Об оценочной деятельности


Дата релиза: 19.05.2020

On assessment activity

Law of the Republic of Azerbaijan

On assessment activity

The present Law sets out general principles of the activity for assessment of the property in the Republic of Azerbaijan (hereinafter referred to as «assessment activity») as well as regulates organizational, economic and legal relationships emerged therefrom.

Article 1. Legislation on assessment activity

Legislation of the Republic of Azerbaijan on assessment activity shall be composed of the present Law, other legislative acts as well as international agreements ratified by the Republic of Azerbaijan.

Article 2. Subject entities of assessment activity

Legal and natural persons’ activity of which is regulated by the present Law (assessors) and consumers of their services (customers) shall be subject entities of assessment activity.

Article 3. Objects of assessment activity

Any property assessment of which is envisaged by the legislation or deemed by the customer to be important shall be the object of assessment activity.

Article 4. Rights of owners to assess own property

Legal and natural persons of the Republic of Azerbaijan shall be entitled to assess their own property.

Results of the assessment may be used for making amendments in accounting and statistical registration and reporting.

Article 5. Cases of mandatory assessment

Mandatory assessment of the property shall be carried out in the following cases:

    • determination of value of state property with a view of privatization or transfer for trust management;
    • use of state and municipal property for pawn (hypothec) purposes;
    • sale of state and municipal property or its transfer to other persons in connection with debt obligations;
    • if the property of owners is seized for state purposes or public purposes in cases and under terms and conditions referred to in the Civil Code of the Republic of Azerbaijan and the Law of the Republic of Azerbaijan «On purchase of lands for state purposes»;
    • reassessment of basic assets under state property;
    • determination of damage made to insured state and municipal property as a result of insured accident under types of compulsory insurance;
    • necessity of assessment of property with a view of execution of court verdict or decision. (In such case assessment shall be made under order of persons who are owners of the property or by the relevant body of executive power under legislation.);
    • emergence of the dispute on value of the property in case of change of the title of the property which is in trust management;
    • emergence of the dispute on value of the property in case of partition of property under request of one of divorcing spouses or both of them;
    • emergence of the dispute on value of the property belonging to joint stock companies in case of amalgamation or partition of those companies;
    • consideration of disputes associated with the matters of inheritance.

Article 6. Basis for assessment

Basis for assessment of the object by the assessor shall an agreement concluded between him/her/it and customer.

In cases referred to in civil legislation, assessment of the object may also be made on the basis of court decision on expert examination, including expert re-examination. In such cases the court shall be fully independent in selection of assessor.

Article 7. Report on assessment results

Rules for reporting on assessment results shall be defined by the relevant body of executive power. Final indicator of market or other value of the property in the report on assessment results shall be deemed to be reliable, if it is not repealed by the court.

Report on market or other value of the object defined by the assessor may be taken by the court into account in all cases of consideration of the relevant disputes.

Article 8. Disputes on information about assessment of object indicated in assessor’s report

Disputes associated with the reliability of market and other value of assessed objects indicated in assessor’s report shall be considered by the court.

In such case, the court which has accepted the dispute for consideration shall be entitled to designate expert reassessment of assessed object taking into account applicable procedural legislation and the present Law.

Article 9. Assessor’s rights

Legal and natural persons which have acquired special permission may deal with assessment activity as provided for in the legislation of the Republic of Azerbaijan.

Assessor shall be entitled to:

    • freely select assessment forms and methods within the framework of applicable legislation on assessment activity;
    • require important documents, receive additional information and explanations from the customer in the course of implementation of assessment;
    • receive any information from third persons which he/she/it may deem important for assessment in written or oral form, except for information constituting state and commercial secret;
    • involve experts to the assessment on contractual basis, if necessary;
    • refuse from implementation of assessment in cases of failure of the customer to comply with contractual terms and conditions, his/her/its failure to submit required information about the object of assessment as well as failure to create respective safe working conditions for assessor.

