Andrian Toderascu, Ilija Sopivnik
Participants of the real estate market have a mixed attitude to this initiative. Many welcome the fact that the market will become transparent. But the fact that the state is strengthening market control raises questions.
The government claims that the creation of the Register will only have a positive impact on the market, will lead to an increase in its efficiency. RPBI will facilitate the valuation of real estate for tax purposes, providing a reliable basis for calculating taxes and levies. At the same time, it will facilitate informed decision-making by investors and authorities.
Measures to integrate and standardize information in the Registry will help prevent fraud and protect the rights of parties involved in real estate transactions, the government said. In addition, it will provide access to information from previous periods and allow for comparisons necessary for a sound and reasoned evaluation of real estate. SI RPBI will record sales prices, rents and lease payments, royalties on creation of superficies and offer prices for real estate.
Certified real estate appraisers through appraisal companies will be required to submit quarterly appraisal reports for management and storage in the system.
The data stored in the Registry will be disseminated through a thematic geo-portal that will present visual pricing information on a map, providing a detailed view of real estate market trends.
SI RPBI will provide relevant data search and analysis tools, thereby facilitating the process of making informed decisions in the acquisition, sale and valuation of real estate. At the same time, it will promote standardization and uniformity of prices, reducing the risks of manipulation and abuse and contributing to a fairer and more competitive market.
One of the main principles of the system’s functioning is the principle of transparency. It implies that the system should be accessible to all market participants, providing clear and complete information on sale prices, payments, offers and characteristics of the real estate sold. Information in the register should be updated in real time or at regular intervals to ensure its relevance and accuracy. The principle of confidentiality is also specified, aimed at limiting access of unauthorized persons to information with limited availability.
“The fact that the real estate market will become transparent and people will have access to statistics is welcome – says the chairman of the Union of Real Estate Agencies of RM Andrian Toderascu. – But the question is how ready is our society for this? There are people who are scrupulous about their personal data, their transactions, assets, resources. They are unlikely to agree to this information being made public. You have to be very careful about who will have access to that information and at what stage. I think it should be delimited in any case and without specifying personal data. But conclusions can be drawn when this system proves itself in practice”.
Recent amendments to the Law on Appraisal Activity obliged real estate appraisers to submit quarterly appraisal reports to the central administrative body in the field of cadastre. These documents will be presented in a special module of the information system “Price Register”.
At the stage of discussion of amendments to the law, this obligation raised many questions among appraisers. The content of the valuation report is confidential information, and in the contract with the client the appraiser undertakes not to present it to third parties. At least not without the client’s consent.
However, later on a compromise was found. As the chairman of the National Society of Professional Appraisers of the Republic of Moldova, Veaceslav Revetschi, told Logos Press, it will be necessary to provide full valuation reports only for state property. For private property objects it will be enough for the appraiser to present a summary from the report, i.e. to indicate the name of the object, area and price without specifying a specific address. This information is necessary to summarize statistical data, and it is common practice in other countries.
“Data on the full range of market prices will help in mass appraisal and revaluation of real estate objects. And access to statistical data, publication of the “corridor” of prices for different objects will be useful for appraisers as well,” says Vyacheslav Revetsky. – But so far many points remain unclear. Because the law does not specify, for example, the responsibility for the safety of these reports, guarantees of confidentiality, etc. However, the Agency of Geodesy, Cartography and Cadastre promises that the relevant regulations will be developed later to regulate these issues”.
On the other hand, the creation of SI RPBI leads to the strengthening of state control over the real estate market, which many experts do not agree with. “International standards state that the state should regulate the market together with public organizations of appraisers. However, the state authorities refer to the fact that we have few public organizations, and the market has not yet grown to self-regulation”, – says Vyacheslav Revetsky.
Director of real estate agency Imobilus Ilya Sopivnik notes that an open price register exists in all developed countries. In the UK, for example, in such a register you can trace in what period and at what price was sold this or that property, how prices are rising and calculate what the profitability of renting can be.
“In fact, the fact that, there will be a clear understanding of real prices and a lot of things will become transparent, it’s a good idea,” he says. – But there is also an obvious hidden agenda – to get more taxes from the consumer. After all, there will be a real basis for revaluation of real estate for taxation, and taxes will be determined no longer on the cadastral value, but on the basis of real market prices”.
