SERVICES

LAW OF THE REPUBLIC OF AZERBAIJAN

 

 

This Law determines the organizational, economic and legal foundations for the implementation of evaluation activities in the Republic of Azerbaijan, in accordance with paragraphs 1, 10 and 11 of Part I of Article 94 of the Constitution of the Republic of Azerbaijan.

 

 

Chapter 1

 

 

GENERAL PROVISIONS

 

 

Article 1. Basic concepts

 

 

1.1. For the purposes of this Law, the following basic concepts are used:

 

1.1.1. valuation activity – activity to determine the value of the valuation object by an appraiser in cases specified by this Law, as well as for the purposes specified by the customer;

 

1.1.2. appraiser – a natural person who meets the requirements established by this Law, has obtained the right to carry out appraisal activities and is a member of the Chamber of Appraisers;

 

1.1.3. appraisal organization – a commercial legal entity whose main field of activity is appraisal activities and which specializes in the direction(s) of appraisal activities;

 

1.1.4. valuation object – any tangible or intangible property, the valuation of which is provided for in regulatory legal acts or submitted for valuation by the customer;

 

1.1.5. customer – a natural or legal person who is the end consumer of the valuation service on the basis of an appraisal contract concluded with an appraiser or appraisal organization for the purpose of appraising the valuation object in their possession or use.

 

1.2. Other terms used in this Law shall have the meanings defined by the normative legal acts of the Republic of Azerbaijan.

 

 

 

Article 2. Legislation of the Republic of Azerbaijan on assessment activities

 

 

 

The legislation of the Republic of Azerbaijan on evaluation activities consists of the Constitution of the Republic of Azerbaijan, international treaties to which the Republic of Azerbaijan is a party, this Law and other normative legal acts.

 

 

 

Article 3. Scope of application of this Law

 

 

 

3.1. Except for the cases specified in Article 16.4 of the Law of the Republic of Azerbaijan “On Compulsory Insurance” and the case of determining the damage caused to insured state and municipal property as a result of the occurrence of an insurance event under compulsory insurance types, this Law shall not be applied to the assessment of property, risks and losses under insurance classes regulated by the Laws of the Republic of Azerbaijan “On Insurance Activity” and “On Agricultural Insurance”.

 

3.2. This Law shall not apply to the write-off of unusable, stolen or unidentified fixed assets (funds) on the balance sheet of state enterprises and organizations, as well as enterprises with a state share in the authorized capital, and the sale of material assets obtained from the demolition of these assets, as well as the inventory of assets and liabilities, as well as the valuation of precious metal ingots in accordance with the requirements of the Law of the Republic of Azerbaijan “On Accounting”, as well as the Law of the Republic of Azerbaijan “On Precious Metals and Precious Stones”.

 

3.3. Relations in the field of valuation activities in the Alat free economic zone are regulated in accordance with the requirements of the Law of the Republic of Azerbaijan “On the Alat free economic zone”.

 

 

 

Article 4. Directions of assessment activities

 

 

 

4.1. Evaluation activities are carried out in the following areas:

 

4.1.1. valuation of movable property (machinery and equipment, vehicles, animals and plants, etc.);

 

4.1.2. valuation of real estate, including land plots;

 

4.1.3. evaluation of movable and immovable cultural heritage samples, cultural assets, historical, cultural and natural monuments;

 

4.1.4. evaluation of enterprises;

 

4.1.5. valuation of intangible property assets (objects of intellectual property rights, shares and securities in the authorized capital (fund) and general property of legal entities, as well as claims and rights);

 

4.1.6. valuation of accounts payable and other liabilities, accounts receivable, inventories and other assets;

 

4.1.7. assessment of natural resources;

 

4.1.8. assessment of damages, lost profits and risks;

 

4.1.9. evaluation of services;

 

4.1.10. Evaluation of other evaluation objects.

 

 

 

Chapter 2

 

IMPLEMENTATION OF THE EVALUATION ACTIVITY

 

 

 

Article 5. Requirements for the implementation of assessment activities

 

 

 

5.1. Taking into account Article 5.2 of this Law, a person who has higher education and a total work experience of not less than 3 (three) years, has successfully passed the qualification exam and is a member of the Chamber of Appraisers may be an appraiser.