Article 10. Assessor’s obligations

Assessor shall be obliged to:

    • comply with the legislation of the Republic of Azerbaijan in the course implementation of assessment activity;
    • provide safety of documents obtained from the customer or third persons in the course of implementation of assessment;
    • immediately warn the customer about causes impeding to assess the object;
    • submit information about legislation of the Republic of Azerbaijan on assessment upon customer’s request and normative legal acts adopted thereof, statues of professional associations, documents giving the right to deal with assessment activity.
    • submit documents, upon customer’s request, certifying the existence of education required for implementation of assessment activity;
    • refrain from disclose confidential information obtained from the customer in the course of assessment;
    • submit relevant information and data from own report upon court’s request;
    • reflect the refusal of the customer to submit information in his/her/its report if such refusal considerably affects the assessment;
    • provide the customer with the information on impossibility of his/her/its participation in the assessment, in cases of emergence of consequences impeding the objectivity of the assessment.

Article 11. Assessor’s independence

Interference of the customer and other interested persons with the assessor’s activity shall be impermissible.

Article 12. Restrictions for assessment activity

Assessors may not carry out the assessment of the object, if he/she/it is a founder, owner, shareholder or official of natural or legal person which has property interest in the object of assessment as well as close relatives of those persons or customer.

Implementation of assessment by the assessor shall not be permitted, if he/she/it has non-contractual obligations in respect of object of assessment and material interest in assessment results.

If the mandatory assessment provided for in the eighth paragraph of Article 5 of this Law is carried out by order of an executive official, then the executive officer is obliged to invite an assessor, specializing in the field of assessment and carrying out activities in this area for at least 5 years, who has not been convicted of grave or especially grave crimes, and also for corruption crimes and crimes against official interests or crimes in the economic sphere.

Article 13. Expenses associated with the assessment

Fee paid to the assessor for services he/she/it has delivered shall not depend on final value of the object of assessment.

Except for cases established by the laws of the Republic of Azerbaijan, expenses associated with the implementation of assessment, including the payment of expert’s labour shall be borne on the basis of mutual agreement in accordance with the legislation.

Article 14. Supervision over assessment activity in the Republic of Azerbaijan

Supervision over assessment activity in the Republic of Azerbaijan shall be carried out by the relevant bodies of executive power.

Article 15. Assessment standards

Assessment standards, normative documents and regulations of training of professional assessors shall be elaborated and adopted by the relevant bodies of executive power under the legislation.

Article 16. Associations of assessors and their tasks

Assessors may establish their/its associations on the basis of respective legislation of the Republic of Azerbaijan with a view to defend their/its own interests, exchange international experience and increase professional skills or other purposes.

Article 17. Termination of assessment activity

Assessment activity shall be terminated in the following cases:

    • prove, under the legislation of the Republic of Azerbaijan, of the fact of falsification in the course of state registration of legal and natural person implementing assessment activity;
    • liquidation of legal person dealing with the assessment activity as defined in the Civil Code of the Republic of Azerbaijan in accordance with the legislation of the Republic of Azerbaijan;
    • reveal by the court of forgery of documents associated with assessment activity implemented by the legal or natural person;
    • abuse of powers granted to the assessor by the legislation to carry out the assessment activity;
    • existence of applicable court decision.

Article 18. Liability of assessor and customer

Assessor and customer shall bear liability as defined in the legislation for the failure to comply with the present Law and terms and conditions referred to in the assessment agreement.

President of the Republic of Azerbaijan

Heydar ALIYEV

Baku city, 25 November 1998

No. 510-IQD

Published in «Azerbaijan» newspaper (2 October 1998, No. 227)

Published in the Collection of Laws of the Republic of Azerbaijan (30 September 1998, No. 9, article 562)

As amended by the Laws dated 23 April 2002, No. 311-IIQD; 17 April 2007, No. 314-IIIQD; 17 April 2007, No. 315-IIIQD; 9 October 2007, No. 429-IIIQD; 19 May 2020, No. 103-VIQD («LegalActs» LLC).

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