September 01, 2017.

Law on Real Property Appraisers

Law on Real Property Appraisers („Official Herald of RS“, No. 108/2016, hereinafter the „Law“) came into force on January 6, 2017, and took effect, based on Article 50 of the Law, 150 days later i.e. on June 6, 2017.

Pursuant to Article 3 of the Law, its provisions apply to real property appraisals done for the purpose of:

1) Entering into a mortgage loan agreements and other mortgage related transaction of financial institutions;

2) Establishing the value of real property involved in bankruptcy, pursuant to the law governing bankruptcy;

3) Sale of real property in out-of-court settlement proceeding pursuant to the law governing mortgage.

The purpose of the enactment of this Law is to allow only licensed appraisers to do the appraisals of the value of real property; no other person, irrespective of his/her profession or vocation, unless licensed in the manner mandated by the Law, can do such appraisal. The licenses are issued by the Ministry in charge of finances, with active participation of a professional board formed and accredited by the Ministry.

Pursuant to Article 13 of the Law, a membership in the professional board of real property appraisers, which will be accredited and recorded in the Ministry’s directory, is a requirement for a licensed appraiser. The accredited board, inter alia, offers professional training and program of continuing education courses for the appraisers, and checks appraisers’ compliance with regulations. The accredited board is required to allow any person, who meets the same conditions as set by its by-laws, to become its member.

Any person who, until the effective date of the Law, had been appraising value of real property as a court sworn expert, will have been able to continue to do so by July 6, 2018, i.e. 18 months from January 6, 2017; in the meanwhile he/she will have to acquire a license of an appraiser or not be able to appraise the value of real property any longer. A person who holds such valid certificate/license issued by international organizations of appraisers, which are recognized by the Law, can become a licensed appraiser in Serbia without having to prove that he/she meets all the requirements set by the Law.

For more information on the Law and its application, please contact us at office@pricapartners.com.