Property Valuation... Towards More Accurate Prices
- Mandatory for the Expert Witness to submit a real estate report adhering to 18 fundamental conditions
- Registration with the Ministry of Commerce as a real estate appraiser... a prerequisite for granting the status of “Expert Witness”
- Valuation reports will reveal the true market value of the property upon completion of transactions
- Electronic linkage of reports with the Real Estate Registry to enhance valuation transparency and ensure accuracy in justice
- Real estate brokers or intermediaries are no longer eligible to apply to practice as Expert Witnesses
The impact of the new ministerial decree regulating the profession of “Expert Witness” will not be limited to organizing real estate valuation activities; it will extend to the real estate market itself. Awat Al-Sand, Deputy Minister of Justice, confirmed that compliance with the decree’s provisions will directly reflect on property prices by improving the quality of valuation reports and ensuring accurate determination of properties’ market values, based on scientific foundations and professional standards.
Following the issuance of the Minister of Justice, Advisor Nasser Al-Sameet, a regulatory and developmental decree for the Expert Witness profession aimed at enhancing real estate valuation activities, Al-Sand clarified in a statement to “Al-Rai” that adherence to the ministerial decree will directly affect property prices within the country. She noted that the decree established a fundamental condition for granting the status of “Expert Witness” to eligible individuals: registration with the Ministry of Commerce as a real estate appraiser. Additionally, Article 4 of the decree mandates that the Expert Witness provide a detailed real estate report and adhere to 18 fundamental conditions, thereby contributing to higher-quality valuation reports and directly impacting the accuracy of determining properties’ market values.
Al-Sand stated that the Minister of Justice, in his Decision No. 585 dated July 23, concerning the regulation of the Expert Witness profession—which traces its origins to Article 29 of Law No. 40 of 1980 on the Organization of the Public Administration of Experts—established a specialized committee to review previous decisions and set the controls and conditions governing them. Chaired by the Deputy Minister of Justice, the committee included several ministry officials and employees, alongside representatives from the private sector. Decision No. 585 is the outcome of this committee’s work.
She added that real estate valuations by Expert Witnesses will be digitized and linked to real estate registration transactions, enabling the identification of the property’s true market value at the time of transaction completion. She emphasized that the impact of these reports extends beyond the real estate market to include expert reports submitted to courts. When disputes related to properties are adjudicated, the Public Administration of Experts relies on Expert Witnesses to prepare real estate valuations, thereby enhancing the accuracy of electronic technical reports and supporting the achievement of justice.
Al-Sand pointed out that real estate brokers or intermediaries are no longer permitted to apply to practice as Expert Witnesses, as applicants must now be registered with the Ministry of Commerce as real estate appraisers. Currently, there are 73 registered real estate appraisers (Category C) with the Ministry of Commerce.
She noted that real estate valuation is an academic discipline taught in universities, and real estate appraisers must specialize in valuation according to approved scientific foundations and standards. They determine a property’s market value after analyzing financial aspects, plans, location, and factors influencing its value. This differs from the role of a “broker” or real estate intermediary, whose function is limited to marketing properties and mediating between buyers and sellers.
Al-Sand indicated that the decree included a set of controls and obligations for Expert Witnesses to comply with, including:
2. Non-disclosure of cases or data accessed during the performance of their duties.
3. Disclosure of any situation that may constitute a conflict of interest.
4. Recuse oneself from property valuation in the event of any form of conflict of interest.
