Regulations on Valuation and Appraisal of Property in Civil Proceedings

Regulations on Valuation and Appraisal of Property in Civil Proceedings

1. The parties have the right to provide the value of the disputed property and to reach an agreement on such value.

2. The parties have the right to agree on the selection of a property valuation organization to conduct the valuation and to submit the appraisal result to the Court.
   The valuation of property shall be conducted in accordance with the provisions of the law on property valuation.

3. The Court shall issue a decision on property valuation and establish a Valuation Council in the following cases:
   a) At the request of one or more parties;
   b) Where the parties fail to reach an agreement on the selection of a property valuation organization, or provide different valuations, or fail to agree on the value of the property;
   c) Where the parties agree among themselves or with the property valuation organization on a value significantly lower than the market value at the place and time of valuation in order to evade obligations to the State or to a third party, or where there are grounds to believe that the property valuation organization has violated the law in conducting the valuation.

4. Procedures for establishing the Valuation Council and for conducting property valuation:
   a) The Valuation Council shall be established by the Court and shall comprise a Chairperson, who is a representative of the financial authority, and members, who are representatives of relevant specialized agencies. Persons who have conducted procedural activities in the case, and persons specified in Article 52 of the 2015 Civil Procedure Code, shall not participate in the Valuation Council.
   The Valuation Council shall only conduct valuation in the presence of all its members. Where necessary, a representative of the Commune-level People’s Committee in the locality where the property is situated may be invited to witness the valuation. The parties shall be notified in advance of the time and place of valuation, and shall have the right to attend and express opinions on the valuation. The final decision on the property value rests with the Valuation Council;

   b) The financial authority and relevant specialized agencies are responsible for appointing representatives to participate in the Valuation Council and for facilitating their performance of duties. Members appointed to the Valuation Council must fully participate in the valuation. If the financial authority or specialized agencies fail to appoint representatives, the Court shall request the competent supervisory authority to direct the financial authority or specialized agencies to comply. If an appointed member fails to participate without a legitimate reason, the Court shall request the head of the appointing agency to consider responsibility, appoint a replacement, and notify the Court so that valuation may proceed;

   c) The valuation must be recorded in minutes, clearly stating the opinions of each member and of the parties (if present). The decision of the Valuation Council shall be adopted by a majority of its members. The minutes must bear the signatures or fingerprints of the Council members, the parties, and any witnesses.

5. Re-valuation of property shall be conducted where there are grounds to believe that the initial valuation result is inaccurate or inconsistent with the market value of the property at the place and time of valuation in the course of resolving the civil case.

Legal basis: Article 104 of the 2015 Civil Procedure Code.