The cadastral value is the price of or a plot of land that is established by a public authority after a special appraisal. The cadastral value is used to calculate taxes correctly. It is used in a number of other administrative procedures (e. g. when formalising a deed of gift or establishing inheritance rights).
Each property and plot of has a cadastral value. It is worth remembering that it may differ from the market price. While the market price depends on the property’s condition, layout, interior design, location, view from the window, equipment and other nuances, the cadastral value has other characteristics.
The cadastral value is calculated on the basis of such criteria as:
- the function of the property,
- total area,
- year of construction and completion,
- Materials used in construction etc.
Why does the owner need to know the cadastral value? Firstly, in order to calculate taxes correctly (e. g. land and property tax). Secondly, in order to efficiently use and manage the property. Thirdly, for statistics, accounting, etc.
The cadastral value is established by a state authority. At the same time, the owner of the property can disagree with the cadastral value and demand a reconsideration. The owner can make an independent appraisal and then submit the documents to the state register of real estate.
In a number of European countries, as well as in the USA, a complex valuation of land and buildings has been carried out. As a result, almost every there has a cadastral value.