How many days do I have to appeal a property valuation?

Under Georgian law, a party has the right to appeal an enforcement action (including an appraisal act) in court within 15 calendar days from the moment they receive official notification or become aware of the fact.

Who pays for the property appraisal expert fees?

The auditor's appraisal fee is considered an enforcement expense. It is initially covered by the National Bureau of Enforcement (or the creditor), but it is ultimately charged to the debtor and deducted from the auction proceeds.

Does appealing the valuation automatically stop the auction?

No. Merely filing a lawsuit does not automatically suspend the auction. A lawyer must submit a substantiated motion to the court requesting the suspension of enforcement and obtain a specific ruling from the judge to stop the auction.

Valuation of Seized Property in Georgia | legal.ge

Introduction: The Role of Valuation in Enforcement

The valuation of seized property is one of the most critical and frequently disputed stages of enforcement proceedings. After the debtor's property (real or movable) is inventoried and seized, it is essential to determine its real market value so the property can be listed on an electronic auction. The appraisal report dictates what the starting sales price of the property will be at auction. This issue directly affects the financial interests of both the creditor and the debtor. The creditor is interested in the property selling for a sufficient price to cover the debt, while the debtor is vitally interested in ensuring the property does not sell for a price far below market value (at a "throwaway price"), minimizing their loss after the debt is paid. Therefore, an objective, professional appraisal conducted in full compliance with the law is the cornerstone of fair enforcement.

What the Property Valuation Legal Service Covers

The legal service for the valuation of seized property covers the complete legal supervision of the expert appraisal process. The service begins by monitoring the enforcer's appointment of an independent auditor (appraiser). Lawyers ensure that the appraiser inspects the object timely and comprehensively. Particular importance is given to the valuation process of specific properties—such as shares in an operating business, unique industrial machinery, or intellectual property—where the lawyer engages experts from the relevant field to establish an adequate price. A crucial part of the service is the critical analysis of the received appraisal report (expert act). If the report is biased or inaccurate, the service includes appealing it in court, demanding the appointment of a repeated or alternative expert appraisal, and aggressively protecting the client's (creditor's or debtor's) financial interests.

Common Practical Scenarios

In practice, disputes during the valuation stage almost always arise during the forced realization of real estate (apartments, land plots, commercial spaces). A typical scenario is when the debtor believes that the auditor appointed by the bureau undervalued their apartment by 30-40% compared to the market price. The debtor hires a lawyer and an alternative private auditor to prove the baselessness of the appraisal in court and suspend the auction. On the other hand, cases are frequent where an excessively high valuation does not suit the creditor (e.g., a bank). If the property is appraised too high, its starting auction price will also be high, resulting in no buyers showing up and the realization process dragging on for months. During business disputes, evaluating seized commercial stocks (e.g., perishable goods or seasonal clothing) is particularly difficult, where the time factor is decisive and rapid appraisal is vitally important.

Georgian Legislation and Valuation Rules

The Law of Georgia on Enforcement Proceedings details the property valuation procedure. According to the law, the valuation of seized property is conducted by the enforcer or a specially invited expert/auditor. The valuation must be based on market value. The legislation establishes strict deadlines: upon the compilation of the appraisal report, the parties (creditor and debtor) are given a short period of a few days to review this report and appeal it in court. This is a critical moment—if a party does not file a complaint within this timeframe, the valuation is considered final, and the property goes to auction. At the first auction, the starting price of the property usually constitutes a specific percentage of the appraised value (as established by law). If the property is not sold, the price decreases at the second auction. That is why the accuracy of the initial valuation is of fundamental importance.

Stages of Appealing the Valuation and Court Practice

If the client (debtor or creditor) disagrees with the expert's report, the lawyer immediately initiates legal action. First, a lawsuit is prepared for the court demanding the annulment of the enforcement action (the appraisal act). Simultaneously, the lawyer files a motion to suspend the enforcement proceedings (i.e., holding the auction) until the dispute is resolved. To achieve success, it is necessary to present solid evidence, for which the lawyer orders an alternative, independent appraisal from a private auditing company (or the Samkharauli National Bureau). In court, the two expert reports are confronted. The judge evaluates which report is more substantiated and relies on real market data (for example, sales statistics of similar properties in the same neighborhood). If the court satisfies the lawsuit, a new valuation is appointed.

Challenges and Valuation of Specific Assets

The biggest challenge in the valuation process is determining the value of non-standard, specific assets that do not have an active market. For instance, appraising shares of closed joint-stock companies, unfinished constructions, specialized medical equipment, or intellectual property rights (patents, trademarks) poses a great difficulty for both the enforcer and the auditor. Erroneous, unrealistic conclusions are often drawn in such times. The time factor is also a challenge—delaying the expert appraisal can lead to physical depreciation of the property (e.g., obsolescence of equipment) or an increase in penalties on the debt. Therefore, the lawyer's role is not only to control the accuracy of the report but also to prevent artificial delays in the process.

Why You Should Trust legal.ge Lawyers

Appealing the valuation of seized property or defending its accuracy is a highly complex legal battle where every lost day and every percentage directly impacts your finances. Debtors often lose tens of thousands of Lari due to incorrect property valuation because they do not consult a professional in time. The legal.ge platform is an instrument that gives you access to the best enforcement lawyers and advocates operating in Georgia. In our directory, you can find specialists who have rich experience working with expert auditors and winning valuation disputes in court. Legal.ge will help you choose an advocate who will protect the true value of your property and ensure a fair auction.