when making an assessment?

Market price and market value.

First of all, you should pay attention to the fact that the Law on Executive Procedure uses such a term as “market price”. However, the legal acts regulating the valuation activity and the procedure for its conduct do not contain the term “market price”. At the same time, the Federal Law “On Valuation Activities in the Russian Federation” [341] contains the term “market value”.

In economic theory, the terms “price” and “cost” carry different meanings of meaning. Under the value is commonly understood the monetary value of the consumer utility of the property, and the price is the amount of money for which the economic good is sold and bought [342]. Thus, price is a form of expression of the value of goods, manifested in the process of their exchange. In this formulation, there are two fundamental aspects. First, the direct connection of the price of a commodity with the value and usefulness that it possesses as an object of consumption is emphasized. Secondly, according to this interpretation, the price of a commodity is manifested as an economic entity only when it is exchanged for money or another commodity. Consequently, out of the market, without a sale, there is no need to talk about the price, only the market can establish the price.[343] .

 

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