 

5.2. Persons who have not served or withdrawn their convictions for committing serious and especially serious intentional crimes, as well as corruption crimes and other crimes against the interests of the service, regardless of their nature and degree of public danger, as well as crimes in the economic sphere, and who have a legally effective court decision on the application of compulsory medical measures cannot be appraisers.

 

5.3. The appraiser carries out his/her activities independently or on the basis of an employment contract concluded with an appraiser organization.

 

5.4. Non-resident individuals accredited by the Chamber of Appraisers may engage in appraisal activities in the territory of the Republic of Azerbaijan. The procedure for accreditation of non-resident individuals to engage in appraisal activities and the requirements for such individuals shall be determined by the body (institution) designated by the relevant executive authority.

 

 

 

Article 6. Organization and conduct of a qualification examination for engaging in assessment activities

 

 

 

6.1. Qualification examinations for engaging in assessment activities, consisting of a written test, are organized and conducted by the body (institution) determined by the relevant executive authority in the areas of assessment activities.

 

6.2. Persons wishing to engage in assessment activities and whose compliance with the requirements stipulated in Articles 5.1 and 5.2 of this Law has been determined may participate in qualification examinations. Participation in qualification examinations is subject to a fee. The amount of the fee for participation in qualification examinations is determined by the body (institution) designated by the relevant executive authority.

 

6.3. Information on the results of the qualification examination is posted on the official website of the body (institution) determined by the relevant executive authority.

 

6.4. The body (institution) designated by the relevant executive authority shall issue a qualification certificate in the relevant field of assessment activity to the candidate who successfully passed the exam within 5 (five) working days after the announcement of the exam results. No fee shall be charged for issuing a qualification…

[15:08, 03.03.2025] Fəqan S: https://e-qanun.az/framework/55994

[15:09, 03.03.2025] Fəqan S: Article 13. Customer's rights

 

 

 

13.1. The Customer has the following rights:

 

13.1.1. to independently select an appraiser or appraisal organization and conclude an appraisal agreement with them;

 

13.1.2. to require the appraiser or appraisal organization to conduct the appraisal objectively and qualitatively within the time period specified in the contract;

 

13.1.3. to refuse the services of an appraiser or an appraisal organization if they violate the terms of the contract;

 

13.1.4. to require the appraiser or the appraisal organization to provide information on the approaches and methods to be used in the appraisal process;

 

13.1.5. require the appraiser to submit their membership card to the Chamber of Appraisers;

 

13.1.6. to familiarize themselves with the report on the results of the assessment in advance, and to add comments and suggestions;

 

13.1.7. to demand compensation from the appraiser for damage caused as a result of the appraiser's unlawful actions (inaction);

 

13.1.8. If you disagree with the results of the assessment, you can appeal to the Chamber of Appraisers and the court.

 

 

 

Article 14. Duties of the Customer

 

 

 

14.1. The Customer's obligations are as follows:

 

14.1.1. to submit to the appraiser, in a timely and complete manner, the documents necessary for conducting the appraisal, including documents and information confirming ownership and other property rights to the appraisal object;

 

14.1.2. if the customer is not the owner of the valuation object, to agree on issues related to the valuation with the owner;

 

14.1.3. create appropriate conditions for conducting an objective and high-quality assessment in accordance with the assessment agreement;

 

14.1.4. send requests to third parties at the request of the appraiser to obtain information (except for information related to secrets protected by law) that the appraiser considers necessary for conducting the appraisal;

 

14.1.5. pay the service fee in accordance with the contract concluded between the parties.

 

 

 

Article 15. Independence of the appraiser

 

 

 

The client and other interested parties are not allowed to interfere in the activities of the appraiser.

