MASS VALUATION in the REPUBLIC OF MACEDONIA Darko Crvenkovski, AREC November 2016

AREC Government institution Self-financed institution 916 employees Regional organization Local offices – 30 1.205.285 cases 0.02% unsolved by the end of the 2016

Cadaster of real estate

E-Kat

E-Kat Lite XML PDF PAPER e-Kat Lite fully implemented Over 900 users (notaries, geodetic companies, municipalities, executors, valuators) 65% of the cases come through the electronic cadaster Close cooperation with the Chambers of notaries, valuators and geodetic companies XML PDF PAPER Preparing contract Deliver paper documents Physical front desk receival Scanning Processing and Registering Preparing contract Deliver PDF digital signed Electronic delivery Processing and Registering На овој слајд илустративно е прикажан процесот на автоматзација на работните процеси. Прциот ред е традиционалниот начин на хартиено припоремање на документит и нивна физилка достава во катастарот. Вториот ред го претставува електронсиот шалтер, каде се подготвуваат пдф документи дигитално потпишани и електронски се доставуваат за постапување во агенцијата Третиот ред е иднината каде документите ќе бидат во XML формат и ќе се забрза целиот процес на регистрација на трансакциите. Preparing contract digitally signed Electronic delivery and processing Registering

Digitalization of cadaster maps Scan cadaster plans Vectorised cadaster plans MacEdit Graphic base еКат Alphanumeric base еКат Graphic and alphanumeric base

NSDI Government geo portal

AREC One-Stop-Shop-Portal Registration Searching/ Buying Search Metadata AREC (2015), OSSP http://ossp.katastar.gov.mk/OSSP/

Registry of construction land

Cadaster of infrastructure objects

Annual property taxes - Current Status In 1993 a Law was adopted where the property tax started to be charged In 1994 certain tax on all real estate in the country at the request of value by the owner of the property In 2005 decentralized system for annual property tax The municipalities in the country have an obligation to make a reassessment of all property on their territory in order to establish the market value of real estate for the particular taxation year

Registration of property Seller Buyer Statement for additional information about the property Solemnization of agreement Notary office Registry of prices and leases Real estate cadaster AREC

VIP procedure for property registration Appraisers - perform an assessment of the property and prepare an appraisal report, calculation of the value and advanced payment Notary - receives funds in a separate account by the parties so it can transfer it to the municipality account, prepares verification of validity (solemnization) contract and a clause for an advanced tax payment. AREC registers the property (all documents received by a notary shall be forward to the municipality to inspect the payment of the advanced tax, municipality issues tax decision)

Mass valuation in Macedonia Adoption of a new law on REC, April 2013 WB Consultant – action plan Establishment of the Unit for Register of prices Adoption of a new law on REC, August 2014 Establishment of the Sector for mass valuation Experiences from Serbia and Slovenia

Stake holders National Bank of the Republic of Macedonia (EU directives: Basel I, Basel II)     - Calculation of price index, real estate     - Monitoring of commercial banks - credit risks - mortgages Statistical Office (EUROSTAT directives) - calculation of price index, real estate Reports on real estate market - Commercial banks - Investors - Private appraisers - General public Municipalities

Scheme at the state level Municipality 1 Municipality tax authority AREC Advisory board Municipality 2 Municipality…. Central valuation office Municipality 80 + city of Skopje Regional valuation office 29 + CREC

Forming a sector for mass valuation in AREC Registry of prices and leases Valuation model department Real estate market research Department

Scope of work of the sector for mass valuation DEPARTMENT FOR REGISTRY OF PRICES AND LEASES - Control of the data in the Registry and the data input by notaries and appraisals - Collecting data about transactions and additional data about properties - Records data for transactions on the web GIS portal of AREC - Field inspections DEPARTMENT FOR REAL ESTATE MARKET RESERCH - Preparing reports for other state institutions and private sector - Analysis for the trend of market and property prices - Collects additional social economic data for the system of mass valuation - Control of the data input in the system for mass valuation DEPARTMENT FOR VAULATION MODELS - Making models for mass valuation and testing - Making mass valuation of properties - Responds on appeals from owners of property - Value indexing of properties

Registry of prices and leases

Registry of prices and leases

Professional users

Transaction by type

Transactions by type of property

Transactions on month range

Future plans Matching data from REC with data of municipalities Gathering additional data for properties field inspection Law for mass valuation Creating value zones Creating models for mass valuations Implementation of the system for mass valuation till the end of 2018

ВИ БЛАГОДАРАМ ТHANK YOU GRACIAS