French notaire : specialist in property valuation
Notaries experts in property valuation advise their client in case of succession, liquidation of community, IFI, tax adjustment ... for all real estate. They rely on methods and tools such as real estate bases.
How is a property valuation done by a notary?
Real estate valuation by a notary takes place in 6 steps:
- Making contact: customer's request (individuals, companies, associations, institutions or local authorities) or notary's advice for determining the value of the property, presenting an issue (basis of calculations of rights, against expertise ...)
- The intervention proposal: quote or contract of mission which defines the perimeter of the real estate appraisal, the deadline, the format of rendering. These parameters
determine the amount of the fee for the intervention.
- The collection of documents for the realization of the expertise: the notary recovers upstream of the intervention all the itinerant parts to the property (any element that may have a positive or negative impact on the value of the estimated property): extract of title deed , detail or certification of building areas and / or parcels of land, rental status (if the building is occupied).
- The visit of the property: the notary visits the entirety of the property in order to have a precise descriptive state and to know its environment.
- The collection of additional documents: it corresponds to a survey of the administrations, a market study, or the writing of the report of expertise.
- The submission of the conclusions: the notary drafts his real estate appraisal report.
The real estate appraisal report
Two expert report formats exist: the summary certificate or expert report. This difference tends to dwindle. European property valuation standards and the Real Estate Appraisal Charter require "minimum" content for any appraisal report. The data will be more or less detailed depending on the format.
An expert report presents:
- the mission,
- the geographic location the urban situation,
- the legal situation,
- the rental situation,
- the description,
- appreciation of the good and the market,
- the methods used and the references.
The report is completed by a number of appendices according to the mission and the type of property (judged by the expert) such as rental value references, the land register, the town planning note, the zone by-law, the plan situation, photos.
An expert report must respond to a well-defined structure and logic (chapters, and paragraphs), which allow novice readers to understand and follow the reasoning that led to the market value retained by the expert . Any information contained in an evaluation report must be justified and justifiable.
Estimation of real estate prices per square meter: the tools of notaries
The exercise of this activity is done in a framework and with tools common to the entire notarial profession.
The database of real estate references:
The notariat has a base of real estate references, resulting from the acts received by all the notaries of France, unique base that the notariat maintains and enriches for many years. Created 20 years ago, the base of real estate references of the notariat (PERVAL / BIEN) is more than 11 million references that allow the practice of property valuation by comparison, the only method recognized by the courts.
With the help of the notaries' voluntary service, it records sales of real estate of all types (buildings, houses, apartments, land, business premises, agricultural and wine-growing properties, garages) and shows the real price of transactions. These data allow the Notaries of France to produce the price statistics as well as their evolutions.
The first real estate price indexes were calculated in partnership with INSEE in 1996.
Notarial real estate valuation: Notexpert and TEGoVA
Notexpert® is one of the largest networks of real estate valuation experts in France, spread all over the country. The membership of this network guarantees you the respect of the deadlines in the realization of the missions entrusted, the impartiality of the approach, the legal control of the environment and the readability of the methods used.
The association TEGoVA
The international association TEGoVA (The European Group of Valuers Associations) was created in 1977. It brings together fifty associations of experts in property valuation from 24 European countries.
It issues two types of recognition awarded to property valuation experts:
- TRV (Tegova Residential Valuer): valuation of residential property
- REV (Recognized European Valuer): valuation of all types of property
In France, 5 associations are authorized to issue these European awards, including the Conseil supérieur du notariat. To date, the Notariat has the largest number of recognized experts REV and TRV.
- My landlord has issued me by bailiff leave for sale with indication of a net selling price. The real estate agency in charge of the sale claims me €30,000 agency commission. Do I have to pay them?
- I'm selling my main home acquired 5 years ago. The notary claims a missing diagnosis: ESRIS. It was not provided to me 5 years ago. Am I obliged to have it done?
- I own an apartment that is not my principal residence. I put it on sale in order to acquire my principal residence. Can I benefit from a tax exemption on real estate capital gains knowing that I am not the owner of my main home?
- I am a tenant of my principal residence and owner of my second home. I want to sell it so I can buy a new home that I will assign to my main home. This residence is worth 300.000 €, but I still have 100.000 € of credit to refund. [...]