 

 

 

Article 16. Restrictions on conducting an assessment

 

 

 

16.1. An appraisal agreement cannot be concluded between the parties if the appraiser is a close relative of the customer (husband, wife, parents and children, grandparents and grandchildren, natural and stepbrothers and sisters (having a common father and mother), creditor (debtor) or insured person, as well as if the appraisal organization is a creditor (debtor) or insured person of the customer, or if the customer is a person related to the appraisal organization as defined in Article 49-1 of the Civil Code of the Republic of Azerbaijan.

 

16.2. The appraiser shall not be permitted to conduct an appraisal if he/she has non-contractual obligations regarding the appraisal object or a material interest in the results of the appraisal, as well as a property interest in the appraisal object.

 

 

 

Article 17. Service fee for valuation

 

 

 

17.1. The valuation service fee should not depend on the final value of the valuation object.

 

17.2. The upper limit of the service fee for the appraisal conducted on the basis of executive documents is determined by the body (institution) designated by the relevant executive authority and is paid by the customer to the appraiser or appraisal organization.

 

17.3. Except as provided for in Article 17.2 of this Law, unless otherwise provided for by law, the fee for the assessment, including the labor of specialists involved in the assessment activity, shall be determined by mutual agreement.

 

 

 

Chapter 4

 

ORGANIZATION OF THE ACTIVITIES OF THE CHAMBER OF APPRAISERS

 

 

 

Article 18. Chamber of Appraisers

 

 

 

18.1. The Chamber of Appraisers is a non-commercial legal entity established on the basis of mandatory membership of appraisers and operating on the principle of self-government.

 

18.2. Persons who are not members of the Chamber of Appraisers may not engage in appraisal activities in the territory of the Republic of Azerbaijan.

 

18.3. The activities of the Chamber of Appraisers are regulated by this Law and the Charter of the Chamber of Appraisers.

 

18.4. Chamber of Appraisers:

 

18.4.1. makes proposals for improving the legislation on assessment activities;

 

18.4.2. approves the assessment approach and methods;

 

18.4.3. accepts or terminates membership in the Chamber of Appraisers, determines the amount of membership fees and the procedure for payment, in accordance with the requirements of this Law;

 

18.4.4. approves the rules of ethical conduct of the evaluator and monitors compliance with the requirements of these rules by its members;

 

18.4.5. takes measures to organize additional training for evaluators;

 

18.4.6. represents the interests of its members in relations with state bodies (institutions) and local self-government bodies, as well as international professional associations of appraisers;

 

18.4.7. protects the rights and legitimate interests of its members;

 

18.4.8. maintains a separate register of current and former members and posts on its official website information on each member's name, surname, patronymic, length of service, education, availability of a qualification certificate and an appraiser's professional liability insurance certificate, and information about the insurer;

 

18.4.9. considers applications from customers and other persons regarding the activities of its members;

 

18.4.10. imposes disciplinary sanctions on its members in accordance with the procedure established by this Law;

 

18.4.11. organizes information and methodological support for its members;

 

18.4.12. once a year, no later than the 20th of the month following the reporting year, posts information about its activities and the activities of its members on its official website.

 

 

 

 

19.2. The following are the exclusive powers of the general meeting of members of the Chamber of Appraisers:

 

19.2.1. Adoption of the Charter of the Chamber of Appraisers and amendments thereto;

 

19.2.2. approval of the approach and methods of assessment, the rules of ethical conduct of the assessor, the procedure for maintaining the register of members of the Chamber of Assessors, and the exemplary form of the report on the assessment results;

 

19.2.3. Election of the Presidium of the Chamber of Appraisers, the Chairman of the Disciplinary Commission and other members, and termination of their powers;

 

19.2.4. Approval of the annual report of the Chamber of Appraisers;

 

19.2.5. Determination of the amount of membership fees to the Chamber of Appraisers and the procedure for payment.

 

19.3. The general meeting of the Chamber of Appraisers shall be held at least once a year. An extraordinary meeting may be held at the initiative of the Presidium of the Chamber of Appraisers or one-third of the members.

