As of the beginning of March 2021, valuation requests will be automatically distributed to TDUB members via the Web Tapu portal. In addition to inspection and discipline mechanisms, this digital transformation process will increase confidence in the system.
Valuation sector in our country was transformed into a regular market and a corporate area by the Capital Markets Board in 2001 in line with the needs of the capital markets and banking sector in our country. The measure of professional qualifications of the appraisers, the state that only license holders can perform valuation activities, the authorization of valuation institutions and the foundation of The Turkish Association of Appraisers to develop, supervise and discipline the sector was made possible by the results produced by the mind of this visionary.
This strong structure, currently established with 7,873 members, 7,733 of which are real person appraisal experts and 140 legal entity member appraisers, has reached the level of serving many areas such as public companies, banking, financial institutions, expertise, movable pledge in commercial transactions, privatization, enforcement and bankruptcy, dispute and property cases, urban transformation, insurance, tax, etc.
Audit and discipline mechanism is in place
The fact that there are many factors affecting the real estate value today necessitates not being mistaken about the determination of the value and providing services to real estate buyers and investors in a safe and specific standard. From this point of view, we have required the preparation of valuation reports within the framework of the international valuation standards published by the International Valuation Standards Council (IVSC), to which we are a member. We started to record each appraisal report prepared by our members, and we built the audit and discipline mechanisms on this structure. We established a service unit to evaluate and examine complaints and objections regarding valuation activities. As the public professional association, since our duty is also to discipline the valuation sector, we use all of our duties and powers to identify those who are in wrongdoings in the sector, and in this context, we apply disciplinary penalties, including dismissal from the profession.
Values will be directly transmitted to TKGM
The appraisal reports required for foreigners’ real estate acquisition are prepared by our association members. Valuation activity refers to a process that starts with the foreign nationals requesting valuation services from the members of our Association, the parties agree and sign a mutual agreement. However, as of the beginning of March 2021, requests will be automatically distributed to our Association members via the Web Tapu portal of the General Directorate of Land Registry and Cadastre (TKGM). Thus, the valuation activity will be carried out without the parties confronting each other in any way, and the data regarding the value will start to be directly transmitted to TKGM. We believe that the trust in the system will increase even more with the implementation of this practice, which can be described as a digital transformation process, as well as the therapeutic applications of audit and discipline mechanisms.
It is on the agenda of our country to extend the application of seeking valuation reports in real estate acquisition by foreigners for all transactions to be carried out in the land registry offices. On the other hand, recording valuation reports prepared by experts with a similar method and assigning them centrally with algorithms is another issue on our agenda.
The appraisal report determines the investment decision
Undoubtedly, the value of the property is very important, whether for investment, commercial or residential purposes. The valuation report does not only include the real estate value. It covers information and documents on many issues such as whether the real estate is legal, title deed records, license, zoning plan and project, location, area, whether there is a restriction on its transferability, if not yet built, whether all legally required documents are available to start construction etc. These data are at least as important as the value of the property. Therefore, we recommend that these elements of the valuation report be carefully examined before completing the real estate purchase and sale transactions. For example, the existence of a legal restriction on a real estate with a low value compared to its peers may be effective in the investment decision on it. From this aspect, the valuation report can be evaluated as a method that can minimize manipulative transactions.