Real Estate Appraisals

1. Mexico

• In Mexico, property appraisals are regulated mainly by the General Law on National Assets and the Appraisal Standards publicadas in he Diario Oficial of the Federación (DOF)Local regulations in each state are also taken into account.
• The appraisal must be carried out by a certified appraiser by the Mexican Valuation Society (SMV), and must include a detailed description of the property, the cadastral value, the market value, and, if necessary, the conditions of the real estate market.
• The type of construction, age, state of preservation, location, capital gains, and market comparables are considered.

2. USA

• In the United States, real estate appraisals are primarily regulated by the Uniform Standards of Professional Appraisal Practice (USPAP)), which are guidelines issued by the Appraisal FoundationIt is important to mention that these must be updated every two years, it is mandatory for licensed appraisers.
• The Federal Housing Administration (FHA) has regulations for certain types of financing.
• Appraisals must be performed by a Certified Real EstateProperty values are based on market comparables (recent sales), the property's physical condition, its location, and other local market factors.
• Factors to consider include a comparison of recent sales, replacement cost, and the property's profitability. Zoning and local land-use regulations are also taken into account.

4. Colombia

• In Colombia, the appraisal of real estate is regulated by the Law 1673 of 2013, which supervises the appraiser's activity. As well as el Open Registry of Appraisers (RAA).

• Appraisals must conform to the International Valuation Standards (IVS) when the assignment requires it.

• To carry out an appraisal, it is necessary that the expert appraiser be certified by the Superintendency of Notaries and Registry.

• The appraisal must detail the property's description, assessed value, market value, and tax value. It also takes into account the property's location, physical condition, age, local real estate market conditions, and comparable property values.

5. Chile

• In Chile, appraisals are regulated under the Law 18.795 on the real estate system and the Law 19.537 on horizontal property. As well as the Chilean Standard NCh 430 and the Regulations of the Ministry of Housing and Urban Development (MINVU).

• Urban and cadastral valuation falls on municipalities and the Internal Revenue Service (SII).

• Appraisals must be carried out by licensed appraisers, who must follow the guidelines of the College of Appraisers of Chile.

• A property appraisal must consider aspects such as its construction type, age, state of repair, location, market value, and capital gains. Comparable properties and local market conditions are also analyzed.

6. Peru

• In Peru, the appraisal of real estate is regulated by the Law No. 28,923 on cadastre and the Law No. 28,243 on real estate appraisal. As well as the National Appraisal Regulation (RNT) under the Ministry of Housing, Construction and Sanitation.

• The appraisal must be carried out by a accredited and registered appraiser before the National Superintendence of State Assets (SBN). They can also carry out appraisals engineers, architects or certified appraisal professionals.

• The appraisal is based on criteria such as location, type of construction, age, state of repair, market comparables, and the property's cadastral value. The evolution of the real estate market and demand in the area are also considered.

7. Ecuador

• In Ecuador, property appraisals are regulated by the Urban Cadastre and Appraisal Law. As well as by the Municipal Regime Law and various technical standards from entities such as the Military Geographic Institute (IGM) and the Technical Secretariat of Habitat and Housing.

• Some appraisals must be adjusted to the International Valuation Standards (IVS) for certain processes such as expropriations, planning or corporate appraisals.

• A property appraisal should include a detailed description of the property, its market value, its assessed value, and local market conditions. The building's age, type of construction, state of repair, and comparable properties in the area are all taken into account.

8. Costa Rica

• In Costa Rica, appraisals are governed by the Law No. 8,736 of Cadastre and the Regulations of the Cadastre Law. As well as by the National Appraisal Regulations (RNA), which is the main technical framework for public entities. The National Geographic Institute (IGN) and the Treasury intervene for fiscal or technical purposes.

• Experts must be registered members of the College of Engineers and Architects of Costa RicaThere are also other qualified professionals such as surveyors or civil engineers, depending on the type of property and the specific regulations.

• The appraisal process must detail the property's characteristics, including market, cadastral, and tax values. Also considered are the property's age, type of construction, state of repair, location, and comparable properties within the local market.

9. Uruguay

• In Uruguay, appraisals are regulated by the Law No. 18,308 of cadastre and the General Tax Directorate (DGI), which establishes the tax parameters for the valuation of real estate.

• Appraisals must be carried out by qualified appraisers, and must include a detailed description of the property, its market value and the cadastral value.

• Factors to consider include age, type of construction, state of repair, location, and comparable property values in the area.

10. Paraguay

• In Paraguay, appraisals are regulated by the Law No. 1,092/97 on Cadastre and the General Directorate of Public Registries.

• Appraisals must be carried out by certified professional appraisers, who must include in the report a description of the property, the market value, the cadastral value and the fiscal value.

• The location, state of preservation, type of construction, age, capital gains, and values of similar properties in the same area are considered.