ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of August 4, 2003 No. 958

About approval of Provisional regulations for assessment of real estate units

In pursuance of Item b) parts (1) article 30 of the Law on estimative activities N 989-XV of April 18, 2002. (The official monitor of the Republic of Moldova, 2002, N 102, the Art. 773) and for the purpose of establishment of the procedure of determination of market value of real estate units DECIDES: the Government of the Republic of Moldova

1. Approve Provisional regulations for assessment of real estate units it (is applied).

2. To the agency of geodesy, cartography and inventory to take adequate measures on application of this provision for determination of market value of real estate by the companies for assessment irrespective of type of property and form of business.

Approved by the Order of the Government of the Republic of Moldova No. 958 of August 4, 2003

Provisional regulations for assessment of real estate units

I. General provisions

1. The provisional regulations for assessment of real estate units (further - the Provision) are developed based on the Law on estimative activities N 989-XV of April 18, 2002. (Official monitor of the Republic of Moldova, 2002, N 102, Art. 773).

2. The purpose of this provision is establishment of the procedure of cost determination of real estate units, irrespective of type and pattern of ownership.

3. Methods of cost determination of real estate units can be applied to determination of other cost types on condition of use of the data corresponding to specific type of the estimated cost.

4. The market value determined in the course of assessment forms basis for determination of the price of the real estate unit in cases of alienation, commissioning of the object as a deposit, determinations of size of the rent, in case of creation of financial statements and in other cases.

5. The concepts used in this Provision have the following values:

market value - estimated amount for which object of assessment can be exchanged for date of assessment between ready to purchase it the buyer and ready to sell it the seller after due marketing in the commercial transaction during which each party shall be effective competently, prudently and without coercion;

market value in case of the existing use - calculated on the basis of continuation of the existing use (but in case of unemployment assumption) the amount for which object of assessment can be exchanged for date of assessment, between ready to purchase it the buyer and ready to sell it the seller in the commercial transaction after due marketing during which the parties will be effective competently, prudently and without coercion;

replacement cost - the amount of the total costs necessary for construction of the building or construction similar estimated, calculated based on the current market prices of date of assessment, taking into account depreciation of the estimated building or construction;

replacement cost - the amount of the total costs necessary for creation of the exact copy of the estimated building or the constructions calculated on the basis of the current market prices of date of assessment, using the materials and technologies similar applied in case of construction of the estimated building or construction taking into account depreciation of object of assessment;

investment cost - the project cost of real estate determined based on its profitability for the specific investor;

salvage value (or cost in case of forced sale) - real estate project cost in case it is alienated or it shall be aloof during the small period of time and on condition of exposition in the market, not answering to the conditions necessary for receipt of the best market price;

comparison element - the characteristic of the real estate unit or condition of implementation of the real estate transaction leading to object change in value;

comparison unit - specific cost the indicator applied in method of the comparative analysis of sales;

the amendment - the amount which is added or subtract from selling price of the real estate unit comparable to assessment object, for accounting of distinctions between these objects. The amendment can be expressed in absolute or in relative sizes;

the comparable real estate unit - the real estate unit, similar to the assessment object which is recently sold or offered for sale;

effective age - the age of the building or construction reflecting its real condition. The effective age can be less valid age in case of the correct operation of the real estate unit or there can be more valid age in case of misuse;

the valid (chronological) age - the number of the years which passed from the moment of commissioning of the object before date of its assessment;

physical life - the period of operation of structure during which the condition of its bearing structural elements corresponds to certain criteria. The term of physical life depends on degree of solidity of structure;

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