 

 

Article 20. Presidium of the Chamber of Appraisers

 

 

20.1. The Presidium of the Chamber of Appraisers shall consist of 9 (nine) members, including the chairman and his deputies. The chairman, deputy chairmen and other members of the Presidium shall be elected by voting at the general meeting of the members of the Chamber of Appraisers for a term of 5 (five) years. No one may be elected the chairman of the Presidium of the Chamber of Appraisers more than twice.

 

 

20.2. The powers of the Presidium of the Chamber of Appraisers include the following:

 

20.2.1. Organization of meetings of the general meeting of members of the Chamber of Appraisers;

 

20.2.2. Approval of the form of membership card to the Chamber of Appraisers;

 

20.2.3. application of disciplinary sanctions to appraisers in accordance with Article 22 of this Law;

 

20.2.4. monitoring the professional liability insurance of appraisers;

 

20.2.5. Adopting a decision on admission to membership of the Chamber of Appraisers and termination in cases specified in Article 24.1 of this Law;

 

20.2.6. preparation of methodological recommendations on the implementation of assessment activities.

 

 

 

Article 21. Property of the Chamber of Appraisers

 

 

 

21.1. The Chamber of Appraisers may own (use) property that is not prohibited by law.

 

21.2. The property of the Chamber of Appraisers is formed at the expense of membership fees, grants, donations and other sources not prohibited by law.

 

 

 

Chapter 5

 

RESPONSIBILITY AND TERMINATION OF THE APPRAISER'S ACTIVITIES

 

 

 

Article 22. Disciplinary liability of appraisers

 

 

 

22.1. In case of violation by an appraiser of the requirements of the legislation of the Republic of Azerbaijan on appraisal activities and the rules of ethical conduct of appraisers, the Presidium of the Chamber of Appraisers may, based on the opinion of the Disciplinary Commission, apply one of the following disciplinary measures to the appraiser:

 

22.1.1. reprimand;

 

22.1.2. Suspension of the right to engage in assessment activities for a period of 3 (three) months to 1 (one) year.

 

22.2. The appraiser may be warned in writing or orally without applying any of the disciplinary measures specified in Article 22.1 of this Law.

 

22.3. Disciplinary action against an appraiser shall be imposed within 6 (six) months from the date of discovery of the disciplinary violation, and within 1 (one) year from the date of its commission.

 

22.4. An appraiser whose right to engage in appraisal activities has been suspended cannot be elected as a member of the Presidium of the Chamber of Appraisers and the Appraisers' Disciplinary Commission during that period.

 

22.5. The assessor may appeal the decision to impose a disciplinary measure to the court.

 

 

 

Article 23. Ensuring professional responsibility when carrying out assessment activities

 

 

 

23.1. Damage caused to the customer and (or) third parties as a result of the valuation conducted by the appraiser shall be compensated in accordance with the Civil Code of the Republic of Azerbaijan.

 

23.2. The appraiser's professional liability insurance contract serves as a guarantee of his liability when carrying out appraisal activities. The minimum requirements for insurance coverage and insurance amount for appraiser's professional liability insurance are determined by the body (institution) designated by the relevant executive authority.

 

23.3. Supervision over the appraiser's professional liability insurance is carried out by the Chamber of Appraisers.

 

23.4. The appraisal organization and the customer may, by mutual agreement, determine the conditions for securing compensation for damages caused by the appraiser's activities in the appraisal contract.

 

 

 

Article 24. Termination of the Appraiser's Activities

 

 

 

24.1. The activities of an appraiser shall be terminated in the following cases:

 

24.1.1. when an appraiser applies for withdrawal from membership in the Chamber of Appraisers;

 

24.1.2. if the appraiser again violates the requirements of the legislation on appraisal activities and the rules of ethical conduct of appraisers within 1 (one) year after the application of the disciplinary measure provided for in Article 22.1.2 of this Law;

 

24.1.3. if the evaluator fails to pay the membership fee for more than 6 (six) months;

 

24.1.4. when the appraiser dies, is declared dead by a legally effective court decision, or is considered missing;

 

24.1.5. if there is a legally effective court decision on the appraiser's incapacity or limited capacity;

 

24.1.6. if the appraiser has been convicted of committing an intentional grave or especially grave crime, as well as a crime of corruption and other crimes against the interests of the service, regardless of their nature and degree of public danger, as well as a crime in the economic sphere;

 

24.1.7. if there is a legally effective court decision to deprive the appraiser of the right to engage in appraisal activities, including the imposition of compulsory medical measures against him/her.

