DEFINITION

The Appraisal Companies (AC) are professional institutions which employ appraisers to determine values of real estates, components of the real estates and real estate projects by gathering, analyzing, and applying relevant information with respect to the general accepted international principles of valuation.

REQUIREMENTS (COMPANIES)

The requirements for the AC's that will operate according to the capital market regulations are as follows. Note that other AC's are out of the scope of these requirements.

  • Establishment in the form of joint stock corporation.
  • Shares must be issued in terms of cash.
  • A minimum 200,000 TL of paid in capital.
  • A minimum 51% of the capital must belong to at least two responsible appraisers.
  • Including the responsible appraisers at least 5 appraisers must be employed.
  • Adequate office and equipment and qualified employees.
REQUIREMENTS
(PARTNERS, MANAGERS, APPRAISERS)

The partners, managers, auditors and appraisers of the AC's:

  • Must not be convicted of crimes like embezzle, misappropriation, corruption, bribery, breach of confidence, forgery, stealing, defraud, smuggling or breach of Capital Markets Law, Law of Banking and Law of Anti Money Laundering,
  • Must not be insolvent.
  • Should not be among the ones whose one or more of the activities have been terminated temporarily or permanently or not having responsibilities for disqualification of the foundations they were at, from membership to Stock Exchange Market temporarily or permanently,
OPERATIONAL PRINCIPLES

Main operational principles of the AC's are as follows:

  • The AC's and the responsible appraisers are responsible for the losses bared by their customers or third persons due to the deficiencies in the appraisal reports they sign.
  • The AC's and their appraisers must be objective, neutral and away from conflicts of interest.
  • AC's may not operate in other fields than appraisal.
  • Appraisers:

    - May not be employed by more than one AC.
    - May not work as a real estate broker.
    - May not except works out of their expertise.
    - May not be employed by a customer they have served for at least two years.

  • Appraisers, managers or the auditors may not use or make public the secret information they access in their works except for the cases of:

    - An open consent of the customer.
    - A demand by public institutions with regard to relevant regulations.
    - A demand by relevant professional associations for professional purposes.

  • The AC's must sign a contract with their customers which includes:

    - Information related to the subject of the appraisal.
    - Information related to the parties to the contract.
    - Principles related to the determination of the fee.
    - Principles related to the working hours and assigned appraisers.
    - Duration and condition for the abolishment of the contract.
    - Legal and financial responsibility of the AC.

  • The fee may be decided freely by the AC and the customer but:

    - May not be based on a pre-decided appraisal value.
    - May not be decided after the appraisal.
    - Payment of the fee may not be conditional.

  • AC's may sign know-how contracts with international AC's which includes:

    - Name and address of the international AC.
    - Name and address of the AC.
    - Principles related to transfer of knowledge and experience.
    - Whether the AC will use the name of the international AC in its appraisal reports or not.
    - Duration of the contract.

  • The appraisal reports of the AC's must include the standard information laid down in the regulations.