Valuation Rules According ECO/805/2003 (V)
Statement of the Values. Checks. Land Area. Mortgage Value. Intermediate Valuation.
When valuing a Real Estate in Spain, the values should be stated in a report and, where appropriate, a Certificate of Valuation.
The valuation of a property requires to perform all necessary checks to know the characteristics and the actual condition. Among the checks that should be performed, the following ones should always be included:
- physical identification of the property, through its location and visual inspection, checking if its floor area and other characteristics match the description
- identifying all visible servitudes
- conservation status or condition
- occupancy status
- use or exploitation intended for the property
- public protection regime, if it’s about housing
- architectural heritage protection regime
- agreement of the property with all applicable urban planning regulations
- where applicable, availability of right to the valued urban use.
In order to calculate the value of a land or a country estate, the area to consider should be checked by the appraiser. If this testing is not feasible, the appraiser should use the lowest value between the Registry Area and the Cadastral Area.
Definition of Mortgage Value (VH)
The Mortgage Value or VH (‘Valor Hipotecario’, in Spanish) is defined as the value of the property as determined by a prudent valuation, taking into account all market conditions, the use at the time of the valuation and any possible alternative uses.
Definition of Intermediate Valuation
The Intermediate Valuation of a construction work is any of the valuations that are issued after the initial valuation and during the construction or rehabilitation process of a building or an element of a building. The Intermediate Valuation reflects the progress of the works and the percentage of work performed, but its issue does not involve the updating of the values contained in the initial valuation.
Daniel Trujillano, Architect
Property Valuation Reports in Spain