 

24.2. The activities of an appraiser shall be terminated by the decision of the Presidium of the Chamber of Appraisers upon the opinion of the Disciplinary Commission, and he shall be removed from the membership of the Chamber of Appraisers, and information about this shall be entered into the register of members of the Chamber of Appraisers.

 

24.3. In the cases provided for in Articles 24.1.2 and 24.1.3 of this Law, the termination of the activities of an appraiser and his/her removal from the membership of the Chamber of Appraisers shall be carried out on the basis of a legally effective court decision.

 

24.4. In the case provided for in Article 24.1.2 of this Law, the Presidium of the Chamber of Appraisers may suspend the activities of that appraiser, based on the opinion of the Disciplinary Commission, until the court decision in accordance with Article 24.3 of this Law enters into legal force.

 

24.5. A person who has been removed from the membership of the Chamber of Appraisers on the grounds specified in Articles 24.1.1 - 24.1.3 of this Law may take a qualification exam in accordance with the procedure established by Article 6 of this Law after at least 1 (one) year has passed from the date of adoption of the decision of the Presidium of the Chamber of Appraisers regarding him.

 

 

 

Chapter 6

 

FINAL PROVISIONS

 

 

 

Article 25. Liability for violation of this Law

 

 

 

Persons shall be liable for violation of the requirements of this Law in cases established by law.

 

 

 

Article 26. Entry into force of this Law

 

 

 

26.1. This Law (except for Articles 4, 6, 8.2 and 27 of this Law) shall enter into force on July 1, 2024.

 

26.2. Articles 4, 6 and 27 of this Law shall enter into force on the date of publication of this Law, and Article 8.2 shall enter into force on July 1, 2027.

 

26.3. From the date of entry into force of this Law, the Law of the Republic of Azerbaijan No. 510-IQ dated June 25, 1998 “On Valuation Activities” (Collection of Legislation of the Republic of Azerbaijan, 1998, No. 9, Article 562; 2002, No. 5, Article 241; 2007, No. 5, Article 436, No. 8, Article 745, No. 10, Article 938; 2012, No. 6, Article 502; 2020, No. 6, Article 678) is repealed.

 

 

 

 

Article 27. Transitional provisions

 

27.1. Until the period specified in Article 26.1 of this Law:

 

27.1.1. In order to determine the persons entitled to establish the Chamber of Appraisers and to ensure the preparation and holding of the founding meeting, an organizational committee consisting of 5 (five) members, including representatives of the body (institution) designated by the relevant executive authority, shall be established by the body (institution) designated by the relevant executive authority;

 

27.1.2. On the basis of the order of the organizing committee, the body (institution) determined by the relevant executive authority in accordance with the procedure provided for in Article 6 of this Law shall organize and conduct qualification examinations for engaging in assessment activities every month for a period of 6 (six) months. Appraisers who have successfully passed the qualification examination and received a qualification certificate shall have the right to establish the Chamber of Appraisers;

 

27.1.3. The Chamber of Appraisers shall be established by at least 15 (fifteen) appraisers who have the right to establish the Chamber of Appraisers, and the Chairman, Deputy Chairman and other members of its Presidium, as well as the Chairman and members of the Disciplinary Commission of Appraisers shall be elected;

 

27.1.4. After the Chamber of Appraisers is established and registered with the state, the Chamber of Appraisers, its Presidium and the Disciplinary Commission of Appraisers are considered to have started operating.

 

27.2. The term of office of appraisers operating before the entry into force of this Law shall be taken into account when calculating the term provided for in Article 8.2 of this Law.

 

Ilham ALIYEV,

President of the Republic of Azerbaijan

 

Baku, December 8, 2023

 

                  No. 1052-VIQ